Rich Quigley CRS, GRI, ABR, SRES

Rich's Real Estate Report

Sun City Huntley Months of Inventory

The "number of months of inventory" is a statistic that real estate professionals use to measure the strength of the housing market. It is an estimate of the amount of time it will take all of the properties currently on the market to be sold. When the number of months of inventory is relatively high, as it is now, homes will, on average, take longer to sell, and there will be downward pressure on sales prices. Knowing this number helps real estate professionals determine competitive pricing. I ran the following calculations for Sun City Huntley detached and attached homes listed in the Multiple Listing Service as of August 6, 2008.
For Detached homes:
Active Listings as of 8/6/08: 120
Pending Listings as of 8/6/08: 3
Number Closed, last 12 Months: 101
Number Closed, last 6 Months: 49
Number Closed, Last 3 Months: 24
Number of Months Inventory: 15
For Attached homes:
Active Listings as of 8/6/08: 30
Pending Listings as of 8/6/08: 0
Number Closed Last 12 Months: 36
Number Closed Last 6 Months: 17
Number Closed Last 3 Months: 7
Number of Months Inventory: 12.88

Consult a Certified Residential Specialist

There are few agents in this area that have met the requirements necessary to achieve the CRS Designation. To do so, REALTORS^® must demonstrate outstanding professional achievements including high-volume sales and pursue advanced training in areas such as finance, marketing and technology. With only 4% of all Realtors having the designation, it is a mark of professionalism. Why not work with a CRS?

Universal Design Principles

Our homes at Sun City incorporate many features of universal design such as lever-style door handles and wide doorways. These features enable people to live comfortably and safely as they get older.

AARP offers some additional simple upgrades homeowners can make to create a safer, more comfortable residence for people of any age.

•· Install handrails on both sides of all steps (inside and outside).

•· Secure carpeting and area rugs with double-sided tape.

•· Install easy-to-grasp handles for drawers and cabinet doors.

•· Use brighter bulbs in all settings.

•· Install nightlights in all areas that host nighttime activity.

•· Add reflective, non-slip tape on all
non-carpeted stairs (such as basement).

•· Place a bench near entrances for setting down purchases and resting.

Disposing of appliances and fixtures

When replacing appliances and fixtures, you can dispose of used but still-functioning ones by donating them to a favorite charity rather than sending them to a landfill. Another alternative is to visit www.Freecycle.org to find out how you can donate them to individuals who can use them.

Appliances and fixtures that no longer work can be recycled. For recycling information, contact the Steel Recycling Institute at
www.recycle-steel.org, or visit www.earth911.org for local options.

On April 29, 2008, Cambridge Homes held a brokers' open house at Carillon in Pingree Grove, Illinois. This is the newest community for people aged 55 or better. Cambridge offers three distinct series of homes.

The Bayside series of townhomes ranges from 1,107 to 1,332 square feet with base prices
ranging from $178,000 to $192,000.

The Composer Series of duplex homes ranging from 1,401 to 1,716 square feet, with base prices ranging from $218,000 to $231,000.

The Resort Series of single family homes with optional basements. The resort series ranges from 1,475 to 1,951 square feet with base prices ranging from $255,000 to $289,000.

All series include complete yard maintenance, snow removal, club house membership, seal coating driveways, golf and 24 hour guard and roving patrol.

Carillon at Cambridge Lakes is one of several senior communities in Northern Illinois, including Sun City, Huntley, Edgewater by Del Webb, Grand Reserves, Grand Point and Grand Dominion. All of these communities encourage broker cooperation.

Aside from developments specifically designed for seniors, there are many other housing options for seniors. As a Seniors Real Estate Specialist and Accredited Buyer Representative, I am qualified to help you in making a purchasing decision.

Many buyers mistakenly believe that either they can not use an agent when looking at new construction or that using an agent somehow costs them money. Neither of these beliefs is accurate. I met with a developer's sales representative last week and, to quote her: "you are our outside sales force". There is no cost to a buyer because developers pay commission to the agent who brings a buyer. In real estate language, that agent is the "procuring cause" of the sale. The commission paid to buyers agents is a cost of doing business for the developer. As a buyer, you will not pay less for a house just because you didn't use an agent.

