Blog Home Chicago

TONIGHT: Best Chicago Properties Hosts Premier Art Opening

2009-04-17T09:01:00.000-07:00

NEW: The Best Chicago Real Estate Search Engine!

2009-03-28T07:52:00.000-07:00

If you like to surf real estate listings, you've likely noticed that most real estate companies offer a free real estate search engine and most of these provide for less than satisfactory experiences. People want speedy map based technology, lots of big pictures, virtual tours, listing information and dozens of options on how to search...including a way to search for foreclosures and short sales. So, we searched high and low to find the "Best" search engine in the business and then customized it to meet the needs of our clients. Check out this latest addition to our website...click MLS Search!

Best Chicago Properties Welcomes Four New Agents

2009-03-28T07:29:00.000-07:00

As the Spring market is now in full swing and Best Chicago Properties is busier than ever, the time seemed right to bring on several seasoned agents to handle the additional business. I'm very pleased to welcome Lola Brown, Christie Serritella, Michael Hess and Chuck Gullett to the Best Chicago Properties Team!

Elegant West Loop Condo With Awesome Views From Private Roof Deck

2009-03-12T19:13:00.000-07:00

Check out this fab new listing on YouTube

Foreclosures, Auctions, Short Sales, REOs, Bank Sales...

2009-02-20T07:08:00.000-08:00

At a dinner party hosted by a Lakeview couple last night the topic of foreclosures came up as I'm sure it has at thousands of other social gatherings during these past tumultuous months. As the owner of Best Chicago Properties in the West Loop, after answering the hushed question "how are you staying in business" twelve times I found myself dispensing advice to party goers clearly trying to figure out if they were missing the investment opportunity of a lifetime by not buying a foreclosed property.

So, as promised, here is a quick wrap up of the types of deals to be found...they come in four basic varieties, all requiring lots of patience, all with a different level of difficulty:

1. Short Sale, also called a pre-foreclosure sale normally via an auction or via a real estate broker working for a bank to help sell portfolios of seized property. With this type of deal, the homeowner is usually in arrears and is trying to sell the property before it is taken by the bank. Here you might end up with a difficult negotiation with a stressed-out seller. If the price turns out to be less than the bank is owed we call it a short sale wherein the lender would need to agree to the deal taking 60 to 90 days. One of my buyers has been waiting 3 months so far to hear if the deal is approved...one bank has signed off but there is a second mortgage so the second bank also needs to agree...this means even more time...another 30-60 days? Or never if the second bank which stands never agrees.

2. Bank Auction; Buyers at bank auctions most often are flying blind...no inspections, no title insurance...hey but it's fun to say "Yeah, I bought the place at auction" Kinda implies you got a great deal...right? Maybe, maybe not. If you’re the winner, you've bought a home, no backing out. If by chance the place you’ve bought is occupied then you'll experience the joys of trying to evict in Chicago...not a short or pleasant process. If you're a fan of the unknown then go for it! To me it all seems so unpleasant.

3. R.E.O. Properties; Properties that don't sell at auction are called R.E.O.s (real estate owned) and are the most transparent of foreclosure transactions. Buyers can do inspections and the bank owner will deliver a "clean" title, ensuring there are no outstanding taxes or other liens. If you look up the definition of red-tape you will find R.E.O. properties. You're dealing with a bank, not a person, and that bank may be in the process of trying to sell hundreds, even thousands, of other houses. Could be worth the wait.

4. Relo; OK, this is not really a foreclosure type thing but I thought I'd stick it in here since I've found buyers awesome deals on relo properties...I mean deals that easily rival deals from Short Sale, Bank Auction and R.E.O. Companies that transfer their employees often get caught holding their real estate and then need to dump it. The last one of these I did, my buyer got the place for about 75% of the market value. The drawback is you are working at a snail's pace since the giant relo companies are just as slow as banks!

Call me if you want to discuss!

Don't Miss The Window of Opportunity Between Now and April 2009!!

2009-01-21T05:01:00.000-08:00

With most lenders concerned about condo loans because of their default rate, Fannie Mae has added a fee of .75 percent of the loan amount of a 30-year fixed mortgage, for borrowers who put down 25 percent of the purchase price or less, effective April 1. So for a condo priced at $300,000, with a mortgage of $240,000 (a 20 percent down payment), if Fannie will be purchasing the loan from your lender, it will assess the buyer an additional $1,800. This presents a window of opportunity for savings for buyers between now and April 1. First time buyers have the added incentive to buy this Spring in order to tap into the first time buyer tax credit.

If you’re devoting a big chunk of your income to paying your mortgage, it may be worth calling to negotiate better terms.

2008-11-13T05:37:00.000-08:00

Here's the link to an excellent article in the New York Times that will give you some guidance. The key to getting a deal from your mortgage company will be your debt to income ratio...remember that number? It used to be the basic number lenders used to determine how much of a mortgage a borrower could afford....that is before the "money party" began.

National Association of REALTORS® Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill

2008-07-30T07:10:00.000-07:00

This is a great review from the National Association of REALTORS®

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

FHA Reform - including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

FHA foreclosure rescue - development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

Seller-funded downpayment assistance programs - codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

VA loan limits - temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

Risk-based pricing - puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

GSE Stabilization - includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

Mortgage Revenue Bond Authority - authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

National Affordable Housing Trust Fund - Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

CDBG Funding - Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

LIHTC - Modernizes the Low Income Housing Tax Credit program to make it more efficient.

