Keeping up with Chicago's North Shore Real Estate Market!

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call or text me: 847-691-1111 or email: ann@rannjones.realtor

Tuesday, September 11, 2018

Remembering the Goodness

It's Tuesday.   I can never forget that other September Tuesday.  The sky was crystal clear and gloriously beautiful - it was a perfect day.  In a matter of minutes, our lives were turned upside down by those horrific events.   We saw in living color the cruelty and worst of mankind. 

But we also saw the best: the heroic actions of so many first responders and the passengers on Flight 93; the immense generosity of so many people and the world coming together in sympathetic kindness for a brief moment.

In these days of political wrangling, yelling and positioning -- I want to remember the goodness of those few horrific days.  It's hard to believe it has been 17 years since that tragic day.   I like to remember the unity of the nation in the weeks after 9/11 and pray that at some point that sentiment returns to our daily interactions with each other. 

Wednesday, September 5, 2018

5 Real Estate Pricing Myths

When it comes to selling homes, the price is very often the “hot topic” whether you are the seller or buyer. The process involved in determining the appropriate listing price isn’t always what one might think, though.

In fact, it ultimately comes down to a position within the existing competition. Let’s take a moment to delve into some common misconceptions about pricing…

Overpricing isn’t a big deal since you can always lower the list price
No homeowner wants to leave money on the table. But starting with an unrealistic or overly-ambitious asking price isn’t the way to achieve the highest possible sales price for your home.

In fact, overpriced homes tend to linger on the market, making them harder to sell. And yes, you can always lower the list price but you should keep in mind that the largest pool of buyers sees your home within days of it hitting the market – and if you keep reducing the price, they may assume there’s something wrong with the property. Buyers also factor in market time when determining their offer price and what they perceive to be fair market value.

To generate maximum exposure and interest, it’s essential to price your home accurately during that critical “New Listing” period.

Your home is worth the amount you paid (or more)
Every market is different and trends vary block by block. The market shifts constantly which can lead to upward and downward price trends.  However, just because a high-level report shows an increase in pricing, it doesn’t necessarily mean that trickles down to every property.

While all homeowners wish to make a profit, it’s important to be mindful of pricing trends in your hyper-local market. In sum, what you paid for the home and the period of time you owned it do not necessarily impact the list price. As mentioned above, it actually comes down to how you are positioned (price-wise) amongst the current competition.

Your neighbor just sold their home for $X, so you can sell yours for $X too
Like we said, trends vary block by block – but even homes on the same block vary in price. Every home is unique, and beyond location, you’ll need to consider other property attributes such as features, condition, and other criteria that affect the price. Maybe one home has a finished basement and the other doesn’t, or one has 4 bedrooms and the other has 3 – these are all factors that go into pricing a home.

A lack of inventory means you can be aggressive with pricing
In the Chicagoland area, there is a lot of talk about a lack of inventory. But that’s the macro view. Supply and demand vary by location, product type, and price. If homes in your submarket are flying off the shelf, you might be able to be more aggressive in your pricing strategy, but if you live in an area that doesn’t see a lot of activity, a more conservative pricing strategy will serve you better.

Renovation costs should be added to the price
While renovations can help add value to your home and may help your home sell faster, you shouldn’t automatically assume that you will recoup all the costs for home improvement projects (i.e. kitchen and bath remodels or a new deck). The National Association of REALTORS 2017 Remodeling Impact Report shows that sellers see a 64% return for every dollar spent on improvements, on average.

At the end of the day, setting the right listing price right out of the gate is crucial when it comes to generating interest and top dollar for your home. So, if you’re a seller, how can you be sure to do that?

Here at @properties, we have an exclusive, digital tool called the interactive Comparative Market Analysis (CMA), which helps us estimate the current value of your home based on factors like market activity and comparable properties. Here’s why a CMA helps sell your home.

For more information on pricing or to receive your own CMA, click here.

Source: @properties blog

Sunday, September 2, 2018

How's the Market as of September 1, 2018?

