Even if it were legal for me to answer this question, which it’s not, I could not answer it. That’s because, like beauty, “best place to live” is in the eye of the beholder, and what’s best for me, isn’t going to be best for someone else.

What I can do is help my clients discover their best place to live.

The first step is finding out what’s important to them:
If they have children, schools will usually be at the top of the list. If their kids are into sports they may want to be near playing fields or the ice rink.
Do they commute to the city and want to be within walking distance of the train, or is easy access to the highway more important?
Would they rather have a big piece of property with privacy and quiet or do they prefer a more neighborhood-y feel?

Once I understand what’s important to them, I will take them on my signature Tour of the Shore, where I show them the communities and neighborhoods that fit their criteria. We visit the schools, parks, downtown areas and amenities. I will show them 2-3 representative homes in each community that fall in their price range, and we discuss why their budget will buy more in one area than another, or why two very similar houses have such different price tags.

But beyond housing prices and school scores, it’s critical to get a FEEL for the communities and neighborhoods that you are considering. Here are some of the ways I recommend getting a feel for a neighborhood or community, so you can find the one that will be best for you:

• Have your agent show you what you can buy with your budget in each community. Talk about the trade-offs and what you gain or give-up depending on the community or neighborhood.

• Compare the schools by looking at reports and test scores that can be found online. Then go to the school and sit in front at 3:15 when the bell rings at the end of the day. You will see what happens when the kids come streaming out. Are parents waiting for them? Is it a neighborhood school where they can walk or ride their bikes home or do they have to ride the bus? Do they seem happy and relaxed?

• Observe the neighborhood at different times of day. What are people doing? Are they out and about or locked in their houses?  Is it noisy or quiet? Is it well lit after dark?

• What’s the traffic like? If you are concerned the house you like may be on a busy street, you should go there during rush hour to get the “worst case” scenario. Do people drive fast through the neighborhood, or are they mindful that there are children around?

• Talk to the neighbors and ask them what they like most and least about the neighborhood.

• Also, go sit at the local Starbucks or the park and watch people come and go. Would you feel comfortable with them as neighbors?

There are lots of great communities and neighborhoods on the North Shore. You may have to make some trade-offs based on what you can afford, so you do need to be clear on your priorities. I remember when we moved back here from Colorado, I found a house I really liked in one community but my husband pointed out that, because the lots were large and the houses so spread out, there didn’t seem to be many kids close by. Knowing how social both our kids were, I had to admit this wasn’t going to work for them, so we picked a neighborhood where the houses were close together and there were always tons of children around. Even though I loved that rambling farmhouse with the big oak trees, I have to admit that the house and neighborhood we chose has worked much better for us as a family.

In this environment you would think buyers could really make out. And they can. But they can also lose out by committing one or more of the following mistakes:

1. Trying to time the market

When home prices have been declining, it is tempting for buyers to wait as long as possible to make an offer in hopes that prices will decline even further. But just like trying to time the stock market, this strategy rarely works. It’s impossible to predict when prices will reach the bottom until they start rising again. And once a home is priced to what the current market will bear, buyers will make offers. Now that sellers have become more realistic about list prices, many properties are actually selling quickly.  And recently there have been more multiple bid situations, with some would-be buyers walking away empty-handed. The best strategy is to work with a real estate agent to make an offer based on what comparable homes are selling for.

2. Believing interest rates will stay low

Interest rates are still at 40-year lows right now, but that will not last forever. In fact most economists agree that rates will begin to rise sometime later this year. That will affect not only your monthly payment but also your purchasing power, or how much you can afford. For example, if interest rates rise 1% point, this almost offsets a 10% drop in price…so while you’re waiting to see if prices are going to go down any further, you may be shooting yourself in the foot. You could end up paying a higher price AND a higher interest rate.

3. Not getting lender pre-qualification

Things have changed since the real estate bubble burst. Lending standards are much tighter, both in terms of credit scores, down payments and salary history.
If you are planning to purchase in the near future (or even if you’re just looking), go ahead and contact a lender to see how much you can afford and get pre-qualified for a loan. That way, when you see the home of your dreams, you’ll be able to move on it.

