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WHY YOU NEED A GOOD NEGOTIATOR

Posted by Bob Adolfson On March - 9 - 2010ADD COMMENTS

Some of my clients ask why they need a negotiator? Sometimes the attorney does not know the “angles” a Bank is trying to use to squeeze the Seller and angle on our client…This is a very specialized field… and our job is to get out and sell.. .and back up the negotiator with constant market updates for value… Here is an example of what the negotiator does.. they prepare HUDS with the help of the seller’s attorney… this is a communication from one of our negotiators on a recent deal.. I thought this clip would demonstrate the point… Phil

EXAMPLE OF WHY WE NEED TO USE A NEGOTIATOR: This is a critique to an already  prepared HUD 1 given to use by a attorney and Chicago Title.

I did receive your HUD, and was wondering if you could make some changes.

Note that some of these items are for negotiation purposes and will probably be changed during the negotiations.

1)     I prefer HUD’s in 8 ½” by 11” format. The HUD you sent me was appeared to be on 8 ½” by 14” paper. It was cropped, so I could not see part of the HUD.

2)     Line 603 needs to be zero. This is accomplished by putting the amount instead on Line 504.

3)     Lines 504 and 505 should show payoffs to Citi. Line 505 should be $2,500.

4)     Remove all items from the buyers side. The HUD should only show the sellers credits and charges.

5)     In Box B (Type of Loan), Box 1 (FHA) should be checked and all other boxes left blank.

6)     Delete line 506.

7)     Line 508 should say “Buyer’s closing cost credit”.

8)     Lines 700, 701, and 702 should show 7% commission.

9)     Line 1304 should show a “Short Sale processing fee to  ” of $4,000.

10)  Page 4 of the contract clearly states that the seller is to pay title and survey expenses. The HUD should reflect this.

11)  The HUD was sent to me in image (scanned) format. I prefer to have a HUD in a form that I can copy and paste from.

12)  Please double check to make sure that all of the sellers charges are listed on the HUD.

Keep in mind that we can always remove or reduce a charge from the HUD (such as title fees, liens, etc…) later without problem. Adding charges after the fact is a different story. Generally, the Bank will refuse to pay the charge, even if it is a legitimate mistake (like missing some taxes). They will demand that somebody else (such as the realtor or buyer) pay the additional charge.

Let me know if you have any questions.

What SUCCESS look like on a SHORT SALE

Posted by Bob Adolfson On March - 9 - 2010ADD COMMENTS

What is the goal of a short sale?

This letter is an example of freedom.. freedom earned by a client who short sold with us. She owned a townhome – paid $315k owed $315k. We listed it for 299,900 then 279.. then 249k.. .we had 1 showing in 5 months!  That’s a challenge!!  How were we going to get her sold.??? I held a sold in a week “hi bidder” home sale auction… 75 signs and alot of hard work later … we had several bidders and bid the home up to 240,ooo. Given that we tracked all our notes and price  cuts… I presented an executive summary of the comps, proof of our long efforts to sell and market the property on over 30 websites.. and that we had to resort to an auction… Given all that .. we got our client SOLD… with NO deficiency.. If you read the letter below.. this is what success reads like. It’ let’s you walk away with NO deficiency judgement.

Upon receipt of the NET PROCEEDS and a COPY OF THE FINAL SETTLEMENT STATEMENT, CitiMortgage, Inc. will give a full release and reconveyance of their loan as agreed and no deficiency judgment will be instituted. **

It is the following letter

WHAT THERE GOAL OF A SHORT SALE LOOKS LIKE

“APPROVAL OD SHORT SALE” LETTER FROM THE LENDER

THIS IS A SHORT SALE FROM AUGUST 2009 WHERE OUR CLIENT OWED $315,000 and was released with NO DEFICIENCY at a SALE PRICE of $240,000.

