Evanston IL Real Estate

I often like to respond to people who have visited my blog and are looking for answers to real estate questions.  Recently, I noticed some ask ” How is a Short Sale Different from a Normal Sale?” Here is my answer to this person:

SHORT SALES TAKE MORE TIME:

The process of buying a short sale takes more time to sell. Typically, a short sale can take between 3-6 months for the bank to approve a short sale.

SOLD “AS- IS” CONDITION:

When buying a short sale you are buying the home in “AS-IS” condition.  It is the responsibility of the buyer to do a home inspection prior to writing an offer because the bank will not allow any sales contigency that would require or reduce the  purchase price in the initial offer.

 TRANSFER OF INITIAL EARNEST MONEY:

The offer must include an initial earnest money and balance of earnest money but typically no money is required from the buyer until the offer has been approved by the bank

FINANCING:

Buying a short sale property requires the buyer to either show proof of funds if a cash offer or be pre-approved for a loan which is subject only to an appraisal. Once the lien holder has approved the short sale the buyer must be prepared to close within 15 days from the date of the approval.

OFFER CAN BE WITHDRAWN AT ANYTIME:

The buyer has the opportunity to withdraw their offer at anytime during the process. This allows the buyer to continue to look for other property on the market while still negotiating an offer with the bank.

THE BANK RESERVES THE RIGHT TO CONTINUE MARKETING THE PROPERTY:

Because it takes so long to negotiate a short sale the bank reserves the right to continue marketing the property until it closes. Typically there are multiple buyers ( primary and back up buyers) in and out of the buying process and the bank wants to net the highest dollar to minimize their loss.

For more information on Short sales please visit my 800 number:

1-888-307-7311

Understanding short sales:  Extension 8

Pre- Foreclosure Specialist: Extension 11

I am happy to announce my new website address to serve you better.

I am all about providing the public with FREE INFORMATION about the Real Estate Market in Evanston, Chicago, and the North Shore. As you visit the site I think you will find it very easy to use. Just scroll down to the picture tabs on the home page to search for listings, school information, featured listings, mortgage information, buyer and seller tips, and a way to contact me personally. If you want to find out how much your home is worth before contacting an agent just go to the Select Page and scroll down to Recent Home Sales. I hope you enjoy the new website and tell others to visit.

We just ended the first quarter and it is always interesting to look at the numbers and make assumptions about the relative strength or weakness of my local real estate market of Evanston IL.

As we all hear the national news about tumbling real estate prices, large numbers of homes on the market and rising foreclosures I am always challenged to make sense out this information and see how it applies to my local market in Evanston. The information I will be sharing with you here comes from my local MLS but the interpretations are strictly my own. I am sure others will not agree with me and have there own interpretations and that is ok with me.

ACTIVE

SINGLE FAMILY MARKET

In Evanston there are 275 single family homes on the market for sale. Of those 181 are homes that have been on the market 90 days or more. This means much of the current inventory of homes are homes that were on the market in the last quarter of 2007.

In Evanston there are 21 new single family homes on the market for sale.These are homes that are really new and not recycled old listings. Of those 4 are homes that are short sales and 1 is bank owned.

CONDO MARKET:
In Evanston there are 646 condos on the market for sale. Of those 342 are condo’s that have been on the market for 90 days or more. This means tha much of the current inventory of condo’s are those that were on the market in the last quarter of 2007.

In Evanston there are 33 new condo’s on the market for sale. These are condo’s that are really new and not recycled old listings. Of those 4 are short sales and 0 are bank owned.

SOLD

in Evanston 56 homes have sold with the average market time of 172 days. The Average sale price was $597,000 and the total sales volume to date is $33,441,500. During the same period in 2007, 58 homes sold in Evanston with the average sale price being $710,352 and the total sale volume of $41,200,400. What the numbers tell us is that we are not off on the number of homes sold this year as compared to last year but the average price of homes is dropping and affecting the total sales volume.

CONDO MARKET:

In Evanston 56 condo’s have sold with the average market time of 217 days. The Average sale price was $329,000 and the total sales volume was $18,458,311. During the same period in 2007, 143 condo’s sold with the average sale price $351,421 and the total sales volume being $50,253,266. What the numbers tell us is that the condo market is getting weaker, prices are falling and total sales volume is down. My question here is this because of new construction which is not reflected here in these figures or is really because the condo market is saturated with too much inventory. It is hard to tell at this point of the year.

In 2000 35 million people 65 years of age and over were counted in the United States. Out of those 18.4 million were between the age of 65 and 74 years old. This group (65-74) represents 53% of all older adults.

The percent of people 65 years and over living in nursing homes is declining particularly for those people 85 years and over, where only 18 percent were living in nursing homes in 2000. If this trend continues with the baby boomers becoming the next largest group of seniors then we should see an increase in sales for this age market.

If you want more information on this subject or would like to discuss real estate options for you, I have set up a special hot line just for you.

