Archive for December, 2009
A FINAL WALK THROUGH IS A MANDATORY MUST DO
December 28th, 2009 categories: Buying, Market Trends
Wow! Am I glad to be back in Chicago–my husband and I left O’Hare field an hour late, missed our connecting flight from Cedar Falls, Iowa, to Dallas and finally made the only flight that would get us to Dallas on the 23rd–as stand-by passengers. Being welcomed by our son and his wife and told that the flight we were confirmed on had been canceled was the occasion for huge gratitude. Fate kept us from a miserable Christmas in something like a Red Roof Inn, far far away from our loved ones. The whole middle of the country was closed and even sunny Dallas had a four-inch snowfall and their first white Christmas in 80 years. As refugees from Chicago’s wintry scene we laughed about it! Coming back to Chicago we found a snowy city–one that we love so very much.
Enough about me–a final walk through is absolutely essential. In Chicago local custom is for the lawyers to negotiate the inspection items–who pays for the missing window screen, how much should the allowance for the plumber to fix the clogged drain be–that sort of thing. Shortly before closing, the afternoon before or the morning of, you, as a buyer, should go to the property with your Realtor and usually the seller’s Realtor, with the list of inspection items that needed to be repaired or allowed for. Remember, usually you have not seen your new home since the contract was finalized. That was probably at least forty-five days ago and lots can happen in between. I have never had a really, really serious problem and I work hard to be sure that I won’t ever have one. I ask my buyers to bring their list of inspection items and we go through them one by one–this one the seller was going to have repaired, that one the seller was going to give an allowance for. We check that list and check it again. Usually the final walk through goes just fine–sometimes there is a misunderstanding about a light fixture that was removed or some shelving that should have been left and the attorneys negotiate that at the closing table. However, I have heard of all the kitchen and laundry appliances being removed when they were supposed to be left in place and other horror stories about rooms being painted black, etc. The big thing to remember that this is the last time you have to be sure that everything is as it was when you fell in love with your new home.
Are you thinking of using the tax credit as either a new home owner or as a move-up owner? If you are, please let me know–it is very easy for me to e-mail listings to you. Just call me at 312-981-2360 (direct) or cell phone (312-607-1306). I like e-mail too!
Here are some other posts you might like:
The Closing is the End, the Very End
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MERRY CHRISTMAS!
December 21st, 2009 categories: Lifestyle
This is my last blog until after Christmas–and I am ready for a big dose of love. My husband and I started a tradition several years ago. We rotate Christmas celebrations among our sons. We feel that young families need to establish their own traditions–just as we did. One of my favorites that we did for many years was a trip to church to say goodnight to Baby Jesus. Last year it was our year for Cincinnati only a huge ice and snow storm made driving impossible and we wound up staying in Chicago. We realized that it was our very first Christmas alone ever–just the two of us. My husband’s family lived in the Chicago area and my family lived in Missouri so we would go one place or the other for Thanksgiving and Christmas. This year our Dallas family has won us. As always we’re very excited about seeing them and their home and their friends and our daughter-in-law’s Dallas relatives. We are truly grateful for the friends who have e-mailed or called us offering Christmas Eve and Christmas Day invitations in case we get snowed in again. I guess this is a long way around to tell you how much I am looking forward to a few days off, even from my favorite thing, my blog! It is my most sincere wish that this holiday is a blessed one for you.
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CHOOSING A LISTING AGENT? HERE’S HOW
December 18th, 2009 categories: Market Trends, Selling
Given today’s market conditions it is crucial that you make a wise decision in choosing your listing agent. The market is improving–no doubt about that. And there is still a whole whale of a lot of inventory to be sold off. Here in Chicago the glut of new construction condos is slowing to a trickle which will help the resale market–and there is still a gracious plenty of homes for sale. Here are a few criteria that need your consideration before you sign a contract to list your home.
- Asking a friend or a co-worker for a reference is a good idea–ask about the level of service–were they kept aware of new properties coming on in their price range and search area, was the agent really well informed about the area or the building, did they feel absolute trust in their agent–all great questions.
- Be sure of the agent’s marketing plan. It’s acceptable behaviour to ask for a marketing plan in writing. Be aware that newspaper ads are not nearly as important as they used to be. An internet presence is much more effective these days and I am pleased to say that Baird & Warner, my company, has an absolutely stunning, fantabulous internet presence.