**”FULL RELEASE AND RECONVEYENCE …

and NO DEFICIENCY JUDGEMENT WILL BE INSTITUTED”

Dear Mortgagors,

CitiMortgage, Inc. has agreed to accept a short payoff  on the above captioned loan with the following conditions:

1.  The closing shall take place on or before August 2..or per diem interest in the amount of  $175.00 will be charged. You must obtain approval from CitiMortgage for any extension beyond August 31, 2009. Per diem interest will have to be absorbed by parties other than CitiMortgage, Inc..

2. CitiMortgage, Inc. net proceeds should not be less than $199,303.15.  Contract price is $240,000.00.

3.   Approved closing costs to be absorbed by CitiMortgage, Inc. including brokers commission ($14,400) are not to exceed $40,696.85. All other closing costs must be absorbed by parties other than CitiMortgage, Inc..

4.   The current owners are to receive (0) zero proceeds from the sale of the above property.  Any and all refunds or credits should be added to the net proceeds(from item #2 above) and remitted to CitiMortgage, Inc. at the time of closing.

5.   Upon receipt of the NET PROCEEDS and a COPY OF THE FINAL SETTLEMENT STATEMENT, CitiMortgage, Inc. will give a full release and reconveyance of their loan as agreed and no deficiency judgment will be instituted. **

6.   All judgments and/or liens must be cleared and settled prior to closing.  Proof of release must be presented at time of closing.

***ANY CHANGES TO THE ABOVE STATED TERMS MUST BE APPROVED BY CitiMortgage, Inc..

On the day of closing please fax a copy of the check along with a HUD-1 Settlement Statement to EFAX:  1-866–

Please forward THE NET PROCEEDS CHECK with THE FINAL HUD-1 SETTLEMENT STATEMENT to:

You have a property… you know five brokers.. who’s the best to list a short sale? How do you know?

Well start by asking how many people each broker has actually saved from foeclosure. Then ask for address and details of the battles… each short sale is a battle.. .they are alot of work. And you get your nails dirty.. you burn alot of gas… and your thumb gets numb from dialing alot.  As the Broker of our firm I personally handle our pricing strategy and Broker Price Opinions and screen and communicate with our negotiators weekly once under contract.

I believe we are the best suited brokerage and team to sell a property for you because we have experience and we have a marketing system and follow up that is the best in the city.  I have sold more property than 95% real estate agents practicing in the City—in our board of 16000 realtors. Since 2003 I have closed personally $75 Million in over 280 deals and won top producer awards and participated in National Mastermind training to use the latest technology, scripts and follow up systems to get Short  Seller’s under contract.. so we can get down to business negotiation our client out of a deficiency.

We do thefollowing… -    Post to the MLS.  Over 200 Email notifications will be  sent out to pre-approved buyers working with realtors. .  .

-    Post to the National Listing Service (Point 2 Homes).  This syndication service posts to over 20+ highly trafficked real estate web sites.  The property will likely be viewed over 6 times a day

-    Custom built website by our office.  We estimate at least  125 or more unique visitors to visit in the first month that visit and download.

-    High quality HDR photos showcasing the inside of the property will be used on all marketing materials and slide shows.  9 used for the MLS and 1-15 used on other marketing.

-

-     manual postings to Craigslist.  Multiple postings per week. This is one of our top 3 lead generators. But conversion of these leads takes skill and follow up. We are there and have a hotline 24 hours a day.

Again these marketing techniques have helped us to sell over $75 Million in 5 years.

Auction At 30 Days

If our our standard marketing does not cause an offer of worth by day 50 we propose and “auction” called “Sold In A Week”. We have bought and used this franchised system that has a high success rate to get a property under contract.

When we have decided to do our Sold in a Week program in 2009 previously we have found 60% bring a contract close enough to market value to go under contract.

Agents across the country are using it and it has about a 72% success rate of getting homes sold.  This is how we generated the current offer.  Below is what we would do to find our best buyer:

-   Create another custom website with info on the property and the terms of the sale.

-   Drop 1,000 flyers across the neighborhood with the open house date, time and terms of the sale with the website.

-   Put 50+ signs out around to property to drive foot and car traffic to the property.

-   Posted multiple ads on Craigslist each day for 2 weeks.

Expected Results from friendly auction

-   On average 20 people attended the auction open house.