Loan Originator Requirements - Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

New Park Planned at Peoria and Monroe

2008-06-25T15:37:00.000-07:00

Hey - I live on this corner, (actually the top right corner of the pic...that's me on the terrace...kidding!)and have been hearing about this park since 2001 and am pretty thrilled that it's seemingly on the way. The park borders four corners: Adams/Sangamon/Peoria/Monroe. The park will have a large tranquil/seating area, a dog friendly fenced in area and a water/playground area for children. The terra cotta from the infirmary building will be used for part of the seating area in the park.The Chicago Park District tells us the existing buildings will be demolished by winter 2008 followed by the construction of the park. (update: as of 1/1/09 the demo is complete!) neighborhood dogs and their owners are the first to enjoy the wide open space...running around in the snow having a blast!

West Loop's Skinner Park Gets +$1 Million From City

2008-04-17T05:29:00.000-07:00

Great for West Loopers...the City of Chicago has approved $1,050,000 for a new playground and dog friendly area for Skinner Park. Alderman Bob Fioretti (2nd Ward), Alderman Walter Burnett (27th Ward), the City of Chicago Department of Planning and Development and the Chicago Park District supported the funding for the new playground and the dog friendly area.

New 2008 City of Chicago Business & Real Estate Related Fees & Taxes

2007-12-21T04:31:00.000-08:00

Many of you have asked me for a comprehensive list of all the new 2008 taxes. The best list is the one provided by the Chicagoland Chamber of Commerce so check it out. If you are selling your home, be aware that in order to close, you'll need to get a water certificate from the city...this has been expanded in 2008 to include condo owners and will cost you $50.

Adams Street Park - Community Meeting

2007-12-07T09:44:00.000-08:00

COMMUNITY MEETING FOR THE DESIGN OF ADAMS STREET PARK

The Chicago Park District and the Advisory Council for the West Loop Community Organization are sponsoring this important meeting to assist with the design of our new park.

Tuesday, December 11, 2007 7:00 PM Merit School of Music 38 South Peoria Street

See you there!

Check Out Crain's Interactive Skyline Tour

2007-11-27T06:18:00.000-08:00

If you've always wanted to learn more about Chicago's Skyline this is for you!

Chicago Realty Reality Check

2007-09-09T07:08:00.000-07:00

Just the facts please! Click on the above chart to enlarge and view the reality. Find your price range and look at "Months of Inventory" which tells us, assuming no new listings coming on the market, how many months it would take to sell the existing inventory of properties in that range. Also, here's Standard & Poor's Home Price Index showing the national decline in home prices. It shows the 18th consecutive drop in growth since December 2005. The most recent data comes from May. But the father of the index, economist Robert Shiller, says he sees nothing that indicates a turnaround. And while eight of 20 metropolitan areas his index tracks, have been spared, Chicago is not one of them. It is now in decline, according to the index, which tracks actual home prices by looking at the selling price of specific homes in the past versus recently. That's different than looking at average figures. So brace yourself and take a look. I am not one who thinks the market will rebound to earlier price growth any time soon. The realty reality in Chicago is driven by supply and demand. The supply will eventually dwindle over the next 2-3 years as developers wake up to reality. If interest rates remain attractive and the economy stays steady then demand will improve creating a resumption of price growth but not before 2009-10. If you must sell then get real with what your price needs to be. If you are a buyer planning to stay put for 3-5 years then the time is right for a deal on the home of your dreams. If you arn't certain you can stay put that long then rent. If you are trading up to a more expensive home, taking a lower amount on the sale of your existing property and trading up to a more expensive property can work to your benefit.

A Great New Real Estate Tool Called WalkScore

2007-07-31T12:00:00.000-07:00

My client Russ who has a passion for rehabbing vintage apartments on the north side just introduced me to WalkScore. His new northside project, a 2BR "Vintage meets Green" rehab, gets an impressive 91. Besides being immediately fun to work with, WalkScore can provide a potential buyer with an excellent idea of the convenience factor of a property. My current listings in the West Loop scored an impressive 86 out of 100! And a two flat I have listed in River West scored 92!! Bring in those offers!!! Let the convenience wars begin.

2007-07-26T06:23:00.000-07:00

The good news is that the Illinois Association of Realtors said Wednesday that sales picked up statewide for the fifth consecutive month. The bad news is they were 17 percent off the pace of June 2006. The worse news is that in Chicago sales were down nearly 20 percent from June 2006. June is historically one of the best months in Chicago sales.

So, what's one to do? Well marketed, well located, unique and absolutely "move-in-ready" properties are selling but only if the price is absolutely right for the times. Everything else is languishing.

So my friends, only motivated sellers have any business selling in this market. If you're not motivated, I recommend staying put for a couple of years or renting your place out. Keep in mind, market rents may not cover your monthly costs but if it's close and you don't mind being a land lord then it's a good option.

The Secret to Pricing Your Home to Sell

2007-07-17T05:05:00.000-07:00

An excellent article by Jim Remley in this week's Broker Agent News

Contrary to popular belief, when selling your home its value is determined by one thing and one thing only - what a qualified buyer is willing to pay for it. No more and no less. Sure, many sellers will argue that their home has an insurance replacement value, or an appraised value, or a tax assessed value, but unless your insurance agent, your banker, or your tax assessor is willing to write you a check for the home - guess what? None of that matters. A home without a buyer has no value in the market place. Sure it might have a value to you the seller, and it might have a value to your banker, and to your insurance agent, and to your appraiser. But none of these people are buyers.

So here is the secret to pricing your home to sell - It's not what you think the home is worth that matters, it's what a reasonable buyer will think your home is worth that will ultimately determine if your home will sell.

Now you maybe thinking - Hey wait, if I left it up to a buyer, they would pay me as little as possible for my home. True, they would. But in the real world every buyer knows that you, the seller, have no obligation to sell your home at any price. To purchase your home the buyer will have to make you an offer you can't or won't refuse. One that will motivate you to pack up your Ken and Barbie collection, hire a local mover, and wave good bye to a home full of memories.
But here-in lies the trap that many sellers fall into (myself included), which is the mistaken idea that we can hold out for an inflated price and eventually the market will come to us. Wrong! Buyers are under no obligation to buy any particular home, and no amount of marketing, open houses, websites, or signage will motivate a buyer to purchase an overpriced home. Why? Because they can buy one of your neighbors homes for less! This reveals one of the most important considerations in pricing your home - Price VS Time.

