2009 September | Ruth Karel Chicago Real Estate

Archive for September, 2009

OLYMPIC MANIA OVER THE TOP

September 29th, 2009 categories: Market Trends

As the Friday, October 2, deadline for the announcement of the winner of the 2016 games approaches, every newspaper, every TV newscast, and every radio newscast has some news about what is going on at the IOC site in Copenhagen. Chicagoans seem to be either violently opposed or violently in favor of the Olympics coming to Chicago. To me one of the most unemotional approaches to the question is in Don DeBat’s column, “Olympics would have historic impact on economy, housing in Chicago.” DeBat details a very reasoned approach to saving the buildings built by Walter Gropius who founded the Bauhaus movement. Whichever side of the Chicago Olympics question you are on, reading the article is a worthwhile exercise.

Need someone to talk Chicago real estate with–just call me, 312-981-2360 (direct) or 3q2-607-1306 (cell). you can also e-mail me.

DOES TRUMP TRUMP ALL IN CHICAGO?

September 28th, 2009 categories: New Developments

Since the Spire is not going to be built–at least not in the foreseeable future–Trump Tower is probably the most exciting new residential building in Chicago right now. Aqua is a close second of course. Blair Kamin’s article in yesterday’s Chicago Tribune is a wonderful critique of the building. I agree with most of what he says–the building has a split personality. From some angles it is slim, trim and elegant and from others it is heavy, frumpy and dowdy. One of the best things that it does is open up the Riverwalk truly an exciting new space that has been neglected for entirely too long. If you are at all interested in Chicago architecture, Kamin’s article is worth a read. Since I am a former architectural historian–I loved it! To read the entire article, just click here.

Here are a few other posts having nothing to do with buying, selling, financing, staging or remodeling real estate–you might enjoy!

Sullivan Saved and Restored

Chicago Spire Construction Stops

If you would like to discuss buying, selling, financing, staging, or remodelling real estate in Chicago–please call me! Direct, 312-2360, cell, 312-607-306–or e-mail.

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CONVENTIONAL SALE VS. DISTRESSED PROPERTY SALE

September 25th, 2009 categories: Buying, Market Trends, Selling

Several buyers that I have worked with in the past few months have wanted to explore distressed properties in the area. This has mostly turned out to be an exercise in frustration. It is strictly counter-intuitive and also true that banks just don’t respond in timely fashion–wouldn’t you think they would want to get rid of the inventory? Over twenty years ago in real estate school, I learned that “time is of the essence for any contract.” Apparently the banks dealing with short sales, foreclosures, etc., never went to real estate school. They do take their own sweet time in responding. An associate of mine has been working on a foreclosure sale for over a year–she heartily wishes she had never heard of the property and some days the buyer. My advice to my buyers is to avoid distressed properties unless you are an investor with endless time or have no pressure to move from your current home.

We are blessed in Chicago that our percentage of distressed properties is not as bad as in some other parts of the country. In some areas of California distressed properties are 65 per cent of the sales market. Many foreclosures and short sales are in extremely poor condition. Owners may strip the home of appliances and cabinetes, paint the walls black–do all manner of mischief.

If you are selling your home, clean it up, take care of all repairs, paint, put in new carpet–do everything to give it the most appeal for a buyer. This will definitely give you an advantage over the distressed properties that require a great deal of work to be habitable.

Does this careful preparation give you a price advantage over the properties in foreclosue or the short sales? Definitely! You can list your price higher than the distressed properties–within reason. Banks are notoriously resistant to doing any improvements to the homes in their portfolios or paying for closing costs or buying down interest rtes. You can give your home an edge in the market by offering any or all of these perks–none of these ideas are popular with banks.

Here are a few posts that you might also find informative:

Buying A Foreclosed Home–Is It For Me?

Why Get An Inspector For My New Home?

Bank Owned Homes–Are They a Good Deal?

Do you need an experienced Realtor to help you with home buying or selling? Please just call me–312-981-2360 (direct) or 312-607-1306 (cell). E-mail works just fine too!