-   On average for our auctions 2 to 5 online bids and 6 to 9  on site bids.

-   On average 3 to 5  buyers engaged in a round-robbin bidding to arrive at the highest, best offer and hopefully meet seller’s reserve price(the price you need to close).

We feel that our marketing goes above and beyond the competition in the area.  As far as we know we are the only Team doing this Sold in a Week “auction” marketing system in the entire city of Chicago.

When To Walk Away From Your Home!!?

Posted by Bob Adolfson On March - 9 - 2010ADD COMMENTS

Ok.. so I didn’t write it. I’m not recommending it.. I’m recommending that if you are behind on your mortgage…. and equityless.. and have limited options that you just read this article.. then talk to your attorney.

I have too many clients who ended up in a short sale too late.. because no-one was talking to them they way this article is…

When It’s OK to Walk Away From Your Home By BRETT ARENDS

  • Millions of Americans are now deeply underwater on their mortgage. If you’re among them, you need to stop living in a dream world and give serious thought to walking away from the debt.

No, you shouldn’t feel bad about it, and you shouldn’t feel guilty. The lenders would do the same to you—in a heartbeat. You need to put yourself and your family’s finances first.

How widespread is this? More than 11 million families are in “negative equity”—that is, they owe more on their home than it is worth—according to a report out this week by FirstAmerican Core Logic, a real-estate data firm. That’s a quarter of all families with mortgages. And for more than five million of those borrowers, the crisis is extreme: They are more than 25% underwater—the equivalent of having a $100,000 loan on a property now worth just $75,000 or less. That’s true for a fifth of mortgage holders in California, nearly a third in Florida and an incredible 50% in Nevada.

Are you in this situation? Are you still battling to pay the bills each month, even when it may make little financial sense to do so?

It’s time for some tough talk.

Stop trying to chase your lost equity. That money is gone. Don’t think like the gambler who blows more and more cash trying to win back his losses. That’s how a lot of people turn a small loss into a big one.

And do the math. Even if you hope the real estate market is near the bottom—it’s possible, but by no means certain—it may still take years to see any meaningful recovery. If you are 25% underwater, your home will have to rise by 33% just to get you back to even.

Is that likely? And over what time period? Even if home prices rose by 5% a year from here, that would still take six years. And during that time you could instead be building fresh savings elsewhere.

View Full Image  Bloomberg News

A real-estate agent moves a torn “Lender Foreclosure” sign outside a foreclosed home in Reno, Nev., last Monday.

If you are reluctant to give up on “your” home, realize that it isn’t “yours.” If you are in negative equity, it’s the bank’s home. You’re just renting it. And right now you may be paying way above market rates. You need to be ruthless about your cash flow. Are you worried about the legal consequences of walking away? Certainly, you should check with a lawyer before doing anything, but the consequences will probably be more limited than you think.

In “non-recourse” states, the mortgage lender may have no right to come after you for any shortfall. They may have no option but to take the home, sell it and eat the loss. According to a survey last year by the Federal Reserve Bank of Richmond, such states include negative-equity hot spots California and Arizona. Even in “recourse” states, lenders may have limited ability to come after you. Often they’d have to jump a lot of legal hurdles, and it’s just not worth it for them. They’re swamped with cases anyway.

“In my experience, right now they’re not really going after anyone,” says Richard Nemeth, a bankruptcy attorney in Cleveland. “They just don’t have the resources.”

If you’ve taken smart steps to protect your money, you may be safer still. For example, money held in a 401(k), Individual Retirement Account or pension plan is sheltered from creditors.

Sure, a strategic foreclosure may hurt your credit score. But if you’re in financial difficulties, it’s probably already suffered. And your credit score is not the only thing in life that matters.

Still, when it comes to the idea of walking away from debts, many people are held back by a sense of morality. They feel it’s wrong to abandon their obligations. They don’t want to be a deadbeat.

Your instincts, while honorable, are leading you astray.

The economy is fundamentally amoral.