Understanding Price VS Time

The age old dilemma that has faced buyers and sellers since the dawn of private property rights is a simple question: What is more important price or time? Believe it or not this conundrum underlies and controls every sellers decision to sell, and every buyers need to complete a purchase. For sellers this boils down to the need to sell within a set time frame or instead to hold out for the best possible price, and as you might guess, for buyers it's the need to buy within a set time frame or to purchase a home for the lowest possible price.
A seller who would like to sell for top dollar should be prepared to potentially wait longer for a buyer willing to pay a premium price. Like trying to sell ice during December, a seller might have to give the stuff away just to get rid of it, but if they wait long enough, say until mid-August when temperatures crest over 100 degrees suddenly that same ice can have real value. On the flip side, a seller who needs to sell quickly, and doesn't have time to wait, should expect to discount their price somewhat because of the limited time they have to expose their home to the market.

What's the difference? Timing!

Buyers are in the same boat. A buyer who has the luxury of shopping for a home over a long period of time can probably wait to find a bargain, while another buyer who must buy a home in the next few weeks will probably be willing to pay a premium. Again it boils down to price vs time. So you might ask yourself what is your highest priority - Selling quickly or selling for a higher price?

To be honest when I pose this question to my own clients they often smile coyly and then answer - I want both! The funny thing is that they aren't kidding! This sticky situation often reminds me of one of my first jobs after graduating high school, which was working graveyard at a local lumber mill. Like clock work every night, the foreman would come by to monitor my production. We called him Perry, which could have been his last name or his first name because he never clarified it. Over the roar of the machinery Perry would cup his hands together and yell "You need to put out more wood!" Finally after an especially tough day, I looked him back in the eye, and yelled back "Do you want quantity or quality?" Throwing his yellow hard hat down on the concrete floor and then kicking it for emphasis he snarled back "I want both!"
Like Perry, most of my clients want their cake with the icing generously slathered on top. Because of this, many homeowners will attempt to put the responsibility of getting both top dollar and fast sale on the back of their hired gun, the real estate agent. The result can be summed up in one word - frustration. Why? Because no matter how much a seller yells, screams, and kicks a real estate agent, they don't do miracles. This is why successful sellers understand that while a real estate agents job is to provide marketing, expert advice, and negotiating services, in the end they don't own the property. They don't make the final decisions on pricing. The seller does, and ultimately the seller's asking price will in large part determine how slowly or quickly the home will sell.

To frame this discussion in a different way, consider what you will do should you arrive luggage in hand at the end of your listing period and the home has not yet sold. At that point are you more likely to give it a little more time or adjust your price? I know - Neither, I'll just fire the agent! To be honest, this is exactly what many sellers' do, they fire their agent and reboot the marketing. Does it work? Sometimes it does, but often these sellers end up three months later in the same slow boat to nowhere. Successful sellers on the other hand take ownership of their pricing decisions by making a clear decision about which is more important to them, selling quickly or selling for top dollar.

Successful sellers have learned that to price their home accurately means they need to think like a buyer, they need to get inside a buyers skin and look at the world through a buyers eyes. For instance, imagine for a minute that you are moving to another area of the country, to a city that you are completely unfamiliar with. If you were faced with buying a home in strange city what would be your first step?

If you're like most buyers you would probably start online by viewing listings at websites like www.realtor.com or www.yahoo.com/realestate to get a general feel for local home prices. Next you might narrow your search down to a specific community or neighborhood by comparing utility costs, school reports, and crime statistics with other online tools like www.homefair.com or www.neigborhoodscout.com. Feeling good about your findings you might then venture out into the real world to begin viewing homes in person.

As a typical internet empowered real estate buyer you will look at an average of nine homes over eight weeks with the assistance of a real estate professional. By the end of your journey, like many buyers, you become so knowledgeable about the market that by the last showing you are able to guess, with reasonable accuracy, each homes listing price before your agent can even tell you.

So what happened here? As a buyer you went from a blank slate, with no impression of the market to having the ability to predict listing prices. A big leap sure, but this description is exactly what most buyers' experience. But this is only the build up, the next step for buyers who have found their dream home is to review a Comparative Market Analysis.
A Comparative Market Analysis is a report that compares a specific home, often called the "subject home" with other homes in a specific neighborhood. This analysis is then used to provide an anticipated sales price or price range for the subject property. Although not formally called an appraisal, the report provides a similar function by giving home buyers and home sellers a clear understanding of the market data that might affect their opinion of value. To learn more about using a CMA to help price your home talk to your local REALTOR®.

West Loop...Building Boom Continues

2007-07-13T06:01:00.000-07:00

Check out Phil Berger's excellent article in YoChicago on the West Loop.

8 Questions To Ask Any Real Estate Agent

2007-05-23T05:42:00.000-07:00

This article by Eric Bramlett as published in Broker Agent News gives a great overview of what to look for when selecting a Real Estate Agent:

Everywhere you look, there are advertisements for Real Estate, and for Real Estate Agents. We're everywhere!

The reason is pretty simple: It's not extremely difficult to get your real estate license, a college degree is not required, and the income potential is pretty high.

Unfortunately, this means that there are a lot of BAD Real Estate Agents out there. The BEST way to find a good professional - in any industry - is to ask for a referral from a trusted friend or colleague. This does not, however, mean that any person referred to you is a quality professional - everyone has a brother, sister, aunt, uncle, or cousin who is in the business, after all - but it will increase your odds. There are a few questions that you should ask ANY Real Agent before signing a buyer's agency or listing agreement.

