Archive for April, 2009
THE ANSWERS
April 30th, 2009 categories: Buying
Hopefully you read yesterday’s blog. I told you that I would provide my answers to the questions that should be asked of any Chicago real estate broker you might be considering to help you with buying a new home. Here they are.
- How long have you been selling real estate in Chicago? I have been a full time licensed salesperson since 1989–20 years.
- Are you a full time Realtor? Yes, always have been.
- Have you ever been sued, mediated, arbitrated or found guilty of ethical violation by your local Board of Realtors? No on all counts.
- How do you represent your buyers’ interests? My first obligation is to protect my client’s interests. I must disclose all that I know about a property or a condo building. I must provide comparable statistics to help my buyer client make an informed decision about what price to offer. I must relay all offers and counter offers without personal comment and still use my best bargaining techniques to help the seller’s agent understand my buyer’s thinking.
- Can you give me two or three past clients who have used you to purchase a home? Yes, just e-mail me and I will e-mail their names and contact information to you.
- Can you give me two or three brokers at other firms who would be willing to talk to me about your reputation in the brokerage community? Yes, just e-mail me and I will e-mail their names and contact information to you.
When you have the answers to these six questions, you will have more understanding about the experience and track record of any agent you are considering hiring. Next step is to let that lucky agent know that you would like to work with them.
Please feel free to call me at 312-981-2360 or e-mail me.
Related Articles: Dual Agency–How Does It Work, 4-09; Love At First Sight? Go Carefully, 4-09; Too Much Disclosure? Never!, 4-09; The Closing Is The End, The Very End, 4-09; A Realtor? I Can Do It Myself!, 4-09
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THINKING OF BUYING CHICAGO REAL ESTATE?
April 29th, 2009 categories: Buying
This is undoubtedly the best time to buy a home that I have seen in my twenty years as a full-time Realtor. First time buyers have that fabulous tax credit, all buyers can enjoy almost record setting low interest rates, and there is a gracious plenty of inventory. Go for it–buy that new home NOW!
You will surely want to use a Realtor to help you with that all-important new home decision. Remember, you will not spend more money in one day until you buy your next home–and you will be paying on that mortgage for many years. You can get a referral from a friend, you can go with a national firm or you can stick a pin in the Sunday real estate section. Of course you want to select your Realtor carefully. That agent will be in charge of making showing appointments, helping you select properties to view, writing, negotiating and managing your purchase contract. Here are six questions to ask the Realtors you interview.
- How long have you been in real estate?
- Are you a full time Realtor?
- Have you ever been sued, mediated, arbitrated or found guilty of an ethical violation by your local Board of Realtors?
- How do you represent your buyers’ interests?
- Can you give me two or three past clients who have bought from you and who would be willing to talk to me about your service?
- Can you provide me with two or three brokers at other firms who would be willing to talk to me about your reputation in the brokerage community?
My answers to the six questions will be in tomorrow’s blog. Just remember this, there is no better time than NOW to buy a home–just call me at 312-981-2360 or e-mail me and I can e-mail you listings that might tickle your fancy and entice you to buy a new home.
Related articles: Love At First Sight? Go Carefully, 4-09; Too Much Disclosure? Never!, 4-09; The Closing Is The End, The Very End, 4-09; A Realtor? I Can Do It Myself!,
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MIXED REVIEWS–WHERE ARE WE?
April 28th, 2009 categories: Buying, Selling
Maybe we should have had our leprechaun dancing today! The latest Case Shiller report is interesting reading. Have we bottomed out–some people think so and others don’t. Even though signals are mixed it seems that we MAY be near the bottom of the price declines. And interestingly enough, Chicago, once again, is not nearly as badly off as other areas of the country. Probably the most interesting part for us is the section containing Chicago statistics. This article is a good informative read!
It is still a terrific time to buy–call me if you would like to find out what is on the market, 312-981-2360 or e-mail me.
