Barb Van

In Chicago, when a General Contractor hires a sub-contractor, that sub-contractor has to be licensed. One cannot do work under a General Contractor's License and think that it is okay. It isn't with the City of Chicago and for good reason.

What one might not understand is that anybody can get a General Contractor's license. They do not have to have work experience in order to obtain that license. They just need to pass the test and be financially solvent.

The City of Chicago has rules and regulations to protect the consumer. Even a general repair man, a/k/a "the handyman" must have a license.

I wish I could say that it is pretty hard to find out if your contract, repairman has a license, but the City of Chicago's new website makes it pretty hard. The next frustrating item I have with them is the Zoning Map. Hard to find.

There are fines that are charged against these contractors and for good reason. For instance, one of the electricians that I have used in the past, shared with me about the flat top roofs in Chicago with the tar roof and how the heat permeates through the tar and literally destroys the old cloth wiring in these vintage buildings. Yet, there are some who "updated" their electrical some 30 years ago, never removed the old cloth wiring, let alone the shutoff gas light tubing is still "active" in this whole scenario and if something went wrong, what do you think happens? That coating melts when the roof is hot and if there is a tiny gas leak in those lines......

Think I am kidding? I have been there when the calls have come in and everything comes to a complete stop. The Plumber comes in. Then we contact the City for approval. Takes time. Takes experience.

So, when in doubt, call your alderman and they should help you.

Kind of a public service announcement as one of my clients hired a "general" and things were not going just right. I was asked to step in and I asked questions and then I was asked: "Who are you?" I told him, "the women that is about to fire you and turn you into the City of Chicago, that's who."

When someone is trying to do you a favor, it isn't a favor. Remember that adage: When it seems to be too good, it is.

Bottom is people, I cannot emphasize the importance of doing your homework with contractors, getting names and referrals and then continue to followup. A General Contractor is to carry insurance, if he isn't, then he is not in compliance with the City of Chicago law. Same for the electricians, plumbers, etc. And just because they have a license, doesn't mean that they know how to do things in a professional, polished and correct manner. Don't get me started on siding and window companies.

Just be careful.

I have been out in the field showing an extremely qualified buyer three bedroom units here in the Chicago Lincoln Square and Andersonville Neighborhoods. What I am finding is, what I posted roughly 20 days ago, that there is an imbalance (supply and demand) for 3+ bedroom condo/townhouse units.

Sure enough, on Sunday we ventured out to see six of these units. Two were already in second showings. Today, we have 8 that we are going to see but one has a contract on it as well, but that doesn't stop us from seeing the unit.

Here's what Chicago Sellers need to understand when there is a shortage of units in their neighborhood/marketplace:

1. You need to make sure that your agent is getting the buyers into your property. Yesterday, we had 3 "no shows" by the agents from one major company here in Chicago". Three!

2. Even if you get an offer on your property, you need to ask your agent if there are any more showing requests, as another property that we had requested for Sunday, received an offer late Saturday night and the Seller accepted the offer. I told the listing agent, I hope that they got full price, otherwise it was a disservice to their client to not wait to see the reaction from Sunday's showing. My question to you is: Did you loose out because you could have gone into multiple offers, unless you received full price?

4. You need to keep showing your unit until all the contingencies are met. The buyer's are out there and especially when the supply and demand is not in balance, the ball is in your court if you are a three plus bedroom unit in the Chicago Lincoln Square, North Center, Ravenswood Neighborhoods.

5. The easier it is to show your unit, the better your chances of getting sold. Most buyers, like the buyer for this three bedroom, do not appreciate "no shows" from the listing agent. She will not go back to those units as she feels that if it was hard to get into the unit, how hard will getting the offer be to get into escrow and then close? Yet, when one agent had a full schedule, she made sure we got into the unit and warned us that there would be someone right before us, so we came 10 minutes later then the scheduled time and let the agent know that, to make sure we didn't cross the paths with the other buyer.