Sometimes I think middle-class Americans are the only people who haven’t worked this out yet. They’re operating with a gallant but completely out-of-date plan of attack—like an old-fashioned cavalry with plumed hats and shining swords charging against machine guns.

Do you think your lenders would be shy about squeezing you for an extra nickel if they thought they could get away with it?

They knew what they were doing when they wrote your loan. Many were guilty of malpractice, but they pocketed good money and they’ve gotten away with it. And if they thought your loan was “risk free,” how come they were charging you so much more than the interest on Treasury bonds?

If you’re only a small amount underwater on your mortgage, it’s probably the case that you’re going to be better off staying put. But if you are deeply underwater, it’s a different matter.

Whether we like it or not, walking away from debts is as American as apple pie. Companies file for bankruptcy all the time, and their lenders eat the losses. Executives and investors pocketed millions from the likes of Washington Mutual, Lehman Brothers and Bear Stearns when the going was good. They didn’t have to give back one cent of that money when the companies went into bankruptcy.

Limited liability, after all, is one of the main reasons every business from your local dry-cleaner to a major multinational gets incorporated in the first place. They’re not shy about protecting themselves if things go wrong. You shouldn’t be either.

West Town Events I recommend

Posted by Bob Adolfson On March - 9 - 2010ADD COMMENTS

WEST TOWN EVENTS  those of you who are n’bors and live in the West Town or mid city area.. here are some life improvement options.. .

Phil Buoscio

Game Days at Nail Fetish: Thursdays : 12 p.m. – 9 p.m. Fridays : 10 a.m. – 7 p.m. Play DVD editions of the game shows “Deal or No Deal” on Thursdays and “Who Wants to Be a Millionaire?” on Fridays before or after your treatment. Prizes for winners include nail polish, lotion and $10 manicure gift cards.

Nail Fetish

525 N. Ashland Ave.

Chicago, IL 60622

312-738-3101

Feb-March 2010

THE CABINET

Redmoon Theater remounts its 2005 “spectacle in miniature” featuring small-scale mechanicals and puppets. The story was inspired by the silent 1920 German Expressionist film,”The Cabinet of Dr. Caligari,” about a murderous carnival hypnotist and his sleepwalking slave.

When: Thursdays and Fridays : 8 p.m. (ends March 7)
Saturdays : 6 p.m. and 9 p.m. (ends March 7)
Fridays : 10 p.m. (ends March 7)
Sundays : 3 p.m. (ends March 7)

Price: $15-$25

Redmoon Central

1463 W. Hubbard St.

Chicago, IL 60622-6353

312-850-8440

February 18th @ 5:00-7:00pm
Networking Event & Informational Seminar on Assisting Local High Schools through Internship/Work Programs
Hosted by two local chamber of commerce, the WTCC and Wicker Park and Bucktown Chamber of Commerce Meeting in the bar area. Materials distributed regarding the high school work programs with representatives attending to answer questions. Complimentary appetizers and cash bar.
Folklore

2100 W. Division St.

March 7th, 2010 @ 5pm

ACUMEN NATION

Christ Analogue, Cyanotic, The Gothsicles, Sheriff Scabs, Xuberx, Millipede, DJ Hiem.

Price: $12-$15

Darkroom

2210 W. Chicago Ave.

Chicago, IL 60622

773.276.1411

March 11, 2010 @ 9:00pm

BOUTROS

Price: $8-$10

Event Phone Number: 312-371-0779

Darkroom

2210 W. Chicago Ave.

Chicago, IL 60622

773-276-1411

March 12th, 2010 @ 7pm-1am

SPECTACLE LUNATIQUE GALA: A BOMBASTIC BIRTHDAY CELEBRATION

Performance installations highlight Redmoon Theater’s annual spectacle-filled benefit. This year’s 20th anniversary celebration includes appetizers, cocktails, dinner, cake, balloons, hats, songs, games, costumed performers, mechanical devices, shadow projections and more. An optional package for two costs $625 and includes a VIP reception (7 p.m.)