1. How long have you been in the business?
Pretty much any average person could decide they want to get their license today, and have that license in their mailbox a month later. Because of this, your Real Estate Agent's experience is VERY important. A new Agent will learn a LOT their first year, and will continue to learn more with every transaction. Don't automatically choose against a newer Agent - they typically bring a lot of energy to the transaction, and they will have LOTS of time for you. However, if you do decide to use a newer Agent, make sure they have a great support system behind them.

2. Are you a Realtor?
Not all Real Estate Agents are Realtors. Members of the National Association of Realtors have to adhere to a strict code of ethics, or otherwise face having their membership revoked. Also, you must be a member of the National Association of Realtors to have access to the MLS (Multiple Listing Service) which is what gives Realtors access to almost every home for sale in their market area.

3. What certifications do you hold?
There is an "alphabet soup" of advanced certifications that Real Estate Agents can earn. While it doesn't automatically mean that they are a good Agent, it does mean they are serious about their job. Keep an eye out for GRI - this is the most time consuming certification to obtain.

4. What is your specialty?
Real Estate Agents typically categorize themselves as either "commercial" or "residential" which are vastly different. Even among Residential Real Estate Agents, though, agents will specialize in Buyers, Sellers, or Renters. Some Residential Agents successfully handle Buyers & Sellers, but make sure they come with plenty of satisfied customers. Agents typically cut their teeth working with renters.

5. Can I have a list of past customers?
Take the time to call a few of an Agent's past customers. Ask for their strengths and weaknesses (and make sure they don't share the Agent's last name.)

6. Who is your Broker? Can I call him/her?
Real Estate Agencies are moving towards the "mega-brokerage" mentality which means that many Agents today have never met their Broker. If an agent doesn't have their Broker's cell phone number, find out who they will call if they run into questions.

7. How many sales did you complete last year?
A good agent will complete at least 25 sales per calendar year. You want to make sure that the agent helping you through the largest purchase or sale of your life is a GOOD agent.

8. Is this your full-time job?
It always surprises me how many people are willing to let their office mate down the hall handle the purchase or sale of their home. You need someone who handles real estate transactions full-time, day in and day out, to make sure that your best interests are taken care of.
There are plenty of fantastic Real Estate Agents working today. Unfortunately, the incompetent Agents really stand out. (Did you hear about the Agent who contracted the wrong house?) Make sure that you find your Agent through a trusted source, and ask any Agent these important questions.

2007-04-19T15:41:00.000-07:00

The Chicago Plan Commission recommended today that the spire's current design by famed architectect Santiago Calatrava be approved by the city zoning committee next week. Check out a great multimedia discussion of the new building here.

Rarely Available 2BR/2BA With Huge Terrace

2007-04-19T05:37:00.000-07:00

Monroe Manor is one of the most popular buildings in the West Loop / Greektown area. You know the one, it's the building with those huge South facing terraces. This unit offers the largest terrace in the building with over 500 square feet of covered and open outdoor space. Live outside for half the year! Go to my website to see more photos.

Live Large at Skybridge

2007-04-12T05:41:00.000-07:00

Skybridge has been the talk of the West Loop since 2003. Ask 10 people what they think about the building and you'll likely get 10 very different answers. Since I have a sophisticated and spacious new 3 BR / 2BA listing in the building, I thought I'd do a little research. So, here's what I found.

In 2004, Skybridge was presented with the National Honor Award from the American Institute of Architects. Perkins+Will designed the luxury condominium, which is the first Chicago multi-family residential project to win the award since Lake Point Tower was honored 34 years ago. The American Institute of Architects commented, "An icon for the new urban living in Chicago, Skybridge is the successful marriage of architect and developer – creating something stronger than each could have done on their own. Skybridge is a breakthrough in residential high rise design. With a blend of simple materials, forms combined with elegant proportions, sophisticated colors and the use of skybridges, this tower becomes a delight on the Chicago skyline."

Mr. Johnson also designed the Boeing Headquarters and the International Terminal at O'Hare Airport.

When meeting with the owners of Unit 608 I was struck by the grand scale of the rooms and the practical use of space. When they bought, they wisely installed White Oak floors throughout the entire unit and tastefully upgraded everything including kitchen, baths and walk-in closets. Check out the virtual tour and more pics.

West Loop Park Survey Results

2007-03-04T08:08:00.000-08:00

The results are in and the West Loop Community Organization reports the following percentages of things residents felt were "very" or "somewhat important" for the park at the corner of Peoria and Adams to include:

Sitting area - 97%
Flowers - 88%
Walking paths 77%
Water feature 72%
Dog area 64%
Play area for kids 56%
Trees - 56%
Music stage 27%
Exercise equipment 17%
Skateboard area 1%

The design process is moving forward slowly with the park reportedly scheduled to be complete for the Spring of 2008.

America's Favorite Architecture

2007-02-22T18:48:00.000-08:00

"America’s Favorite Architecture is the result of an AIA and Harris Interactive poll of 1,800 Americans naming their 150 favorite structures across the nation based on nominations from AIA member architects." Check it out, as expected Chicago has many of the favorites though The Empire State Building in NYC was #1.

Taxes: Don't Forget to Deduct Rental Depreciation

2007-02-15T05:19:00.000-08:00

Here's a good reminder from Gail Marks Jarvis of the Chicago Tribune

"Tax time is nearly here. Anyone renting out a property to a tenant – either as an investor or as a reluctant owner who can’t find a buyer – shouldn’t forget to deduct depreciation expenses from income taxes.

The idea is that property loses value as it ages, so the IRS lets landlords subtract some of the value of their property every year for 27.5 years and use it to reduce the income received from the tenant. That reduces the landlord’s tax bill.

