North Shore Views

5 Mistakes Buyers Make in a Buyer’s Market

If you have even a passing interest in the real estate market you know that we are, and have been for the last couple of years, in a buyer’s market; there are more houses for sale than there are buyers and, as a result,  buyers are in the driver’s seat.

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. Read the rest of this entry »

Tags: home buying tips, Real estate

How to Get Your Deal Closed in an Hour

If you have your ducks in a row, your closing can be quick and painless.  Bonnie Vasilion of Ist Advantage Mortgage offers these tips on how to ensure that your closings go quickly:

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.

Tags: closings, home buying tips, Real estate

Charming Kenilworth Gardens Home

My best buy for this week is 2118 Elmwood Avenue in Wilmette. It’s a classic brick home in the family-friendly Kenilworth Gardens neighborhood with three bedrooms, one and a half baths.

It’s priced at $599,000 and here’s why it’s such a great value:

• It’s light and bright and has charming vintage details including a fireplace, hardwood floors throughout, formal dining room and a kitchen with good storage space, as well as a family room off the kitchen. The basement is finished with a play room and office area. A walk-up attic offers plenty of additional storage. The two-car garage is an unusual bonus for homes of this vintage.

• The location in Kenilworth Gardens can’t be beat. It’s on a quiet street with an easy walk to Harper School and Highcrest Middle School, Thornwood Park and the Kenilworth Metra station.

• It’s priced lower than comparable homes in Kenilworth Gardens, which go for between $635,000 and $699,000.  The seller is also offering a home warranty plan for the buyer. There’s room to add on for a larger master bedroom plus bath, and would be easy to accomplish given the home’s layout.

The downside? There’s no AC, but a space pack can be added for less than $10,000. And it could use some cosmetic updating here and there.

The listing agent is Maureen Spriggs with Coldwell Banker. You can see a virtual tour of the house here. If you’d like to see this home in person, please give me a call at 847-687-5957. I’d love to show it to you.

Tags: Kenilworth Gardens, Real estate, Wilmette homes for sale

5 Reasons to Hire a North Shore Agent (if You’re Moving to the North Shore)

This past Sunday was a beautiful spring day here in Wilmette and the open houses were hopping. I held two houses open and the one that is listed for $690,000 had a lot of interest from buyers looking to cash in on the tax credit before the April 30 deadline. Most of them were young families from the city who were looking to make the big move to the suburbs. And several of them mentioned that they were working with a city agent (the same one who had listed or sold their city home) to help them buy their dream home in the suburbs.

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.

Tags: hiring an agent, home buying tips, Real estate

Adorable and Affordable: 903 Willow Road, Winnetka

My best buy for this week is 903 Willow Road in Winnetka. It’s an adorable vintage Dutch Colonial style home with 9 rooms, 3 bedrooms and 2.1 baths.

It’s priced at $599,000 and here’s why it’s such a great value:

• Lots of space in the house, the yard and the garage: It has good-sized rooms. Plus there’s a large screened in porch which expands the living area. There’s lots of living space and storage in the finished lower level. The yard is larger than comparably priced homes at 50′ x 187′ . And there’s a 4 car garage, part of which could be converted into an office or studio.

• It retains its vintage feel, but is updated where it counts (kitchen and bathrooms) and the updates are in keeping with the character of the house. The floors have been refinished, central air has been added and the windows were replaced within the last ten years.

• It is very conveniently located. You can walk to town and trains as well as to Crow Island School.

The downside?  If there is a downside to this house it is that it is on Willow Road, which does have a fair amount of traffic during morning and afternoon rush hours. But if you’re used to living in the city, this might not bother you.

See the virtual tour of this house here. If you’d like to see it in person, just let me know. I’d be happy to show it to you.

Tags: Homes for sale, Real estate, Winnetka

Condo Bargain in Wilmette: 715 Ridge Rd.

My best buy for this week is a condo in Wilmette. It’s a one bedroom, one bath unit with a large combo living /dining room.

It just came on the market and is listed at $134,900. Here’s why it’s such a great buy:

• It is the least expensive condo in Wilmette, Winnetka or Glencoe, so if you need or want to live in this area and are on a tight budget, this could be a great option for you.

• It’s spacious and bright, with an easy living floor plan. Two bay windows in the living room flood the unit with light. The living room is very large and the kitchen is big enough to comfortably accommodate a table for four. There are several closets and plenty of storage.