Price: $150

Redmoon Central

1463 W. Hubbard St.

Chicago, IL 60622-6353

312-850-8440

April 9th, 2010 @ 8:00pm

RED OR WHITE BALL

The eighth annual event features cocktails, dinner, live entertainment, swag bags, a silent auction and raffle. An optional VIP package ($250) includes a 7 p.m. cocktail reception with Steppenwolf ensemble members and enhanced swag.

Price: $125-$250

Event Phone Number: 312-654-5672  http://www.steppenwolf.org/rowb

Salvage One

1840 W. Hubbard St.

Chicago, Il 60622

312-733-0098

Green Residences in Chicago Gain Ground

Posted by Bob Adolfson On March - 9 - 20101 COMMENT

I included this excellent article From Chicago Assoc. of Realtors-Phil Buoscio

Living LEED: Green Residences Gaining Ground in Chicago

Numerous downtown office buildings, several branches of the Chicago Public Library, and even the new Target store at Peterson and Damen are evidence of Chicago’s citywide resolve to build in accordance with the standards of the Leadership in Energy and Environmental Design (LEED). Facilitated by the U.S. Green Building Council, the LEED Green Building Rating System™ “encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria” (USGBC).

For several years now, the City of Chicago and various corporations headquartered in Chicago have worked to achieve LEED status. Now, architects and builders are beginning to apply LEED standards to residences, with a new series of LEED for Home designations. Imagine living under a green roof, or in a zero net energy house, or even helping your college-aged child settle into their LEED-certified dorm room. Now, thanks to the popularity and success of commercial LEED properties, eco-conscious living has reached a whole new level. And this new trend is citywide, not simply concentrated in new construction-heavy neighborhoods, like the South Loop.

LEED-ing the Pack

The LEED for Homes Green Building Rating System™ awards designations based on a point system, ranking buildings for their sustainability in eight categories: Innovation & Design Process, Locations & Linkage, Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality, and Awareness & Education. Based on the total number of points earned by a property, it is given a designation of, from lowest to highest: Certified, Silver, Gold, and Platinum. More information on the rating system can be found at the U.S. Green Building Council Web site, www.usgbc.org.

Renewable Energy Homes

At 4895 N. Ravenswood Ave., ground has broken on a 2,675 square foot that hopes to be “Chicago’s first functional zero net energy home,” with aspirations to earn the coveted LEED for Homes Platinum designation (www.greenhomechicago.us). Working with Chicago-based architecture firm Farr Associates, whose concentration is sustainable urbanism, owner Michael Yannell has commissioned every conceivable conservation measure, from solar panels to rainwater harvesting to two green roofs for the two-story plus basement home. He has also earned the distinction of being the first single-family home in the City of Chicago with a greywater system approved by both the City of Chicago and the Illinois State Public Health Department.

Yannell claims that two factors influenced his decision to pursue his zero net energy home, which is still under construction in Ravenswood. “First, I had always wanted to build a home like this,” he says. “But second, in Chicago over the past 10 years, there’s been a rash of tear downs and construction of cookie cutter homes that aren’t taking the environment into consideration as they’re being built.” Yannell should know—he currently lives in one of them. He has tried replacing windows and doors and the whole roof in order to increase the efficiency of his current home; but when he saw the lot in Ravenswood with sizeable southern exposure and an unobstructed view to the west due to the Metra tracks, he knew it was perfect.

Yannell knows that it is unlikely other Chicagoans will go to the lengths he has to design and build a zero net energy home—the maintenance of the greywater system alone requires a great investment of his time, and the Department of Health will be stopping in to inspect the system for the first year. But his hope is that people will consider adapting one of two of the conservation measures he has implemented. For Yannell, however, the extra effort will almost certainly pay off with a LEED Platinum designation.

Farr Associates, the architectural firm collaborating with Yannell on the project, hails the LEED for Homes rating system as a benchmark. “There are often companies representing processes and products that are not as sustainable as they claim to be,” says April Hughes, Project Manager, Farr Associates. “LEED for Homes maintains a level of accuracy.”

Yannell is already looking forward to his next collaboration with Farr Associates: a LEED-certified animal shelter for cats.

