Set Up an Appointment with an Eviction Attorney

People rent their homes assuming their tenants will pay the rent every month. But in this economy, there are millions of people who can’t pay their mortgage, and there are also many who can’t (or won’t) pay their rent. But once someone is living in your home, it’s not easy to get them out, even if they have not paid the rent in several months. You should understand the legal challenges of eviction before deciding to rent your home.

Consider Hiring a Property Manager

Unless you are a full time investor, you may want to hire a professional to find a qualified tenant, collect the rent and manage the problems. Otherwise you are opening yourself up to the possibility of receiving phone calls at all hours of the day and night to take care of maintenance issues or problems that a neighbor may be creating for your tenant.

Create a Realistic Budget

Sure, you will receive revenue in the form of rent. But don’t forget you’ll also have expenses:

• Mortgage payment (unless there is no mortgage on the house you will rent out)

• Property taxes

• Maintenance expenses such as repairing or replacing the roof, heating and AC, appliances, etc.

• Insurance – you may need to increase your liability coverage when you have tenants living in your house. Be sure and check with your insurance company.

A good Realtor will always accompany an appraiser and provide him with her analysis of comparable properties. Most appraisers will welcome this input ans take it into consideration when they are writing up the appraisal. This is a much more effective strategy than trying to challenge the appraisal number after the fact.

If you would like more information on finding a lender or understanding the role of appraisals in the mortgage process, give Brett a call at 847-239-7810 or email him at brett@lotsoffgroup.com.

A New Twist on the Agent Team Concept

It seems only fitting that my first post of the new year should be one that introduces my new real estate team, Come Home North Shore, which officially launches today, January 1, 2012 (though we have been hard at work for the last couple of months getting our ducks in a row).

Come Home North Shore was formed by three agents in the Winnetka office of Coldwell Banker (Paula Weiss, Daverille Sher and me). As the real estate market has changed and morphed over the last several years since the meltdown, we have realized that the traditional ways of doing business need some re-thinking.

Every transaction is more complex. The lending environment is more difficult to navigate.  Short sales take longer to close. Buyers are cautious. Pricing a property for sale is more challenging than ever. And the Internet has changed the way buyers shop for homes.

In this environment we agents are finding that it is nearly impossible to go it alone and do it all well:  listing homes, marketing homes, analyzing the ever-increasing amount of market data, managing transaction details and maintaining regular communication with clients, all the while actively trying to generate leads and market ourselves. So, in many markets, agents are forming teams to be able to service their clients while growing their business.

Most agent teams have a head honcho with one or more minions who fill roles as admins, buyer agents or closing coordinators. We decided to go a different route and combine the specific skills that are most important to our clients.

All of us have broad real estate experience and skills, but each also brings specific expertise to the team: Paula has deep experience in the new construction market. Her knowledge of architecture, design, building materials and remodeling have proven invaluable to her clients. Daverille capitalizes on her financial and accounting background to help investors analyze deals and to correctly price properties for maximum profitability. I apply my 20+ years of consumer marketing experience to getting maximum exposure for our clients’ properties. There’s one thing we can absolutely guarantee to our clients: no one will do more to market their home than we will.

We are very excited to start the new year with our new team. You can find out more about Come Home North Shore here. If you’d like to hear more about how we can help you buy or sell a home, give us a call at 847-881-6657 or email us at comehome@cbexchange.com. Or contact one of us directly:

Paula Weiss
847-712-0049
paula.weiss@cbexchange.com

Daverille Sher
773-230-7346
daverille.sher@cbexchange.com

Anne West
847-687-5957
anne.west@cbexchange.com

Wishing you a happy, healthy and productive 2012!

Our team has three ready, willing and able buyers who cannot find a home to buy. And we know that some of the other agents in our office are having the same problem.