Labor Day Weekend - somehow that always feels to me like the beginning of a new year.   New season -- hopefully a new market too -- Fall is often a busy time in real estate. 

So how was the market in August? These next charts show units sold and the median prices.




The months of inventory is the best way to determine the health of a housing market.  Anything less than 6 months is considered a sellers' market -- anything more than 8 months is considered a buyers' market. The level of inventory has not deviated much over the last few months.  There continues to be a shortage of inventory in Wilmette and Evanston with a surplus in Kenilworth and Lake Forest.

In the next chart, I show the high-end sales for each community. The highest sale this month was an exceptional Kenilworth, 1.3 acre lakefront contemporary home that was built in 2009.












There are currently 188 houses for sale on the North Shore that are priced greater than $2M. During the month of August, 17 houses closed in this price range:

Community
Sold this Month
# for Sale
Evanston
0
5
Wilmette
0
3
Kenilworth
1
13
Winnetka
8
50
Northfield
0
10
Glencoe
4
20
Highland Park
1
22
Lake Forest
3
62
Lake Bluff
0
3

And so our Fall market begins with September. One can hope that everything picks up and there is a robust fall market! That said, sometimes we see this slowdown when there is a national election like this year. Time will tell.

 Have a beautiful September!

Thursday, August 30, 2018

Thought for the day...

As I have been "decluttering" my office, I came across something from Wendy Bergseth. Whether she wrote herself, or simply chose to share someone else's words -- I can her voice in this text. Such good thoughts to think about these days....




Wednesday, August 22, 2018

Green Tips - Staying Green in Fall

As the leaves change color and kids go back to school, there are several ways we can all do our part to make the daily routine and seasonal chores more eco-friendly. 
  1. Host a Swap Party. Reusing instead of buying new is a great way to save money and to take a more environmentally friendly approach to school shopping. This also a great idea for your own clothes and kids’ school supplies!  (My niece who lives in Washington DC is in a mother's group that regularly swaps childrens' clothes with each other -- her boys always look fantastic!)
  2. Navigate Safe and Sustainable Travel to School. Start a carpool to cut down on the number of cars going to school, or consider finding a safe bike route that families can ride together on for the trek. 
  3. Pack Lunch the Reusable Way. Reusable lunchboxes and utensils will cut down on waste in a big way. Many lunch containers now offer smaller containers (check out stainless steel options) within the box itself, perfect for snacks, sandwiches, and any other treats you pack for your kids at school.
  4. Compost Yard Waste and Leaves. Burning leaves is not an opton and filling up yard waste bins adds up to major space taken at the landfill. Don’t miss out on a great opportunity to contribute to, or start, a fantastic composting system with those excess leaves. Your gardening will benefit greatly from the nutrient rich result of composting yard waste.
  5. Clean Indoors with Green Products. 5 billion: the number of pounds of chemicals that the institutional cleaning industry uses each year. Cut back on that staggering figure and keep your house healthier all in one by choosing products that are nontoxic, biodegradable, and are made from renewable sources. If you not sure of what brand to buy, make your own cleaning solvents from apple cider vinegar and baking soda and a little warm water to wipe grime away from almost any surface.

Source: Piedmont Environmental Alliance

Wednesday, August 15, 2018

Fact or Myth? 5 home buying myths...

Not too long ago, I got a phone call from one of my buyers. They were in panic -- the preliminary closing document had come back and more funds were expected than they had budgeted for at the close. They had only thought only a certain amount would be due. (It turned out that everything was OK, but there was moment of distress... they were misunderstanding the closing statement.) 

That said, one myth that I have seen is a naive thought that the buyers only need to come up with the down payment amount when they want to purchase a home. Here is that myth and some other ones debunked.

Myth #1: The only money needed for purchasing a home, is the down payment.
If only that were true! When I moved to Lake Forest, it felt like I was writing checks every day... just for starters, the home inspection cost over $500!    Various municipalities require the purchase of transfer stamps -- for example in Wilmette -- the cost of the transfer tax is $3/$1000. That would mean a home buyer would have an upfront fee of $3,000 on a $1M home. There are loan fees, processing fees, etc. When purchasing a home, I suggest buyers assume at least 2-4% of the purchase price for miscellaneous expenses upfront as well as closing costs.