Related articles: Leprechaun Dance Closer!, 4-09; Love At First Sight? Go Carefully, 4-09
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DUAL AGENCY–HOW DOES IT WORK?
April 27th, 2009 categories: Buying, Selling
Dual agency is a real puzzle for most buyers and sellers. They think that their agent is “their agent.” and that is not exactly true. Dual agency happens when an agent represents both the buyer and the seller. A potential buyer might walk into an open house, fall in love with the property, and decide to buy it. In that case the listing agent would represent both sides of the transaction. It is a very difficult balancing act for the agent but it can be done–with both the seller and the buyer’s written consent.
Illinois real estate law allows dual agency. Our Baird & Warner listing contract has a section for the sellers to either accept or decline dual agency. Baird & Warner also has a form called the Dual Agency Information and Consent Form. And after that, the contract to purchase a home has a specific place for identifying the broker or brokers. Obviously, disclosure and information are the keys.
OK, so what is agency anyhow? Agency happens when one person represents the interests of another person. Illinois law requires that once a real estate licensee and a client have entered into an agency relationship, the licensee owes their client certain duties and must act in the client’s best interest.
And next, how is an agency relationship established? A written agreement, such as a listing contract or a buyer’s designated agent contract, is one way to form an agency relationship. Without a written agreement, Illinois law presumes that an agency relationship is formed when you are working with a client.
Now you are probably wondering so what happens to me if my listing is sold by my listing agent? My practice is to tell my seller when the first showing is requested. Since we show our own listings in Chicago, I inform them when I book the appointment. If the buyer loves the home and wants to buy it, I again inform the sellers that the sale contract will be presented by me for the buyer–I will be a dual agent. And I have both parties sign the Baird & Warner Dual Agency Information and Consent form. At each step of the process, I give both the seller and the buyer a chance to say no to dual agency. In today’s market the last thing anyone wants to lose is a buyer and as a twenty year real estate veteran, the last thing I want to do is for my client to be uncomfortable with what is happening. If the seller or the buyer have the least bit of uneasiness about my being a dual agent, I like to refer them to another agent in my office for the writing of the contract for purchase and for negotiating the offer. Usually it works out that I refer the buyer.
OK, what is my responsibility if both buyer and seller agree to allow dual agency? First and foremost of course is to treat the clients honestly. I must provide information about the property to the buyer–disclose all latent defects to the buyer. I must share the financial qualifications of the buyer with the seller. I must explain real estate terms, closing costs and procedures to both buyer and seller. I must help the buyer arrange for a property inspection. I must give both buyer and seller comparable properties that have sold recently so that they can make an informed decision about what price to offer or accept.
All well and good–what CAN’T I do when acting as a dual agent. I can not disclose confidential information that I may have without the client’s written approval. I can’t disclose the price the seller is willing to accept, if I know it, without written permission. I can’t disclose the price the buyer is willing to pay if I know that figure, written permission to disclose is required here also. I cannot recommend a price to either buyer or seller. In other words I have to remain as a totally neutral conduit for information–as we said in the beginning, a very difficult balancing act.
So there you have it–Dual Agency 101. If you have further questions, please call me at 312-981-2360 or e-mail me.
Related articles: The Closing Is The End, The Very End, 4-09; Too Much Disclosure? Never!, 4-09
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LEPRECHAUN DANCE CLOSER!
April 24th, 2009 categories: Buying, Market Trends, Real Estate Finance, Selling
After a week of coughing, sneezing, and blowing, hot tea, orange juice and bed rest with that ginormous cold that has visited Chicago, I was really encouraged to read Steven Levitt’s blog yesterday. It may take awhile but it seems that mortgage approvals may be easier and home values seem to be increasing a bit. The telling phrase for me was Levitt’s comment that 2009 home values are on a par with 2005 home values. To read the entire short article, just click. I will keep looking for signs that will give the leprechaun the impetus to do leprechaun jig–stay tuned!