Free Information 24 hours

1-888-307-7311  Ext 17

just got off the phone with a client who has a plan to retire in Hawaii in the next couple of years. His ultimate scenario is to find a house on the beach. This struck me because there are many different ways to plan for your retirement and many different places to choose to live. Do you want to live on the beach, or how about in the mountains, in a rural setting or urban setting. Different strokes for different folks. To start your planning pick up a book or magazine. I just recently received a copy of a magazine titled” Where to Retire” and one of the articles in the magazine is ” The best tax heavens and the worst tax hells”. Interesting article if you are on a budget and do not want to pay a lot on Real Estate Taxes. If you would like to discuss your retirement plan I have set up a special hot line for you.                                                   FREE INFORMATION 24 Hours
1-888-307-7311 Ext  17

How to Downsize to a Smaller Home:You have been living in your house for over 20 + year. You have raised your children in your home and they have all moved out. You have lots of equity in your house and the thought of moving to a smaller home has crossed your mind?

Learn how to downsize with simple easy steps. With today’s real estate market being a buyers market its a good time to buy a retirement home but what do you do with the home you got? Well I have the steps to help plan your move.

If you are planning to do something in the next 6-12 months and need help with this planning then give me a call. I have set up a 24/7 hotline number just for you.

            FREE INfORMATION 24 Hours

                                                            
1-888-307-7311 EXT 17

Happy Saint Patricks Day !!!!

In Chicago we celebrate St. Patricks day in a unique way. We dye the Chicago River Green.

This tradition started 1962 when city pollution control workers used dye to trace illegal sewage discharge. They poured 100 pounds of dye in the river and this kept the river green for over a week.

Other facts about Irish immigrants in Chicago:

• Chicago emerged as the fourth largest city in America by 1860
• The first Chicago Irish immigrants worked as laborers in the stockyards , steel mills, and railroads.
• As Chicago became more ethnically diverse they became more interested in politics, government, especially the police force , fire departments and school system.
• Famous Chicago Irish include Mayor Richard J. Daley, “Honest John” Comisky (father of the White Sox)

 The other day, a person asked ” How did the North Shore get its Name?   I thought this was a good question and should be answered.

The North Shore represents a stretch of land along the lakefront due north of Chicago and it is made up of nine suburbs located between 13 and 35 miles from the Loop, the city of Chicago’s central business district. The largest community is Evanston and the smallest is Kenilworth. Most of the cities were incorporated between 1860 and 1870. Despite differences to each community the demographics have always reflected the wealth, education and social status of residents. Although many of the most elegant homes face  Lake Michigan this was not always the case. Prior to 1900 sewage poured into Lake Michigan and the spread of disease and polution were a problem. It wasn’t until the Army Corp of Engineers solved this problem by reversing the flow of the Chicago River and forced sewage to empty into the Mississippi that homes along the Lake Front became a more attractive choice. All nine towns that make up the North Shore owe their existance to the development of the Chicago and North Western Railroad in 1866. Chicago Mayor Walter S. Gurnee was president of the Railroad. Gurnee was an ambitious man and became very wealthy when he purchased most of the available land surrounding the railroad stations of Winnetka, Glencoe, Highland Park and Lake Bluff.

If you are interested in learning more history of Chicago I recommend reading ” North Shore Chicago”  Houses of the Lakefront Suburbs 1890-1940 by Stuart Cohen and Susan Benjamin.

 My advise to new buyers  is  before you look at homes  to buy go get pre-qualified for a loan. With  mortgage defaults and foreclosures on the rise, lenders are going back to the basics which is full documentation loan. What this means is that if you are a buyer and  are applying for a new loan then you must have good credit (FICO scores), show proof of income with W-2’s,  1099’s if sell employed, and have sufficient money for a down payment (10 % of the purchase price). I also would advise new buyers not to be house rich and cash poor. What I mean by this is do not stretch your ability to make monthly payments on your home. Keep within a budget. The old rule of thumb was that you should not have a mortgage greater than 2.5 times your annual salary. Another  way to look at it is thr0ugh income to debt ratios. Your mortgage payment should not exceed 28% of your annual income or 36 % of total debt which includes not only your mortgage but other living expenses (i.e. utilities, insurance, auto, food).

As of today’s date there are 227 homes for sale in Evanston, IL and 36 homes under contract since January 1, 2008. According to this information the average time on the market in Evanston is 6 months. Of interest is the number of homes under contract that have Home Sales Contingencies or Homes to Close Contingencies. (Home Sales Contingencies occur when the buyer has a home to sell but has a contract on a new home or a Home on the Market with a Contract but has not closed). According to the MLS there are 9 homes out of 36 homes that have such contingencies. What does this tell you about the real estate market in Evanston? Well in a very active buyers market such contingencies would never exist. Does this mean the Evanston market is slowing down? It is hard to say just yet. We are just entering the Spring real estate market and have had unusually cold weather and lots of snow which has turned many buyers away from the real estate market. It does however appear that Sellers are more anxious to sell and do not want to lose potential buyers and are accepting Home Sales Contingencies for the moment. I suspect when the market improves these contingencies will no longer exist.