Andrea Geller

Originally Posted on Chicago's Real Estate Blog, The Chicago77 June 26, 2009

The National Association of Realtors responds to problems with appraisals causing deals to be delayed or canceled altogether. Charles McMillan, 2009 NAR President will be in New York on Monday, June 29 meeting with the Deputy Attorney General and his staff who worked directly on the Home Valuation Code of Conduct (HVCC) adapted by Fannie Mae and Freddie Mac that went into effect May 1, 2009. He will be sharing Realtor® concerns and stories regarding the problems they have been experiencing and asking for their assistance in resolving problems related to the HVCC. On Tuesday, June 30th, McMillan will travel to Washington, D.C. to meet with the Director of the Federal Housing Finance Agency to discuss ways Realtors® can work with Fannie Mae, Freddie Mac and lenders to ensure that appraisals are accurate. NAR is working to find quick resolution to these issues. The Association is reaching out to its members to continue to share issues resulting from the HVCC with them.

To sign the petition electronically to request for reconsideration of HVCC click here

Originally Posted on the Chicago77 Real Estate Blog June 23, 2009

As prospective buyers are sitting back, waiting, and speculating about when to take advantage of the bottom, it appears we have hit a plateau. One of the most effective ways for pricing to stabilize and then see appreciation is depleting inventory.

Signs Home Prices in Chicago Are Stabilizing

Sun Rise Over Belmont Ave...Maybe Over the Chicago Real Estate Market Too?

According to the Illinois Association of Realtors, May marked the fourth consecutive month-to-month increase in home sales for the Illinois housing market and the third monthly increase in the statewide median home sale price. Locally, IAR reports home sales were up 18.7 percent to 5,634 homes sold in May 2009 compared to 4,747 home sales in April 2009. The Chicago median price increased 2.3 percent to $225,000 in May compared to $220,000 in April 2009.

Properties Not Hitting the Market

With the average time people who are remaining in their homes on the rise, the number of market-rate units coming into the marketplace is decreasing. Although the banks are carrying a large inventory of REO (bank owned) properties, some are using other vehicles besides putting them on the open market working with local and state agencies to help stabilize communities hardest hit by foreclosures. Many new developments originally marketed as condominiums are being converted to rentals.

Where are the Buyers Coming From?

Traditionally, we have been able to identify which parts of the market where strongest for potential purchasers. Over the last year or so it has been a roller coaster. One of the largest segments that have always driven the market is first-time home buyers. They fell out of the market when it became almost impossible to buy with less than 10% down. However, they are now back. Lenders have now found options for these home buyers such as FHA. The $8,000 first-time home buyer tax credit seems to have stimulated this segment of the market as well.

This is also one of the greatest opportunities for current homeowners to buy up. Although the seller might be seeing the downside on what they get on the sell-side, they are able to take advantage of the pricing on the buy-side, which keeps the scale tipped toward the good.

For the last year, I have seen so many buyers trying to find that dream home, only focusing on short sales and foreclosures. After losing out on a variety of properties for one reason or another, real home buyers are now looking for a home that works for their needs and negotiating to get a good value for the marketplace.

Although the numbers are not what they once were, we still are seeing a significant number of people relocating and buying homes. Chicago is also still a strong market for second homes. There are some investors in the market taking advantage of pricing as well.

The Key to Getting to the Closing Table

Although many contracts had been written over the last year, many did not come together. It now seems that real estate agents, attorneys, and lenders are working at finding solutions to getting properties under contract and the mortgage brokers and bankers are problem solving the ever changing lending guidelines. Professionals who have faced the challenges of the market and educated themselves through seminars and out there working are taking their newly learned skills to achieve the goal: getting the property closed.

We would like to thank John Picken for generously sharing today's photo via the Creative Commons License

Roosevelt Collection, a 342 unit new construction condo building in Chicago's South Loop is now going to be rental apartments according to this week's Crain's Chicago. Many new construction buildings sold as condominiums are ultimately ending up as rentals.