Depreciation is complicated – calculating it often requires professional help – but don’t neglect to do it. Some people are overwhelmed by a depreciation schedule and opt to ignore it. But that’s a mistake. The government assumes a landlord deducts depreciation whether he does or not. A landlord who doesn’t claim depreciation, will pay higher taxes while he owns the property. And when he finally sells the property, the IRS demands that he recapture depreciation – that is pay back a portion – whether he took the original deduction or not."

And you trusted Trump? Read the fine print!

2007-01-16T06:42:00.000-08:00

If you've ever bought new construction then you're familiar with those contract clauses that give the developer tons of options and the buyer not so many. Today's article in the Tribune is an example of why buyers need 1) an educated and trusted Buyers Agent and 2) an attorney familiar with how to negotiate contracts with developers. Is anyone surprised to see The Donald using obscure contract language to his own benefit regardless of the damage to his reputation? If so, fire yourself.

Classic 1920s Park Edgewater Renovated 1 Bedroom

2007-01-08T09:44:00.000-08:00

Wake up to lake views and sounds before a day at Hollywood beach just minutes from your door.

A beautifully renovated 1 bedroom apartment in the historic Park Edgewater.
Soaring 9+ foot ceilings, original crown molding, restored natural woodwork and original nickel & glass hardware plus new hardwood floors throughout.

The new kitchen features gorgeous Santa Cecilia granite countertops, stainless steel gas range, dishwasher, microwave & refrigerator, 42 inch maple cabinets and under cabinet lighting. There is a separate dining area, cute office alcove and two wonderful built-in window seats.

Walk to the beach, bus, CTA red line, Loyola University, coffee & shopping.

Check out the virtual tour

Mortgage Insurance Will Be Tax Deductible in 2007

2006-12-17T06:46:00.000-08:00

This could save you some money! For some homeowners, the new law means it will cheaper to get mortgage insurance instead of getting piggyback loans.

The 109th Congress passed the tax law in its final hours. Hundreds of thousands of homeowners will save big bucks in 2007. Bottom line for you is: Don't get a piggyback loan without taking a serious look at mortgage insurance, because mortgage insurance is likely to be cheaper in the long run, and it might even cost less in the short run.

According to an analysis by Bankrate, a homeowner with a $180,000 mortgage would save about $351 in taxes per year because of the law. That assumes that the borrower has good credit and is in the 25 percent tax bracket.

We're So Hip

2006-12-06T11:11:00.000-08:00

The latest NY Times Article makes me feel so cool. The West Loop continues to boom as Chicago's most impressive destination for excellent galleries and restaurants. And...it's a great place to live.

Sweet Gold Coast Rental!

2006-12-04T17:49:00.000-08:00

Live in Style at The Elm at Clark!

Large 1 BR in well maintained building. 9th floor, great NE City Views, floor to ceiling windows, lots of light, individually controlled central air/heat, common laundry room, dry cleaner in building, bike storage, door man, gym in building, outdoor swimming pool, cable ready, walk to Jewel, Treasure Island, Rush street bars & restaurants, Michigan Ave & Oak Street beach. Parking not included but can be found for rent in building. Additional storage cage in building (3x3x3) Renter pays electricity, water, cable beyond the basic cable which is included. Heat is also included in the rent! Smokers ok. Pets under 100lbs ok.

Available 1/1/07
1 month security deposit
Rental application fee $40
9 to 12 month lease

The case for Zigging while others are Zagging...List in the Winter!

2006-11-15T05:27:00.000-08:00

Here's why it may make sense for you: People are still shopping for homes in good winter weather and those looking are serious buyers. The competition is not as fierce since fewer homes are listed in the wintertime. Typically, company transfers happen at the beginning of the calendar year and your home can be marketed to this niche. (I went back to check my records and when I was in corporate America I always moved in January / February!) Depending on your decorating ability, your home may be more festive and attractive to buyers during the holiday season. Frankly, there's not much of a down side to listing now and you'll be ahead of the massive spring influx of listings. Of course the best thing to do is ask yourself where you want to be living in 6 months and begin planning for that reality now.

10 Questions to Ask a Home Inspector

2006-11-10T08:48:00.000-08:00

This article appeared in REBAC's most recent newsletter...it's a great list and I recommend everyone hire a qualified home inspector prior to buying!

1. What does your inspection cover?

The inspector should ensure that their inspection and inspection report will meet all applicable requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. If there are any areas you want to make sure are inspected, be sure to identify them upfront.

2. How long have you been practicing in the home inspection profession and how many inspections have you completed?

The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals.

3. Are you specifically experienced in residential inspection?

Related experience in construction or engineering is helpful, but is no substitute for training and experience in the unique discipline of home inspection.

4. Do you offer to do repairs or improvements based on the inspection?

Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.

5. How long will the inspection take?

The average on-site inspection time for a single inspector is two to three hours for a typical single-family house or large condo / town home.

6. How much will it cost?

A typical range might be $200-$400, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality.

7. What type of inspection report do you provide and how long will it take to receive the report?

Ask to see samples and determine whether or not you can understand the inspector's reporting style and if the time parameters fulfill your needs. It's great to get an inspector who will email you the report at the end of the inspection.

8. Can I attend the inspection?

This is a valuable educational opportunity, and an inspector's refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert.

9. Do you maintain membership in a professional home inspector association?

There are many state and national associations for home inspectors. Request to see their membership ID, and perform whatever due diligence you deem appropriate.

10. Do you participate in continuing education programs to keep your expertise up to date?

One can never know it all, and the inspector's commitment to continuing education is a good measure of his or her professionalism and service to the consumer.

Losing Ground to Condos?

