Illinois Governor Blagojevich Arrested in Ravenswood Manor, Chicago

We smell a rat in Ravenswood Manor.
Photo from a friend of a friend on facebook

Blagojevich Arrested in Ravenswood Manor: How Will This Affect Real Estate?

What can I say? A Ravenswood Manor neighbor has fallen on hard times. Up the North Branch of the River without a paddle? Will it taint our real estate market?

Hopefully it will be a positive thing for Illinois real estate once we get (finally) a competent Governor in office. We need pragmatism when dealing with housing and business in the State of Illinois... not platitudes and bribes.

Look out local Congressman, Aldermen and Cook County Commissioners... people are going down left and right and the public is getting fed up.

The most upsetting thing about this; working with middle class families that pay every new tax and fee that these state and local officials come up with when owning, buying and selling their primary homes. At the same time elected officials and their spouses make money in real estate deals in their districts with developers and donors and claim they have no conflict of interest. Check out the Tribune's series on Neighborhoods for Sale

David Curry on Lake Geneva Real Estate Dish

Most Realtors who try blogging are brutally bad. And they give up quickly. I really want good real estate bloggers to exist because they provide front line information for me as well as other consumers.

I read a few local Realtor and broker blogs; like Fran Bailey's and Geno Petro's. However, getting out of my 15 square mile box, I came across David Curry's Lake Geneva Real Estate blog. Consistent, funny and to the point.

I've always considered Lake Geneva a terrific option for short get-a-ways; but now I feel like I have owned a vacation home there. When this $2,000,000 starts burning a hole in my pocket, I'll call David.

Short Sale Offer Accepted...Now What?

Word on the street... short sales are more common, but still a tough, confusing road for some buyers.

Last week, I represented my clients in an offer on a short sale property in the North Park neighborhood. A short sale is a property offered at less than the owner owes the bank. The bank is agreeing to "sell short" in lieu of foreclosure proceedings on the owner that must get out of the property and can't afford to own it. The owner must show they have no assets to make the bank whole on the loan.
It turned into a multiple offer situation due to an attractive price... and we won the bid with the best overall offer. However, this just means the sellers are accepting the offer with their signatures... only now to send the offer to the bank for approval.

So, when do we have a deal? When do the contingency dates such as inspection, mortgage and attorney review start? For instance, the bank still has to approve the deal.... does that start attorney review? For these types of questions, I get the purchasers attorney involved right away to make sure the buyers know their obligations. In our case, the contract was written to start attorney approval and inspection at time of seller acceptance... and that's how we'll proceed (in addition, I request the buyers attorney contact the seller's attorney immediately).

There are basic things that can take place once you have the sellers accept your offer, and in turn, negotiate for approval from the bank. In this case, I feel we have a pretty good chance of approval as we are close to the short sale offer price and have solid financing lined up.

First, I collect all the legal condo documents possible from the sellers and begin my due diligence on behalf of the client. We'll want to see the condo declaration, the association budget, any meeting minutes and talk to the Board if possible.

Secondly, we can schedule the physical inspection of the property. In most short sales selling well below what is owned on the property, inspection items will not be negotiable or corrected by the seller. They are already in distress and most likely will not have more to bring to the deal. However, my clients can kill the deal should their be any major repair issues with the unit (highly doubtful in this case).

Clients need to plan and make sure they can wait for a response from the bank. The closing date may also be months from bank approval. Purchasers need to be flexible when buying a short sale, and possibly, may need to arrange for temporary housing to bridge anytime they are out of their former place to live prior to their closing date.

North Park Chicago Condo Offers Value, Table Tennis

A few weeks ago my clients and I viewed a three bedroom, one bath condo in the North Park neighborhood priced at around $230K. It was a nicely done six unit conversion with a deck, big storage unit, fenced yard... just right for a small family. The Realtor gave us a nice showing but...

They had me at "table tennis".

Signs of Christmas in Boys' Town to Lincoln Park

I actually enjoy driving around the city on a snowy day. There's signs of the holiday... here's a couple quick shots from the truck;

Carolers were singing in this tent north of Belmont in Boys' Town. The big man keeps watch.

These guys were two of four getting out of a car in front of Hidden Shamrock and Trinity bars in Lincoln Park.

Chicago Real Estate Local in Chicago Agent Magazine

Recently I was asked by Chicago Agent Magazine why I felt our managing broker at Rubloff in Lincoln Park, Darlene Little, was "special". Which brings up a good learning opportunity for real estate consumers considering hiring a real estate brokerage.
You can read my answer by clicking this link

The managing brokers matter.

The managing broker makes sure that sales agents like myself comply with license law. She will also provide advice for complicated negotiations. One thing I do regularly for clients is bring in the advice of many agents and the managing broker when pricing, marketing and negotiating. It helps to have a highly regarded, experienced and ethical professional on your side. I'm not on an island or in a bubble. I want to make an educated decision; collaboration helps to reach that end.

Thanks Chicago Agent Magazine for quote and sheding some light on managing brokers.

Conflicting Information on Lincoln Park Condo

This is an exact quote from the agent remarks on a Lincoln Park
condo listing:

"BROWN LINE IS BEHIND UNIT. ITS SOUND PROOF BUT YOU CAN STILL HEAR IT"

At least their trying.
For those of you out-of-towners... the Brown Line is a LOUD elevated train.

Black Toilets in Lincoln Park

I saw, for the first time, black toilets in a condo on North Lincoln Avenue in Lincoln Park. Thankfully, I do not have a picture to share.

Multiple Offers on Chicago Short Sales, Foreclosures

First snow brings falling interest rates...

It's been several days since my last post... but a lot has been going on besides the Thanksgiving Holiday. Historically low interest rates on mortgages and attractive short-sale and foreclosure homes have sparked first-time buyers and investors. However, the best of these homes are seeing multiple offers.

For example; this week, I have two purchase negotiations going in Ravenswood Manor and North Park. One is a short sale that lowered to a very attractive price in a good location. There are several offers in and the listing agent now must weigh the offers with his client and determine the best for lender approval. The other deal is in Ravenswood Manor on an actual foreclosure... the unit dropped to a low price for the area and the contracts came flying.

Many short sale and foreclosure units, in my opinion, would not make the greatest primary home for most of my clients. Bad locations, bad buildings etc... but this week shows that good opportunities present themselves. Nice unit+nice building+nice location+low interest rates... one must be ready as multiple offer negotiations are occurring.

I have seen deep discounts on the higher end high-rise buildings, $400,000-$1,000,000 units that once sold for $50K-$100K plus more... and the lower end units selling in the $200s that once sold for over $300K.
I have not seen any significant discounts for desirable condos in smaller buildings for Lakeview, Lincoln Park, Old Town, Lincoln Square and Ravenswood. You may find condos to purchase at close to what the owners paid two to three years ago, but very few opportunities to buy at drastic discounts.
It's pretty intense out there if you want a deal on certain types of homes in top tier neighborhoods.