2010 February | Ruth Karel Chicago Real Estate

Archive for February, 2010

BRAKING FOR A BREAK!

February 22nd, 2010 categories: Buying, Lifestyle, Selling

Sometimes one needs to stop, re-group and start up again. Just take a break and shift to another gear for a few days. And that is what I am about to do. Much as I’ll miss the daily head scratching that accompanies the hunt for a blog subject, I will be a non-blogger until next Monday. The coaching group that I belong to is going on their annual retreat–this is perfect timing!! Our real estate market in Chicago seems to be more active than it was last year–thank goodness! and I feel that I will come home from the retreat full of vim and vigor–so I’ll miss you all and I’ll be glad to be back at the head scratching on March first. I do hope a few people will miss me!

Here are three posts that might interest you and help you keep me in mind while I am gone:

Closets, Closets, Closets

Empty Nest FAQs – Second Edition

Chinese Time in Chicago and Hawaii

Spoken by Ruth Karel | Discussion: 1 Comment »

HOUSING FROWNIES FOR 2010?

February 19th, 2010 categories: Buying, Investment, Market Trends, Selling

Usually the Spring selling season begins with the Super Bowl. This year that didn’t quite happen–it actually started in the first week of January. January activity was quite good and February has been a bit slower. Dan Oppenheim, a home building analyst with Credit Suisse, is predicting that we’ll see a strong Spring selling season. He feels that builders are shifting from survival to rebuilding profitability and he also feels that five threats remain:

The Tax credit will expire–this should give urgency to buyers and help first-quarter sales. What could happen after that is a slowdown.
Mortgage rates rise. Low mortgage rates have prevailed for a long time. Most analysts expect a rise in rates later this spring when the Federal Reserve stops buying mortgage-backed securities.
Foreclosures continue. In spite of the government’s efforts, people are still losing their homes and nobody knows when the end will happen. Mr. Oppenheim writes that “The continued supply of foreclosures will mute any improvement in demand.”
FHA tightens lending. Higher insurance premiums and ecreased seller-provided closing costs will likely cut new home demand between 5% and 10%.
Jobs. Employment has to improve. People without jobs don’t buy houses.

I don’t mean to end the week on a downer, and I feel we have to look at what is going on carefully. It would be my very greatest plesure to write a post surrounded by wonderful dancing leprechauns–I am going to look for good news and there will be some soon, I’m sure.

Need someone to answer your real estate questions? That is one of the things I do best–just call me. My direct dial is 312-981-2360 cell is 312-607-1306. And there is always e-mail.

Here are a few posts you might find helpful:

Home Affordability–A Balancing Act

Before You Buy A Condo . . .

Kid Gloves Not Mittens For Today’s Buyer

Spoken by Ruth Karel | Discussion: No Comments »

PATIENCE IS A VIRTUE

February 18th, 2010 categories: Buying, Market Trends, Selling

You are all probably bored to tears with my constant entreaties to buy now and use the tax credit. I am sure that you should BUY NOW–carefully and patiently. Especially if you are a first time-buyer–be patient. Don’t buy on impulse. Blessedly, for buyers these days there is enough inventory that you don’t have to buy on the spot. This isn’t the greatest picture for sellers–and that’s just fine. Here are some ideas that might help you with your home purchase. What they amount to is patience and education.

Do some preliminary searching on line–to help you understand what is out there. This will not give you a thorough understanding of your market–that is your Reactor’s job.
Even if you “fall in love” with a home, don’t buy it the first time you look at homes.. This sort of purchase seldom turns out well–take your time.
Be sure you are working with an experienced agent who knows well the area that you find most desirable.
Let that agent educate you about the neighborhood or building that suits you best.
This education doesn’t have to take a long time–you can probably feel comfortable with the market and the area in just a few times with your Realtor.
Have your pre-approval in order.
Go over closing costs with your Realtor–they do add up and can influence how much you can spend on a home.

What will such an “education” do for you?

You will know the perfect home when you see it.
You will have your financing in order along with a realistic idea of what you can afford, including closing costs.
Let your Realtor help you with setting a beginning purchase price and with advice about counter-offers–after all you chose this person because you felt they were going to do a good job for you.
Buy that wonderful home and enjoy it knowing you did a good job.

HOME AFFORDABILITY–A BALANCING ACT

February 17th, 2010 categories: Buying, Market Trends, Selling

Home affordability is a balance between the price of your new home, taxes, home owners association fees, and mortgage rates. Any one of the parts of the equation affects all the other parts. If you are waiting for the very bottomest bottom of the price decline, remember that a 1 per cent rise in mortgage rates will offset a 10 per cent reduction in the price of a home. Many mortgage brokers predict a rise in the rate of 30 year fixed loans from 5.2 per cent in the first quarter of 2010 to 5.7 per cent in the fourth quarter and many brokers feel that the 30 year fixed rate will go to 6.2 per cent by the end of 2011.

