Being Negative or Being Honest?

In a recent conversation with a client who wanted to become involved in a transaction that I felt he did not have the wherewithal to close in today's current lending environment the client told me he wanted to stop hearing the negatives. I should focus on the positives. What can be done?

Priding myself in being a solution oriented Realtor, I thought about this. I called several real estate and lending professionals gave them this client's scenario. My first instinct was to refer my client to another agent who might be better able to help him with his purchase. The second group of calls where to lenders to verify that my thoughts on the viability of how he thought he could finance properties. Both the lenders and real estate agents confirmed what I had expressed to my client.

I read a blog this morning about no listing is a bad listing. One of his points was that the agent who says this is because they lost the listing to another agent just has sour grapes. I have lost very few listings to other agents. Of recent, many of the listing appointments I have gone on have decided not to list now because of they financial circumstances do make sense in this current market. We then focused on positioning themselves for the future. The few listings I have lost to other agents have been listed at considerable higher prices than I advised. The other agents either where more willing to take the listing at a price the market could not bear or told the sellers what they wanted to hear.

Whether the news is good or the news is bad, I never like to sound like a "Debbie Downer". I just try and relay my professional opinion and advice in the best way I know how for my clients. Many times it is looking at what they can do either in the short term or long term. It is finding the answers. Unlike in the past where money was flowing from the banks, there is not always immediate gratification.

As a Realtor, our clients hire us not to tell them what they want to hear but for our honest professional opinion. I guess it is all in the delivery but in some cases there are cannots and no solutions available unless the client can come up with the cash. Sometimes that is the only solution.

The Changing Dynamic of Negotiations: The Quality of the Seller

In the past real estate agents always entered into negotiations with the perspective that buyers and sellers have different points of view. For sellers who bought their homes in the last years, they are looking at the same issue that the buyers are looking at: How much is the check going to be that they have to bring to the closing table?

Home Sellers
It seemed to me that over the past year or so sellers where jumping on the short sale bandwagon. Recently it seems that if they have to sell they are opting to write a check at the closing and rent for a while until they regroup and position themselves to be homeowners again.

Home Buyers
In the past weeks home buyers have been going forward submitting offers. Very different than just a few months ago, they are not throwing out "low ball" offers. Buyers are working with their Realtors® and strategically putting together offers. More importantly than what the active comparable properties on the market are they are taking into consideration the last closed as well as pending sales. Those pending sales could very well be the closed comps when it comes time for that buyers appraisal. No one wants to get into the situation of a property not appraising for the agreed upon purchase price.

It is no longer what the price the seller wants to get for their home or what the buyer can afford. It is putting a qualified buyer together with a qualified seller at the closing table.

What These Means to Realtors
Rather than quickly getting to agreeable terms, real estate agents will be going up and back between the parties as each side carefully reevaluates their position with each counter. It will be our negotiating skills as professionals to get the buyers and the sellers together on price and terms that can both handle. We need to continue to be an active party to the transaction through the closing.

Chicago: Still A Great Investment

Over the past year or so the Chicago 2016 Olympic Committee under Mayor Daley's leadership has been running around putting a funding package together to move Chicago forward to make it "Olympic Ready". Being the knocked out in the International Olympic Committee's first round stunned most but everyone has to remember that Chicago is still the same great city that made it to the final rounds.

All the same reasons that so much private money was raised to fund the Olympics had they happened remain as to why Chicago is still the same great city for moving many of the plans forward. We obviously don't need the game venues but we look at the opportunities for jobs, housing and transportation. The redevelopment plans of many of the neighborhoods need to just be tweaked but are still viable.

Chicago already is one of the best cities. We need to continue to grow our commercial, residential and tourist opportunities. If you have never been here before, explore Chicago.

Chicagoans should remain as resourceful as they have been in the past and move forward, not stop. We need to leave the door open and work towards so many of the other global opportunities we can bring to the city.

Low Ball Offers: Still Offers to Be Negotiated

One of my observations in this current market is the difference between the complainers who seemed to be challenged in getting anything to close and the problem solvers who look at the challengers as opportunities. You are successful or not. There is no longer an in between.

There has been a lot of moaning and groaning about low ball offers. If you don't get the offer there is no opportunity to turn it into an executed contract and eventually a closing. If the buyer's agent can get his client on paper and an earnest money check they now have an emotional attachment to the property.