Related articles: The First Time Home Buyer Tax Credit Puzzle, 3-09; Buy To Resell, 3-09; Buy Now Or Wait!, 3-09
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THE CLOSING IS THE END, THE VERY END
April 23rd, 2009 categories: Buying
When it’s over, it’s over–after all of the papers are signed, there is no chance to make changes. You must be sure that everything is in order and that all promises have been kept BEFORE you get to the closing table.
The closing table is the end of the line–you sign your name dozens of times, you initial dozens of times, you hand over great huge bunches of money, and you put yourself in debt for a very long time. This is serious business.
When you do the final walk through with your Realtor, you should have receipts for any inspection issues that the seller was to take care of and you should be able, in most cases, to see that the work has been done. Before you go to the final walk through, check the contract and any agreements your lawyer has reached with the seller’s lawyer. Be sure that the garage has been cleaned out, be sure that the leaky faucet in the master bath has been fixed. Do not take any one’s word that the problem will be repaired next week.
Sometimes the sellers can’t give possession on the agreed upon date. What to do then? The sellers should be charged rent–an amount large enough to give them an incentive to move on. The rent should be on a daily basis. Another alternative is to delay the closing until the sellers can move out. What to do if the sellers refuse to move out after a week or so and then they don’t want to pay the rent? A possession escrow may be suggested by your attorney–a certain amount of the purchase price is put into an escrow account until you, the buyer, can actually move into your new home. Another solution is to simply delay closing until the seller can give possession.
Above all, don’t be afraid to put off closing until all unfinished business has been resolved. Remember that great big debt that you will be paying on for many years. At closing you review and sign all the loan documents, the bill of sale and title. Your attorney will tell you how much money you will need to close and it must be in either a cashier’s check or a certified check. You will make the down payment less the amount of your earnest money. All closing costs–the expenses for transferring the property–will be paid at closing. OK, you’ve signed and paid–the home is yours! By doing your homework ahead of time and by not being afraid to wait until issues are resolved, you will be comfortable and able to enjoy your new home.
Do you have questions about Chicago real estate? Call me at 312-981-2360 or e-mail me.
Related articles: Love At First Sight? Go Carefully, 4-09; Buy To Resell, Plan For It, 3-09
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OUR GOVERNMENT AT WORK–DEDUCTIONS!
April 16th, 2009 categories: Market Trends
It’s the day after taxes and we’re all a bit loopy from the stress and strain–it seemed a good idea to tell you about some of the wackiest deductions our government has allowed. A bit of comic relief is probably welcome just now. One of the strangest deductions allowed is body oil for a body builder–they use the oil to make their muscles glisten and how about a private airplane or a trip to Bermuda? The whole article makes for some very interesting reading–just click here.
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LOVE AT FIRST SIGHT? GO CAREFULLY
April 13th, 2009 categories: Buying
Many of my buyer clients tell me that they just “knew” when the door opened to the home they bought–it was truly “love at first sight.” The purchase of a new home usually has three parts. One part practical, one part reflection, one part 100% emotion. The emotion is the missing part of the process until you find “it.”
When you first begin to look for a new home, you will have a long list of “must haves.” As you progress in the search, these “must haves” usually get prioritized–an in-unit washer dryer in a condo, a dog in a condo or town home, a view–and any one of these can be right out the window if the home just “feels right.” Figuring out how many bedrooms and bathrooms and how many dollars is the easy part–finding the home that speaks to you is the key to being a happy home owner.
Let’s suppose you find a home that doesn’t include the essence of your “must have” list and you are totally smitten–what then? Take a deep breath–talk to your Realtor and get their honest feelings about the home. Consider looking at the property with a trusted friend or relative–someone whose opinion you value and whose judgment you trust.
One good thing about the market today is that you usually have a bit of time to make this important decision. And even if you feel you don’t have plenty of time, take it. Remember that you are probably going to be making payments on the place for many years. Remember that you want to feel good and enjoy the home while you are in it. Be sure it isn’t a flashy place that has blinded you to the lack of your “must haves,” the deal breakers.