• It’s centrally located between the Harper and McKenzie school districts and convenient to the PACE bus and shops along Ridge Road and Lake Avenue.

So, what’s the catch? The only drawbacks are: 1) the unit is dated (but not offensively so); 2) there’s no in-unit laundry (but the laundry room is easily accessible on the first floor of the building); and 3) there is no covered parking (but the unit does come with an assigned parking space).

If this looks like something that could work for you, just give me a call. I’d be happy to show it to you. 847-687-5957

Tags: Real estate, Wilmette, Wilmette condos for sale

Best Buy in Wilmette

No I’m not talking about the big box chain. I am talking about best buys in real estate.

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.

Tags: Homes for sale, Real estate, Wilmette

Luxury Condo Values at Mallinckrodt in the Park

If you’re looking for a home that has the character and charm of a vintage building, but with all the modern amenities, a condo at Wilmette’s Mallinckrodt in the Park might be for you.

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.

Tags: dog-friendly condos, Real estate, Real estate listings, Wilmette, Wilmette condos for sale

5 Reasons to Keep Your Home Listed During the Holidays

You’re busy, you’re stressed, you’re way behind on your holiday shopping. Keeping the house neat 24/7  is taking its toll. The last thing you want to be bothered with is keeping the house show-ready for potential buyers when you’re trying to cook, clean,  decorate, entertain, shop and wrap for the holidays.

“Can’t we just take a break for a couple of weeks?” clients always ask me. “Surely no one is actually looking at real estate in December. Do I really need to keep my home on the market over the holidays?”

The answer I always give is: “How badly do you want to sell?” Because here’s the thing. It’s true there are fewer buyers at this time of year. No one in their right mind wants to look for real estate during the holidays. Unless, that is, they HAVE to buy, and buy SOON. So that brings me to reason #1 for keeping your house on the market:

1. If people are looking at real estate in December, they are SERIOUS  buyers and not the lookie-loos who have been traipsing through your house for the last few months. If you can gut it out for the next few weeks you might actually get an offer when you least expect it. Wouldn’t that be a nice Christmas present?
2. The corollary to reason #1 is that many sellers do go ahead and take their homes off the market over the holidays, which means there is less inventory on the market. Which means you have less competition for those few SERIOUS BUYERS.
3. Although it’s stressful for you to keep the house tidy with so much else going on, the fact is that your house will probably show better now, with holiday decorations up, than it will during the bleak months of January, February and March. Plus, all the warmth and cheer evoked by (appropriate) holiday decorating can strike an emotional chord with your buyer, subliminally conveying the wonderful lifestyle they will enjoy in this home. Just make sure you decorate the right way to evoke those positive emotions.
4. Think about this: if you are able to sell your home now and plan to buy another, you’ll be able to take your pick of the vast inventory of homes that will hit the MLS in the spring. In all likelihood, interest rates will still be low early in the year so you’ll win on the financing end too.
5. If the first four reasons didn’t convince you, just remember:  It won’t sell if it’s not on.

Tags: home selling tips, Real estate, selling my home over the holidays

North Shore Housing Inventory Snapshot – December 1, 2009

Here’s a snapshot of what’s on the market right now, including list prices and time on market. Not surprisingly, there seems to be a direct correlation between price level and time on market, with Winnetka, Kenilworth and Lake Forest being the priciest markets and also the ones where market time is longest, at well over 300 days.

Town	# Units for Sale*	Median List Price	Average List Price	Average D.O.M.
Evanston	225	$514,000	$695,154	240
Wilmette	155	$710,000	$887,632	280
Glenview	380	$664,950	$792,208	263
Northfield	64	$732,000	$885,750	314
Kenilworth	43	$1,899,000	$2,183,942	336
Winnetka	176	$1,499,000	$1,970,967	339
Glencoe	98	$1,099,450	$1,813,779	259
Highland Park	345	$679,000	$1,027,431	287
Lake Forest	316	$1,250,000	$1,911,778	320
North Shore	1802	$799,000	$1,236,879	288

* Detached single family houses (Source: MRED)

Tags: Glencoe, Glenview, Kenilworth, Lake Forest, North Shore market data, North Shore real estate trends, Northfield, Real estate, Wilmette, Winnetka