If you are working with a Coldwell Banker agent you can quickly get pre-qualified by a PHH Home Loans professional, without any commitment to get your loan from them. Of course, their rates are very competitive and their service is outstanding.

4. Waiting for something better to come along

It’s ironic. In a seller’s market buyers are falling over each other to buy any house that even remotely meets their criteria. But in a buyer’s market, when there’s so much inventory to choose from,  there’s always this nagging feeling that something better might come along, even if the house has everything you are looking for. Like a coach, a good real estate agent will guide you in prioritizing your housing needs and wants and ask questions along the way to keep you focused on your priorities. When you do finally find THE ONE, she’ll help you negotiate the best deal.

5. Thinking you’ll make a killing by buying a short sale or foreclosure

It IS possible to get a good deal by buying a distressed property, but be aware that these kind of transactions have their own set of challenges (too numerous to cover here), and they often don’t turn out to be quite as good a deal as they seem on the surface.  Make sure you hire a real estate agent and an attorney who are experienced in this kind of transaction, so they can guide you through the process, negotiate the deal and help you avoid making costly mistakes.

If you have the financial wherewithal to purchase a home and are fortunate enough not to have a property you have to sell first, you have an excellent opportunity to get a great deal on your dream home. Just be careful not to blow it by making one of these costly mistakes.

MSN Money ran a great piece called “10 Things That Can Kill a Home Loan”. Here is their list of things that can keep you from getting a loan:

1.  The house needs too much work – beware if you’re buying distressed property or a real fixer-upper.

2.  The house doesn’t “appraise out” – the appraiser says the house is worth less that the price you and the seller have agreed on.

3.  You have too much debt – if your monthly housing and other debt exceeds 40% of your income, you might not qualify.

4.  You are self-employed and your income has declined – your lender will look at two years’ of tax returns and use the lower income of the two.

5.  You recently started being paid on commission – you may have to qualify based on your spouse’s income, or wait a couple of years to get a loan.

6.  There are issues with your tax return – things like second home expenses, a too-small estimated tax payment or unreimbursed employee expenses can be a problem when trying to qualify for a mortgage.

7.  You can’t get private mortgage insurance – which means you may need a bigger down payment.

8.  The lender doesn’t like the condo association’s finances – lenders may balk if the association’s cash reserves are too low, someone owns more than 10% of the building’s units or the association’s fidelity bond is too small.

9. Your loan takes too long to get approved because the lender has had to cut back on staff- your deal could fall through or your rate could go higher while you are waiting for approval.

10. You don’t stay on top of the paperwork required by the lender – be prepared to prove everything and anything and respond quickly to requests for information.

The bottom line: the mortgage game has changed and there are a lot more rules and restrictions nowadays. The best way to win the game is to educate yourself on the requirements and potential pitfalls, and get your ducks in a row before you try to get a loan. Ask your Realtor for recommendations about mortgage professionals who can advise you well and guide you through the process.

Read MSN Money’s “10 Things That Can Kill a Home Loan“.

1.       Make sure your lender has cleared as many conditions as possible BEFORE the closing date: “Cleared to close” just means the file can be sent to a closing; it does NOT mean that all the conditions are cleared.  Lenders have “At Funding” conditions, meaning items to be provided at the closing table prior to funding approval.  I try to clear the “At Funding” conditions for my clients in advance of the closing date.  That eliminates a lot of waiting around.

2. If you’re going to have a morning closing, make sure the buyer AND the lender wire funds to arrive at the title company the afternoon before: I have heard that some lenders don’t initiate a wire until closing documents/conditions are signed and returned for lender  review.  Our company sends the wires out the day before when necessary.  This is an extra expense to the lender (an additional day’s cost of interest to the lender), which is why many lenders will not do this.  Due to our large size and warehouse line capacity, we are usually able to offer this convenience to our borrowers.

3. Work with a Loan Officer who attends closings: Although a Loan Officer is technically not supposed to have any role at the closing table, their presence can expedite communication between the title company and the person authorizing funding.  I cannot logistically attend every closing, but I do whenever I can.