2006-11-07T05:36:00.000-08:00

Here's an interesting article from the New York Times entitled Preservationists in Chicago Fear Losing Ground to Condos

Charming Renovated Uptown Townhome

2006-11-06T06:03:00.000-08:00

Thoughtfully and carefully remodeled 3BR 1.5BA town home is in perfect move-in condition. This spotless home offers lots of space with three levels of living! All three bedrooms are upstairs and have plenty of light. The semi-finished basement is easily finished to add value. Charming remodeled kitchen opens to a great back deck with retractable awning...perfect for entertaining! Remodeled baths! New pergo and ceramic tile flooring throughout first and second floor. New recessed lighting & lighting fixtures throughout. Newer central AC. Fresh neutral paint on first and second floors. Washer & Dryer. Super low $45/mo assessments. 2005 taxes only $2,458.25. One assigned parking spot and all appliances are included. $289,000 Click here for the Virtual Tour

Mistakes That Can Turn a Flip into a Flop

2006-10-27T13:19:00.000-07:00

I know many of you have often thought of becoming "flippers". While this segment of the real estate market is not as active as it was a few years ago, there's still opportunity out there. But one must be preparred. So, from USA Today as republished in Realtor Magazine, I'd like to share like this list of 10 mistakes that could turn your flip into a flop:

1. Liar loans. "Lying on a mortgage application is a federal crime," says Joseph Falk of the National Association of Mortgage Brokers. "It includes bank fraud, wire fraud and mail fraud and potentially a host of state offenses. This can result in jail time."

2. Overpaying. No matter how promising the property, the bottom line is trump.

3. Lacking cash. Desperation makes investors do crazy things. When you act in haste, you're more likely to make poor decisions.

4. Quitting your day job. A steady source of cash staves off desperation.

5. Hiring unlicensed contractors. Not only do they present an insurance risk, but worse yet, often they don’t get the job done.

6. Buying sight unseen. You can bet it will be uglier than the seller said it was.

7. Buying property far, far away. Even the tiniest repair can mushroom into a crisis.

8. Buying too many properties too fast. Too much money, too little time.

9. Underestimating remodeling costs. There’s no such thing as a cheap and easy fix.

10. Having a poor exit strategy. Running out of cash and living on credit cards doesn’t work.

At least one of you is asking yourself..."why didn't I have this list earlier...I would have saved myself a lot of money and agrivation."

Source: USA Today, Noelle Knox (10/23/2006)

Update on the Park at Adams and Peoria

2006-10-24T11:42:00.000-07:00

This morning I noticed a bulldozer digging in the parking lot at the corner of Adams and Green. Of course I went over to talk to the freezing crew to find out what they were up to.

A little background...those of us living in the Greektown section of the West Loop have been after the city to create some green space here for years. Earlier this year, after many years of talk and no action, the lot was finally purchased by the city from UIC and now it looks like the long awaited neighborhood park is on the way!

This morning's diggers told me they were looking for buried tanks and also conducting an environmental evaluation of the property in order to provide the city with an estimated cost for the demolition prior to the park installation. After all, kids need to play in a non-contaminated area!!

So how long will the process take...my new digger friend says 6 months before the lot is ready for park installation. Perfect timing for Spring!

If you're interested in input come to the community meeting regarding the Adams Street Park November 15th 7-8:30 at the Merit School of Music at 38 S Peoria.

West Loop = Chicago's Old Hobohemia

2006-10-19T07:03:00.000-07:00

By Jeff Payne
I'm writing this as the old Christian Industrial League buildings at Halstead and Monroe are being demolished with gusto right outside my window. I now know what it's like to live in an earthquake city like San Francisco as my condo shakes violently with every pounding blow of the wrecking ball. So today I'm wondering what bit of history are we loosing? The answer is one of the last remaining bits of Chicago's historic hobohemia.

If you're interested what the West Loop was like in the old days, I highly encourage you to read the excellent Chicago Journal Article by Michael Nagrant.

Here's an excerpt to get you started..."The era of Hobohemia had begun. Madison Street was filled with "bindle stiffs" (hobos who wore packs and rolled blankets upon their backs), "bottle gangs" (groups of bewhiskered huddled homeless men pooling money and passing whiskey), "jackrollers" (hobos without compunction who would steal from their fellow bums), "haybags" (female hobos who would trade sexual favors for liquor), "dingbats" (hobos who scavenged through dumpsters), and "halfies" or "stump bums" (hobos missing limbs or confined to wheelchairs)...."

Read and see if you can identify what used to be where you're condo sits today!

Chicago's Olympic Logo's All About Real Estate!

2006-10-13T06:03:00.000-07:00

Had to post the Chicago 2016 Olympic Logo for you!

Do you know your credit score?

2006-10-11T08:42:00.000-07:00

Free credit reports began one year ago. September 2006 marked the first anniversary of every consumer’s right to a free annual credit report from each of the three nationwide consumer reporting companies (Equifax, Experian, and TransUnion). Click here to get your FREE Annual Credit Report!

Check out the Fulton Arts Walk '06

2006-10-09T11:45:00.000-07:00

Situated in the urban warehouse district of the West Loop, the Fulton Market area houses some of Chicago's best artists, musicians and galleries. This year's Fulton Arts Walk has something for everybody.

Ugly Building Contest

2006-10-05T06:39:00.000-07:00

The Chicago Journal wants you to help them find the ugliest building in Chicago. I know a few new construction condos in the West Loop that qualify....hard to decide which is the worst. I'll get my camera out and post a few pics later.

Spending too much on housing?

2006-10-03T06:49:00.000-07:00

The Trib reports that the portion of homeowners in the six-county Chicago land area spending more than 35 percent of their household income on housing costs jumped from 17 percent in 2000 to 28 percent in 2005.

How To Improve Your Credit FICO Score

2006-09-29T08:06:00.000-07:00

This is an adaptation of a good overview by Dan White of Discovery Financial Solutions. You can contact Dan for Discovery's Credit Repair Guide at 773-878-1123 or at Dan4Loans@comcast.net.