It is the seller's agent job to take the offer and get their client to counter the buyer. In some cases it is a matter of getting the seller to be realistic to the value of the property today. In other cases it is going to be keeping the buyer engaged until they get to terms the seller will accept.

It is called negotiating. That is why buyers and the sellers hire real estate professionals. We are the middle men that take the emotion out of the negotiation and get the job done in the best interests of our clients. Not every offer will work. Not every one will close. It is not where you start it is where you end up: The closing table.

The Chicago 77 - Chicago's Neighborhoods starting with Edgewater

For many months I have been writing about market updates and observations for the Chicago 77 Real Estate Blog.

The blog was started by Rod Holmes to speak to Chicago's real estate market. Rod is a partner in Chicago Style SEO working primarily with real estate firms to improve their Internet marketing. The blog name comes from the 77 official community areas that make up the City with Big Shoulders. As I was writing my update for Monday, it occurred to me I have never really told the stories of any of these communities, many in which I have lived, worked in and enjoyed all they have to offer.

As an active member of the Goverment Affairs Committee for the REALTORS®, as well as chairing the committee on and off throughout the last decade, I have had the wonderful opportunity to visit all 77. I have gained great insight through Brian Bernardoni, the Govermental Affairs Director for the Chicago Association REALTORS® driving and walking the streets, visiting with members, businesses and residents as well as the local alderman.

Next week I will be taking on that leadership postition again for another year. I look forward to getting back to Chicago's gems again, its neighborhoods,

Today, my first neighborhood story was posted. I started with number 77 first and will be zigzagging through the city over the next months. Please read my short story about the Edgewater neighborhood.

Price Changes Continue to Drive the Market

In the first week of the Fall 2009 real estate market 26% of the homes currently listed for sale in the United States had price reductions according to Trulia. This is the fourth month in a row that there has been an increase of price reductions taken. Locally, Chicago's active listings saw an average price decrease of .4% last week. List prices are down overall 18.5 % compared to last year.

With sellers aggressive sending out the message they want to sell by lowering prices buyers have been re-engaging in the market place. Many Realtors®are getting more showings on the listings resulting in multiple offers in some cases. With the decreases in the price of market rate properties, many buyers are opting not to go after distressed properties to avoid issues that can arise in short sale and foreclosure transactions such as undetermined closing dates and the cost of fixing up the properties.

Some sellers are opting to remove their homes from the market rather than sell at a further reduced price. The question remains as to how long will they have to wait it out. A few who have to move are trying to rent their homes in an over saturated rental market. Rental pricing is not always meeting the monthly expenses on the properties.

If the property is priced more than that local market can bear it still won't sell even with the price reductions. When putting together offers, buyers and their agents are basing it all on the last three closed comps in the last 90 days.

To follow Chicago Area Listing Inventory and keep up to date on new listings and price changes click here

Chicago’s Fall Market 2009: Buyer, Seller, and Agent Expectations

The week after Labor Day traditionally marks the beginning of Chicago’s fall real estate. As this has been a period of non-traditional activity, I have thought carefully about what are my expectations. The strengths and weaknesses in the marketplace will depend on what type of property in what area at what price. There is no blanket citywide answer. The one constant about Chicago real estate is that it is local to the building, the block, and the neighborhood.

Buyers
Overall there will be fewer home buyers out there than in years past but more than we have seen in the first months of this year. The majority of buyers have gotten themselves in a stronger position financially, coming into the transaction with larger down payments or just paying cash. Those who have the wherewithal to purchase are now actively engaging. These buyers have the opportunities to take advantage of short sales and well priced homes. If they are contracting to purchase a short sale they must have a clear understanding, no matter how financially qualified they are to buy, that the transaction is controlled by the sellers’ lenders.

The strength of the lower end/first time buyer will depend on how the government reacts to the rising default rates on Federal Housing Authority (FHA) loans as reported in the Wall Street Journal. If FHA is forced to tighten its guidelines it will impact a large number of new construction and conversion condominiums which have typically been entry level products. FHA loans became popular with the demise of subprime mortgages, enabling purchasers to get into homes with only 3.5% down payments.

