Margaret Goss, Realtor Winnetka & North Shore Real Estate

Ironically, next week's election has two neighboring towns, Winnetka and Kenilworth, IL, with referendums on historic homes - another attempt at dealing with the teardown/McMansion issue. Preservationists have decried for years that their villages are changing irrevocably for the worse while others champion for property rights and the freedom and ability to sell to whomever they please.

Kenilworth is undeniably a unique town - envisioned and built over 100 years ago by Joseph Sears whose specifications included large lots with quality construction. The completed look was one of stately homes that were large but left plenty of open green space around them and between neighbors. Many were built by noted architects such as Daniel and Franklin Burnham and George Mayer while much landscaping was done by Jens Jensen.

But inevitably, the old houses could not keep up with modernity and slowly the demolitions began. So slowly at first that nobody noticed, just a few residents building new homes for themselves. But when the builders and investors arrived, the village began to take note and the preservations began the rallying cry. Beginning on December 24, 2004, the village imposed a 6-month moratorium on all demolitions and major renovations.

Then in 2006 The National Trust for Historic Preservation announced that the village had been placed on its annual list of 11 Most Endangered Place. This has prompted the current advisory referendum for Nov. 4 that states "nominate all of the lands and structures within its municipal boundaries, regardless of private or public ownership, for inclusion on the National Register of Historic Places." The "Winnetka Talk" opined on the matter Oct. 9 by urging residents to vote NO on the ballot and said "Although inclusion on the National Register is strictly honorary and contains no regulations, opponents of the referendum proposal say the national designation could prompt efforts to impose strict regulations on property owners." Also, a technicality occurred when the school board asked that the Joseph Sears School be left out of the historic district.

In Winnetka, homeowners themselves have drafted two referenda addressing a Landmark Law. And as in Kenilworth, the law, if passed, is advisory only and will not obligate the village to follow the wishes of the voters. WHOA, (Winnetka Home Owners Association) published and mailed a 24-page newsletter to Winnetka households detailing the cons of the measure.

Basically, it is a zoning measure that WHOA believes "is enacting stiff preservation rules and zoning rules that will prevent people from tearing down or impede ability to rehab their properties for the sake of historic preservation." So in essence, the two referendum questions ask 1) if the Village Council shall submit proposed changes to the voluntary Landmark Law before making changes, and 2) shall the village opt out of Property Assessment Tax Programs for landmark homes.

WHOA, the Winnetka Talk, and the former Assessor are advocating a YES vote for both the questions. They have said that property tax assessment freeze hurts all taxpayers by making residents pay for the slack in tax revenues. WHOA also published a two-page list of address that they say were targeted for landmark status.

Proponents of the landmark legislation say that preservation helps the community overall. The law would let the village council know that they could explore some options in preservation and a NO vote would show that the community is no so deadset against some sort of landmark status. Preservations strongly feel that Winnetka's charm lies in its lovely old homes that you don't see much anymore. Regarding the tax burden, it's not completely clear what the additional amount to non-landmarked home owners would be, but they feel that it would be insignificant and would ultimately be worth the cost to have some of these historic homes preserved. In any case, a NO vote would be non-binding and would probably not pile on burdensome regulations.

We have a very special heritage on the North Shore - our old homes. Some people love the detailing, charm and quirkiness of them, others cannot be bothered and prefer new construction. As a realtor, I also love them but have been inside enough of them to know the challenges of renovation. A client who completely gutted and restored an old Kenilworth home told me they would never do it again . . ."better to raze it and start over. . ."

Sometimes you just wanna have a little fun. As I go through listings on the multiple listing service I get a good laugh occasionally (at someone else's expensive, unfortunatley) and thought I would share some choice pictures. These homes are located in the North Shore communities of Winnetka, Wilmette, Evanston and Glenview.

Are we showcasing the wallpaper?

Flash works very well here.

Whoa - don't get vertigo!

At least this kitchen has a window . . .

No idea what the point is here.

Nice corner with strange black box.

Doors for sale.

Ever heard of . . . staging . . .clutter removal . . .?

Light and bright rooms.

Let's party!

Say cheese!

Looks like grandma's dress is hanging on the window.

And here's my lazy dog Marly. Clearly, some realtors have been resting on their laurels just like her. It's just not good to take lazy photos of a house - if there really aren't any good ones, realtors should get creative. Clean out at least one room and bring in lamps; think before snapping the shutter of that messy corner; check to see that your flash is working properly. Maybe you have to go back several times to get it right, but it's worth the effort. Homesellers beware!