4. Work with realtors and attorneys who solve contract issues prior to the closing: I have noticed that sometimes people think the sticky issues will go away under the pressure of “getting the closing done”, but the opposite seems to be true these days.  Buyers and especially sellers are very emotional, and even the smallest unresolved issue can cause people to become irrational and blow up a closing. 

Finally, I am still noticing that title companies are under-staffed and doing “triage”/putting files off until the last minute, even when figures and documents arrive several days early, so clearly some of this is beyond all of our control.

The other thing I never think about is my shoes and socks. Namely, to wear socks and to wear shoes that slip on and off easily. I always think I’m smart by wearing comfortable sneakers when I travel. But I’m forgetting that I’ll need to untie and re-tie them to go through security, which definitely slows down the process. And half the time I’m not wearing socks, which means I’m walking barefoot in the airport (which is kind of gross when you think about it, and cold to boot).

House hunting is pretty much the same thing. Chances are you’re going to have to remove your shoes just about every time you go into a new house, because a lot of  sellers won’t have those little bootie things to slip on over your shoes. And doing that ten times in one day can get old.

So do yourself a favor and wear slip-on shoes with socks when you go looking for your dream home. It will make house hunting so much more pleasant.

Now, I just don’t get that. Whatever agent you use is going to get the same commission. The question is, which one will really earn it?

And the home that you are about to purchase is possibly the biggest and most important investment you will make in your life. So wouldn’t you want the most qualified person you can get to represent you in this transaction? I’m not saying your city agent isn’t a terrific agent. But that agent (in all likelihood) does not know the North Shore market as well as the agents who live and work here.

It would be like me hiring my dog’s veterinarian to operate on me because he did such a great job on my dog. Yes, he is a doctor and yes, he does surgery. But he’s not an expert in the kind of surgery that I need.

Here is why it’s important to hire an agent who specializes in the area in which you plan to buy:

1. She knows the inventory of houses and can better guide you though the process of selecting a home you will be happy with. She can also make the process more efficient for you because her in-depth knowledge of the market enables her to sort through the options quickly, eliminating homes that she knows do not fit your requirements.

2.  As important as the house itself is the community, the neighborhoods, the schools and the amenities. Only an agent from the area can provide the kind of valuable insight that will help you make smart and informed decisions about location.

3. She can easily preview new homes that come on the market and alert you if there is one that is perfect for you. In fact, because of her local network, she will probably know about suitable homes even before they come on the market. That perfect home may be snapped up before your city agent even finds out about it and lets you know.

4. She will be able to provide good local resources you will need both during and after the transaction (inspectors, architects, contractors, decorators, painters,  handymen, etc.).

5. She understands relative property values in the area and why one house is worth more or less than a similar house. She can prepare a comparative market analysis (CMA) that gives you the knowledge and the confidence to successfully negotiate an offer.

Bottom line: a good local agent can help you avoid the two biggest home buying pitfalls: choosing the wrong house  and paying too much for it. And it doesn’t cost you anything.

Sounds like a lot of time, but believe me, in this environment, it’s not.

First you have to sort through all the homes that meet your criteria and find THE one. Then you have to negotiate an offer. And get approved for a loan (actually, you should get pre-approved before you even start looking, so you know exactly what you can afford). This whole process can take time, so you should probably get started soon.

Here are some facts about the tax credit:

First Time Home Buyer Tax Credit = $8,000

• A first time buyer is defined as anyone who has not owned a home in the last 3 years.

• Income limits are $125,000 on a single return and $225,000 on a joint return.

• Maximum home purchase price allowed is $800,000.

Repeat Home Buyer Tax Credit = $6,500

• Buyers must have lived in their home for 5 consecutive years out of the last 8 years.

• Income limits and maximum home price are the same as for first time buyers.

• Home must be primary residence. Cannot be vacation home or investment property.

Whether or not you qualify for the tax credit, another reason to consider buying now is that interest rates are at an all time low right now and are predicted to begin rising in the next few months.