Do you need a Realtor with 20 years experience to help you find the missing piece of the puzzle? Call me at 312-981-2360 or e-mail me.
Related articles: Too Much Disclosure? Never!, 4-09; A Realtor? I Can Do It Myself!, 4-09; Buy To Re-sell–Plan For It, 3-09
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TOO MUCH DISCLOSURE? NEVER!
April 9th, 2009 categories: Buying, Selling
There just can’t be too much disclosure in a real estate transaction. Actually Illinois has laws that cover the sale of a condominium and any other real property. Disclosure is probably a good example of the golden rule principle–disclose unto others what you would have disclosed unto you.
- A seller should disclose anything that will affect the value or the desirability of a home. Deciding factors that affect the value is not subjective. For instance we have an area in Chicago called the Old Town Triangle. St. Michael’s Church is in the heart of the area and there are some lovely homes near the church. I love the church bells when I am showing property nearby. I am sure that the bells could also be a deal breaker for another person.
- Illinois law requires that three disclosure forms be given to all buyers. The Residential Real Property Disclosure Report, The Disclosure of Information and Acknowledgment About Lead-based Paint and Lead Based Paint Hazards, and the Disclosure of Information on Radon Hazards. These forms are filled out by the seller when a listing is taken.
- The State of Illinois Condominium Act is designed to protect condominium buyers. Section 22.1 requires that certain information be given to any prospective purchaser who wants it. The information listed includes such things as the Declaration and Bylaws, Rules and Regulations, current budget and last audited financial statement. Obviously this information will help a buyer make an informed decision about a building. Many buyers are also requesting 12 months of board meeting minutes so that they will know what improvements are being discussed.
- The City of Chicago has an ordinance that requires a disclosure of heating and cooling costs when those costs are not included in the assessment.
- Your role in the transaction is limited–the seller and the agent are just that–not inspectors, appraisers, lawyers, or contractors. Be sure you answer only appropriate questions and refer the rest to the person best suited to give a professional answer.
- When in doubt–DISCLOSE! Absolute honesty in always the best policy.
If you have any questions about these disclosures or about Chicago real estate, please call me at 312-981-2360 or e-mail me.
Related Articles: 5 Things Buyers Really, Really Don’t Like, 3-09; For Sale By Owner–Yes or No?, 3-09
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A DOOR IS A DOOR IS A DOOR!
April 8th, 2009 categories: Market Trends, Selling
Doors perform a lot of functions, an outside door keeps the weather and intruders out–and isn’t this a perfect WOW of a front door, this red one? One of my favorite listings in the past was a tiny house with a blatantly red front door! Doors are a transition from one room to another. Doors give privacy and can make a boring wall interesting.
Many things can be done with doors to make them more attention catching. Think about adding an arch above–you can get them in polyurethane and wood. Polyurethane is the least expensive and nobody can tell that it isn’t wood if it is painted the same color as the trim. If you are a basketball player, you might be able to touch the arch and tell that it isn’t wood–if you are just average height–polyurethane is just fine.
If the door is supposed to disappear, paint it the same as the trim and the wall. Wood molding around the door will make it look more elegantly expensive. Wood trim can also be added to a flat door to give it a more costly look.
Glass doors can bring light and view into the room. Transoms (windows above a wooden door) allows privacy and still bring light into a room or hallway. Some transoms can be opened to allow for a flow of air–a very popular idea in the days before air conditioning.
Folding doors can be made more designer looking by painting the two sides different colors–blue and white, or pink and lavender or any other color combination that strikes your fancy. Might be best to try this idea on a small door first.
So there it is–we don’t have to have nondescript doors, do we?
If you have questions about Chicago Real Estate, please call me at 312-981-2360 or e-mail me.
Related Articles: 5 Things Buyers Really, Really Don’t Like, 3-09; Kitchen Countertops–A Primer, 3-09
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