Sellers
Regardless of market conditions it is still about the space. If the space works for the potential buyer then pricing becomes equally important. Over the last months home values have been leveling off. With that said, overall values are significantly lower than in years past. A home’s value is based on the last three sales in the last six months of comparable properties. Because of specific areas of high inventory levels, high rates of default, and foreclosure there are still pockets of the city that will continue to see devaluation.

What you paid for the home factors into your decision to list. Can you afford to sell it now for the current market value or do you have to sell? If you have to sell, will it result in a short sale? Most listings will not get many showings but each and every one is an opportunity.

REALTORS®
There continue to be far fewer of us. It is down to 10% of real estate professionals doing 90% of the business. To get a transaction closed is a combination of the years of expertise, number of transactions, and the experience of working as a REALTOR® in this perfect storm of the last eighteen months. These are the agents who have the skills to bring the offers, get them negotiated, and get a higher percentage of successful transactions in an environment where many contracts never get to the closing table.

The marketing of properties has changed as quickly as the real estate market itself. It is no longer about the Sunday paper, the glossy magazine ads, and entering listings into the MLS. It is all about Web 2.0 and social media. Knowing how to use the brand your brokerage offers, supplemented by the brand you have created for yourself as an agent to get your listings the greatest exposure. A professional agent must know where listings go and how to get them optimized. Saying, “the listing will go into the MLS and will be on the Internet” is not providing a service.

With a decade of experience as an active REALTOR® I am optimistic. It is about overcoming objections, finding solutions, and understanding how to market. It is also gaining knowledge from my transactions as well as from the expertise of my colleagues. It is about constantly educating myself to accomplish what I am hired to do: the sales and marketing of real estate.

The Facebook Friend vs The Twitter Follower

Trying to be an efficient social networker, I make it easy for myself and use the tools out there. What I post on Twitter automatically goes to my Facebook page. When I post on my Activerain Blog it automatically goes to Twitter which then goes to Facebook and so on and so on and so on. I really don't go on Facebook that often except to read a chain of comments when I am alerted, check out other friends once in a while or play games.

It finally occured to me why the @(reply) or dm(direct message) responses on Twitter are always so different than the chain of comments generated on Facebook with the same message. It is not a good or bad thing but demonstrates the difference of the two mediums.

Tweeters read the tweet and if they get so enticed they click on the link and read the surprise they open up and then respond. If the follower thinks it is worth sharing they then create the viral effect of RT(retweeting) spreading the insight of the message. They always anticipate some new life changing knowledge if they just click. If there is no link that 140 characters or less must be profound or else why would I be following you.

Facebook friends respond to the 140 characters or less without clicking through the link to read the post. Many times they are missing the intent of the message not taking into consideration all the information presentated and their comments reflect that. Many times the comments are amusing because you can tell they totally missed the point. Facebook friends are very into their comments.


Followers on Twitter seem to be all about the sharing of knowledge. Facebook Friends tend to share themselves.

I thought this tweet twittered today says it all: AndreaRealtor: RT @Swanepoel: RT @MIrealestate - Read somewhere that sharing is a human quality and a core principle of Web 2.0 and Social Media.

What it Really Means to Market Listings Today

Regardless of real estate market conditions, our clients hire us to get their properties sold. Sorting through this week's news and numbers regarding how we market those listings, there still seems to be a huge disconnect between how most agents think there listings are marketed and the realty of the fastest growing resources that the consumers are getting their information from.

Just Being in the MLS Does not Cut it Anymore
It is all about turning your listing into a story now. The websites that are gaining most of our consumers attention are not depending on the information feeding from the MLS. They are looking for agents to contribute information on their listings. Our consumers are buyers, sellers and other Realtors. They are going in masses to sites like Zillow and Trulia, sites that take basic information from feeds but are looking to the listing agents for more pictures, open houses and additional descriptions about the property. Sites like these mix social networking and listing data. They offer free blogs and question and answer pages to engage professionals with consumers. The sites are doing a good job evolving as social media evolves.

Blockshopper.com is another example of MLSs loosing their relivance in marketing agents and listings. They pull their data from tax records. Owners can "claim" their homes. Agents who establish accounts can add notes to their listings and previous sales. It shows transaction history of the property. This site as well is a work in progress as every site needs to be.

