Barb Van Stensel, Realtor - Chicago, Illinois

Chicago, Illinois 60641 Market Update for Single Family Homes

If one looked at the two year figure for the housing market in Chicago's 60641 Zip Code area, the figures would be devasting. For instance, the two year repot shows an adjusted price of 52.8% from 2007 to now for Single Family Homes. That is extremely significant and the reason why it is such a huge drop in value and misleading is because it includes neighborhoods of Old Irving Park, Portage Park and includes part of Albany Park. Financing ranged from FHA to conventional. The type and sizes of the homes are larger lots and homes in Old Irving Park, where Portage Park and Albany Park have similar lots sizes but FHA financing was stronger in Albany then it was in Portage Park.

With that all being said, let's look at where we are from one year ago compared to today.

Single Family Homes in Chicago, Illinois 60641 marketplace have seen a 6.9% reduction in price for Under Contract Homes with a median of $199,700. However, there is a 19.6 downward trend in final selling price with a median of $170,000. Now, remember this includes three neighborhoods and this system cannot pull out the medians for the three individual neighborhoods. I will explain why this is important shortly.

New listings of Single Family Homes in Chicago, Illinois 606041 marketplace are coming on at $249,500 versus $250,000 a year ago. It is telling me that there is a reduction in properties in Albany Park but Portage Park and Old Irving Park are still showing new listings everyday.

WHERE's THE COMPETITION?

Under Contract has increased 80%

Sold has increased 11%

For Sale has dropped 30%

This is for Single Family Homes in Chicago, Illinois 60641 Marketplace.

WHAT's TAKING SO LONG?

While more homes are going under contract, the days on the market has gone from 176 Days in 2008 up to 244 Days on the market. That is a 38.2% increase in marketing.

So, what's in store for Chicago, Illinois 60641 Marketplace?

Well, right now there are 555 Pre-Foreclosure properties that haven't even hit the market. There are 178 Bank Owned Homes of which, most of them are in the marketplace.

You are not the only ones in this position right now with the increase of pre-foreclosures. The banks have begun to release properties that thye have been holding on to for the last year. This is just the beginning of exposure. Our goal is to help those who are in the pre-foreclosure stage to get them sold so that the median price doesn't continue to drop in a significant way.

If you know of someone who is having financial mortgage struggles, have them reach out to us before they go into foreclosure. Foreclosure and/or bankruptcy isn't good with mortgages right now. The homeowner may end of owing should the home go into foreclosure.

If you are a standard sale, your best options are to either hold on to your property or get your property looking it's best to obtain the highest price in this market.

This past Saturday, I went shopping for homes with my sellers who are also buyers. We had a broad range of properties and about four hours of looking. Here are some issues that will arise and that you need to take into account:

1. Listing says "Rehabbed". Now this property was a former two flat converted into a Single Family Residence. WRONG: I pulled up the permit information and the subject property was still a two flat!

WHAT GAVE IT AWAY? There was a front and rear entrance in the lower level. What the sellers did was take the two unit position and did the extended living for two levels and then repositioned the rental unit in the basement.

2. FRONT STEPS: The walkway didn't line up with the front porch steps. So, I went under the steps and there is was, no footing for the base of the landing but the steps were "floating" on two separate bricks!

3. Listing says: "New Floors". Did they remove the old wood floors or put laminant or new hardwood floors on top of the existing floors, the sub-florring that creates a huge burden for those floor joists should they not be replaced or sistered.

4. Warped Hardwood Floors: No heat in the house - can be remedied by serious sanding but they never are the same once they warp.

5. Gutters: Look at the pitch of the roof, but most homes in Chicago should have the larger gutters and downspouts. The regular sized downspouts are good for ranch style homes only. Larger ones even for the bungalows because of the width, pitch of roof.

6. Waterline: If the property has 30 water fixtures (commode counts as one, shower counts as one, combo shower and tub count as two, double vanity counts as two, etc.) the later line needs to be a minimum of 1-3/4" but for safe side get a 2" water line. Now, just because you can see that new copper coming out of the ground and it looks great, doesn't mean that the waterline has been changed in the street. That's right. That copper waterline can be modified from your front yard "B" Box and that has nothing to do with your street connection.

7. If the house is rehabbed, you need to ask if there are new drain tiles. One way to know if there are new drain tiles is that the City would require them in serious renovation work as well as require a sump pump and you should also have a front yard ejector pump as well. No sump pump, I doubt if there are new drain tiles.