- Don’t let an agent “buy” your listing by giving you an unrealistic high price for your home. Be sure the agent gives you a detailed analysis of past sales of similar properties–the current for sales aren’t nearly as important. Closed sales tell you what price people will pay for a property similar to yours. Watching market times is a help also.
- Be sure that your agent is absolutely honest and trustworthy. Your home is one of your most valuable assets and you want to entrust the sale of this asset to someone who is totally, brutally (sometimes) honest with you.
- Be sure that your agent answers your calls quickly and answers your questions fully. Expect your agent to deal with you in person, not through an assistant, most of the time. You should ask for frequent market updates–what has closed, what has gone pending and what is new on the market.
- Ask your agent to call you with feedback after showings–it is a little more work for the agent, but feedback gives you an idea of what potential buyers are seeing and feeling.
If you are thinking of selling a piece of Chicago real estate, please call me. My direct dial is 312-981-2360, my cell phone is 312-607-1306. E-mail is fine too!
Here are some other posts that might interest you:
In God We Trust, and Our Realtor. . .
Paint–the Easiest Cheapest Refresher
| Discussion: 1 Comment »
UNDERWRITING CAN BE A MINEFIELD!
December 17th, 2009 categories: Buying, Market Trends, Real Estate Finance, Selling
A recent article by Kay Severinsen, gives a great example of what can happen to a mortgage application while it is being processed. I won’t relate the nightmare happenings in detail–you can read the article for that. Kay makes the point that you can avoid some of the problems with a few simple precautions. To read the entire article, just click here. Kay suggests that to prevent a frustrating experience you do a few things such as:
- Have your credit in good order.
- Be absolutely George Washington truthful on the loan application.
- Choose your lender carefully–use one recommended by your Realtor or one that has served a trusted friend well in the recent past. Be sure to meet the broker in person–online rate shopping is a good place to start and you should still be able to meet with the person you are dealing with.
- Look at the association very carefully if you are buying a condo. The Illinois Condominium Act helps a great deal with that. Have your Realtor find out about any possible special assessments and most particularly about any pending lawsuits.
- Sellers–listen to your Realtor about price–today’s market is a different kettle of fish.
- For condo buyers it is probably best to find an FHA approved building because of the smaller amount of down payment needed.
Chicago real estate is on the rebound–I would really like to tell you about it. Just contact me at 312-981-2369 (direct), or 312-607-1306.
Other articles that might appeal to you:
15 Year Mortgage vs 30 Year Mortgage
Mortgage Approval Process No Nos
| Discussion: 1 Comment »
ENERGY TAX CREDITS GOING DOWN THE DRAIN!
December 16th, 2009 categories: Buying, Market Trends, Real Estate Finance, Selling
The American Recovery and Reinvestment Act is one of two government acts that can put some real dollars in your pocket. A 30 percent tax credit, up to $1500, can be claimed for a lot of energy saving products. Among them are tank-less water heaters, windows and doors, roofs, insulation, and alternative energy sources. The provision that covers this is the Energy Property Credit. You can qualify for the credit if your improvements are made in 2009 and 2010. Here are some of the categories and requirements:
- Insulation–the purpose must be to insulate. Insulated siding does not qualify.
- Windows, doors, and skylights. You should see a red or black label along with the Energy Star designation on the product. It is also a good idea to look for the National Fenestration Rating Council (NFRC) label.
- Storm windows and doors. Ask your supplier for the Manufacturer’s Certification Statement.
- Roofs. Only the actual roofing materials qualify and they must be asphalt roofs with appropriate cooling granules or metal roofs with appropriate pigmented granules. No credit is given for the labor or coatings.
- Alternative energy sources. The credit for this is generous–up to 30 per cent of the cost, no upper limit until 2016 for both existing homes and new construction. Best to find out about the specifics on this one from a tax accountant. This one makes me wish somebody would come up with a way a condo owner could have a solar or wind powered generator–many of the condos in Chicago were built when all electric building was the rage and we now are saddled with heating and cooling bills that could be helped with a wind or solar generator.
- A little known rebate is being given by the Department of Energy for getting rid of old energy hog appliances. Note that this is not a trade-in program–it is a rebate. Any spanking new appliance with an Energy Star logo is eligible. Rebates should start at the end of 2009 and really get going in 2010. For more information go to energysavers.gov/financial/index.cfm and click on Rebates for Energy Star Appliances.