***

The Wis Tavern building at 1825 W . Wabansia Ave. in Bucktown is home to the Mauceri family, and upon completion in 2007, was the first LEED Home Gold Certified residence in Illinois. Workign with the owners, design team Aerotecture International and Wilkinson Blender Architecture Inc., created the first wind-supported, renewable energy, multiunit building in Chicago. Aerotecture Aeroturbines power the home quietly and safely, which keeps the neighbors happy, and the potential for zero energy consumption keeps the eco-conscious homeowners living green.

Affordable LEED Living

While building a LEED designated home can be expensive, living in one doesn’t have to be. Affordable and mixed-income housing developments are earning LEED distinctions in Chicago as well.

Completed in November 2005, Wentworth Commons, owned by Mercy Housing Lakefront, offers 51-units of affordable housing to at-risk and low-income families and individuals, and provides supportive services, such as employment training and a family resource center, to its residents. Visible solar panels and recycled materials helped earn Wentworth Commons its LEED designation, and a graffiti-resistant exterior and native plants (eliminating the need for irrigation) keep the building looking beautiful.

The City of Chicago and several developers are working on implementing conservation measures in many more affordable and mixed-income housing developments, citywide

LEED Condominiums Move North

For green homebuyers who love the idea of LEED condominium living but aren’t interested in downtown high-rise buildings, there is good news: LEED condominiums are creeping northward, and not necessarily in high-rise form.

Helios Realty and Development chose 2800 Lincoln Ave. (www.2800lincoln.com) as the location for their forthcoming nine-unit, sustainable condominium building in part because of access to public transportation. “The location is phenomenal in that it is so close to the Brown Line and connected to both Lakeview and Lincoln Park,” says REALTOR® Hans Fedderke of Helios. With green features, such as energy efficient appliances, recycled quartz countertops, and an estimated 50% annual energy savings for its future residents, 2800 Lincoln is gunning for an LEED Gold designation, and according to Fedderke, it seems well within reach. 2800 Lincoln uses a geothermal system, solar energy for water heating, and a green roof.

“We think that the homeowners will derive an immediate benefit from the energy savings,” he says. Three of the units are penthouses, with three bedrooms, three bathrooms, and two-story decks.

With delivery expected in late spring/early summer of 2009, pre-sales in 2800 Lincoln are already selling at listing price, indicating that homebuyers who make green living a priority are willing to pay for it, regardless of market conditions.

LEED Dorm Living

St. Xavier University is always conscious of the impact its new construction has on the surrounding environment; so in 2006, they broke ground on the Rubloff Hall dormitory, which became the first university building in Illinois to receive the LEED Gold designation. Today, Rubloff Hall and its new sister residence, which also received LEED Gold status, are the most popular residences on campus. “Rubloff and its new sister building filled immediately,” says Joe Moore, Director of Media Relations at St. Xavier. “The natural lighting, emphasis on recycling, in-room bike racks, 1,000-square-foot roof garden, and other green amenities are very popular. They are beautiful buildings that teach students to live in harmony with the planet.”

In addition to building all new construction on campus to similar standards, University President Judith A. Dwyer, Ph.D., was the first university president in Chicago to sign the Presidents Climate Commitment, “a pledge by more than 450 colleges and universities across the nation to eliminate greenhouse gas emissions,” says Moore. “Saint Xavier also begins its unique GreenBike program this fall, which will allow SXU students, staff and faculty to borrow bikes for free in increments of 15 minutes from 14 computerized docking stations around the Chicago Campus. SXU is the first in the country to import this proven concept, which is designed by Veolia Transportation subsidiary Veloway and extensively used in Europe.”

In single-family homes, condominiums, affordable housing, and even dormitories, LEED is changing the way homeowners look at the places they call home.

Home Sales Start 2010 With a 29% Rise

Posted by Phil Buoscio On February - 28 - 2010ADD COMMENTS
By: Staff Feb. 26, 2010

(Crain’s) — Chicago-area home sales started the year with a jump, but distressed sales continued to push down prices.