Selling Prices: Because there is a shortage and demand for three plus bedrooms, there isn't so much discounting in price. With the new selling prices coming out, the three plus bedrooms will also help their neighbors, the two and one bedroom units with obtaining a slightly higher price.

So, the biggest turnoff for buyers in Chicago is: "no shows" or "not accommodating" the buyer and the buyer's agent. So as long as you understand that your property can still be shown, even though it has a contract, you need to continue to show until you have all contingencies met. Why? Because some of these buyer's back out, like one of the properties we saw yesterday during the "A/I" (Attorney/Inspection Contingency Period). It cost these sellers some marketing time.

Make your marketing strategy to sell your home as "fool proof" as you can from the above list, and place your property in the market and not "on the market", I am seeing multiple offers coming into place real soon.

This morning, I had a phone conversation with my Dad up in Michigan. Dad is second generation in the family business as a Real Estate Appraiser and Realtor but is now retired. Dad shared with me a family friend who has their home listed at an outrageous price and they had an open house this past weekend and nobody showed up. You know why? Pricing and condition. While Michigan is returning from the depths of a serious bad economy, the buyers will discount the home for it's market time. They will question why it was under contract and then reactivated. They will make an adjustment not only for market reaction but for the fact that this seller was unrealistic in their pricing on top of it.

I work with both seller and buyers and I have seen the buyer's attitude about the market time adjustment. Floors me every time I hear it but it is what it is.

I just recently had an offer on a listing in a condo building that sold for 10% higher then the last sale which was last November. Same square footage, room count but nicely decorated and clean. We were the shortest market time for the building. Yet, it is hard to turn the ship around in pricing but when curb appeal and staging is in place, it really sets the stage.

If you are thinking about selling your home and you want to know what the market might give you for a selling price, one can either pay an appraiser (not a Realtor) to appraise your home or have a market analysis run by a Realtor (generally, for free).

There are those Real Estate Agents who offer a FREE Appraisal (which they cannot state unless they are licensed as an Appraiser with the State your property is located.

Then there are other Real Estate Agents who offer an "Assessment of Your Property". NOTE: This should not be the Cook County Assessor "assessment"! An "assessment" means a generalization of value in which it includes homes similar in style, square footage, zoning but doesn't take into account the modernization, the number of bedrooms, bathrooms, quality of finishes but a generalization, similar to the approach that the Cook County Assessor uses.

An appraisal is not an exact science and the market conditions effect the final outcome of the selling price. Currently, in certain neighborhoods in Chicago, there is a holding tank of a lot of foreclosures that the banks still haven't released and/or are selling in "bundles" to investors. Those properties may come back on the market with a price maybe not competitive with those homes that are similar in condition (more or less Assessor Value - (generalization)) depending upon the investors motivation to sell.

However, an appraisal generally needs to fall within the line of 5% of the listing price if you are doing a relocation appraisal. Personally, I would like to see it back at 3%. But right now, that percentage is pretty good for our improving economy. An Appraisal is based on a arms-length transaction (where you have a willing buyer and a willing seller and nobody is under undue pressure but just motivation to move). So, if you have an appraisal based on an arms-length transaction value for selling or a comparative market analysis ("CMA") where the Realtor is to compare like to like (not generalization/assessor) in the same neighborhood, and even same pocket area.

NOW, here's where you hurt yourself as a seller: You want more for your home then it will be appraised for (we all want that right now). The concerns I have is how it effects your final outcome (net selling price) due to the market time, the market adjustment (which last year was about 7% in a downward trend - again generalization). And this appraisal type value takes over a year to sell with a 25% price reduction plus a 7% market adjustment -

My questions are: Do you really want to sell?

Did you really have an idea of how much your home really is worth?

The best service you can do for yourself and your pocketbook is have the truth be told to you in a bracket pricing of where your home should sell.