Does Your Broker Do Your Showings?
Think of it this way: it is the agent, not the broker, who has viewed the property, evaluted the pricing, condition and sales potential. You now have platforms to communicate all of this information. The new generation of sites depend on broker feeds as a foundation and build upon that with agent participation. What prospective sellers see on this sites is your first interview and then the follow up in getting a listing. When buyers are searching for a property what they see online about your listing is the first showing and if there is any interest it is the third showing. The brokers provide agents with the tools but it is the agents that sell the properties. It works the same way in the virtual world.

These sites are growing at a faster pace than traditional sites because they are providing the transparency the consumers are looking for.

Agents: Stop Spamming Agents

According to latest reports, social media has became bigger than email. That got me to thinking about where we are as an industry. As usual, miles behind. I think many agents and some brokers missed the webinar that explained to effectively use email as a means of marketing you listings or as a recruiting tool it is called drip campaigns not spam campaigns.

I did an an informal survey on Twitter and Facebook. The majority of responses where no to reading the emails sent out about listings. Several said they unsubscribe, a few said they read them if based on the address and only one person said an unqualifying yes.

I have used emails on occasion. I try and follow the guidelines suggested by the pros. Don't send listing emails often and only if it is "newsworthy". Huge price reductions, something out of the ordinary new listing or a special brokers open event.


When I receive eflyers on listings I usually ignore them unless something catches my eye in the headline. If I see a sender email to much out then I unsubscribe. I am not sure what unsubscribe means because it stops for a while and then I start to get them again from the same agents. I think someone told these agents Tuesday is a good day to spam out other agents with all their listings. I kind of understand the Fridays for open houses. What I don't get that if your office is emailing out a list to the broker community, why you have send an individual one on each listing.

What I find interesting, is that the agents who are spamming listings are not engaged in the social networking community which has surpassed email as our means of communicating. This only goes to prove the point you spammers are still not effectively marketing yourself or your listings so you are probably not seeing this blog post!

My Observations on the Last 30 Days as a Realtor® in United States

As I have time to reflect as we go into this holiday weekend,
I think back to all that happened in the month of June.

My Personal Market Activity: Buyers re-engaged in the marketplace resulting in sold properties. Sellers who want to sell are listing at prices to sell not just to list. Communication between the Realtors, lenders, buyers, sellers and attorneys is key in keeping the deals together and getting them closed.

I have received negative comments responding to my positive outlook on the market, the first signs we are seeing of stabilization from the numbers that are being published. I have run into agents I know amazed when I say I am busy. They are thinking of getting out of the business. I am not “wearing rose colored glasses” as commented on one of my blog postings. Rather than walk away in frustration, I decided I have to continually educate myself to the dynamics of the ever changing market. Learn from my most current experiences. Most importantly, work to solve the problems that arise from each of the challenges that come with every transaction.

Americans deserve the opportunity to achieve and sustain the American Dream of homeownership. It is still recognized as one of their most important assets. I am a Realtor®. This is what I do.

Happy Birthday America!

Buy or Rent? Buying is Starting to Make Financial Sense Again

Originally Posted on Chicago's Real Estate Blog, The Chicago 77, June 29 2009

This week’s Crain’s Chicago Business (PDF) is reporting that the relative cost of owning vs. renting is swinging back in favor of home ownership across the U.S. and in Chicago. The Chicago real estate market is already seeing signs of this with an increase in pending home sales. There are great expectations that June’s sales numbers will finish off what should be a strong second quarter. Realtors® see this trend continuing as many of their buyers have reengaged and are actively looking at properties and going forward with offers. Tire kickers have become purchasers. As sellers have been adjusting their prices, buyers have making repositioning themselves regarding financing. Borrowers are expanding their lending options, taking advantage of the $8000 tax credit and creating greater equity in their purchase with larger down payments.

Disappointment Creates Opportunity

Roosevelt Collection, a 342 unit new construction condo building in Chicago’s South Loop is now going to be rental apartments according to this week’s Crain’s Chicago. Many new construction buildings sold as condominiums are ultimately ending up as rentals.

There is always a positive out of a negative.

The purchasers who entered into contracts on these units at the height of the market should look at this as opportunity. They now can take advantage of today’s prices and inventory. Currently on the market buyers can get new or almost new units and take advantage of historically low interest rates especially in neighborhoods like the South Loop and West Loop where the inventory is plentiful and full of brand new buildings with empty units.