8. Rehabbed: If a home is rehabbed, most older homes have floor joists that are 2 x 6's. Those 2 x 6's are stronger then most 2 x 10's in today's lumberyard. Now, those 2 x 6's have been cut up to bits because of the age of the house. Here's an example:

This is what your floor in your rehabbed home may just look like. Not too great.

9. Rehabbed: What do you roof rafters look like? Are they 2 x 4's or are they 2 x 10's? Big difference.

These are just some of the issues that surfaced while we were shopping for homes this weekend. Let me know if you have a question or concern. And remember, just because a home has a permit doesn't mean that everything was done correctly.

CHICAGO HOMEBUYER TAX CREDIT UPDATE!

On November 6, 2009, President Obama signed a Bill to extend the tax credit for first-time homebuyers through June 30, 2010. The Bill also opens up opportunities for others who are not buying a home for the first time.

TWO TAX CREDITS

First Time Homebuyer: To qualify, you canot own a home within the last three years to be eligible for the this tax credit. The tax credit is 10% of the purchase price wiht a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for hte full tax credit amount. (See your accountant as well as your lender for what you would qualify for)

CURRENT OWNERS: The Tax Credit Program now gives those who already own a residence, some additional reasons to move on up to a new home. This incentive comes in the form of a "tax credit" of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

WHAT ARE THE NEW DEADLINES?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

TAX CREDIT VERSUS TAX DEDUCTION

It's important to remember that the tax credit is just that .... A TAX CREDIT! The benefit of a tax credit for the homebuyer, is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all is said and done.

So, if a first time homebuyer were to owe, let's say $8,000 in income taxes, they would qualify for a tax credit of $8,000 , and would owe nothing.

The Tax Credit is REFUNDABLE. If you have little or no income tax liability, and you are eligible for a tax credit as a first time homebuyer for $8,000 and you have an income tax liability of $4,000, you can still receive a refund check for the remaining $4,000. (Again, please consult your tax attorney or accountant as well as your lending institution for the figures you would qualify for)

INCOME CAPS INCREASE TO HELP QUALIFY FOR THE TAX CREDIT

UPDATE: Single Taxpayers who earn up to $125,000 are eligible for the total tax credit amount. After $125,000, there is a partial credit with an INCOME CAP in the amount of $145,000 before the single taxpayer is disqualified from the Homebuyer Tax Credit.

Joint Filiers who earn up to $225,000 are eligible for the total tax credit amount. Again, after $225,000 there is a partial credit with an INCOME CAP in the amounht of $245,000 before you become disqualified for the Homebuyer Tax Credit.

Isn't time you took advantage of an opportunity? Pick up the phone today and let me give you more specifics about how Home Affordability is still a good investment in your life and for your future.

I went to a Gratitude Breakfast this morning and I feel the need to share with you the transformation how words can make change through GRATITUDE.

There is an enormous amount of negativity that exists in our culture. 87% of all news reported is negative. Between 1990 and 1998 the murder rate in the USA dropped 20%, however, the news reporting of murders rose 600%!

We live in a culture of fear generated by politicians, advocacy gorups, markters, the news media and others that are highly skilled in tapping into our primal fears.

In the business world, complaining is rampant. Cynicism kills ideas, teamwork, possibilities, hope, and definitely appreciation.

Blaming each other or anyone moves us away from claiming our responsibility for our lives and the power we have to make significant cahnges and move us forward.

"WHAT YOU 'ARE' SPEAKS SO LOUDLY, I CAN'T HEAR WHAT YOU ARE SAYING" - Ralph Waldo Emerson

I Timothy 4:4-5 "For every creature of God is good, and nothing to be refused, if it be received with thanksgiving; for it is the sanctified by the Word of God and Prayer. "

RECOGNIZE THAT YOUR WORD IS YOUR WAND, THE POWER OF WORDS!

"Kind words can be short and easy to speak, but their echoes are truly endless" - Mother Teresa

Building a collection of affirmations and mantras.

1. Everyday in everyway I open new doors of opportunity.

2. I can, I will, it is.

3. I have a wonderful business in a wonderful way. I give wonderful service for wonderful pay.

4. My inner world creates my outer world.

5. My highest desires are manifesting now.

Hebrews 12:2 - "Let us fix our eyes upon Him"

"IF YOU WISH YOUR MERIT TO BE KNOWN, ACKNOWLEDGE THAT OF OTHER PEOPLE."

