Andrea Geller

In the past real estate agents always entered into negotiations with the perspective that buyers and sellers have different points of view. For sellers who bought their homes in the last years, they are looking at the same issue that the buyers are looking at: How much is the check going to be that they have to bring to the closing table?

Home Sellers
It seemed to me that over the past year or so sellers where jumping on the short sale bandwagon. Recently it seems that if they have to sell they are opting to write a check at the closing and rent for a while until they regroup and position themselves to be homeowners again.

Home Buyers
In the past weeks home buyers have been going forward submitting offers. Very different than just a few months ago, they are not throwing out "low ball" offers. Buyers are working with their Realtors® and strategically putting together offers. More importantly than what the active comparable properties on the market are they are taking into consideration the last closed as well as pending sales. Those pending sales could very well be the closed comps when it comes time for that buyers appraisal. No one wants to get into the situation of a property not appraising for the agreed upon purchase price.

It is no longer what the price the seller wants to get for their home or what the buyer can afford. It is putting a qualified buyer together with a qualified seller at the closing table.

What These Means to Realtors
Rather than quickly getting to agreeable terms, real estate agents will be going up and back between the parties as each side carefully reevaluates their position with each counter. It will be our negotiating skills as professionals to get the buyers and the sellers together on price and terms that can both handle. We need to continue to be an active party to the transaction through the closing.

Originally Posted on the Chicago 77 Blog October 5, 2009


As we enter into the final quarter of the year, the writing is on the wall for how the Chicago real estate market will end up. There is be an increasing number of transactions happening at lower price points. For sellers it is the realty of pricing and the competing inventory.

For buyers it is getting the best value, having the property appraise, and qualify for a mortgage. With the rise in foreclosed properties, banks are trying to manage releasing their REO properties into the marketplace in an attempt to defer losses. There is an estimated 500,000 bank-owned properties now, and over a million mortgages 90 days past due.

The optimism in the market is that more and more homes are going under contract and closing. The transactions are happening, just with more challenges. It is a solution-oriented market.

Over the past year or so the Chicago 2016 Olympic Committee under Mayor Daley's leadership has been running around putting a funding package together to move Chicago forward to make it "Olympic Ready". Being the knocked out in the International Olympic Committee's first round stunned most but everyone has to remember that Chicago is still the same great city that made it to the final rounds.

All the same reasons that so much private money was raised to fund the Olympics had they happened remain as to why Chicago is still the same great city for moving many of the plans forward. We obviously don't need the game venues but we look at the opportunities for jobs, housing and transportation. The redevelopment plans of many of the neighborhoods need to just be tweaked but are still viable.

Chicago already is one of the best cities. We need to continue to grow our commercial, residential and tourist opportunities. If you have never been here before, explore Chicago.

Chicagoans should remain as resourceful as they have been in the past and move forward, not stop. We need to leave the door open and work towards so many of the other global opportunities we can bring to the city.

Originally posted on the Chicago 77 Real Estate Blog September 29, 2009

Case-Shiller Numbers: Six Months of an Uptick But What Does It All Mean?

Upon a mixed bag of numbers released last week by the National Association of Realtors, Standard & Poor's Case-Shiller Housing Numbers released this morning show continued movement upwards making July the sixth month in a row with slight gain. "The rate of annual decline in home price values continues to decelerate and we now seem to be witnessing some sustained monthly increases across many of the markets" says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's.

Locally, Chicago had a 2.7% increase from June to July. The year-over-year numbers show a decrease of 14.2%.

What Do All These Numbers Mean?

Everyone is looking at the historical data to predict the future. As Realtors®, that is what are clients are looking to us for. Should they list? Should they buy? Should they wait? In the big picture, there are so many variables that are effecting the housing market including unemployment, the first-time-buyer tax credit, and the lending industry. The "should?" for the buyers and sellers depends on their individual situations.

For sellers it comes down to, can you afford to sell or do you have to sell? If you want to sell, do you have the equity in your property to sell at today's market value or can you write the check for the difference if need be? If not, it is probably not the time to list. If you must sell for whatever reason, we have to ask the same questions but if you don't have the equity in your home or cannot write the check, then it is time to explore the short sale option and make sure the seller clearly understands what it involves.

For home buyers there are great opportunities, but they have to be the right opportunity. Buyers must also be better financially qualified than in the recent past, as well look at the long term value as there will probably not be a short term gain. For the true investor it is being about a bottom feeder with cash. Purchasers who are looking for a home should be looking for the best value for the space that will work for them. This is going to be defined by the specific neighborhood's conditions. Some factors to take into account are inventory levels, past pricing performance, foreclosure and short sale rates, and most importantly the most recent comparables. How long do you plan to be in the home?

In the height of the frenzy of the real estate market not so many years ago, buyers would over look conditions they could not change about a property. For many years to come, price is going to be the only factor that will overcome that you cannot change. Remember, every buyer becomes a seller.

Originally posted on the Chicago 77 Real Estate Blog September 29, 2009

Olympics Made Integral to Chicago's Future Development

With today's announcement that President Obama will be going to Copenhagen for the final pitch on Friday to the International Olympic Committee on Friday, October 2, 2009 Chicagoans are feeling confident that we will be getting the 2016 Olympics. Plans for much needed work on replacing infrastructure, expanding public transportation, and what will be done with large parcels of vacant land are contingent on having the Olympics in Chicago. The decision the IOC make's on Friday will shape the future of many of Chicago's neighborhoods, most especially the former Michael Reese Hospital Campus along Chicago's lakefront and the West Side, although there will be venues throughout the region. In the current economy, it appears there is no master plan for moving the city's needs forward without the benefit of public and private funds that will be obtained to get Chicago "Olympic Ready."