To view Chicago's listings click here.

The Value of Open Houses

The ongoing debate of as to if open houses have any value. This is my professional opinion. In any transaction there many different avenues to how a buyer finds a property. The same road does not get us a contract 100% of the time. As a Realtor®, it is my job to provide my clients a 110% effort to sell their home.

According to a study that Harris Interactive® conducted on behalf of Trulia, 91% of buyers will visit open houses during their home search with the internet being their primary resource to find them. (Click here for the complete release from Trulia).

I have had success stories of selling listings through open houses just as I have through the many other tools that I use to market my listings. That is why I continue to have them week after week. Open houses are just one piece of the pie in marketing properties. It is our job as professionals to offer our clients a complete package of services to achieve the goal for which we were hired: sell their property.

Open houses create opportunity just as all of the other means that we market properties. Yes, it is also an opportunity to pick up other business as many buyers coming through have not yet established a relationship with another agent and that property is not right for them. Yes, there are weeks that few to none come through. Yes, there are weeks that there is a lot of traffic with no real bites. It is all worth it for the one that comes through and writes the offer. It only takes one.

To discount open houses as not being a viable tool would be the same as discounting any of the other means that we use as real estate agents to market properties.

Hope & Change “Chicago’s Good Neighbors”

At a dinner On May 21, the Chicago Association of Realtors presented the 2009 Good Neighbor Award winners. As I saw the recipients walk to the podium to receive their awards, the words of the evening’s emcee kept running through my head.

In his remarks, Brian Bernardoni the Government Affairs Director for the Association said, “There is a yin and yang; there is a balance the concepts of HOPE and CHANGE present – they need to work together. Without the inspiration of HOPE people will not find resources for CHANGE. And without prospects of CHANGE there is no HOPE. Developers and REALTORS® in the room know these words all too well.”

Hope and Change
They are words we heard through the presidential election as a Chicagoan worked to create hope that change will happen. Locally those words define the work, dedication and partnerships of the developers, banks, Realtors®, and in many cases the City of Chicago through its Department of Community Development. The award winning projects where scattered throughout Chicago, from North to South East to West. They were residential, commercial and mixed use renovations and new construction. Working together their work filled vacant lots, abandoned buildings, and in some cases the starting point for hope there will be change for an entire community.

Affordable Housing Without Displacement
This year’s Bruce Abrams Award winner—the program’s highest honor—was awarded to Benjamin Van Horne of Greenline Development for the Greenline Condos in the Woodlawn Neighborhood. With this 37 unit project, Mr. Van Horne achieved his goal of quality affordable housing without displacement. He was able to do this in cooperation with the City of Chicago’s Department of Community Development.

Saving a Historically Significant Building
Another winner that stuck out in my mind was one of a colleague of mine at Sudler Sotheby’s International Realty, Ron Meadows. In the Lincoln Square neighborhood where even in this current real estate market, developers are still tearing down and building new condos and single family homes, Ron saved a building built in 1893 with historical significance from a developer who was going to tear it down. He took this structure, known as the Alley House of Lincoln Square, did a total renovation and is maintaining it as a rental property in an area where there is very little rental inventory left.

Every award recipient has their own passionate story about their project. They all faced challenges. But they saw through them—all to make a difference. Project by project, partnerships bring about change throughout the entire city and hope in many neighborhoods where it did not exist before.

Mr. Bernardoni went on to say “When you INSPIRE HOPE and bring about CHANGE – you build this city. You are all winners and great Chicagoans. Thanks for doing your part.”

Orignally posted on the Chicago 77 Real Estate Blog

What Constitutes an Expert in Social Networking?

What math class did they teach "loyalty" + dollars = “experts”?

We are becoming so dependent on these sites for our “expert” advice. Is one an expert because they pay to play? How do we qualify those who we are taking advice from? When did an expert become a paid advertisement? Social networking had become the means in which we get ourselves out there. It is our new means of exposure and with any advertising there is cost involved. But when did our expertise become based on how much we pay or in this case, how much our company spent over the years.

When doing my evening round of “social networking”, I saw a posting that appeared to go out to the entire local Realtor® association calling for members to apply to be one of their “experts” on their new real estate social networking site based on shared knowledge of “experts” with hefty fees involved for the those who participated. As a big social networker who has been successful converting leads from this medium, I looked at the qualifications they were seeking, and thought I might have a chance to be part of this new venture.