The data supports what we are seeing: Wilmette’s  inventories are at their lowest point in over two years. At 6.3 months supply of homes, we are actually in what is considered a “balanced” market (neither a buyer’s market nor a seller’s market). And at some popular price points there is almost no inventory. For example, there are currently only three homes for sale between $700,000 and $799,999 and only five between $800,000 and $899.999 in Wilmette.

Which made us wonder how  many potential North Shore sellers are out there who are waiting until the beginning of the year to put their homes on the market or who are not even considering listing their homes because they don’t think anyone is buying.

Here are the types of homes our buyers are looking for:

• In Wilmette: A three bedroom (plus office), 2+ bath home east of Ridge Rd. around $750,000.
• In Harper School neighborhood of Wilmette: a newer construction, 4+ bedroom home between $1-1.5 million.
• In Winnetka, Kenilworth or Wilmette: a large, newer construction home between $1.5 and $2.5 million.
• In Wilmette or nearby: a 3-4 bedroom condo or townhome to rent for six months.

So if you have a home that fits one of these descriptions, and you would like to sell, please let us  know! We might just have a buyer for you. We can be reached at 847-881-6657 or by email. If you are looking to buy, you can search for homes here.

But there’s another reason, one that sellers don’t always realize can be an obstacle to getting an offer: buyers cannot get in to see the house.

Maybe the owner places restrictions on showing: 24 hour notice required, no showings between 12:00 and 3:00 pm, etc. Home owners may think that these are reasonable restrictions…can’t the potential buyer just rearrange his schedule or come another day? Well, maybe and maybe not. In a strong seller’s market, you can probably get away with it, as there are more buyers competing for fewer houses. But in today’s market, when buyers have plenty of other choices, they may not bother to come back at a more convenient (for you) time.

Here’s a situation I ran into last Saturday: my buyer client was in Wilmette for the afternoon and wanted to tour some of the homes she’d seen online that fit her criteria. When I called to make appointments, the listing agent for one of them told me that she couldn’t show it that afternoon because she was showing property in the city, where she was based, and the owner required her to accompany all showings. Could we come on Sunday instead? No, we couldn’t. My buyer was not going to schlepp all the way back to Wilmette the next day just to see one house.

The home in question has been on the market for over a year. It’s an unremarkable house and still somewhat overpriced, but it has two more things working against it: the requirement that all showings be accompanied, combined with the fact that the agent is not based in the area and is not available to show it on short notice. My guess is that that seller is getting about half the number of showings they otherwise would have and have therefore cut their odds of selling in half.

My plea to sellers: please make it as easy as possible for agents to show your house. The inconveniences you suffer while it is on the market will pay off in the speed of sale and the price you net.

It’s a quick and dirty analysis comparing inventory of homes in each price band to the number of sales in that price band. Just divide the last three months of sales by the current active listings and you get your odds of selling in the next three months. Unless the market changes dramatically going forward it’s a pretty good way to see how things are moving in the price band in which you are competing.

Odds of Selling Your Wilmette Home by Price Band

Source: MRED single family home sales in Wilmette: June-August 2011

In this chart you can see that the best place to be if you’re a seller is in the $700-799K price band, where there is more demand than there is supply, making your odds of selling 137%. The next best place to be is $500-599K (106% odds) followed by $900-999K (100%).

How does it help you to know this? Let’s say your price is hovering just above $800K. You may want to consider coming down to $789-799K to get into a more active price band. If you’re just over $2,000,000, you could improve your odds of of selling by getting below $1,999,999. On the other hand, if you are significantly over $2,000,000, maybe you want to reconsider putting your house on the market, as there are several listings and few to no buyers in this band right now.

If you’re a buyer in the $700-799K or $500-599K range, recognize that a well-priced and well-presented house will sell quickly, so have your ducks in a row so you can move quickly to make an offer. And you may not be able to get a “steal” in this price range. Contrary to popular belief, some houses are selling quickly and with multiple offers. It all depends on which market and which price band you’re in.