Myth #2: Home inspections are a waste of money.
Even on a little condo, I recommend a home inspection... you never really know what is happening with a property: there might be a heating problem, mold in the attic, a sluggish dishwasher... who knows what else? That's not to say, that some inspectors go overboard making buyers feel like they are buying a lemon. A balanced inspection of the home can enable buyers to have a more informed opinion about the property they are buying.  A home inspection is rarely is a waste of money. 

Myth #3: The selling price should be 95% of asking price.
Maybe this is just my market, but I can't ignore how many people actually believe this. I can remember my first sale -- another agent told me that the initial starting position would be 90% of asking and we would meet in the middle at 95%. If that was true, then why is there a negotiation at all? At the time I thought that was a strange way of looking at it... I still do.  
The selling price almost always turns out to be fair market value. FMV is what a buyer will pay and a seller will accept. FMV's ebb and flow based on the market... there is no fixed % that buyers will pay. Today, there is so much information available about property values, that buyers KNOW or have a pretty good idea what the fair price should be for a home. Therefore, homes that are priced competitively often sell for more than 95% -- sometimes 97%, 98% and even over 100% of asking price. Homes that are overpriced can sell for as low as 80% of asking. That 95% number is just an AVERAGE... certainly not a fact.

Myth #4: I don't need to worry about the schools, since my kids are grown (or I don't have kids).
You may love the house and it may be in your price range, but that's only half of it. The neighborhood/village/town you choose really matters. Quality of the schools drive up/down property values -- good schools make a difference in the value of your home long term. While evaluating homes absolutely consider the schools as well as the walkability, commute time, and any other quality of life features. This is going to be your long term home -- not just your house.

Myth #5 Homes are a good investment.
One survey showed that buyers believed home values appreciate by 7 percent a year. Historically, home values in a normal market appreciate by 2 to 5 percent in a year. So no, homes are not a particularly good investment. If you want to make money, then invest in the stock market... not the housing market. I believe one should enjoy their home; update it for their pleasure and when it comes to sell, be realistic about market conditions. I love this Knight Kiplinger's quote:

"I regard my home as a place to live, not as an investment. It is not a substitute for retirement savings."
Fact or Myth? There are many other myths about purchasing a home. These only a few... what other myths do you think need to be dispelled?