CHICAGO-AREA SALES
Local sales of single-family homes and condo rose in January for the seventh straight month.
Month 2010 2009 Change
January 3,922 3,035 29.2%
Month 2009 2008 Change
January 2,965 3,927 -24.5%
February 3,082 4,326 -28.8%
March 4,260 5,759 -26.0%
April 4,747 6,094 -22.1%
May 5,634 6,927 -18.7%
June 7,140 7,806 -8.5%
July 7,427 7,408 0.3%
August 7,009 6,917 1.3%
September 6,862 6,477 5.9%
October 7,286 5,467 33.3%
November 6,826 3,978 71.6%
December 5,752 4,320 33.1%
Full year 69,290 69,406 -0.2%
Source: Illinois Assn. of Realtors

In the nine-county Chicago region, 3,922 single-family homes and condominiums were sold last month, a 29.2% increase over January 2009, according to a release Friday from the Illinois Assn. of Realtors.In the city, sales rose 31.1% last month, to 1,202 compared with 917 in January 2009, the Realtors said.

“We are seeing an accelerated spring market despite the snow and cold in Illinois with the homebuyer tax credit the driving factor for rising home sales,” Mike Onorato, president of the association and broker-owner of Onorato Real Estate in Coal City, said in the release.

The median price in the Chicago area — at which half the homes sell for more and half for less — fell to $175,000 in January, a 5.4% decrease from last year, according to the release.

In Chicago, the January median price of $195,000 was similarly down 4.9% compared with January 2009.

However, the statewide median price rose slightly, to $145,300 compared with $145,000 in January 2009, the Realtors association said.

“Foreclosed properties continue to exert downward pressure on median prices in Chicago but much less so in Illinois,” Dr. Geoffrey J. D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois, said in the release. “There is evidence that median price increases will moderate in the state over the next three months (February, March and April), remaining about the same as those a year earlier; for Chicago, the median prices will be about six percent below comparable prices.”

Statewide, sales rose 14% last month to 5,483 homes.

The Illinois Assn. of Realtors’ sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.



Construction Activity To Rise

Posted by Phil Buoscio On February - 26 - 2010ADD COMMENTS

Check out this Video and article from Crain’s Chicago Business on what 2010 looks like for new construction in the region.

By: Eddie Baeb Feb. 22, 2010

(Crain’s) — Local construction starts are forecast to climb 18% this year, as increases in single-family housing construction and public works projects help end a three-year decline.

Yet the gains won’t feel like much of a salve to the Chicago-area construction industry, as the $11.51-billion value of the projected starts in 2010 is just more than half the peak of $21.77 billion in 2006, according to McGraw-Hill Construction Research & Analytics.“We’re still going to have a depressed construction market in 2010, it’s just that we’re coming out of that horrible experience in 2009,” says Kim Kennedy, manager of forecasting with McGraw-Hill Construction Research, a Bedford, Mass.-based unit of McGraw-Hill Cos.

Last year, construction starts plummeted 46% to $9.78 billion, marking the biggest decline here since McGraw-Hill began tracking the data in 1967. Public works and utilities were the only sectors to see gains in 2009, while the steepest falls were in commercial, industrial and institutional buildings.

From a bottom-line perspective, 2010 could be every bit as tough — or tougher — as the lack of work and the crowded competitive landscape has squeezed margins for contractors.

“It’s still painful,” says Steve Zuwala, president of Chicago-based Interior Construction Group Inc. (ICG), which specializes in upscale office buildouts. “In 2009 we had the benefit of some projects carrying over from 2008, when fees were a little bit better.”

Mr. Zuwala says ICG’s bid opportunities are up 40% compared to the same time last year, and if the firm wins enough of that work it may begin adding workers after slashing headcount some 30% from late 2008.

“It’s encouraging that the year started out with a lot of people deciding, ‘Let’s get this out for bid,’” he says. “There’ll be more activity, but the fees will be lower.”

Chicago’s 18% projected increase this year tops McGraw-Hill’s national forecast that starts will increase 11% to $466.18 billion.