Larry Steinway recently published an article about the effect rising consumer confidence has on home prices–a major piece of the affordability puzzle.Larry feels that even though consumer sentiment has been rising since last February and is now at a two year high, jobs are linked to consumer confidence that. As confidence rises so do mortgage rates and home prices. This is just another example of how jobs are connected to everything else in our economy up to and including our new home. To read all of Larry’s article, just click here. Price is not the only, only, only factor in determining a home’s affordability for you.

Still have questions about moving up or buying a new home? Please call me–312-981-2360, direct, 312-607-1306, or e-mail. I have twenty plus years in Chicago real estate to share with you!

BUYER BARGAIN BASEMENT

February 16th, 2010 categories: Buying, Market Trends, Selling

With the tax credits in place, low interest rates, and plenty of inventory it seems like a slam dunk to just go ahead and buy a new home. New construction down town condos are an especially good buy these days. They will frequently be smaller space for the dollar and there are a lot of bargains out there.

A basic decision is do I want a brand spanking new first time occupant home or an older home that may be larger? Sunday’s Chicago Tribune had a very good article about the abundance of bargain condos here in the central Chicago area. Click here to read the entire article. Even though there are fewer new units coming on the market this year and next, there is still a backlog of inventory that is forcing developers to lower their prices. One of the interesting facets of this superabundance of new units is the fact that since many of the homes are already finished, a buyer can’t negotiate the finishes as they used to be able to do. In bygone days, a buyer would request thicker granite,wood floors instead of carpet, better kitchen appliances–any upgrade they could get for the same base price as the standard finishes. Including the parking space seems to be taking the place of negotiating a superior level of upgrades. Jeffrey Steele even has a section of this feature article that tells us where the bargains are.

Please don’t let the tax credit pass you buy–a move-up or a first home–both are possible now. If you feel good about your job and would lilke to change from being a renter to an owner or from a home that doesn’t quite suite now to a more desirable one–the timing could hardly be better. Just call me, 312-607-1306, cell, or diredt, 312-981-2306. E-mail is a favorite too.

THE GREAT WATER HEATER DEBATE IS ON

February 15th, 2010 categories: Buying, Lifestyle, Market Trends, Selling

Because we live in a condo where we have our own heating and air conditioner units and our own water heater, my husband and I have been saying to each other that we will replace our old storage tank water heater with a new tank-less one when the time comes. A recent Chicago Tribune article has caused us to think again. We thought the tank-less water heater would bring about immediate savings–apparently this is not as true as we hoped. The Department of Energy’s Office of Energy Efficiency has made some very interesting calculations about how long it takes to recover the additional cost of the tank-less heater. They are surprising! It can take between twenty and twenty-five years to recover the cost I am a big fan of Lou Manfredini, Mr. Fixit, and he has been so gung ho about the tank-less type of water heater that it seemed the only logical thing to use as a replacement. There are some applications that are best served by this type of heater, no doubt. If you are without hot water–this article is really an eye opener and should be read before you go shopping for a new heater. It really gives a way to compare the two kinds of water heaters. Remember you can buy a blanket for your water heater tank at any big box store and that will save you some energy dollars too! Click here to read the entire article.

Do you need someone to help you with Chicago real estate? My job application is in! Just call me at 312-607-1306, direct or cell, 312-607-1306. E-mail works well too!

Here are a few articles that might interest you:

Stash That Hazardous Waste Safely

Too Much Disclosure–Never!

Hold Everything–Storage Needed

Spoken by Ruth Karel | Discussion: No Comments »

VALENTINE MUSINGS

February 12th, 2010 categories: Lifestyle, Rants

Sometimes Valentine’s Day seems to be just another one of those Hallmark Holidays–we’re bombarded with ads selling us chocolate and flower combinations for $19.95, No offense to Hallmark it’s just that I find this sort of activity a big turn off on the whole idea of Valentine’s Day. That is why I was so happy to find my daily post from Jerry Hannon. My good friend, Jerry Hannon, has the best, coolest, funniest, thought-provoking website ever. It is called “It’s Great To Be Me.” His license plate is IGTBM–he is the embodiment of a positive, kind, generous man, His Valentine’s day poem follows:

Oh please, please,please! Can it finally be mine

That elusive and slippery Valentine

You know the one, it makes us complete

And gives meaning to living, that no easy feat

So while roses are red and violets are blue

There’d be no one more happy, if all this were true

But I sorta suspect that the love that’s our goal

Is always within us. . .it makes up our soul

Next Jerry quotes Ogden Nash, “I claim there ain’t another Saint as great as Valentine.”

His closing comment is “What about Saint Godiva?!

If you would like more information about this quirky inspirational site, just click here.

Spoken by Ruth Karel | Discussion: No Comments »

GREEN HOME BUYER QUESTIONS

February 11th, 2010 categories: Buying, Market Trends, Selling

The tax credits for new home buyers and move-up home buyers are undoubtedly helping the real estate market. Many of these buyers are also interested in homes having more “green” features. Over the months we have talked a lot about what is green and how do we make it happen. Here are a few more pieces to the puzzle.