Real estate news has been somewhat dismal for the past few months with homes sales trending downward and a resulting glut of homes for sale. As a realtor, I've wondered where have all the buyers gone? Lots to choose from and falling prices makes for an easy decision.

Well, maybe some of those buyers have finally stepped forward. The news I read this morning, from the Mizuho Securities US economist is definitely interesting. Here goes:

"Sales of existing single-family homes rose 5.5% in September as transactions
surged in the West. Sales in the West rose by an unexpected 16.8% providing a
solid upward base to the headline series. The West cost is the second largest
home resale market in the country. Sales gains, however, were not only evident
in the West. Activity in the South and the Midwest also gained by 2.2% and 4.4%
respectively. Despite the rebound in sales activity, the pool of unsold homes
inched higher by 0.3% leaving the months supply at a high 9.9 months. The
question that will need to answered over time is how much of this bounce was due
to bottom fishers rushing in to pick up cheap properties or how much was due
simply to home owners who finally accepted a low bid after months of waiting
for a better market. "

Maybe it's just a blip and the driving force is short lived, but any uptick is cause for hope. Currently, the number of houses for sale looks like this:

Winnetka: 245

Wilmette: 330

Kenilworth: 40

Glencoe: 148

All of these numbers are 8-20% higher than last year. The numbers shown above won't make a big dent, but as we head toward year's end the less inventory the better. Even if it's just a tiny bit of positive news, I want to put it out there - maybe the deluge will follow!

In the good old days, (well, not so old, really) we wrote offers for properties without mortgage contingenices and then planned to close within several weeks. But since the beginning of the mortgage crisis last August you won't get a quick close with mortgage financing.

The process takes time, as it should. Lenders have been lax with lending practices and now we will be seeing real vetting going on with potential buyers.

Unlike recent memory, buyers now have to actually qualify for their mortgage, and this approval process takes time. Here are some things that I have been telling my clients to think about before they make an offer:

• You will need good credit.
• You will need verification of employment, down payment, closing costs and reserve funds.
• If your money has not been in your bank account for several months, some banks will require proof of where it came from.
• The appraisal and underwriting takes 2-3 weeks and sometimes a second appraisal might be ordered.
• The lender might require additional documentation - be prepared to give them whatever supporting documents they need at the last minute. As an example, if you've recently paid down a credit card bill to a zero balance you may need proof of that.
• Some lender requests may seem outrageous - just go with it.

Lenders have a lot of due diligence work to do to restore their credibility with investors. The housing market is dependent on investors buying mortgages so that buyers can buy homes. Having buyers properly qualified for a mortgage is the key to the whole process.

If you would like the names of several good lenders, call or e-mail me and I'll give you their contact information. If you think you may buy next year, now is not too early to start checking into mortgages.

With the real estate market slow down that we've seen, there are now over 99,000 listings in the Multiple Listing Service of Northern Illinois as of today. Since properties are taking longer to sell, home sellers are looking at every possible means of snagging a buyer.

The new buzzword is "Real Estate Auction."

As anyone who's driven down Sheridan Road in Winnetka has seen, the home at 609 Sheridan Road will be auctioned in October. But this is not a fire sale or a desperate seller trying to get out before the bank comes calling. The owner has stated that the desire to sell quickly was her prime motivation although she concedes that "the uncertainty of the current real estate market is another reason she is going for the sealed bid." DK Realty Partners, LLC of Schaumburg are handling the auction and their take is that "there is no buyers market or sellers market. There is just ‘The Market'".

But I have to disagree with them and as mentioned above, over 99,000 listings in Northern Illinois and over 4,000 just in the North Shore suburbs, we have a lot of inventory. And big inventory means few buyers.

The auction route is not a new one. In fact, this method of selling can be traced back to 500 B.C. and is not much different than eBay. In a nutshell, an auction is a venue where buyers and sellers get together and goods are offered for bid and then sold to the highest bidder. If the value of the house is undetermined or variable, then an auction is a method for determining that value. In other words, the buyers determine the value by the amount the highest bidder is willing to pay.

Auction companies will tell you that buyers and sellers benefit equally from real estate auctions. Buyers benefit because they make deals at fair market value and avoid dealing with sellers who are hesitant. Sellers are getting fair market value for their properties and they close quicker with no contingencies.

Winnetka and the North Shore suburbs are not typically an area where auctions are on the rise, but at least one new construction builder sold this year considerably lower than his original price. In Wilmette, a rehabbed home that was like new constructions also went to auction after sitting on the market for over two years.

Auctions may not be for everyone, and you still need to understand the terms before you either buy or sell at auction. Still, in a tight market, it pays to look at all options.