A FICO score is calculated using the credit data available on the day the score is requested by a lender. Thus, a score can vary from month to month or even day to day. There are things a person can do to develop a solid credit history and improve the FICO score.

1. Pay bills consistently and on time – recent late payments carry more weight than past late payments.
2. Pay all unpaid collections and judgments – Make sure to obtain “0” balance letters and release of judgment if applicable.
3. Check credit report and remove any errors – If there is inaccurate information on the credit report, it could lower your score.
4. Keep debt reasonable – as a general rule, an account balances should be below 75% of the available credit.
5. Maintain only a reasonable amount of unused credit – having ready access to thousands of dollars of debt can actually make you an unsatisfactory credit risk.
6. Avoid too many inquiries – inquiries are interpreted as a sign that you have been actively seeking credit and could be overextending yourself or that you may be in financial difficulty.

Disputing Inaccurate Information on a Credit Report: To dispute inaccurate information on credit reports, you will need to write to the credit bureau and supply the following information:

1. Full name, first, middle and last and including any applicable suffixes (Jr., Sr., II, etc.)
2. Complete mailing address
3. Date of birth
4. Social Security number (this is necessary to access credit report)
5. The name and account number of the creditor and item in question
6. The specific reason for the disagreement with the disputed item
7. Signature

Notify the Creditor: We also recommend that you write the creditor (bank, department store or other lender) involved in any item that they dispute, detailing the error and the corrective actions they have taken by mail and follow up with them.

Where does Oprah live? And More Answers...

2006-09-28T05:55:00.000-07:00

Rumors abound that Oprah lives in Lake Point Tower in Streeterville, said Chicago greeter Jennifer Gordon. But Oprah actually owns a condo in the Water Tower Place, Gordon said, a fact confirmed by a spokeswoman for the Tower's condominium.

RedEye picked the brains of several local historians and sports experts to uncover the truth behind popular traditions, myths and rumors blowing around the Windy City. Check it out.

First Price Decline in 11 Years

2006-09-27T06:24:00.000-07:00

The NATIONAL ASSOCIATION OF REALTORS® just reported that the price of existing homes declined nationally for the first time in 11 years in August, signaling that the long-awaited other shoe has finally dropped on the real estate market. The median price for existing single-family homes nationwide slipped 1.7 percent from last August, the first such decline since April 1995. It also was the second-biggest decline in the 38 years the Realtors have gathered sales data. What's this really mean for you?

It's a brilliant time to be a buyer! Expect more for your money and get it! And interest rates are great right now.

Sellers have to be willing to play ball. Motivated sellers need to spruce up and price right to get the deal done, because there are a ton of condos on the market. This is not a market that has any forgiveness, everything has to look good, show well, price well. So, if you're a motivated seller, pay close attention to sales prices of comparable units and get yourself down to that sale price so you can be the next one.

Ten Step Home Buying Process

2006-09-25T12:18:00.000-07:00

As an ABR® (Accredited Buyer's Representative), here's a quick overview of the steps I recommend for my clients:

STEP 1 - Wants vs. Needs
Make a list of the top 5 features you absolutely have to have in your new place. This will help both us find the home of your dreams. If you're the analytical type, use my excel based decision model that weights each criteria so you can see which properties score the best. Note, if you are shopping with a life partner, husband, wife etc. then you should each independently make your own lists then negotiate with each other until you agree on your top 5 features.

STEP 2 - Pre-approval vs. Pre-qualification
Knowing how much you can afford will help to streamline your home buying process. Pre-qualification is a relatively short process where your mortgage provider takes into account basic financial information and qualifies you for a certain amount. Pre-approval is generally conducted after pre-qualification. Your mortgage provider conducts a more thorough investigation on your current financial status and provides a pre-approval letter. Having a pre-approval letter to accompany your offer puts you in a stronger negotiating position.

STEP 3 - Neighborhood Information
In your "needs vs. wants" list, list the neighborhood(s) you would be willing to consider. This will again streamline your searching and will allow your agent to conduct thorough searches using all available resources.

STEP 4 - Home search
Search the entire Chicago area MLS for Free. Select homes you are interested in seeing and I'll do the rest! Or, ask me to do a custom search for you...that's what I'm hear to do! I do all the leg work including previewing the property for you if you'd like. Then we go see the finalists.

STEP 5 - Making an Offer
Once you have found the ideal home, it's time to make an offer. I'll do a comparative market analysis of the property and help you determine the terms of your initial offer. Initial earnest money is offered to the seller at this time.

STEP 6 - Negotiating to Buy
Negotiating until a final price is agreed upon is common practice in real estate. Anything is negotiable including price, earnest money, time allowed for attorney review and inspections, as well as the closing date. My years of negotiating experience will be a great advantage for you.

STEP 7 - Vendors & Attorney Review
Once your offer has been accepted, you'll need a real estate attorney to review the contract right away. If the property has a homeowners association, I'll help to get declarations, by-laws, and budgets for you to review with your attorney. Many associations require a move-in packet to be completed for their management company as well. I recommend you have an independent home inspection completed prior to the expiration of the attorney approval period. A new Illinois statute requires that home inspectors be licensed by the state and I can provide you a list of qualified inspectors. Your lender will also need a copy of the contract and will conduct an appraisal to insure that your investment is sound. Again, I can provide you with referrals and I'll coordinate with the different vendors to make sure that everything necessary is completed in a timely and legal manner.