Size. Bigger means more heating and air conditioning expenses. McMansions are out and smaller is in–it is amazing how little space one can live in.
Location. How walkable is the neighborhood? Being close to your work, transportation, entertainment ( movies, restaurants), shopping (groceries and other necessities), will help you cut down on your use of a car. Many people in my neighborhood use Zipcars for the occasional big Costco, Target, etc., shopping trip. This is much less costly than owning a car in downtown Chicago. My husband I have a 10 year old car with 55,000 miles on it–maybe we would be better with a Zipcar too! We are blessed that we walk to work, much of our shopping and entertainment.
Orientation. A southern exposure and a western exposure will cost you more in air conditioning dollars. They can also add warmth in the winter. If you have a single family home, trees can help protect you from the sun and they definitely help air quality.
Window and door leaks. Even if you live in a condo where the heat and air conditioning are supplied by the building, it is a good thing to test for leaks around your doors and windows. You can hire an energy auditor or you can do the burning candle bit (carefully of course) around your doors and windows. You will be more comfortable with sealed windows (grout is a wondrous substance).
Appliances. The Energy Department has a website, energystar.gov, This is an amazing site–info on energy-related products, home improvement, new construction, etc., etc., etc. For example, washing machines and many other appliances are analyzed by the manufacturer and model. You can find out which machines suit your family best, their water capacity and electricity usage.

Would you like to talk to a twenty-year veteran Realtor? It would be my very great pleasure to walk you through looking for a new home–remember, you must be under contract by the end of April to qualify for the tax credit. My direct line is 312-981-2360, my cell phone is 312-607-1306 and e-mail is a fantastic idea too!

Here are a few green articles from past months:

Cool as a Cucumber Air Conditioning

Proper Programmable Thermostat Use

Energy Conservation Tips

Spoken by Ruth Karel | Discussion: No Comments »

FOR ONCE–A GOOD DISTRESSED PROPERTY STORY

February 10th, 2010 categories: Buying, Real Estate Finance

Dennis Rodkin recently published an article in Chicago magazine about a young college student who found a good distressed property and bought it. The end result is that her monthly housing costs are about 50 per cent less than rent for a comparable apartment. After all of the preaching I have done about the difficulties of buying foreclosures and short sales, it was truly refreshing to read about a successful purchase. My feeling has always been that bank-owned and foreclosed homes were for experienced real estate buyers and investors–OK, so I am not always right! And she did have good help, her mother is a real estate appraiser. The article mentions that some of the condos had missing appliances and other kinds of damage. The purchase of a home certainly sounds like a step in the right direction for this young woman. The buyer’s Realtor gave her the traditional gift of a bottle of champagne–problem is the new home owner is too young to drink it! If you would like to read the article, just click here.

Here are a few articles you might find helpful:

Buying a Foreclosure–Is It For Me?

Absorption Rate Revisited

Dual Agency–How Does it Work?

Spoken by Ruth Karel | Discussion: No Comments »

SUPER BOWL AND REAL ESTATE?

February 9th, 2010 categories: Buying, Market Trends, Selling

It would seem there is no connection whatsoever–NOT! The weeks after the big game have traditionally been the beginning of Spring Market–at least in Chicago. Actually this year activity seemed to begin before the game. Things have ground to a halt today because we are in the process of getting up to a foot of snow. My office is tucked away in a corner of our big office and doesn’t have a window–usually I wish it did and today I don’t miss it. Snow has been falling steadily all day and at some times has been blowing horizontally past our windows. When I do stick my head out, I wish I hadn’t. Enough of my whining and whimpering about the weather–I choose to live in Chicago because I love the city and the weather comes with.

The tax credits may have helped put a bit of pressure on the buyers and sellers to buy or sell earlier than in other years. Don’t let that pressure fool you into making an inappropriate choice for your agent. Remember you are hiring someone to help you buy or sell your biggest asset. A personal interview is the best idea–for either a buying agent or selling agent. Make a list of questions to ask the agent. And for goodness sakes, don’t hire a Realtor just because Aunt Hattie’s best friend’s niece is one. Ask your friends for their recommendations, and don’t hire a person just because of that recommendation either. You need an agent whose business acumen and whose personality make you reel like you could work well with them.

Here are some of the questions that you might consider asking an agent:

How long have you been a Realtor?
How many listings or sales have you had in the area or building (for condos
What is your knowledge of the market area–a 10 year veteran of sales in Glen Ellyn is not going to bring much knowledge to Streeterville .
How many listings do you typically carry and how many of your listings sold last year, what percentage of list price did they sell for, and how many days on market for those listings? Keep in mind that 2009 was a bottom of the market year.
How many buyers do you typically work with?
How do you keep your clients aware of what is going on in the market? E-mail, phone?
Fees have to be discussed with a listing agent–what do you get for your money?

A sure kiss of death should be an agent who doesn’t return calls promptly–even after you have hired them, remember you can fire them by canceling the contract. References–ask for them but don’t expect anything but positive thoughts–who would give you the name of someone who would say bad things? You wouldn’t want to work with an agent with that small an intellect, now would you?

These thoughts are a rehash of ideas we have talked about before–a bit of a reprise never hurts–freshens up our minds.

Here are three articles that might be of interest to you:

Slowly Getting Ready to Sell?

Commute Time and Cost–is it Worth it?

When is it Time to Buy? Now!

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