Related posts:

• New Trier Home Sales by Price Point

After I got done browsing and buying, Mike was kind enough to let me interview him to learn more about his new business.

Anne: How (and why) did you get started doing estate sales?

Mike: I have been involved with senior citizens and the disposition of estates in one form or another for many years. I am a trial lawyer, licensed in Georgia and Illinois, and one of my focuses has been the legal needs of senior citizens. I pursued an auctioneer in Federal Court a few years ago on behalf of a senior citizen who had hired him to dispose of her mansion full of antiques. He gave her a check for only $21,000 several weeks after the auction which emptied her house. After that experience I realized I really like being the solution to those kinds of problems.

I had a good friend start an estate sale company when he retired from real estate – this was in South Carolina – and I helped him set up the business and worked on sales with him. I really enjoyed the hands on aspect of the sale – bringing value just by being part of the process, organizing, smiling at people, making it work.

Then I started as an agent with Coldwell Banker for a lot of the same reasons – being a solution, making things work. And the estate sales just evolved out of that. I consider the two businesses to be very complementary. First, because I meet a lot of people at the sales that I wouldn’t have otherwise met – which expands the network of people I can potentially find solutions for, both in estate sales and real estate.

Second, because I can provide a needed service for my real estate colleagues – I have a strict “no poaching” rule, so I am regularly referred estate sale work by agents without any fear of my taking their clients away.

And third, because I keep myself busy and fired up about my work – being busy and productive is a tonic for me. And when I am fired up about things, that energy is contagious. It makes everything better.

Anne:  So, Mike, what makes yours different from other estate sale firms?

Mike: There are several fine, large, more experienced companies offering the same types of services I do. In many cases they have more infrastructure, more signs, more uniforms and more sales. BUT, they don’t offer me. I know that sounds strange. But I realized a long time ago that one of my best assets is me. I love working with people. I love solving problems. I love orchestrating projects and getting things done. And, I find that people like dealing with me. People tend to trust me. And I surround myself with great people. My team in the estate sale biz is awesome – full of product knowledge and experience that I don’t pretend to have. So when someone hires North Shore Estate Sales they are getting something different than Fulton & Cord or SOS or any other company. Better? I don’t know about that. But different. Personal. Passionate. Professional.

Anne: How can you help people who are moving or downsizing?

Mike: We offer solutions. When someone is downsizing or moving we come in to evaluate and consult. We start by finding out what the owner really wants done. Then we figure out the best options. The best part of what we offer to families and or individuals is the peace of mind of knowing that it is going to be taken care of, whatever “it” is.

You can learn more about North Shore Estate Sales here. Or call Mike at 312-283-4399. I am sure he would love to hear from you!

Not all towns have a transfer tax. For those that do, sometimes it’s the buyer who pays and sometimes it’s the seller. Here’s a guide to transfer taxes for the North Shore, as well as nearby towns that have them. For more information call the town hall. The phone numbers are noted in the notes section of the chart.

North Shore Municipal Transfer Taxes

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your principal residence (i.e. your main home) for two years out of the five years prior to the date of its sale.

2. If you have a gain from the sale of your principal residence, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

4. If you can exclude all of the gain, you do not need to report the sale on your tax return.

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.

6. You cannot deduct a loss from the sale of your principal residence.

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

9. If you received the first-time home-buyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Home-buyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

You can get the forms and find out more at the IRS website:  http://www.irs.gov/newsroom/article/0,,id=243682,00.html

Most traditional marketing plans include a For Sale sign, listing on the MLS, a broker’s open, public open house(s), brochures and, that old staple, newspaper advertising. If you have a high-end home your agent might also buy an ad in a local magazine.

The problem is, only 2% of buyers look at print ads as part of their home search, according to the National Association of Realtors. So, while it’s fun to see your home in print, especially in a glossy magazine, you probably aren’t getting much effective exposure.

It only stands to reason that, if you want to be seen by buyers, you should go where buyers are looking. Since 90% of people use the Internet in their home search, that’s where your marketing plan should be focused.

