This was not surprising because the tax credit expired June 30. The towns which had the biggest decreases were the ones where the tax credit had had the most positive  impact: towns where home prices tend to be under $700,000. Although unit sales were down this month, the good news is that prices are up modestly vs. July of last year and time on market is down.

The towns that showed the best performance overall were Wilmette and Lake Forest. Wilmette had a 15% increase in unit sales and a 15% increase in median selling price, as well as a 4% decrease in time on market. Lake Forest doubled in unit sales from July of last year and decreased in market time, while prices stayed flat.

The weakest performer for the month of July was Highland Park. Sales were down 22% vs. 2009, median selling price declined 27% and days on market increased 4%.

Evanston’s average days on market is down to 69 days while several other markets are down to five months. Kenilworth time on market is still just under one year due to its high average price point.

North Shore Market Update – July 2010

Source: MRED LLC- Single family detached homes – Deemd reliable but not guaranteed

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.

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.

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.

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.

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.

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

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.

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.