Thinking I had a great resume, I applied. After all, I have been an active Realtor® in the area for a decade participating in hundreds of transactions myself representing buyers and sellers in new development and the secondary market as well as short sales. I also had the benefit of gaining knowledge from others in an agent support capacity in my company. Reporters call me and I have been published and posted internationally regarding real estate. Unpaid publications called me the “expert”.

For almost my entire real estate career, I have served the Realtor® community volunteering thousands of hours of my time for the Realtor® Association (the same one he had addressed the posting to) at the local, state and national level as an advocate on behalf of the real estate community and home owners. My years of association participation afforded me the opportunity to canvas the entire city. I received the President’s Community Service award, one of only a few. I have also been greatly involved in my local chamber of commerce in the same capacity.

I went to the online application, filled it out and inquired how long the process was to find out if I was accepted or not. The response was I am not currently being considered because he will only “reward loyalty” at this point. They are only accepting real estate agents as “experts” whose companies have done business with a company the creator of this site has.

In the posting to an association with over 13,000 members it did not specify that if the company you are with did not spend money with him, you need not apply.

Past and Present

For many weeks now, the showings on homes have increased. The potential buyers coming through listings seem to be highly qualified both financially as well as in their commitment to buying a home. Sellers have made their adjustments to the market and buyers are taking notice. As a real estate practitioner, the art of the deal keeps evolving but I am busy working with clients in the buying and selling of homes. There is no longer anytime to sit back and have the discussion what happened to the market because I am busy working. Contracts are being negotiated. This is my market indicator.

As someone who relies on the RSS feeds for news as I am running around throughout the day coming to my blackberry via Google Reader or Twitter, I see some positive market indicators and them some negative. When I sit down at the end of the day and read the postings all the way through, I see much of the negative is old news, reports that are coming out with first quarter data. In this dynamic environment, 60-120 days ago is not a measure of what is happening now. We can use some of that information as guidelines for our offers but that was then and this is now.

Agents All A Twitter About Signs

You can tell the times have changed as to how we get our information. In 140 characters or less, word of an old sign ordinance spreads like the Swine Flu.

Many, many years ago, the City of Chicago passed a sign ordinance banning signs from being placed in the public way. There are fines ranging from $100-$500 associated with this offense making each sign you put in the public way a very expensive lead.

Every so often the Chicago Association of Realtors is informed that real estate agents are violating the law either by various aldermen’s offices or members of the public. Periodically, the association communicates to its members they are violating the law with their open house signs via the communication of the current time. At first the Chicago Realtor newspaper, then the magazine. Now it is posted on their website and warnings emailed out to its members. All along there has been outreach to the designated brokers.

As a long time member of Chicago Association of Realtor's Government Affairs Committee, I was well aware of the weekly violations and complaints coming into the association as well as all of the years of ongoing outreach efforts the association does to make its members aware of all legislation that affects our industry. Most of the Chicago Real Estate community has ignored the sign law like it did not apply to them until last week.

Mary Ellen Podmolik of the Chicago Tribune article about a certain alderman and the sign ordinance posted early Friday. Within minutes many of the Tweeters were all in a Twitter about this law they claim to have never known about and how it will fringe on their business. It was spreading like a wild fire on Twitter as it kept being re-tweeted. As someone who keeps Seesmic(a desktop platform that integrates Twitter and Facebook) running in the background of her computer and is on Twitterberry when she is away from it, the uproar is still continuing days later.

What occurs to me is that these same real estate agents used the same medium they are expressing their rage in to promote their open houses they would have quality prospects coming through their listings rather than somebody who stumbled over a sign on a corner a block away. Buyers who are real purchasers have typically toured the home virtually online before coming to the property. They have downloaded the list of the homes they want to visit from a variety of sites including brokerages websites, open house portals or Googling.

The odds of a qualified buyer finding your listing is a lot better optimized/advertised online via websites, portals, good SEO, syndication and social networking than putting signs at every corner in the neighborhood that the Chicago Department of Streets and Sanitation could throw away or fine you. Is this a quality lead at the cost of $500 per lead?

The Chicago 77

Today my first article was posted on the Chicago 77. I am very excited and honored to be published on this great resource for Chicago home buyers, sellers and just about anybody who is interested in this great city and its real estate market.