Single-family housing starts are projected to climb 70% here to $1.97 billion, while multi-family housing is projected to remain flat at $940 million.

Low mortgage rates, loosening credit, falling prices and pent-up demand all stand to bolster the single-family market, where local construction starts have fallen four straight years, writes McGraw-Hill.

Apartment and condominium construction, meanwhile, won’t back bounce from three years of falling construction starts because of the big existing inventory of both apartments and condos.

“Oversupply will remain a daunting challenge in the overbuilt Chicago metro,” McGraw-Hill writes. “The building boom of 2003-2006 has created a deluge of units entering the market even while the market has turned dramatically negative.”

Chicago’s multi-family is lagging the national market, as McGraw-Hill forecasts starts will rise 16% nationwide this year.

The mainstays of the commercial sector, retail and office, are poised to have a third straight year of local declines. Construction starts of stores and shopping centers are forecast to fall 11% this year to $420 million, while starts of office and bank buildings are expected to drop 17% to $291 million.

Health care projects are poised to rise 22% in 2010 to $662 million. That comes on the heels of a precipitous 81% decline last year primarily because of the huge volume — $2.88 billion — that started in 2008, including four major hospital projects: the Ann & Robert H. Lurie Children’s Hospital; University of Chicago Hospital Pavilion; Rush East Tower Atrium, and Elmhurst Memorial Hospital.

Public works projects, buoyed by federal stimulus money, are expected to be a bright spot in 2010. Local highway and bridge construction starts are slated to climb 26% to $2.05 billion.

Roughly $86 million in stimulus transportation funds were allocated to Chicago, according to the McGraw-Hill report, with several major projects to get under way this year, including $11.6 million for Chicago Avenue improvements between Laramie and Grand avenues and $10 million for improvements to Congress Parkway.

We Are Back In 2003 But Pisitive Signs

Posted by Phil Buoscio On February - 24 - 2010ADD COMMENTS

We are Back in 2003.
The typical national home price is back at 2003!
Ok, breathe. We are all younger now.
No gray hairs here.

The bottom likely is here now or was just here and we’ve levelled out.

Evidence of a national truth that property values may be leveling off- Standard and Poors company’s national index, which is produced only once a quarter and covers all nine U.S. census divisions, showed a seasonally-adjusted gain of 0.3 percent between the third and fourth quarters of last year. This is a considerable improvement from the fall that pushed home values 32 percent below their 2006 peak!
According to the S&P/Case-Shiller U.S. National Home Price Index released Tuesday, residential property values were down 2.5 percent in the fourth quarter of 2009 compared to one year earlier-significant improvement over the annual variances reported in the first (-19.0 percent), second (-14.7 percent), and third (-8.7 percent) quarters of the year, and shows a definite pattern of diminishing declines.
In December, S&P’s closely-watched 10-city and 20-city composites recorded annual declines of 2.4 percent and 3.1 percent, respectively. These two indices, which are
reported at a monthly frequency, have seen improvements in their annual rates of return every month since the beginning of 2009. Following suit with the two composites, S&P said all 20 metro areas saw improvement in their annual returns …
As of the fourth quarter of 2009, S&P said average home prices across the United States are at similar levels to what they were in the summer of 2003.
Looking at the monthly statistics, 15 of the 20 markets tracked by the index showed a decline from November to December, with Chicago posting the sharpest drop of 1.6 percent. Some selections taken from NYT and DS News.

Eco-Friendly Kitchen Design

Posted by Phil Buoscio On February - 23 - 2010ADD COMMENTS

Check out this video from Realtor®TV talking about Eco-Friendly Kitchen Design. Whether you are building a + House ™ or you want to update your current house, there are many ways you can be “Eco-Friendly”. Being able to customize and upgrade your Kitchen on a + House allows you to maximize your energy use. From Energy Star appliances to low flow plumbing fixtures, there are plenty of options to put less of a burden on mother nature and put money back in your pocket. Give us a call today to find out how “Eco-Friendly” your kitchen could be in a + House 800-603-5251 Ext. 248.

+ House (Plus House) is marketed and sold by Plus House, Inc.

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