STEP 8 - Pre-Closing
Once the seller and buyer attorneys approve the contract and the balance of earnest money has been paid, the attorneys will be ordering all of the documents needed to complete the transaction and schedule a closing with the title company. During this time your lender will be completing the underwriting process to finalize the loan as well. If you're purchasing a property with a homeowners association, the association will provide proof of hazard insurance for the building to your lender and attorney. If there is no association, your lender will require that you provide an insurance binder showing that you have secured hazard insurance for the property at this time. Here again my assistance in providing referrals and coordinating the activity to insure a timely closing is invaluable.

STEP 9 - Closing
This is the process where transfer of ownership takes place, from the seller to the buyer. Your attorney will guide you through every step and I will be there to answer any questions that arise regarding the property.

STEP 10 - Post-closing
Congratulations, you are now a new homeowner. You will need to set up local utilities and I'll provide you with a list of local utility vendors.

"Cookie Monster"

2006-09-25T06:33:00.000-07:00

This shot of my life partner Vlad and me was taken at Sunday's open house at 720 W Randolph by our Kiwi friend Rana. She and Ian are our "open house cookie groupies." Invariably they show up to all my open houses to sample the freshly baked cookies and to provide valuable feedback as to how the home looks. Cheers Mates!

Comments on "Condo Prices Near A Cliff"

2006-09-24T15:41:00.000-07:00

Interesting article by Susan Diesenhouse in the Tribune yesterday.

Frankly, I'm not surprised that the first of the big Chicago developers to bail out of the market is American Invsco Corporation. They're known for converting boring old apartment buildings with no glamour (low ceilings, no in unit W/D, limited amenities, etc.) into entry level mediocre condos. I kinda think these buildings should have remained apartments anyhow.

In the next month I predict we will hear more reports of big Chicago condo developers bailing. It'll be more meaningful when the developers known for building quality new condo construction (I know these are few and far between!) begin to pull in the horns.

2BR/2BA + Den Great West Loop Value

2006-09-22T15:58:00.000-07:00

If you've been waiting for a deal in the West Loop, here's a great value play. 720 West Randolph Unit 708 (City View Tower) has 1,420 square feet, is nicely upgraded and is in a great location near all the restaurants and shops and transportation.

The seller is seriously motivated and the asking price reflects this motivation. It's listed at $399,000 including a garage parking spot and a flat screen TV with surround sound. Comparable units in the area sell for $425,000 - $435,000.

Make an offer and get a deal!

"Twisty" Tallest N. America skyscraper to be Built in Chicago After All

2006-09-22T14:16:00.000-07:00

The Chicagoist reports today that Irish developer Garrett Kelleher has purchased the property where the "Fordham Spire" was to built from The Fordham Company. The wild twisty skyscraper will now be called (yawn) 400 North Lake Shore Drive. It's slated to be 124 stories high and contain 50,000 square feet of retail space and a 20-story, five-star hotel. Sound familiar?

Does anyone else wonder why these developers don't see what most of the rest of us see as obvious. Namely, that there are way too many new developments like this slated to be build in Chicago? That being said, I'm pretty fired up about the design of this one.

Buyers Enjoying Low Mortgage Rates

2006-09-22T13:12:00.000-07:00

More good news for buyers. This week's national average interest rates are even lower than last week:

30-year, fixed-rate mortgage 6.4%
15-year, fixed mortgages 6.06%
5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs), 6.08%
1-year ARMs, 5.54%

Disconnected?

2006-09-22T12:39:00.000-07:00

Yes! There's a big disconnect between buyers and sellers and sometimes real estate professionals too. It's a market where buyers can negotiate and they are not in a rush to buy. Some sellers haven't gotten the word yet because they may be basing their concepts of appropriate price on sales prices from 3 to 6 months ago. Some real estate professionals are not yet comfortable in coaching their sellers as to the value of their place in today's market and the time it will take to sell. When they don't get the price they want in 60 to 90 days, many sellers are unhappy and take their place off the market to either try and rent it or just continue to live in the home. So, what percentage of Chicago sellers are not really "motivated?" From what I've seen it's between 40-50%. While this isn't all bad as it keeps prices from sinking too far too fast, it is taking some time for us all to get re-connected.

Step up to the BIG TIME

2006-09-20T15:07:00.000-07:00

OK, so we all know it's a buyers market in Chicago and has been for many months...long before most folks were willing to acknowledge it! Now I think it's actually a BIG TIME buyers market with BIG TIME opportunities. There are far more properties on the market for sale then there are buyers who are looking to purchase, in some areas like the West Loop and South Loop some say there's an 11 month inventory! Thus it's a BIG TIME buyers market. Great news for buyers.

Ok, so it's not so great news if you need to sell. That said, don't be taken by the age old misconception that in a buyers market sellers have to sell for less than fair market value. Not true. What is true is that you should expect the sales process to take longer, and A LOT longer if you own a BIG TIME property valued over about $400,000. Here's why:

Depending on which Chicago neighborhood, first time buyers tend to buy in the range of $150,000 and $400,000 and they are still out there buying right now because rates are still relatively attractive...less than 6.5% for a 30-year conventional mortgage at this writing. They know buying beats renting any day especially now when deals can be had. Many of my friends who own $200,000 to $400,000 places are not stepping up to the BIG TIME unless they have to...read: "boy friend / girl friend moved in, we got married or we ABSOLUTELY need more room for the kids." Actually, I think this Fall is generally an excellent time to take the step up to a bigger place as long as you've got the cash flow and credit to do so comfortably.

To sell your current place without the stress, just set your timing and pricing expectations correctly and keep in mind the great deal you'll get when you step up to the BIG TIME and get your dream home at a great price! Oh, and hire a professional to help you because in a market like this a great REALTOR® gives you the edge.

Welcome to Blog Home Chicago!

2006-09-20T08:12:00.000-07:00

Today is September 20, 2006 and the first day for Blog Home Chicago which is an open forum for discussion on how, why and where we live in Chicago. I'll post ideas, observations, comments and resources.