The Chicago 77 is dedicated to writing about the Chicago real estate market from all possible angles. The Chicago 77 is written by the professionals who know the market best: real estate agents and brokers, developers, appraisers, bankers and mortgage brokers, inspectors, insurance agents, lawyers, and economists.
The name comes from the 77 official community areas that make up the City with Big Shoulders. This is the area that The Chicago 77 will write about.

Please read my first post at the Chicago 77.

Followups to come!

Open Houses Chicago: Saturday, May 2 and Sunday, May 3

This week's featured open house is 111 S. Racine at the Chelsea Townhomes in Chicago's West Loop. This 2 year old townhome built by the Belgravia Group, a company with over 60 years of experience. This spacious 3 bedroom, 3.1 bath extrawide home was thoughtfully upgraded and is tastefully decorated, ready for its new owners.
This property will be open Sunday, May 3 from noon -2pm and always can be shown by appointment.

Open houses provide a great way to to learn about the local real estate marketplace and meet your local Realtors. Pictures are never a substitute for actually seeing the space.


This Weekend's Open Houses:

Saturday and Sunday, May 2 and 3, 11am-4pm
Fletcher Row Townhomes: Model at 2452 W Fletcher, Chicago

Sunday, May 3,
Noon-2pm - Edgewater: 5555 Sheridan Road, Unit 316,

Noon-2pm - West Loop: 111 S Racine,

11am-1pm Lakeview: 3330 N Ashland, Unit 2,

Start your Chicago home search at http://hotpropertychicago.listingbook.com/.

Follow me on on Twitter

Chicago Open Houses Saturday and Sunday, April 25 and 26

Open houses are always a great way to to learn about the local real estate marketplace and meet your local Realtors. Pictures are never a substitute for actually seeing the space.

This Weekend's Open Houses:
Saturday and Sunday, April 25 and 26, 11am-4pm Fletcher Row Townhomes:

Model at 2452 W Flethcer, Chicago

Sunday, April 26:
Noon-2pm Edgewater: 5555 Sheridan Road, Unit 316, Chicago
1pm-3pm West Loop: 111 S Racine, Chicago
1:30pm-3:30pm Lakeview: 3330 N Ashland, Unit 2, Chicago

Start your Chicago home search at http://hotpropertychicago.listingbook.com/.

Follow me on on Twitter

This morning I attended the Chicagoland Chamber of Commerce’s Business Leaders Breakfast. The panel discussion was the “Art of Negotiation” featuring Cliff Stein, Senior Director of Football Administration & General Counsel of the Chicago Bears and Dave Hanna, President of the Chicago Association of Realtors. Both are agents with fiduciary duties their client. Although one negotiates contracts for football players and the other for real estate, the message was the same. It is the skill that comes from experience and preparation resulting in a successful negotiation.
Both men articulated the same course of action in their own way. Stein’s process was identifying the parties, the goals, the rules of engagement, preparation and the how to structure the plan. Hanna said it this way: Identify the client, the goal, the process, expectations and the negotiating strategy.
What I walked away with was as an agent for my clients, I am an advocate. My advocacy comes from the skills I have learned through my experiences in the many transactions I have participated in, what I have learned from others in the Realtor© community and putting that game plan in place for each client I represent.

"Should I Buy Now or Should I Wait?"

There is an over load of information between the media and the "experts" for those that are considering buying a home right now. Are prices going to fall more? Are you eligible for the home buyer credits being offered? What are the loan options? Are the rates as low as they are going to go? Will something better come on the market tomorrow or next week or next month and so on and so on and so on..........

Do you have your finances in order to own a home and are you ready for the responsibility of home ownership?

If you are considering buying a property as your own residence, first and foremost on your list should be is there a property out there you want to call your own. This will be where you will be living for at least the next several years. How does it work with your lifestyle? You won"t know that until you go out and start looking. Pictures only can tell you so much.

Even if you don't think you are looking for an immediate purchase, work with your Realtor® to start helping you sort listings out. A true professional knows that most clients are not ready to go buy something the first time out but expect to work with you from 30 days to 18 months. If you don't have an agent you have worked with or been referred to or want to interview several, open houses are a great place to start. You get the feel of a variety of spaces and neighborhoods as well as get to personally meet with many agents.