There is always a positive out of a negative.

The purchasers who entered into contracts on these units at the height of the market should look at this as opportunity. They now can take advantage of today's prices and inventory. Currently on the market buyers can get new or almost new units and take advantage of historically low interest rates especially in neighborhoods like the South Loop and West Loop where the inventory is plentiful and full of brand new buildings with empty units.

To view Chicago's listings click here.

The ongoing debate of as to if open houses have any value. This is my professional opinion. In any transaction there many different avenues to how a buyer finds a property. The same road does not get us a contract 100% of the time. As a Realtor®, it is my job to provide my clients a 110% effort to sell their home.

According to a study that Harris Interactive® conducted on behalf of Trulia 91% of buyers will visit open houses during their home search with the internet being their primary resource to find them. (Click here for the complete release from Trulia).

I have had success stories of selling listings through open houses just as I have through the many other tools that I use to market my listings. That is why I continue to have them week after week. Open houses are just one piece of the pie in marketing properties. It is our job as professionals to offer our clients a complete package of services to achieve the goal for which we were hired: sell their property.

Open houses create opportunity just as all of the other means that we market properties. Yes, it is also an opportunity to pick up other business as many buyers coming through have not yet established a relationship with another agent and that property is not right for them. Yes, there are weeks that few to none come through. Yes, there are weeks that there is a lot of traffic with no real bites. It is all worth it for the one that comes through and writes the offer. It only takes one.

To discount open houses as not being a viable tool would be the same as discounting any of the other means that we use as real estate agents to market properties.

At a dinner On May 21, the Chicago Association of Realtors presented the 2009 Good Neighbor Award winners. As I saw the recipients walk to the podium to receive their awards, the words of the evening's emcee kept running through my head.

In his remarks, Brian Bernardoni the Government Affairs Director for the Association said, "There is a yin and yang; there is a balance the concepts of HOPE and CHANGE present - they need to work together. Without the inspiration of HOPE people will not find resources for CHANGE. And without prospects of CHANGE there is no HOPE. Developers and REALTORS® in the room know these words all too well."

Hope and Change

They are words we heard through the presidential election as a Chicagoan worked to create hope that change will happen. Locally those words define the work, dedication and partnerships of the developers, banks, Realtors®, and in many cases the City of Chicago through its Department of Community Development. The award winning projects where scattered throughout Chicago, from North to South East to West. They were residential, commercial and mixed use renovations and new construction. Working together their work filled vacant lots, abandoned buildings, and in some cases the starting point for hope there will be change for an entire community.

Affordable Housing Without Displacement

This year's Bruce Abrams Award winner-the program's highest honor-was awarded to Benjamin Van Horne of Greenline Development for the Greenline Condos in the Woodlawn Neighborhood. With this 37 unit project, Mr. Van Horne achieved his goal of quality affordable housing without displacement. He was able to do this in cooperation with the City of Chicago's Department of Community Development.

Saving a Historically Significant Building

Another winner that stuck out in my mind was one of a colleague of mine at Sudler Sotheby's International Realty, Ron Meadows. In the Lincoln Square neighborhood where even in this current real estate market, developers are still tearing down and building new condos and single family homes, Ron saved a building built in 1893 with historical significance from a developer who was going to tear it down. He took this structure, known as the Alley House of Lincoln Square, did a total renovation and is maintaining it as a rental property in an area where there is very little rental inventory left.

Every award recipient has their own passionate story about their project. They all faced challenges. But they saw through them-all to make a difference. Project by project, partnerships bring about change throughout the entire city and hope in many neighborhoods where it did not exist before.

Mr. Bernardoni went on to say "When you INSPIRE HOPE and bring about CHANGE - you build this city. You are all winners and great Chicagoans. Thanks for doing your part."

Orignally posted on the Chicago 77 Real Estate Blog on May 27, 2009