Thinking of using the first-time-buyers or the move-up buyers tax credit? Let me know if you have questions about Chicago neighborhoods, availability of properties, or any other Chicago real estate questions. Call me at 312-981-2360 (direct) or 312-607-130. I would love to talk to you!
Here are a few more articles you might find interesting:
Need to Spruce Up Your Home and Stretch Your Dollars?
| Discussion: 5 Comments »
PAINT–THE EASIEST CHEAPEST REFRESHER
December 15th, 2009 categories: Lifestyle, Selling
Try it–you’ll like it! Paint has to be the easiest cheapest way to improve the appearance of a room or an entire home. You don’t need a building permit. You don’t need an electrician’s or plumber’s union card–all you need is a bit of paint and some decent equipment and a bit of time. And–you can paint the room or the home any color you want–passionate purple, cheery chartreuse, yummy yellow, raucous red–it’s your place to paint as you wish. Here are a few simple steps that will insure your success.
- Clear out everything possible from the room. If there are things you can’t remove, push them together in the center of the room and cover with a drop cloth.
- Make cleanup easy. Tape drop cloths around the room–that way they will stay in place. If the ceiling is part of the painting plan, drape your ceiling fan and light fixtures. Also remember to take off the outlet covers and paint them separately.
- Prior prep prevents poor performance. Fill cracks, scrape and sand the walls, tape dry wall seams, sand, sand, sand–all of these steps are necessary for a great looking finished paint job.
- If you have any grease stains or crayon marks left after your cleaning and sanding is finished, use a product like BIN or Kilz as a primer. This should prevent any bleeding through to your fial coat of paint.
- Masking tape is a great help and there are some really super ones available now. This helps keep unwanted paint from the edges of woodwork and glass window or door panes.
- Paint and equipment. Use latex base paint–it cleans up with soap and water. If you are going from dark to light, you’ll probably need two coats of paint. A roller, a pan, a brush–that’s all you need. Well, a stepladder is a good idea too. Did you know that there are different naps on your roller? A wooly nap will give a stippled appearance and a smooth nap gives a smoother finish.
- To avoid lap marks, edges of paint that dry before you get back to continue around the room, paint one distinct area at a time. Outline a door by using a brush to paint a few inches around the door. Another good idea is to roll on a coat in horizontal strokes and then paint another coat with overlapping vertical strokes.
- Light–use temporary floodlights so that you can really, really see what you are doing. If it looks great under extremely strong light, it will look even greater under normal lighting conditions.
There you are–how to paint a room in one easy lesson. If you would like info on Chicago real estate, just call me–direct, 312-981-2306. My cell phone is 312-607-1306.
Here are a few other posts that might appeal to you:
To Remodel or Not to Remodel and When
Out With the Old, In With the New–Slowly
| Discussion: 1 Comment »
LEPRECHAUN TWO WEEKS IN A ROW!
December 14th, 2009 categories: Buying, Market Trends, Selling
Here’s yet another goodie from Don De Bat–his latest article is “Housing market rebounds as America looks forward to a new decade.” Considering the precipitous ups and downs of the last decade, most of us would probably settle for something approaching a normal market. De Bat talks about four reasons for real estate market optimism in the next ten years starting with right now. They are a bright mortgage outlook, a rebound in existing home sales, an increase in new home sales, and stabilizing home prices. To read the entire article, please click here. Maybe I’ll have to look for another dancing leprechaun–one with a pot of gold and get rid of this guy who is just lounging around!
Looking for information about Chicago real estate–call me! My direct dial is 312-981-2360, my cell phone is 312-607-1306.
Here are some other articles you might find informative:
Foreclosures Down Fourth Month in a Row
In God We Trust, and Our Realtor. . .
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FORECLOSURES DOWN FOURTH MONTH IN A ROW!
December 11th, 2009 categories: Market Trends
This Friday is much better than last Friday! Thank goodness! It is bitter, bitter cold and I feel blessed to be sitting in a cozy warm office doing one of my favorite things–writing my blog. I am not sure that the foreclosure news warrants the leprechaun–there is so much talk about a second wave of foreclosures and shadow inventory. . . . At any rate let’s put him up there and hope we won’t be sorry we did. Steve Levitt has a good blog on the foreclosure situation nationally. Unfortunately Illinois is third in the number of foreclosures–Steve’s pie chart shows how much better off we are than California or Arizona. Michigan is fourth in numbers of foreclosures. To read the entire article just click here.