The advantages to using a buyer's agent are many. Here are a few.

• The representatives at the sales center, although very personable, work for the developer, not the buyer.
• A buyer's agent owes loyalty to the buyer.
• Area agents are familiar with the development in which you are interested, as well as others that may fit your requirements.
• Agents can show you existing homes as well as new ones. In other words, we can be an "outside sales force" for a developer, but we are not restricted to any one seller.
• A buyer's agent will ask the questions you don't think about.
• A buyer's agent is used to negotiation.
• A buyer's agent can make you aware of comparable sales and other available homes.
• Professional real estate agents have other professionals in their network. A buyer's agent can recommend good real estate attorneys and inspectors, for example.
• A good agent will follow through during every phase of the transaction.

As far as timing, it is important that, as a buyer, you contact an agent to represent you before you make the first trip to the sales center. That way the agent can register you in advance and accompany you on your first visit. Often, if the agent is not there on the first visit, the developer will not allow him to represent you (not procuring cause). At that point, the developer saves the cost of paying the agent, but the savings is not passed on to you. There is and advantage to the agent in that the commission is protected whether you purchase from that developer or elsewhere, so he can represent you in any case.

In choosing an agent, look for someone who is experienced in representing buyers. The Accredited Buyer Representative (ABR) demonstrates both specialized education and experience with buyer clients. You may be asked to sign an exclusive buyer agency agreement. This agreement spells out the responsibilities of both the agent and the buyer. It protects both parties. If you are hesitant to sign, ask if there is a provision to cancel if there is incompatibility between you and the agent. The agency relationship should be built on mutual trust.

This is an online version of a real estate newsletter I send to residents of Sun City Huntley. The print version resembles a newspaper and will be distributed within the next few weeks, so here it is in advance.

Rich's Real Estate Report

No Recipes, No Sports Schedules, Just Real Estate Information
Issue 8

Existing home sales up 2.9% in February

According to a March 24 report by the National Association of REALTORS® (NAR), sales of existing homes were up 2.9% nationally in February. NAR says that, although they do not expect a notable gain until the middle of the year, the February increase is a sign that the market is stabilizing. The national median home price was down 8.2% from the previous year.

Statistics from the Multiple Listing Service of Northern Illinois (MLSNI) shows the following for Huntley, zip code 60142:

From March 1, 2006 to Feb. 28, 2007:

From March 1 2007 to Feb. 29, 2008:

The above tables show that Huntley's average market time increased and the average sales price decreased during the last year, but not as significantly as the national figure. Average sales price was down 3.5%, and average market time up 28%.

Homes on the market in Sun City Huntley

As of April 4, 2008 there were 142 Sun City Huntley resale homes listed in the MLS. The average market time of active listings was 154 days and the maximum was 884 days on market, for these homes.

If you are interested in a detailed market analysis of your home, please contact me.

What is happening in new construction?

Pulte is currently completing neighborhood 37, the last neighborhood of Classic and Premier series homes. The next neighborhood to open, neighborhood 35, will contain manor homes, which are the familiar club home models situated on larger lots. Pulte anticipates completion of all new home sales in 2009. As a broker and Sun City homeowner I keep abreast this market. The market is constantly changing, so please contact me for current prices and incentives.

Buyers and sellers both need agents

If you have any friends who are interested in purchasing a home in the area, I can help with new construction as well as existing homes. I have represented both buyers and sellers and have earned the Accredited Buyer Representative (ABR) designation. Remember, the people at the sales centers are nice, but they work for the developer, not the buyer. Also keep in mind that, typically, there is no cost to the buyer for professional representation.

What do designations mean?

The purpose of earning designations is to gain more knowledge and expertise. Every agent must take continuing education, but the majority do not go beyond this minimum requirement. The Certified Residential Specialist (CRS) designation was the most difficult of my designations to earn. From the CRS website: "The Certified Residential Specialist (CRS) is the highest Designation awarded to sales associates in the residential sales field. The CRS Designation recognizes professional accomplishments in both experience and education." It is held by fewer than 4% of all REALTORS® .