Chicago...Now and Later

Chicago Metropolitan Area 2006 and 2016: I just sharpened my weblogging pencil and according to Aol.com Money who published an article from Forbes.com who got their info from Moody's Economy.com--let me catch my breath... According to all those people the home I purchased three years ago increased more in value already than its expected to increase in the next ten. Not so sure I concur (or wish to) with Malcolm Jr on this one but decide for yourself by clicking the hyperlink on the title above. Now the attached chart includes Naperville and Joliet ( good, bad or wash?) but nevertheless it shows the median price at $290,953 today and projects $360,018 in the year 2016. Median, from what I remember in Freshman Economics 101, means there are as many houses above as below this number. The article also cites several other metropolitan areas and has all the usual sidebars and insets of the biggest, slowest, hottest etc. Oh well, at least everything is pointing in the right direction...up! And I'm sure there are several areas in the Chicagoland area that will, as always, outperform the industry soothsayers. I personally plan on being retired on an island in 2016 so let me know if I'm wrong. graph source: moody's economy.com

Selling a House Then Buying? Read On...

This story is an interesting little yarn from today's Boston Globe via NakedRepublic.com The Setting: "You put in a contract on a new house. You can't sell your old house..." The Atmosphere: "The sellers are getting pushy..." The Solution(s)? Simply click and read for one writers opinion. Also, search this blog and mine for additional thoughts on the subject.

Downtown landlords should enjoy another good year

With rents and occupancy at record highs, downtown apartment landlords are in the middle of a boom likely to last until early 2008, when a wave of new developments hits the market.

DOWNTOWN RENTALS CRUISE

The downtown apartment market is coasting at a lofty level, with rents and occupancy rates at their highest levels in at least five years. Effective rents, which factor in the value of concessions, are shown below.

3rd qtr. ’06 2nd qtr. ’06 3rd qtr. ’05

Class A
Rent per sq. foot $2.21 $2.23 $2.14
Occupancy rate 96.5% 97.5% 95.5%

Class B
Rent per sq. foot $1.91 $1.91 $1.80
Occupancy rate 97.2% 96.9% 96.8%

Source: chicagobusiness.com & Appraisal Research Counselors
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The above is a couple excerpts from the original article. To read the complete article please visit chicagobusiness.com

Can Your Broker Sell? - The Internet Helps!

I've been considering making a move to another local broker come the New Year and have been impressed with Joe Pinto's group, Chicago Home Estates. Geno Petro, who is a top producing agent for Chicago Home Estates, wrote the below piece that was published on Mr. Pintos blog.

It's obvious that this group is doing their best to embrace Internet technology based on their top position in the Google PPC (Pay Per Click) program for such terms as "chicago real estate". Although that is impressive, it's expensive and I question the ROI. Pan down from the "chicago real estate" results on Google to #10, IllinoisRealEstate.com, natural organic results, NICE! Nonetheless seems that some of their goals may be a match with mine. Seems I might be a good fit on their team and we could learn a lot from each other.

Although one member of their team I'm afraid feels I have been somewhat "overt" in my blog postings and has banned me from posting on his blog, whatever. Welcome to the Internet and natural search engine rankings game. Hey and look I welcome anyone to post any article and self promote all they wish… I guess he took his toys from me and went home. Here's a tip for rookie bloggers and web developers, the more you censor the less people will care.

One last thing, from below, 'Boutique' or 'Big Box'? I'm starting to think Boutique.

Please enjoy the below article and be sure to check out their interesting blogs.

Sincerely,
Brian Nygard
Team IllinoisRealEstate.com
RE/MAX Grand
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Can Your Broker Sell? (Source: http://checareers.blogspot.com/)


I post on this site from time to time when I happen across something worth passing on to the new or 'soon to be new' agent. Yesterday I was having a conversation with another Realtor from another brokerage when she mentioned how when she first started in the business "it was sink or swim...but mostly sink!" She genuinely felt that it was pure luck that she even made it through her first six months. Her managing broker, she said half jokingly knew less than she did.

"At least I sold Avon when I was younger," she said. "I'm not sure he ever sold anything."

Its been my experience that 'those who can't sell manage, those who can't manage sell, and those who can't manage or sell fail.' It sounds a little corny perhaps but I believe its right on the money. Most managing brokers I've met either sell very little or if they ever did produce much, it was a long, long time ago. And it's becoming pretty typical that the business model of a real estate office these days is more focused toward 'body count' than 'vertical' growth of its exisitng agent force. Anyone with a little bit of captial (and even less sales experience) can actually buy a franchise and be up and running in a month or two. Good luck placing your eggs in that basket!