When in doubt: Pay for a Professional Appraisal by a licensed Appraiser. Let's say your home is worth $500,000 when you listed but you have been on the market for over a year because you have it listed at $625,000. Now take into account the 7% market adjustment in the downward trend and compare that against an appraisal in the amount of anywhere between $250 to $500 for the appraisal. I say the cheaper of the two is getting a professional appraisal by a licensed appraiser.

Remember, you are not having to sell it once, but twice: the Bank is the second party that has to agree to your final selling price.

Tomorrow is Valentines Day and is meant for those who are in love, care about one another, want to express their feelings towards someone special but need that nudge and hence, some feel Valentines Day is the day to make that move forward in their life.

I just saw an awesome video of a swimmer who proposed to his girlfriend on the podium. He had to win the race or his plot would have gone down the tubes.

I remember way back "in my day", we used to make our handmade valentines for everybody in the class. The teacher would give us a list of everybody's names printed out on a piece of paper and so for two nights, I would be home working on these valentines. When Valentines Day came, we each had our own handmade mailboxes and the Valentines would be dropped in our boxes. We couldn't open them at school but had to wait until we got home. It was a lot of fun to make these valentines because they were personalized and some of them, well, we found out that "Bobby" or "Steve" had a crush on us .... at least for that day.

Lots of money is spent on Valentines Day and the price for roses jumps up pretty much the week before and the week after Valentines Day. To me, it was never about the roses but about being with that certain someone, that night, for dinner or watching a moving and cuddling on the sofa watching a movie together.

No matter what you do for Valentines Day, just make sure that you make is personal but whatever you do, don't buy your significant other an appliance! My Dad's Advice to my brothers prior to their marriages.

Have a Happy Valentines Day and I hope it is something extra special for you.

CNNMoney wrote an article about "9 Remodeling Tips to Make Your Home Feet Bigger" but I disagree partially with the article and here is why:

I agree that if someone needs to put a hold on selling their home that they should rethink and recreate the existing home to ease the frustration of why the owner wants to move/sell and/or remove the subconscious mindset of "this home is driving me crazy".

This kitchen is a perfect example for the homeowner who needs more space but may feel confined.

I love counterspace. Free of clutter. Free of everything except the countertop.

If you look to the right above the stainless steel stove, you see a fan hood with a double cabinet above it.

Next to the Stainless steel refrigerator is a microwave sitting on the countertop.

Then there is that cabinet space area above the kitchen sink.

Here's some ideas to increase and recreate space for this kitchen:

A. Remove the exhaust fan/hood above the stove and the cabinetry above the fan/hood, install a block - roughly 3" from the top and then install the microwave so that it is in proportion to the amount of space needed for cooking.

B. Remove the cabinets above the kitchen sink (if you do not prefer to have the microwave above the range/stove) and install the microwave above the sink. (not totally idea but another option which isn't ideal but it does confirm to the triangle and messes would be caught because you would be above the kitchen sink. : )

C. Change the cabinet doors. Have the outside framework of the cabinets changed to whatever color, grain you prefer but this is what would open that kitchen and create more space. The three doors on the upper cabinets adjacent to the fridge and left of the kitchen sink, have the doors opened up with like a raindrop type of glass inset so you can see into the cabinets but not fully. Or, just have those doors with glass.

D. Want more dramatics with those cabinets: After you replace the front doors and use some glass inset doors on the upper cabinets, if you have some fine dishes or items you wanted to display and show, remove the wood/particle shelving in those cabinets and install a thicker pre-cut glass shelving so that you can install one of those stickum lights on the upper ceiling of those glass inset cabinets and it would shine all the way down through the glass shelves.

E. Open that kitchen up more? I would suggest removing that fake bulkhead as it isn't housing any electrical, plumbing, etc. and then I would add some quality crown molding to the refaced kitchen cabinetry.

This is just one example of how you can make some change in your home whether you are staying or are in a holding pattern until the market improves but would like to create some more space without moving walls.