Andrea Geller

Originally posted on the Chicaorealtor Blog September 23, 2009

Every so often a meeting, a lunch, a phone call and sadly a passing reminds me of how much I have learnedAndrea Geller, CAR Board Member from the past presidents of the Chicago Association of REALTORS® over the past decade. Their generosity has affected my business, my volunteerism as well as touched me personally. Their endless sharing is not only a gift to me but to our membership as a whole and the communities we serve.

As I go into my tenth year of service to the REALTOR® Association, I think back to David Hall(1999-2000) who suggested I get involved and I should start with the Government Affairs Committee. I still continue to serve, and this upcoming year will be committee chair for my second time, as well as serving my fourth year on the CAR Board of Directors. Over the years I have come to rely on our past presidents for the historical perspective on legislative, as well as many other issues that arise, to gain the understanding of how we got where we are as a profession and an association so we can move forward and not back.

The time I have volunteered has given so much back to me as I have grown as a REALTOR® as well as personally. I thank each one of you who I have had the great opportunity of getting to know. I thank you for your knowledge and your willingness to share the stories of the past as well as look forward to your contributions in the future. Every day, the REALTOR® community sees the results of all of you efforts over the years.

For many months I have been writing about market updates and observations for the Chicago 77 Real Estate Blog.

The blog was started by Rod Holmes to speak to Chicago's real estate market. Rod is a partner in Chicago Style SEO working primarily with real estate firms to improve their Internet marketing. The blog name comes from the 77 official community areas that make up the City with Big Shoulders. As I was writing my update for Monday, it occurred to me I have never really told the stories of any of these communities, many in which I have lived, worked in and enjoyed all they have to offer.

As an active member of the Goverment Affairs Committee for the REALTORS®, as well as chairing the committee on and off throughout the last decade, I have had the wonderful opportunity to visit all 77. I have gained great insight through Brian Bernardoni, the Govermental Affairs Director for the Chicago Association REALTORS® driving and walking the streets, visiting with members, businesses and residents as well as the local alderman.

Next week I will be taking on that leadership postition again for another year. I look forward to getting back to Chicago's gems again, its neighborhoods,

Today, my first neighborhood story was posted. I started with number 77 first and will be zigzagging through the city over the next months. Please read my short story about the Edgewater neighborhood.

Originally posted on the Chicago 77 Real Estate Blog September 21, 2009

Two Important Deadlines Approach for First-Time Buyers

The pressure is on first time homebuyers to quickly engage and get a property under contract with two significant deadlines coming. Late Friday afternoon, the Federal Housing Authority (FHA) announced the tightening of guidelines on FHA insured loans effective January 1, 2010 including the appraisal process. This comes upon the November 30th, 2009 expiration of the first time home buyer tax credit which has yet to be extended despite the call to action of the National Association of Realtors® and its million plus members.

As the median price point of housing sold continues to rise in Chicago, these two issues will continue to negatively impact the glut of inventory of properties under $300,000 throughout Chicago's neighborhoods most especially the condominium market.

I got a rental client this morning who can spend a good amount in Chicago's Gold Coast. Many would call it a luxury rental. There is a lot more inventory now in our MLS than ever as a result of the high inventory of rental properties and a soft rental market. Sellers are listing their homes for both rent and sale. Some are trying to rent until the selling prices get stronger. Rental companies who never had their units in the MLS are now entering them as they sit with higher rates of vacant units in a very competitive market.

Don't Treat Your Rentals Like Forgotten Children

As I was sorting through the listings I found many agents entering minimal information and descriptions and no pictures. Some of the same agents have properties currently listed for sale and rent but only has the pictures, the virtual tour and a complete decription on the "for sale" listing. It is very easy for an agent, their assistant or the office admin to copy and paste, browse and upload. I don't get it.

I can appreciate if an agent does not want to go through the expense of having a rental professionally photographed but than take your own photos. It won't cost you a dime. There are times when the agents do have photos from when the property was listed for sale.

Regardless of whether a renter is spending $1,000 a month or $10,000 they are like any other online consumer. They want pictures and information or they will move on to the next one. Please get your pictures posted and some description would be nice too.

If you are going to take a listing, then serivce it!

Price Changes Continue to Drive the Market

In the first week of the Fall 2009 real estate market 26% of the homes currently listed for sale in the United States had price reductions according to Trulia. This is the fourth month in a row that there has been an increase of price reductions taken.

Locally, Chicago's active listings saw an average price decrease of .4% last week. List prices are down overall 18.5 % compared to last year. With sellers aggressive sending out the message they want to sell by lowering prices buyers have been re-engaging in the market place.

Many Realtors®are getting more showings on the listings resulting in multiple offers in some cases. With the decreases in the price of market rate properties, many buyers are opting not to go after distressed properties to avoid issues that can arise in short sale and foreclosure transactions such as undetermined closing dates and the cost of fixing up the properties.

Some sellers are opting to remove their homes from the market rather than sell at a further reduced price. The question remains as to how long will they have to wait it out. A few who have to move are trying to rent their homes in an over saturated rental market. Rental pricing is not always meeting the monthly expenses on the properties.

If the property is priced more than that local market can bear it still won't sell even with the price reductions. When putting together offers, buyers and their agents are basing it all on the last three closed comps in the last 90 days.