When I joined Joe Pinto in the year 2000 I did so for two basic reasons. First, he was genuinely interested with helping his agents succeed in the Chicago market and secondly, he was one of the top producers in the city--(and still is). Even though its my goal to negotiate 1 million to 2 million a month every month in real estate sales (not a rookie, to be sure!) I still consult with and defer to my broker on a daily basis. Why? Because my broker can sell. And a primary reason that I've had any success at all in this competetive arena (10,000+ Chicagoland licensees) is that my broker wanted me to succeed.

I've mentioned before in a previous post that 'national company branding' has very little to do with success in a localized market such as the Northside of Chicago. It's my observation that the 'boutique' brokerages are much better positioned to address the needs of both the client and the budding real estate professional. So let me ask you...'Boutique' or 'Big Box'? Where do you see yourself?

contributed by Geno Petro (Posted by Joe Pinto at http://checareers.blogspot.com/)

Real Estate Broker Uses the Science of Social Psychology to Help Sellers

Source: NewswireToday - /newswire/ - Deerfield, IL, United States, 11/16/2006 http://www.newswiretoday.com/news/10755/
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The 2.1 bath, three bedroom house is listed in the MLS for $1. Is this a joke? Is this a mistake? $1 listing attracts the eye of not only potential buyers, but other real estate agents.

8:30 A.M. Evan Kane from Endeavor Realty listed a two story three bedroom home for sale in the MLS at a listing price of $1.00.

It is not often that you see a house in the affluent Chicago suburb of Highland Park listed for sale at $1, but that is what Evan Kane the Broker/Owner of Endeavor Realty has done to help his clients sell their home in an increasingly tough real estate market.

Most Real Estate Brokers do not think to use the science of social psychology to help sellers. The real estate market has become increasingly tough causing brokers and real estate agents to have to think of other ways to attract buyers. Endeavor

Realty has come up with a different strategy to serve the best interest of its clients.

Citing a recent study by Gillian Ku of the London Business School, Adam D. Galinsky, and J. Keith Murnighan of Northwestern University Kane says, "although this is not an auction, the principles are very similar and the evidence is clear that starting low can lead to more traffic and a higher sale price."

Not only is approaching a slow market with creative ideas and new strategies increasing traffic and sales for the clients of Endeavor Realty, but it is also attracting other traditional real estate agents that have not thought of going beyond their guiding principles to try something different.

Deciding to implement this strategy has caused a few adverse reactions. "They don't like it. I am using the system in a way they didn't contemplate" says Kane of the reaction of more traditional agents. "I have to deal with a few angry phone calls, but it's in the best interest of my client, so I do it."

Horse Takes On Agent!

Erika McKinney had to go to the hospital hospital after a horse bit her and knocked her into a tree during showing last Friday! "We were just kind of standing there and the horse just kind of pulled its head back and reared her in the chest," said Diana Ritter, McKinney's client. "We were both worried that it would come over that fence. I love horses, but that one, I don't know about. It had some sort of problem." -Source Chicago Sun Times

No Money Down House Of Cards!

You have to appreciate this one. Now I generally prefer writing original material and injecting my own twist on a subject but the west coast 'investor' quoted below takes the proverbial cake in the national real estate weblog arena."I don’t get it. I have several accounts with 90 day lates and one with 120 day late on it. Why are my credit scores so high?? " asks he. Those words pour from the mouth of the most interesting (and least self-effacing) blog writer I've read of late. This 24 year old dude (I'm just supposing from the picture and nature of his quagmire) from Cali' attended a few real estate seminars, subsequently bought eight houses in four states with no money down and is now, even more subsequently, in multiple stages of foreclosure on the ones he can't unload--which is most all of them. Anyway, for those of you who wish to check out this real time trainwreck, I've linked his blog in my sidebar under Cool Blogs & Sites at my Chicago's Home Weblog. And speaking of the comments (and as you might imagine there's a zillion of them), they're priceless. Perhaps this re-paraphrase of an already famous paraphrase I heard recently on NPR applies..."One day soon, everyone will be famous to fifteen people..." Dude.

Multiple Listing Service of Northern Illinois & MAP MLS

According to a story published on the Tribune website on Wednesday evening, the Multiple Listing Service of Northern Illinois (MLSNI) consolidate the Multiple Listing Service with MAP MLS, a rival. Seems to me that there are a lot of egos that are getting hurt as well as games being played, quorum issues huh... Give me a break. Reminds me of the games that we're played at the Fraternity meetings back in the day.

Consumer Spending Is Holding Up? You Do the Math

By Caroline Baum

Nov. 15 (Bloomberg) -- For two months now, the commentary following the retail-sales report has been that apart from gasoline-station sales, which are depressed because of falling fuel prices, consumer spending is holding up well.

