“When did you buy your house?” writes real estate reporter Marcie Geffner in her recent Inman article by the same name.
That was the question my friend Marilyn Stotts asked me during a recent gathering at a local restaurant. Not, “Where is your house?” “Do you like your house?” “How big is your house?” Or even the open-ended conversation starter, “Why did you buy your house?” But instead, “When did you buy your house?”
The fact is that with the rise and then fall in home values that has taken place in the last decade, the timing of your purchase is a good indicator of whether your home is worth more or less than you paid.
When I meet with prospective home buyers, one of their first questions is inevitably, “How low below the asking price should I expect to pay?” My answer is always the same… it depends! Some homes are priced fairly and others are grossly overpriced. I cannot recommend a generalized strategy as we need to weigh the merits of each home individually against their prices.
When my team and I work with a seller to list their home, our strategy is to determine the home’s approximate market value, and then offer it for sale for as close as possible to (or even slightly below) that number. This strategy is especially important in a declining market. If we were to tack on an extra 10% of “wiggle room” onto our asking price, and then the market dropped 5%, we would be 15% above the market. The larger the gap between market value and asking price, the greater the chance that the right buyers will not see your home. Rather, buyers in the market for a more expensive home will see yours, and it will pale in comparison to the competition. The most effective strategy is to price slightly below the market so your home is the “best in its class.”
It is almost St. Patrick’s Day, that time of year when Chicago’s Irish heritage is put on display in dazzling, emerald green fashion. If you’re looking to get out and enjoy some of the festivities, consider these options. Note that some of these events are held in advance of March 17th, the official holiday.
It’s spring cleaning time! If you are busy sorting through your closets preparing to sell your home (or just because you need to), consider donating your unwanted men’s and women’s professional attire, handbags, accessories and shoes to the Bridge to Success program. The program also accepts unused cosmetics and toiletries, including all those little bottles you may have collected from hotel bathrooms.
On Saturday, March 14th from 9:00 a.m. to noon, you can stop by the Bridge to Success headquarters at 661 W. Lake Street just west of the Loop to donate your spare items. Program volunteers will meet you at the curb to unload your donations.
Ideally, clothing should be clean, pressed and on hangers so it is ready to go. And, of course, your donations are tax deductable. If you are not quite ready for this Saturday’s drop-off, note that there are additional donation dates throughout the rest of the year.
Bridge to Success provides needy job-seeking Chicagoans with workplace and interview appropriate clothing, coaching, and related services to help them achieve employment. Their goal is to reduce the 60% interview rejection rate that is based on appearance and grooming, helping their clients to look and feel more confident. Work such as theirs is always important to our city, but it is no doubt doubly necessary in today’s job market. So, don’t hesitate to spend a little extra time cleaning, and put your closet clutter to good use!
Around this time of year, many Chicagoans are ready for a vacation, my family included. In our case, however, with three children under four years of age, hotels are not a good option. Shuttling the boys to a restaurant and back for all their meals is anything but relaxing, and we need more than just a place to sleep.
In anticipation of this, we purchased a condo in the Colorado Rockies - an area that offers year round recreation. We head out there when we can to ski, fly-fish, hike, swim, and generally decompress. A couple days of clean mountain air and crisp blue skies is a fantastic way to recharge, and our boys love it.
If you are suffering from a bout of spring fever, you might also consider buying a vacation home instead of renting or staying in a hotel. Prices in many resort destinations have fallen significantly - far more than home values here in Chicago. There are some amazing opportunities out there. Someday, we will look back at 2009 and wish we had picked up an extra property or two when prices and interest rates were low.
If you are thinking about purchasing a resort home, it is important to get expert guidance from a real estate professional you can trust. As the #22 ranked salesperson worldwide in the Coldwell Banker/NRT family and as a member of the exclusive CKG Mastery program, I know award-winning agents all across North America.
If you would like to learn more about vacation homes for sale in your favorite resort community, please email jenny@jenniferames.com or call me on my cell at (773) 908-3632. Let me ensure your next real estate transaction is a success by introducing you to the top agent in the destination of your dreams.
I am an award-winning residential real estate agent in Chicago specializing in the city's North Side market.
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