Most common risks:

1. May not get funding:  Procuring a mortgage committment is difficult because lenders have many new rules that they must adhere to.

2. Market Decline: There is still evidence of price depreciation in many local markets. You might buy at $150,000 and 1 month later someone else might purchase a similar unit for$140,000.

3. Short-sales and Foreclosures:  The original owners who paid far more than the current market prices might fall into short-sale or foreclosure status.  This would decrease the value of your condo.

4. The entire development might go into foreclosure.

5. Leasing vacant units: The developer/owner might lease all vacant units as a means to generate income. This would  negatively affect the owner occupied level and the image of the development.

If you are considering purchasing a condo in Chicago or the North Shore suburbs, please contact me and I will help guide you through the process.

“How important is a garage for resale value?”  “Should I even look at properties that do not have a garage or attached parking because it will adversely effect the resale of the property?” These are common questions that buyers as k me when searching for properties in Chicago and the North Shore.

The easy answers to these questions are;

1. “A  garage is very important for resale value, especially if you are purchasing a condo because parking is often limited and the change in demographics imply that areas that are within walking distance to public transportation are  going to witness a population growth. Thus, the long-term importance of a garage or, at the very least, an outdoor parking space, will increase as available street parking decreases.”

2. “Of course you should look at properties that do not have parking.”

Both of these questions can not be answered fully without considering the importance of LOCATION.  Location is the most important factor in buying and reselling a home. The importance of location is also a key factor of the emotional response that a buyer has towards a property because it centers around the lifestyle that they envision themselves living. If a buyer is looking a two condos, one that is a short walk from retail and public transportation and the second is a similar condo with a parking space that is 2 miles from the nearest retail and transportation area, the buyer will most often choose to purchase the condo without parking because the location fits in perfectly with the lifestyle that he envisions himself living.  If you are buying a property in Chicago or the North Shore, first choose where you want to live and then order the rest of your criteria as you see fit. Remember, that this is not only an investment, but also your home and the objective is for you to enjoy your time there.

I recently purchased a home in Evanston without garage parking, but in a great location,  and the only time that I have had regrets is during the Blizzard of 2011 when I had to find and shovel my car out !

Please contact me if you are buying or selling your home in Chicago, Evanston, Wilmette, or anywhere on the North Shore.

I received an email today from Kathy O’Malley, an excellent real estate attorney who works in Chicago and the North Shore about filing for property tax exemptions. If you purchased a home in Cook County in 2010 be sure to read this. 

If you are in the market for a new home in Chicago or the North Shore suburbs, please contact me.

In honor of Sunday’s showdown between the Bears and Packers, I have linked an article from the Sun-Times to this blog about why Chicago is far superior to our lonely neighbors to the north. One difference which was not mentioned was the superiority of architecture and housing in Chicago and Chicago’s North Shore communities. Remember to contact me with any questions regarding real estate in Chicago and the North Shore Chicago suburbs. And, of course… BEARS!!!

http://www.suntimes.com/3355976-417/packers-green-bears-fans-bay.html

April 30th was the final day to place your property under contract to be eligible for the housing tax credits that the federal government instituted last year. Now that the deadline has passed, what is going to happen to home prices in Evanston and the North Shore?

One general theory that I adhere to is that the prices of houses and condos that were targeted by first-time homebuyers will continue to decline. The artificial deadline of the tax credit created inflated demand that helped to temporarily stabilize housing prices. I believe that these prices will remain stabilized for the short-term, 1 or 2 months, because the supply has been reduced. However, as the supply increases and the demand goes back to “normal” levels, the market will correct itself and prices will most likely decline.

I am more optimistic for single family houses that are priced from $450,000 to $850,000. These are homes that were affected by the $6500 “trade-up” tax credit, but they are also homes that are targeted by young families and empty-nesters that are looking to downsize. These are two demographically significant groups that will make up the lion’s share of the market’s future sales.  For instance, single-family homes in Evanston that are priced within this price range continue to experience favorable sales and have seen relative price stabilization.

Please contact me with any questions regarding real estate in Chicago and the North Shore suburbs.

Issues Facing Renters

If you are currently looking to lease a house or condo, there are some pitfalls that other people in your position have run into. Due to the large amount of inventory of single family homes and condos that are on the market in Chicago and the North Shore suburbs, many homeowners have decided to lease their properties, either as a means to “wait out” the current real estate market or because they are unable to sell their homes.

If you are looking to lease one of these properties please be aware of these potential problems that might arise:
1.    The homeowner has defaulted on their loan and the property will be foreclosed on by the lender. This problem is occurring often and once the property has been foreclosed on, the lender has the right to remove the tenant from the property. This is a major headache, at the least, for the tenant and most likely will result in monetary loss from moving costs and added stress.

2.    The homeowner has moved out of state and has not hired a local property manager to manage the property. This also occurs often and the tenants often have a difficult time getting repairs taken care of when something goes wrong in the home, such as plumbing or electrical issues.

For more information on leasing properties, both as a lessee and a lessor, please contact me to discuss.

Once again, I would like to focus on the First Time Homebuyer Tax Credit. There are less than 60 days until a property has to be under contract to take advantage of this credit.

When I am showing perspective buyers properties in Chicago, Evanston, Wilmette, Skokie and Morton Grove, I am often asked for information on the tax credit. While perusing the web I found a wonderful site that was set up by Better Homes and Garden Realty that thoroughly explains the tax credit. The link is www.homebuyertaxcredit.com. I strongly urge first time homebuyers and current homeowners who are in the process of selling their homes to visit this site.

In my last blog on real estate in Chicago and the North Shore suburbs mentioned that I recently became a father for the third time. I would like to focus on what questions arise when preparing to purchase a home when you are expecting and what to look for to make the first year as enjoyable for you as it should be.

First of all, it is far easier on your family to move prior to having a child. I recommend giving yourself at least 2 months to become acquainted with a new house. If you chose to wait, put your search on hold and resume once the baby is around 3 months old. This enables you to have time to focus on what is important and not add stress to your life that comes with searching for a new home.

A few things to think about when searching for a new home with a newborn on the way (or already here!):

1.    Can you walk anywhere from your new home? Is there a park or a café nearby? Being able to put the baby in a stroller and get out of the house will literally save you at times!
a.    This can be an important factor when deciding to purchase a condo in a densely populated area, such as Lincoln Park, or a home in the suburbs, such as Wilmette.

2.    Is there a garage? From personal experience it is more difficult to lug a baby in and out of a car when it is parked on the street. Unfortunately, a garage is a luxury for many of us.

3.    Does the house have a decent sized family room? You will be spending an inordinate amount of time in this room, so make sure that it fits your taste.

Please contact me with questions regarding real estate and how to find the perfect home with a newborn.