How can that be? Retail sales fell 0.2 percent in October after a revised 0.8 percent decline in September. Sales at gasoline stations fell 6 percent and 11.1 percent, respectively.

``If consumers are using the savings from the sharp fall in gasoline prices to purchase other items, overall sales should not be declining,'' says Joe Carson, director of economic research at AllianceBernstein LP in New York. ``How are you going to get any nominal GDP when retail sales are falling?''

The average price of a gallon of regular gasoline was $2.232 last week, down from a record $3.038 in the first week of August, according to the U.S. Energy Department. The notion that the money saved topping the tank is finding its way into other goods isn't borne out by the facts.

...read more (copy & paste): http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_baum&sid=aqJzNg5ENnsg

Haloscan commenting and trackback have been added to this blog.

10 Riskiest & Safest Housing Markets, Fall 2006

The PMI Group is out with it’s quarterly report on the risks in the mortgage world:

10 Riskiest Housing Markets, Fall 2006

San Diego-Carlsbad-San Marcos, Calif., 60.3 percent
Sacramento-Arden-Arcade-Roseville, Calif., 60.1 percent
Oakland-Fremont-Hayward, Calif., 60 percent
Santa Ana-Anaheim-Irvine, Calif., 59.9 percent
Nassau-Suffolk, N.Y., 59.8 percent
Riverside-San Bernardino-Ontario, Calif., 59.6 percent
Boston-Quincy, Mass., 59.6 percent
Providence-New Bedford-Fall River, R.I.-Mass., 59 percent
Los Angeles-Long Beach-Glendale, Calif., 59 percent
San Jose-Sunnyvale-Santa Clara, Calif., 58.9 percent

The percentage is the probability determined by the PMI Institute that housing prices in that market sector will go down 10 percent or more in the next two years. So San Diego has a 60.3 percent chance of declines of 10 percent or greater according to the PMI Group.

10 Safest Housing Markets, Fall 2006

Pittsburgh, 6.1 percent
Indianapolis-Carmel, Ind., 6.3 percent
Memphis, Tenn.-Miss.-Ark., 6.8 percent
Cincinnati-Middletown, Ohio-Ky.-Ind., 7.2 percent
Cleveland-Elyria-Mentor, Ohio, 7.4 percent
Columbus, Ohio, 7.4 percent
Fort Worth-Arlington, Texas (MSAD), 7.6 percent
San Antonio, Texas, 7.8 percent
Nashville-Davidson-Murfreesboro, Tenn., 8.6 percent
Houston-Sugar Land-Baytown, Texas, 8.8 percent

The percentage is the probability determined by the PMI Institute that housing prices in that market sector will go down 10 percent or more in the next two years. Pittsburghs chance of losing 10 percent is 6.1 percent making the city the safest investment according to the PMI Group.

Source: http://www.therealestatebloggers.com/

Holiday Staging Tips - Selling a Home

Below is an excerpt from a story I came accross (Full story here).

Santa's no helper when it comes to selling a homev By Jennifer Hiller
San Antonio Express-News
Published November 10, 2006

...DO: Display a fall or Christmas wreath on the front door.

DON'T: Put a miniature Mr. and Mrs. Claus at your front door.

DO: Put up just one Christmas tree.

DON'T: Make it big. It shouldn't take up too much square footage.

DO: Put garland on the mantel.

DON'T: Display gifts under the Christmas tree. It's a theft risk and can look too cluttered.

DO: Place a Thanksgiving cornucopia on the dining room table.

DON'T: Entertain. Have the holiday get-togethers at another relative's house this year instead.

DO: Put clear or white Christmas lights in bushes or trees.

DON'T: Put lights on the house. It draws attention to all the holes you just stapled into your home.

Slowest season for sellers can be a great time to buy

Slowest season for sellers can be a great time to buy

Robert Bruss, Inman News
Published November 10, 2006

During the slow home sales season between Thanksgiving and New Year's Day, few people think of buying a house or condominium. However, if you want a home and can drag yourself away from holiday festivities, this is the best time of the year to be a buyer.

Why is that, you ask? Only serious motivated sellers have their houses and condominiums listed for sale during this slow sale season, and competition from other prospective buyers is at its lowestYour purchase offer likely will be welcomed by a motivated seller.

In addition, it is a "buyer's market" in most cities, meaning there are more homes listed for sale than there are qualified buyers in the market, so sellers are extremely anxious.

read more...

Permit Parking For Chicago Real Estate Agents?

I heard through the grapevine that Chicago real estate agents may have the opportunity to purchase a parking permit that will allow parking in residents-only parking areas. That real estate agents would be allowed to park in the restricted areas after buying $300 permits. Apparently it's a controversial topic.