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FLOORING 101
December 10th, 2009 categories: Lifestyle, Market Trends
We’ve talked about appliances, we’ve talked about kitchens, we’ve talked about cabbages and kings and today we’re going to talk about floors. There are many, many choices out there ranging from the traditional wood or carpet to stained concrete.
- Stained concrete is probably the newest flooring on the market–obviously it can’t be used everywhere. Stained and polished concrete can give a very unusual and handsome appearance to your floor.
- Hardwood is the predominant choice in today’s market–it can be refinished and stained a different color. The big drawback is cost. There are hardwood veneer flooring materials out there that are a lot less expensive–be careful because the quality may not be so great. Bamboo is increasing in popularity–just be sure you get the more expensive bamboo that has been growing for more than a couple of years.
- If you just can’t afford real hardwood, you can fake it with laminate flooring that is pre-finished to look like the real thing. These floors can be installed quickly because they come in what is called a “quick click” system and can be installed over the existing floor. The cost is a lot less than the real stuff.
- Tile, area rugs and carpet are also viable choices. For a child’s playroom you might even consider carpet tiles–that way a grape-juice spill on a tile or two can be replaced easily. Wall to wall carpeting is losing in popularity–although many people prefer it in their bedrooms.
Questions about Chicago real estate–I would love to share my 20 years of experience with you. Just call me at 312-981-2360, direct line, cell phone is 312-607-1306.
Here are a few other articles you might find informative:
Is Your Home a Money Pit, Sinkhole or a Drain?
Hold Everything–Storage Needed
| Discussion: 1 Comment »
EENIE MEENIE MO–TOWNHOUSE OR CONDO?
December 8th, 2009 categories: Buying, Lifestyle, Market Trends
There are advantages and disadvantages to both types of living. Let’s talk about condos first.
- Condos are most often all on one level–very appealing for people of a certain age whose knees don’t work quite as well as they did a few years ago. Having said that there are some wonderful vintage condos that are walk ups–in fact I listed one just last week. A great one bedroom home with incredible vintage detailing AND a washer and dryer–a third-floor walk-up.
- Most of the time you will need to take an elevator to get to your car if your building has parking–you don’t just hop in your car and drive away. Parking can be either deeded (you own the space and usually pay a separate small assessment fee and real estate tax bill), or rented on a monthly basis. It is frequently valet.
- Many buildings have stringent pet rules–number and weight–cats only, dogs up to a certain pound limit, one or two pets per home, lots of variables. I do have to admit that I have never seen or heard of a pet-weighing session in twenty years in real estate.
- Heat and air conditioning are frequently included in the assessment and the owner just pays for the fan that circulates air. This means the building is responsible for the maintenance of the central heating and air conditioning equipment.
- Unless you have a balcony or the building has common outdoor areas, your outdoor space is nil.
Now let’s see how townhouses fare with those same criteria.
- Townhouses are vertical–a common plan is garage on the ground floor with a room that can be used for an office or a family room–sometimes with a half or whole bath, second level is usually the kitchen, living room, dining room, perhaps a half bath and/or a deck or balcony. Third level is usually bedrooms and baths. If there is a fourth level it can be another bedroom or a small room with a deck outside. There is usually a washer and dryer tucked away somewhere.These are sort of typical arrangements for the floor in a townhouse. And guess what–each level is connected to the other with stairs!
- Usually there will be a one or two car garage in a townhouse–sometimes there will be one garage space and space for another car just outside the garage door–a parking pad. The cost of this space is included in the purchase price and there is no monthly fee or separate tax or assessment.
- Pet rules are usually nonexistent or relaxed in a townhouse complex.
- Outdoor space can vary a lot in a town home–there can be a deck on almost any level and there can also be a small yard either in front or back and sometimes both.
Need someone to explore both types of housing with you? Just call me and I’ll be happy to e-mail listings to you and show either or both types of home to you. Just call, 312-981-2360, direct, or cell phone, 312-607-1306.
Here are a couple of other articles you might like:
Home Affordability and Mortgage Rates
The Closing is the End, the Very End
| Discussion: 3 Comments »