There is art, magic and power in acknowledging other people.

Ways to create Reactive Acknowledgement

1. Thank you notes

2. Recognition for a job well done.

3. Compliments

Proactive Knowledgement is the art and magic and power we seek. It is transformational in our relationships.

BEGIN BY APPRECIATING YOURSELF. All gratitude and appreciation fundamentally begin and end with our opinion and perception of ourselves. However, we often seem to go about this backwards: Trying to succeed, achieve and prove things to ourselves and ohters so that we feel deserving of appreciation, instead of appreciating ourselves to begin with.

Appreciating ourselves it NOT: Arrogance, An ego trip, Being better then other people, Selfish, Bragging.

Appreciating ourselves IS:

• Celebrating our success
• Speaking about ourselves in a positive way
• Accepting compliments with gratitude and ease
• Forgive ourselves for our mistakes
• Taking care of ourselves

HOW?

ALL CRITICISM

ACCEPT YOURSELF AND THINGS EXACTLY AS THEY ARE

TRUST YOURSELF AND LIFE AND BELIEVE THAT YOU ARE SUPPORTED

and ASK God in His infinite wisdom to help and guide you.

We we lead by example, others will follow.

Ephesians 5:19-20 "Speak to one another in psalms, hymns and songs. Sing and make music with your heart ...."

CHICAGO, IL - ADVENTURES IN CHICAGO REAL ESTATE is a weekend update of the events that occured during the previous week with respect to Chicago Real Estate, Listings, What Happened, etc.

NEW LISTING at Landmark Lofts, Chicago, IL 60605

1516 S. Wabash #701, Chicago, IL 60605 is an awesome corner Loft Condo Unit with an unobstructed east view that features exposed brick walls, hardwood floors, custom fireplace, 42" Qualify Ktichen Cabinetry in natural maple enhanced with a balck granite countertop and accented with stainless steel appliances.

This is a 1,200 square foot unit, located on the 7th floor with to bedrooms, 1.5 bathrooms.

Selling Price: $325,000

Garage Parking is sold separate for $25,000. This garage space is a premium location.

Click here to see more photos.

TAX CREDIT IS APPROVED/EXTENDED: Yes, the tax credit has been approved for first time homebuyers and they must be under contract by April 30th, 2010 and closed by June 30th, 2010.

Repeat buyers who have lived in their home for the last 5 out of 8 years, may also qualify for the Tax Credit, a lesser amount and the cap on purchase price is $800,000.

New House Bill approved and parts are effective immediately with respect to homeowner notifying tenants in a proper time frame with respect to the subject property being / going into foreclosure. Failure to do so results in the tenant seeking retaliation and homeowner paying a $200 fine. New owners of deeds to foreclosures, must submit notice and can amend leases to reflect change in utility arrangements in the lease.

WANTED:

• Client in need of minimum 3 Bedroom/1 Bathroom home with finished basement in the Niles, Mt. Prospect, areas TO RENT. If you know of someone who has a home available for rent, please contact Barb Van at 773.746.5395
• OLD IRVING PARK NEIGHBORHOOD: Client is looking to purchase a single family residence with minimum of three bedrooms, that is rehabbed or new construction. Serious disqualification would be the basement height as my client is 6'4" tall. Requires minimum of 8' clearance. Pick up the phone and call Barb Van at (773) 746-5395 if you are not on the market and considering selling.

A Recipe to take the chill out of your bones:

Barley Vegetable Soup

Ingredients:

1 Cup Chopped Onion
1/2 Cup bias-sliced carrot
1/2 Cup sliced celery
2 Cups sliced fresh mushrooms
1-15 oz. can red beans, rinsed and drained
1-14.5 oz can stewed tomatoes
1-10 oz package frozen whole kernel corn
1/2 Cup regular barley (not quick-cooking)
2 tsp. dried Italian Seasoning - crushed
1/4 tsp. ground black pepper
3 cloves garlic, minced
5 Cups vegetable or chicken broth

Directions:

1. IN a 3-1/2 TO 5 quart cooker, place onion, carrot and celetry. Add mushrooms, red beans, undrained tomatoes, frozen corn, barley, Italian seasoning, pepper and garlic. Pour broth over mushroom mixture in cooker.
2. Cover and cook on low-heat setting (crockpot) for 8-10 hours or on high-heat setting for 4 to 5 hours. Makes 6 servings.

Take care, and will catch up next Saturday for Adventures in Chicago Real Estate.