Wednesday, August 8, 2018

Family-friendly fests in the Chicago area

Here are a few family-friendly fests you can’t miss in the last half of summer.
AUGUST
10-12: Hone in on your children’s hot dog appreciation at the Chicago Hot Dog Fest’s celebration of meat, baseball, and blues. Stop by a talk on hot dog history in between your no-ketchup delights. Not to worry, all those dogs and sodas and elephant ears will settle just fine with a few rounds in a bouncy house in the kid zone.
10-12: Ginza Holiday Festival is one of Chicago’s most honored family festivals. Celebrate Japanese culture with mesmerizing Taiko drum, martial arts and Minoyo folk dance demonstrations, as well as mouth-watering chicken teriyaki, udon noodles, spam musubi, and shaved ice.
10-12: Festival Cubano in the Belmont Cragin neighborhood has a line-up of get-up-out-of-your-seats musicians. The experience also includes an incredible vintage car show, dominoes tournament, carnival rides, hand-rolled cigars and a boxing corner with matches and fitness classes.
11: The Bud Billiken Parade and festival celebrates the legacy of the Chicago Defender’s legacy diversity, credibility, representation of African American Chicagoans and care for children. Everyone in the family can cheer for the dance and drill teams, marching band battles, and kids who travel from across the country to compete, connect and participate in the parade.
11-12: If it is nearly impossible to please every picky eater in your home with one dish, you’ll love taking the whole family to the Near North Food Truck Social. Pass out the cash to fend for (and feed!) yourselves with dumplings, deep dish, donuts and whatever delights appear from the truck windows.
17-19: Edison Park Fest is not just any fest on the blocked-off streets of the city. It is also a community fundraiser that helps support free local programs, events, and groups.
18-19: You cannot escape the Chicago Air and Water Show, whether you’ve got a prime seat on the beach to watch or are stuck in a downtown cubicle and can hear the roar of the planes when pilots practice the day before the big event. Free admission is a plus, but squeezing in, parking and public transportation can be tricky. Plan well, or finagle an air-conditioned view from a friend’s downtown office or apartment.
22-26: Immerse your family in farm and fun at the Will County Fair in Peotone. Swing by the 4-H exhibits, on to the carnival rides and around to the tractor and truck pull competitions.
24-26: Savor the saganaki, gyros, wine, dancing and Hellenic pride at Taste of Greektown.
31-Sept. 3: Taste of Polonia in Jefferson Park is the largest Polish festival in the country. With a casino, four stages hosting more than 30 bands, tons of food and drink, cooking classes, inflatables and even Disney character appearances, this is the place to live it up before the kids go back to school.
SEPTEMBER
1-2: Cider & Sliders Festival in Lakeview is here to kick off autumn. In its inaugural year, this festival promised 50+ ciders, delicious mini-burgers and lots of crafty stuff to keep the full-bellied kids happy.
7-9: German American Oktoberfest in Lincoln Square kicks off with a Steuben parade and German mass. Not to worry, the beer flows soon after, and there’s always live music, food vendors, games and plenty of neighbors and school friends with whom you can raise a commemorative stein or hand-pulled root beer well into the evening.
7-23: World Music Festival is a multi-venue, 11-day jubilee hosted by the city, bringing 650 artists and ensembles to perform for more than 650,000 audience members in the last 19 years. Check the site for free performance schedules and locations.
15: Bring your blankets & lawn chairs and enjoy food, music & entertainment at Lake Forest's Gorton Community Center’s third annual Block Party and Movie under the Stars! This event consists of fun games, food vendors, live music, face painting, and more! Outdoor movie, "How to Train Your Dragon" begins at sundown. 

15-16: Ravenswood Artwalk opens the doors of local artist studios, galleries and shops to wander through and experience. There’s also plenty of craft beers and food for purchase, vendors to peruse and music to enjoy. Follow the stream of strollers to find your way.
15-16: Printers’ Row Art Fest is a great place for families to experience dynamic artistry. The juried show and exhibitions include up-cycling and mixed media artists, photographers, jewelers, painters and street artists.
21-23: Apple Fest calls city-dwellers and suburbanites alike to Long Grove for a charming, family-centered pop-up orchard lined with seasonal treats, pie-eating contests, tug-o-war, music, and dancing.
22: Get your kids a front-row spot to the Creative Youth Festival in the Loop, where they will applaud and be inspired by talented teens performing dance, drama, spoken word, and visual arts. Check the site for details.
28-30: Oktoberfest Chicago in Lakeview is your last big hurrah before the down coats come out. Adults can enjoy Craft Brew Night while kids kick it at KinderFest. Do some polka, eat too many pretzels and pop over to see the German band Oompah.
29: Bike Winnetka is an event that will take bicycle riders of all ages through scenic Winnetka in a group rider format. 
30: Bring the whole family for an evening of games, fun, Scottish entertainment, picnic feast, wine, beer & spirits at the beautiful Middlefork Farm Nature Preserve in Lake Forest. The evening culminates with the landing of kilted sky divers, a dramatic bagpipes procession and the lighting of the bonfire. 
Source: @home

Wednesday, August 1, 2018

How's the Market as of August 1, 2018?

August 1 -- where did the summer go?  I have to admit I have been loving this milder weather we've been having the last week or so.   Sales slowed down a bit in July, so perhaps others were enjoying the weather too!

So how was the market in July?  These next charts show units sold and the median prices.


The months of inventory is the best way to determine the health of a housing market.  Anything less than 6 months is considered a sellers' market -- anything more than 8 months is considered a buyers' market. The level of inventory has not deviated much over the last few months.  There continues to be a shortage of inventory in Wilmette and Evanston with a surplus in Kenilworth and Lake Forest.  