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REAL ESTATE CLOSING HOMEWORK

September 23rd, 2009 categories: Buying

At last–the big day, you are closing on and getting the keys to your new home! The closing table can be a hurried and harried place with dozens of pieces of paper being circulated for initials and signatures. It is a good idea to think ahead a bit. Here are a few things that can happen at or near closing that you can be prepared for:

The seller may need to occupy your new home after the closing. This can happen for a variety of reasons. Perhaps there is a delay in the closing of their new home–perhaps their financing has been delayed (not uncommon today)–at any rate they want to stay after closing. Of course you want to be Mr. or Ms. Nice and agree to the extra time if you possibly can. First, you need to charge enough rent to cover your PITA (principal, interest, taxes, assessment). It seems to me that a significant amount of money should be put into an escrow account to motivate the sellers to leave ASAP and to cover any damage to the home. Also, do an inspection before giving any money back to be sure that your new home has been left jut like it was when you did your final walk through.
Some closing costs are deductible. Points, pro-rated mortgage interest and pro-rated property taxes are deductible. Some of the closing costs are not deducible but can be added to your home’s adjusted tax basis to reduce tax liability when you sell. Be sure you keep good records and hang on to your RESPA for dear life–your accountant will need it when you sell to find out which specific deductions will apply at that time.
Think about a home-protection plan to cover major systems. Sometimes a seller will provide a plan or will share the cost with you. This is an especially good idea if you are buying an older home.
Ask your Realtor about any questions you may have about closing.

Hopefully this advice will help you get through your closing unharried and unhurried!

Here are a couple of posts that will help you come through your closing unscathed:

Record Keeping 101 For Homeowners

First Time Buyer Down Payments

Closing Costs Cost A Lot

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HOW GREEN GROWS CHICAGO

September 22nd, 2009 categories: Buying, Chicago Events, Lifestyle, Selling

As I have told you in past blogs, I am a certified Chicagophile–I love this city! It is relatively clean, has beautiful architecture, amazing parks and really, truly nice people. It is nice to know that Chicago ranks No. 1 in the country for certified green buildings. A non-profit organization, the U. S. Green Building Council, has ranked us at the top. Blair Kamin in his blog, Cityscapes, wrote about this ranking recently. To read the entire article, just click here. Our Mayor Daley wants to make Chicago the greenest city in the country and he has done it. 88 building projects in Chicago have earned the LEED (Leadership in Energy and Environmental Design–there now, didn’t you always wonder what the letters stood for?) with the nest closest city Portland, Oregon, having 73. The certification is done by scoring points in a system set up by the council. Our City Hall has a green roof that is only visible from office building windows that are higher than the roof and face in a direction that enables you to see it–a mistake I think I think the roof should be open to the public, at least on a limited basis, so we know where our tax dollars went and so we know what a green roof really is. It is nice to know that we are truly Number One in an area that is essential to our environment.

Need someone to talk Chicago Real Estate with? I am applying for the opening–just call me at 312-981-2360 ( direct dial) or 312-607-1306 (cell phone). And last but not least–e-mail me!

HOW TO KEEP A GOOD CREDIT SCORE

September 21st, 2009 categories: Buying, Market Trends, Selling

When I first began to blog, I referred to Ilyce Glink in an early post as a source for information. Her website thinkglink.com is a treasure trove of articles for home owners, home buyers and home sellers. In Sunday’s Tribune Ilyce had an article about maintaining a good credit score and what will affect that score. If you are thinking of buying a home in the near future, the article is a must read. And for everybody it’s good to know what affects your FICO credit score and your credit report. To read all of “What you can do to maintain a good credit score,” just click here.

Here a some posts that you might find interesting:

Real Estate Info Help

Real Estate and the Internet

Before You Buy a Conco

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HOLD EVERYTHING–STORAGE NEEDED

September 18th, 2009 categories: Buying, Selling

Like the young lady in the picture, we are all victims of our belongings and face the perpetual problem of where to store them. Storage can lurk in the most unlikely places! If you are down-sizing, it is essential that you pitch as much “stuff” as you possibly can. We’ve talked about the de-cluttering process many times and all of that good advice still applies. And having said all of that, most of us who downsize still have a lot of belongings ranging from clothes to table ware to books. If you look carefully at your new space, you may be surprised at the unexpected places storage can be found.

One of my clients actually had a narrow storage space built into the end of her dining room. Only a little over a foot gave her storage for her heirloom china, glassware, and silver. She covered the space with sliding doors that opened with a touch latch and painted them to match the dining room walls. They are practically invisible and allowed her to eliminate bringing a huge sideboard from her suburban home.
Closets–they can be organized to make the most of the space in any number of ways–ranging from the very high end to plastic covered wire. Double hanging, shelves or drawers for clothing that can be folded flat–there are a lot of options for organized closets.
The living room doesn’t seem a likely space for storage, now does it? Think about footstools that open to provide space for magazines or etceteras. My husband and I actually had a very handsome end table that doubled as a file cabinet at one point in our lives. And of course there are always bookshelves for art objects AND books.
In the bedroom there are beds with storage drawers and also under bed storage boxes.
Kitchens and bathrooms frequently have a lot of wasted storage space. Look over all of it and then visit a local store specializing in storage containers. Keep an open mind–just because it says breadbox on the descriptive label doesn’t mean you can’t put your clean pyjamas in it!
Home Office–again a prime target for browsing a storage container store. We are currently using a container that was meant for storing stockings or socks as an envelope sorter. It has just the right number of dividers for the different sized envelopes that we use most frequently.