The market has been in such turmoil and there is so much inventory to sort through that it can be downright overwhelming for buyers, unless they have a lot of help from their agent. Naturally in my line of work I see some great buys out there and I am going to share them here.  Sometimes they will be my listings or my partner’s, but mostly not. I am going to be as objective here as I possibly can.

Today’s pick:
811 Ouilmette Lane in Wilmette.

It is currently listed at $710,000 and
here’s why it’s such a great value:

• It is the only home for sale in Wilmette or Winnetka below $799,000 that has 5 bedrooms and 3.1 baths. At this price point you will find mainly 3 bedrooms or 4 at the most. To have both 5 bedrooms AND 3.1 baths (including a separate master bath) is a real find. Plus it is a solid brick home in a classic colonial style.

• The property, located west of Ridge Rd, east of Hunter and south of Lake, is on a quiet street in the desirable Harper school district. The downside of some of the other homes in this price range is location on a busy road.

• It is in pristine condition and needs no work. The kitchen is new, as is the family room. Some of the other homes you’ll find at this price in Wilmette and Winnetka are fixers or need considerable updating.

Now, in the spirit of full disclosure I will tell you that this one is my partner’s listing. But that is not why I wrote about it. It really is a great bargain. Take the virtual tour and see for yourself. If you’d like to see it in person, just give me a call: 847-687-5957.

Prices have been significantly reduced on the remaining units at  Mallinckrodt at 1041 Ridge Road. These luxury condos feature high end finishes, in-unit laundry, heated indoor parking, convenient location and gorgeous park setting. Most of the units can be customized to the client. Three finished models are also available for sale.

Attention dog lovers: this is one of the only condo buildings in Wilmette that allows dogs as well as cats.

Several different floor plans are available in sizes ranging from 1,180 to 2,193 square feet.

Prices ranging from $235,000 to $499,000 are 30% below original list prices.

Mallinckrodt is an age-determined building, meaning that at least one of the deed-holders must be 62 years old. No one under 18 years old can be a permanent resident.

Mallinckrodt is a 5 story 180,000 square foot Italian Renaissance structure built in  1918 as a convent and a college. It was converted to 81 condos after a group of citizens petitioned to prevent the historic building from being torn down for development of single family houses. The adjacent 14 acre park is held in perpetuity by the Wilmette Park District as open space.

The models are open most weekends. Or, give me a call at 847-687-5957 if you’d like an appointment to see the available units.

Having read the economists’ and other experts’ reports and scrutinized the local market data, I’ve come to my own conclusions about how the North Shore will or won’t reflect what’s going on nationally:

1. On a national level, sales will continue the positive momentum begun in mid 2009, at least through May, as buyers take advantage of the tax credits, low interest rates and attractive prices. This will hold true for the North Shore of Chicago too, but much of the activity in our area will be at the lower end of the market (<$800,000). And once the tax credit expires this summer, the market will probably stall again,  at least temporarily.

2. Based on recent trends, I think that prices will decline another 2-3% over the next three to six months, before stabilizing. So, if potential sellers are waiting to see if prices will rebound before listing their homes, they are in for a long wait. It will take at least five years (and probably more) before we see prices anywhere near 2006 levels.

3. The Fed will do its darnedest keep interest rates low for as long as it can to avoid sabotaging the recovery;  but we should expect rates to rise somewhat, probably to around 6%, later in 2010.

4. Foreclosures have not been as big a problem on the North Shore as elsewhere, but we are not out of the woods yet. We will likely see an increase in short sales and foreclosures as adjustable rate mortgages reset and those who took bigger risks when the market was good find themselves unable to refinance now. Unemployment in the neighborhood of 10% will continue to plague us at least through mid-year, putting a further drag on the housing recovery.

5. New construction of spec homes will be at a virtual standstill until existing inventory works its way through the system. Builders just can’t compete with the discounted prices of distressed properties and will be unwilling to build without a buyer lined up in advance.

6. The shift away from McMansions towards smaller, more efficient and greener homes will accelerate, driven by first time buyers and downsizing empty nesters.

I certainly hope that my predictions turn out to have been too pessimistic. That is,  except the one about the McMansions. I, for one, would be happy never to see another McMansion built again.