In the next chart, I show the high-end sales for each community. The highest sale this month was in east Glencoe - a New England Colonial built in 2016 with large yard on Old Green Bay Road. 
There are currently 204 houses for sale on the North Shore that are priced greater than $2M. During the month of July, 7 houses closed in this price range:

Community
Sold this Month
# for Sale
Evanston
0
6
Wilmette
1
6
Kenilworth
1
15
Winnetka
1
56
Northfield
0
10
Glencoe
2
22
Highland Park
0
21
Lake Forest
2
65
Lake Bluff
0
3


Enjoy the last days of summer!

Wednesday, July 25, 2018

Green Tips - More consumers interested in Greener Housing

Sixty-one percent of Realtors® reported that consumers are interested in sustainability according to the National Association of Realtors®' REALTORS® and Sustainability 2018 report.
The report, www.nar.realtor/research-and-statistics/research-reports/realtors-and-sustainability, which stems from NAR’s Sustainability Program, surveyed Realtors® about sustainability issues in the residential and commercial real estate markets and the preferences they are seeing in consumers in their communities.

Wednesday, July 18, 2018

5 real estate cliches that are true...

One of the cliches I have found in this business, is that many clients believe and think being a real estate agent is straightforward and not too challenging.   While I beg to differ, that's another blog post.    But there are cliches in this industry that I find are straightforward and common knowledge...  here are 5 that I think stand the test of time:

1) Location, location, location

It's often said that this is the first rule of real estate.   It's absolutely true.   The value of a property is not in the house or the construction -- it's in the location.  A gorgeous house in a lousy location will often sell for less than a fixer-upper in a prime location. 

Which leads to the next cliche:

2) Worst house, best street
You can always change a house, but you can't change an address.   I would always recommend selecting the neighborhood(s) first -- then finding the house.   When I first moved to the city, I lived in a pretty lousy apartment -- but it was a wonderfully safe neighborhood ...

Choosing a property that needs renovating, on a great street, can be a great way to create a long term investment.

3) The first offer is the best offer
I have found this cliche to be pretty accurate.  While there are exceptions, it has been my experience that the longer the market time, the lower the asking price.   Sellers sometimes reject early offers only to find themselves accepting a lot less later. 

4) You only get one chance to make a good first impression
I have found this to really be true.   Buyers rarely revisit homes that they reject initially.   If the house is overpriced, in the buyers' mind it's eliminated from consideration in the future.  If the landscaping is a mess -- if the house is cluttered or dirty -- if the neighborhood looks messy -- if the photographs on the internet are lousy -- all these things impact first impressions.  First impressions can make the difference between a property selling or sitting.  Note how bad pictures can impact your impression:




5) Time in the market, not timing the market
I remember a client telling me that they made a killing in real estate -- but they made the killing when they bought the property -- not when they sold it.   It was an interesting thought, that made a lot of sense.  Home buyers should probably be leary of buying a home too high a price at the top of a boom.  Real estate markets can be hard to predict and those buying in for the short-term might feel the pain.

So what cliches do you hear about real estate and how accurate have you found them?

Wednesday, July 11, 2018

Is it a good offer?

Selling your home?

There is nothing more exciting than receiving an offer for your home -- especially when there is competition out there.

Yet, sometimes I'll review an offer from a buyer and feel utterly ecstatic with the terms presented, only to find the sellers are disappointed and even angry.

Realtors and sellers often have a different opinion about what constitutes a "good offer."  Maybe because we see so many offers, we tend to evaluate each one with more dispassion and logic. 

So what is a good offer?

Obviously, if someone comes in offering asking price, with no contingencies and a cash deal -- it's a fantastic offer.  That's an easy one, which by the way, I've never seen before... there are always contingencies.

The North Shore contract has over 10 pages of clauses and conditions so there are lots of terms, that need to be considered, when evaluating any offer.

Let's take the...