The lesson, look around, think hard about what you are storing, why you are storing it, and how you can store it most efficiently.

Questions about Chicago real estate? Call me at 312-981-2360 (direct) or 312-607-1306 (cell). I also love my e-mail!

Here are some articles that many help you in the process:

A Linen Closet Staging–Why Not?

Home Office 101

Closets, Closets, Closets

When In Doubt, Throw It Out!

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LEPRECHAUN AGAIN–HOOOOORAY!

September 17th, 2009 categories: Market Trends

New Image Wow! It has been awhile since we’ve seen a leprechaun and this one seems very relaxed and confidently happy, doesn’t he? For several weeks now I have almost written a blog worthy of a leprechaun of some sort or other. Some days the news would be encouraging and other days it would be discouraging so I just didn’t pull out our trusty leprechaun for a celebration. It would seem that one of my best sources for honest, level-headed real estate blogging, Steve Levitt, feels that the real estate recovery may truly be under way. His post today, The Housing Market Index Reaches a 16-Month High, refers to the National Home Builders monthly report is a survey that is meant “to take the pulse of the single-family housing market.” To read the entire article, just click here. The references in Levitt’s post seem to augur well for the whole real estate segment of our economy. Let’s hope so!

Chicago real estate questions? How about a twenty-year veteran to answer them for you–just call me at 312-981-2360 (direct) or 312-607-1360 (cell). I love e-mail too!

Here are a few articles that you might enjoy:

Turnaround, Turnaround Wherefore Art Thou?

National Real Estate Getting Better Too!

More Good News for Chicago Housing

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REAL ESTATE RAPPORT

September 16th, 2009 categories: Buying, Selling

A definition of rapport could be “A relationship of mutual understanding or trust and agreement between people.” To me it should read mutual understanding, trust AND agreement. In any real estate transaction, mutual understanding, trust and agreement are key. Here are a few components needed to make that rapport a reality.

As a Realtor I need to know that my buyer is working exclusively with me. I need to know that my seller is not asking his Aunt Minnie, who sold real estate in Podunk twenty five years ago, if what I am doing is the right thing.
In return, my buyer needs to know that I am truly listening to their wish list, that I am truly scouring the Multiple Listing Service for the perfect property for them. Also my seller needs to feel deep in their heart that I am doing everything possible to find a great well-qualified buyer for them.
We must be able to listen to each other, really, really listen to each other–I guess this is called communication and it must be a two-way street.
Honesty is foremost, of course. This means the ability to have the hard conversations–telling people things they probably don’t want to hear.
Sellers in today’s market need to be able to understand that the price your agent suggests to you may well be a price that takes your breath away because it is less than you paid for your home, less than a neighbor sold for, and/or much less than you want or need.
so that if, on a beautiful Sunday afternoon, they see an open house that interests them they can be sure they will be represented. A buyer should always give their agent’s name and their card, if they have one, when attending an open house without their Realtor. If they don’t, they can end up without representation because the agent holding the open house is working for the seller.

If you feel that your Realtor is not doing enough to sell your home or that your Realtor is not showing you the kind of properties you want, talk to them about it. Most of us are open to suggestion and if we’re not, move on and find a Realtor that is. You are selling what is probably your biggest asset or you are buying a debt that will go on for years and years. RAPPORT IS PRIMARY!

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TAX IMPLICATIONS OF A 401 (k) WITHDDRAWAL

September 15th, 2009 categories: Buying, Market Trends

There is a bundle of money sitting in my 401 (k) and I really, really want to buy that new home–I’m really hard pressed for cash–large down payment, closing costs, moving costs and I have that big bunch of money sitting in my 401 (k) account. Why not use some of that to help me through this cash crunch? Well there are some very valid reasons to use the money so long as you understand the consequences–the penalties that attach to the transaction. Steven Levitt’s blog today gives a great comprehensive overview of the penalties. To read the entire article, just click here. The golden egg might turn out to be more leaden than you think!