Being a Broker who specializes in helping Seller’s get top dollar, hearing the news that prices have gone up is heartening news for the future of property value and for my ability to bend the price curve up for my Seller clients. However, I caution those reading the headlines and doing the math in their head (i.e. $400,000 x 10% is $40,000 “I made $40,000 this year). I caution you to remember prices are hyper local. Stop and check your market before making plans based on any opinion of equity.
I often get a call from someone who reads a headline like the “10% appreciation” one and I do a Broker Price Analysis with them together and it turns out that we see appreciation was 3% or something less than expected. Let me know if you want to check in and give me a call and we’ll do the comps together. Hopefully it’s going be good news and you can make your plans to start looking to move or rent.
But remember all real estate is local-per neighborhood, per building per block and property type!
More good news on a national level.
Nationally: Number of Sales Up 6% Over Last Year and 12.8% Prices Up over last year
10% + Appreciation is great news for some
But here’s another number – 776,000.
There are 776,000 Chicagoans With Negative Equity
Chicago has one of the nation's worst concentrations of deeply underwater homes with 726,000 homeowners are underwater. That is 33% (yes THIRTY THREE PERCENT) of all homes in the city. The 10% year-on-year appreciation amounts you hear buzzing about the news are great for some neighborhoods and housing types but a rising residential market has still left over a large chunk of the city in the red. This is all according to the newest RealtyTrac study ( an analysis firm that crunches equity/loans against values out of California).
Keeping My Cape On
Short Sales Are Going Be Around Awhile so www.ShortSaleSuperMan.com will too!
I do a lot of “regular” sales where I help people with equity sell and get top dollar for their property with top-notch marketing and using my $130 million plus of experience, that’s a given. However, I also have a specialty in an area few others do and that’s short sales. It’s like my secret hobby and I love it because it makes me better at the whole real estate game.
I got my first taste of the reward of completing a short sale by fighting for a homeowner on a very large sized short loan. My clients, a nice north side couple who had a thriving business that was crushed in the recession, couldn’t make their payments on a luxury home. I, and their attorney, personally got Countrywide to settle a $2,100,000 loan for under $1,700,000. Countrywide tried to get a promissory note and future rights to sue and played all the angles a lender tries. But we fought all that back and got Countrywide to settle and let my client’s off the hook without paying a penny and promises of no-pursuit in writing.
I saw from that result of a “clean walk away” how a short sale brings newness to someone’s financial life. Further, I saw the logic to it for all sides. A short sale is about a win-win-win solution that avoids a nasty court process for the bank, excessive legal bills for the bank and borrower, and avoids a likely Bankruptcy for the borrower.
Flash forward to 2014 and I could rattle off fifty plus stories about families I got out of foreclosure. Families that lost all their savings, and jobs, but were able to short sell instead of foreclose and this gave them a possibility to recover a lot quicker.
“Several of Phil’s clients from short sales in 2008, 2009 and 2010 have already bought again and building new equity and participating again in the American dream.” Tom Lang of ShortSaleSuperMan.Com
Since 2007 I continually trained myself and became “SFR” short sale certified (the black belt distinction for Realtors). As I trained myself at National Seminars with the best in Short sales I could find, I learned the tricks of the trade and the secrets of success to avoid the 50% plus failure rate that other Brokers found. My intention to help the underwater homeowner led me to do a lot of short sales, because others didn’t know how, or didn’t want the headache or the huge amounts of paperwork and effort with the risk of failing.
I am proud to say that in 2013 I was at the top 99.998 percent of all Illinois’ 31,000 licensed Brokers in short sale closings. My experience allows me to educate and advise in a way other’s can’t because they have maybe done a few short sales willy nilly. I also am clear of the stress a defaulting borrower is in, and what a borrower is going through every step of the way for them.
If you know one of the 776,000 homeowner in Chicagoland who is upside down on their mortgage have them call me and I’ll go over their options with them. Or, just send them to www.shortsalesuperman.com. If you don’t, be grateful that your sphere of friends are some of the 66% of Chicagoland homeowners who are not underwater!
Managing Broker/Owner – Better Living Realty