Purchase Price... Buyers can offer any price they want and they sometimes do.  Today, I have seen buyers come in as low as 80% of the asking price.   (For example, $2M home -- initial offer: $1.6M).  Sellers need to understand, that this is just the starting point... it's a negotiating position.  It's not personal!   Be grateful for the offer.  You've hooked the buyer... now reel them in. 

Consider the offer thoughtfully and logically.  What is the market average for that price range?  For example, right now in Winnetka the market average for a $1M home is 94.5% of the last asking price -- that's the average.  Generally buyers know that information.   They might be reluctant to pay more than 95% of asking ($950,000) on this property, so their starting position will be somewhat lower than $950K.   Further, if the house has been on the market for more than 90 days, they will probably offer less and expect to pay less.   And if comparable houses have been selling for around $900,000, they probably won't pay much more than that, so their initial offer will be around $850,000 -- or lower!

Sometimes sellers price their house right at the market value.   When they price aggressively,  sellers often receive up to and even over 100% of asking price.   Buyers will pay full asking price, when they see that the home is priced fairly.

I've often had sellers say to me, "Well we started at $950K and dropped the price to $899... so they should be paying us, at least, $895K." 

WRONG.   Buyers could care less, where the seller initially priced the property.   In their opinion, if you didn't get a sale with the initial asking price, then you were overpriced right from the beginning.   Buyers ONLY look at the current asking price.  

Sellers need to really understand what is happening in their market and in their neighborhood.   Sadly, what a seller has financially put into the house may or may not factor in when determining the fair market value of a property.   Further the appraised value or the assessed value have little to do with the market value.  (Read more at What's the Value of my Home?)

While price matters, I find sellers often hone in on the asking price and devalue some of the other terms.   Some of these other terms can make a deal significantly more valuable.

For example:

The close date... when it comes to owning a home, time is money.   Every day a house sits on the market -- particularly a house that is empty -- sellers are spending money.... taxes, maintenance, utilities, landscaping, etc.  Add it all up and deduct it from the proceeds.   A quick close can mean the difference of hundreds, if not thousands of dollars.

Case in point: My very first deal, two weeks after the house came on the market, the client was offered $805,000 and a quick close.   He refused the deal - he wanted a better offer.   Nine months later, he got his better offer for $810,000.   Sure, he sold the house for more money, but within those 9 months he incurred well over $5,000 of expenses maintaining an empty house.  It was a pyrrhic victory.

Sadly, I've also seen sellers reject a quick close, because it was "inconvenient" -- only to miss an opportunity to get the best deal.   You never know the future and as they say, "a bird in hand..."  Just imagine, if you had received an offer on September 1, 2008 that asked for a quick close, and you turned it down due to inconvenience.  I had some clients, who did exactly that and learned a very costly lesson.

A quick close is a fantastic term and should be given extra weight when evaluating an offer.

Contingencies
Mortgage contingency vs. cash deal.... In general, a cash deal is more valuable than an offer with a mortgage contingency.   Sometimes buyers are unable to get their financing.  Usually you know quickly when there is a problem, but I've had a case or two where the buyers are scrambling days before the close date trying to secure the funds for purchasing a property. 

Today, getting a mortgage is not quite as challenging as it was right after the 2008 financial meltdown... during those days a cash deal was worth A LOT.   Regardless, a cash deal is a beautiful thing and needs to be factored in when evaluating any offer.

Home sale contingency
This is a term, where I might hesitate.   What it means is this:  the sale is contingent on the sale of the buyers' home.   If this term appears on the offer, I would ask for it to be removed.  However,  keep in mind, the buyer probably can't get a mortgage unless they sell their home first.   The only situation,  where I might go along with a home sale contingency, is if a short leash is put on the buyers.   In other words, the buyers have to get their home under contract within no more than 30 days or the deal is over.   Further, I would also factor in the time of year.   A seller might accept a home sale contingency in October or November, but not in the middle of the spring market when there are more buyers looking.

Home close contingency
This term is less onerous.   What it means is this:  the sale is contingent on the close of the sale of the buyers' home.  Their home is already under contract and waiting to close.   I'm not as uncomfortable with this clause, although it's important to know more about their contract.  Have their buyers had their home inspection?   Are they beyond the attorney review period?  How solid and financially stable are their buyers?  All these questions need to be factored in when considering a home close contingency.