When you review your agent’s marketing plan for your North Shore home, here are the things you should look for:

1. Does the agent use professional photography in the listing photos? When people are searching online, photos are one of the key filters people use to determine which homes to tour and which to eliminate from consideration.  This is especially true when there is a large inventory of homes for sale (like now). Poor photos really do your home a disservice because it will not compare well to a home that has been professionally photographed. A professional photographer has the right lenses and lighting, as well as the expertise to show your home in its best light, and you should demand this from your agent.

2. Does the plan include featured listings on the big four real estate sites (Trulia, Realtor.com, Zillow and  Yahoo).
I’m not talking about whether the listing is on these sites. That should be automatic. I mean featured front and center when someone searches on a certain community. Coldwell Banker’s agents automatically have their listings featured on these sites. But any agent can pay to have her listing featured.

3. Does your property have its own web site (e.g., www.123broadway.com)?
A web site of its own will help the home show up higher on Google and will also direct interested buyers to call your agent, who is the one most knowledgeable about the benefits of your home. Also, if the For Sale sign has a sign rider with the web address, then passersby who see your sign can easily access the web site via a mobile device.

4. Does she advertise on Craig’s List?
Don’t rule out Craig’s List as another way to gain exposure for your home. The key is knowing what to include and what not to include in your ad. Some rules of thumb for Craig’s List ads: Less is more. Don’t give too much information. You want to drive people to the home’s web site, so you need a captivating headline, some basic info about the property (location, school district, contact phone number,  2-3 bullet points, a link to the web site and a call to action). The headline itself should be short and sweet: geo-targeted (town, subdivivion, etc.), with an attention grabber (New!, Just Listed!) and a keyword (Home for Sale). DON’T include the price in the ad but make sure that it is very visible on the home’s web site and NEVER put an email address in the ad (Craig’s List allows you to have an anonymous email so it’s not picked up by spammers).

5. Does your agent create a video about your home?
Not just a virtual tour set to muzak (which is certainly better than nothing), but a live action video where the agent walks the viewer through the home, talks about its best features and nearby amenities, and helps home buyers get a feeling for the lifestyle they will enjoy when they live here.

6. Does your agent have a high traffic blog-site where she writes regularly about your community, your neighborhood and your home?
Many home buyers subscribe to agent blogs about communities and neighborhoods they are interested in. Being featured on your agent’s blog is just one more way to gain exposure among potential buyers.

7. Does your agent create a Facebook fan page for your home?
Facebook pages tend to rank high in Google searches. This is a great way to have property information, photos and video easily accessible to everyone who is on Facebook (which is pretty much everyone) . The homeowner can add updates about the reasons they love the neighborhood, the house, the schools, etc. By asking friends to “like” the page, and recommend it to anyone they know who might be looking for a home, you may just find a buyer.

8. Does your agent advertise her open houses on Facebook?
Facebook is a very effective and efficient advertising medium because you can specify exactly who sees the ad: gender, age, location, interests, etc., thereby maximizing the chances of being seen by your target buyer.

9. Does your agent tweet about your home, your open houses and price adjustments, etc.
Many of today’s buyers use Twitter to keep track of developments in the communities they are interested in. Tweeting can be a great way to keep people informed about relevant activity.

QR Code

10. Does your agent use QR codes on her For Sale sign and other marketing materials?
A QR code (or Quick Response Code) is a matrix bar code that can be scanned by a smart phone that is equipped with a reader app. Scanning the code can display text, contact info or a web page (your property’s web site, for example).

You and your agent may decide that not all of these tactics are appropriate in your particular situation. But they should be considered if you are serious about attracting today’s buyers. The Internet has changed the way people shop for homes, so you want to make sure you are using this tool to your advantage.

Related Posts:

• Where Not to Advertise Your North Shore Home
• How Photos Can Prevent Your Home from Selling