Because of the attention brought to foreclosures and short sales, many buyers are just focusing on this segment of the market. You need to be educated on the process to make sure you are suitable for this type of purchase. Both are sold "as is" meaning there are no inspection contingencies. Regardless of the condition of the property at the time of contract, a seller can go in and strip the home of appliances, fixtures and cabinetry and you are still obligated to close on the property. In some cases we are seeing the copper plumbing taken out. Typically, if it is a true foreclosure, you must be a cash buyer. The short sale transaction is totally in the control of the mortgage holder's bank, not the buyer or the seller. The time line is up to them not what is in your contract. There are so many ins and outs you need to be experienced in these transactions or work with a Realtor® who is. The perceived bargain could very well end up costing you more than the property would be worth at market value.

Day by day we are seeing more buyers out looking and they are writing contracts that are getting negotiated. More and more sellers are now accepting the difference of getting a property listed and listing it to sell. The fat is coming out of the pricing. With that being said, if you find a place you would like to call home, go for it! As in any market, everything is negotiable!

Chasing the Market: Buyers

Potential buyers are chasing the market right now and never going to make it to the finish line.
With interest rates at historically low levels as well as plenty of inventory of new construction with incentives and resales at great prices, the buyers are going to miss the opportunities if they don't go forward and get contracts negotiated.
You never know its the bottom until it starts to go up again. Now is the time to move forward. By setting back and waiting for the next great bargain, purchasers are missing the most favorable market conditions in decades.
You cannot take advantage of the rates unless you have an executed contract on a property. Ultimately, the property is going to be your home so the first and foremost item to pay attention to is does the space work for you, not what is the seller's situation, how many price changes has the property had or how long has it been on the market. Those are all secondary. Identify the property and then we can talk about those things.
So many buyers out there are looking for a short sale or pre-foreclosure. It works for some but not for others. They are typically coming in at 15%-18% of market value. A short sale is sold "as is". If the seller strips the place which is becoming more commonplace, you are still contractual obligated to close on the property. If you have to put 10%-20% of the value of the property back into it, where is the bargain?
As many sellers have come to terms with market conditions, there are so many homes in pristine condition or brand new development units priced to sell!
This is the time to move!

Shop and Compare: http://ping.fm/WUHvq

Shop and Compare

In a time when so many factors that go into a home buyers decision regarding their purchase are favorable to the buyer as an investment such as pricing and interest rates , it still comes down to this will be your home.

• Does the space work for you?
• Do you like the location?
• Does this home work for your lifestyle?

Today, March 2, you can visit 3 very different properties in 3 locations all in the same price range.

1. 1pm-3pm - Chicago's West Loop: 111 S Racine
2. 12pm-2pm - West Lakeview: 3330 N Ashland, #2
3. 1pm-3pm - East Lakeview: 508 W Melrose, 5C

Open today 1-3: 508 W Melrose: http://ping.fm/tfPQ5

Aligning Myself with Success

HOT PROPERTY® is an innovation in the real estate industry led by Chaz Walters. The HOT PROPERTY® brand has been marketed since the 1990s. It stands for success, action and willingness to go the extra mile for in servicing clients. This unique boutique residential real estate concept is a step ahead of the industry providing marketing from cutting edge interactive exposure to targeted print opportunities.Hot Property® fosters a people driven philosophy and facilitates a culture of working closely with clients to buy and sell real estate and surpass client's expectations.

To continuing bring my clients the best in the sales and marketing of their homes, I am pleased to be continuing this ongoing relationship with Chaz Walters and HOT PROPERTY®

For expertise in the sales and marketing of your home or the search for your new one, contact:
Andrea Geller
HOT PROPERTY® - Sudler Sotheby's International Realty
andrea@andreageller.com
http://www.hotpropertychicago.com/

Values in the Marketplace: Lakeview Single Family

The opportunites for buyers are all throughout the Chicago real estate marketplace. This home at 1342 W Melrose sold for $1,550,000 in 2005 and is currently listed for $1,499,900. It is quality throughout featuring a Deguilo Kitchen, incredable master suite breezeway to the garage.

Click on the photo for a tour of this home:

This property is exclusively listed by:

Chaz Walters, Hot Property®

Sudler Sotheby's International Realty