Money in escrow 
Money in escrow represents good faith money that buyers are willing to include with their offer.   It is money toward the purchase price, however if the buyer backs out of the deal after all the contingencies are lifted, that money should go to the seller.   Escrow usually comes in two payments: initial escrow (around $1-5,000) with the acceptance of the offer and then a final escrow amount usually at the completion of the attorney review.

While there is no hard and fast rule, how much money are the buyers willing to put in escrow upfront?   I like to see around 5% of the asking price, but for some buyers that's quite a bit. 

I guess the question I would ask, is the amount in escrow enough, that buyers won't leave it on the table?  For a buyer purchasing a $250,000 home, even $5,000 is a lot to walk away from.    For buyers purchasing a $2M home, we would expect significantly more money in escrow -- at least, $75,000.

* * *

These are only the major terms that we tend to see in our market.  There are many others including things like tax prorations, home warranties, home appraisal contingencies, "as is" clause just to name a few.   It's a given that offers have attorney and inspection review contingencies as well.

Sellers, before an offer comes in, read the whole contract, so you understand the language that is there.  Sellers will also have an attorney review period where the attorney can advise the seller on the terms of the deal.

So what is a good offer?

Here is my advice to sellers, when answering that question:
  • Look at the whole offer -- not just the asking price.
  • A quick close is a beautiful thing and should be given a little more weight. 
  • Understand market values and trends in your neighborhood -- don't assume the offer on your home is going to be exceptional, when the neighbors are getting average offers.
  • I know this sounds self-serving, but if you have an experienced agent, please listen to them.  They have seen a lot in this market and can probably advise you whether the deal is decent or not. 
Finally, consider the value of "done."  Moving on is your ultimate goal.  You may not be thrilled with the offer, but some money is better than no money and being DONE can feel great!

Tuesday, July 3, 2018

Name that colonial home - a 4th of July quiz


Can you match the house to its owner?
Washington, Adams, Jefferson, Madison, Monroe


Montpelier
                      Ash Lawn - Highland


Mount Vernon

Peacefield

With gratitude to our founding fathers, 
I wish you a happy 4th of July!


Saturday, June 30, 2018

How's the Market? July, 2018

Here we are -- the last day of the second quarter for 2018.  Where did the time go?

June is over, so we have crossed the halfway mark for the year. I thought I would present a very unscientific chart that shows inventory sold for the first half of the year – versus what is currently on the market. I say unscientific because real estate sales are seasonal, so we typically sell more in the first half of the year than in the second half. Homes that are under contract or are in pending status are included with active properties, so that number is a little on the high side, since some of these properties are no longer actively being marketed.  Regardless, I thought the results were pretty interesting.



The way to read this chart – the red line is number of units that are currently on the market. The white line represents the number of units that have closed in the first six months. For me, what pops out in this chart are the extremes of the North Shore. Some towns have sold more than are active. Conversely, current inventory in some towns exceed the number of sales we have had in the first part of the year. The other communities are fairly balanced. Interesting.

So how was the market in June? These next charts show units sold and the median prices.




The months of inventory is the best way to tell about the health of a market. Anything less than 6 months is considered a sellers' market -- anything more than 8 months is considered a buyers' market. The level of inventory has not deviated much over the last few months.  There continues to be a shortage of inventory in Wilmette and Evanston. 

 In the next chart, I show the high-end sales for each community. The highest sale this month was in Winnetka on Linden Street.

There are currently 217 houses for sale on the North Shore that are priced greater than $2M. During the month of June, 10 houses closed in this price range:

Community
Sold this Month
# for Sale
Evanston
0
6
Wilmette
2
7
Kenilworth
1
18
Winnetka
5
62
Northfield
0
9
Glencoe
1
21
Highland Park
0
20
Lake Forest
1
71
Lake Bluff
0
3


Hoping the heat wave eases up in order to celebrate the 4th in style.  Wishing you a happy holiday!