"You've Caught the NET!"

Enjoying Sunday, folks!   Good!

As for me, I'm posting on my AR Blog.  You?

As a real estate practitioner, we learn early to take nearly every sale with a grain of salt.  Negotiate a contract?  I bet you don't figure out your compensation until inspection and loan commitment are complete, right?

If you used to - you don't anymore!  Especially, in this Real Estate Market, Version 2008!

Today - in the Chicago Market, and I am sure where you are, too - two big road blocks most often come between your signed contract for sale, and your closing - Inspection Issues, and Financing Issues. 

Sure, there can be title problems.  EPA issues.  Zoning requirements.  But these are the too biggies, you agree?

Buyers are making more inspection requests.  Or, should I say, DEMANDS!  They want a new hot water heater.  A new tear-off roof.  Replaced windows.  What the heck - can you throw in those Bose Speakers and that HD Plasma TV, while you're at it? (See our AR Post dated March 13th for more of our Team's take)

We all advise our sellers not to be scared off by these wild requests.  Yet, they persist - and buyers are very quick to kill the deal and move on to one of over a dozen other similar properties within a mile or so - with inventory being so high these days, and try the same tact.  Often, with success!

Many Buyer's Agents, thinking like it's still 2005, delay presentation of excluded personal property until price is agreed on.  Then, they spring the fact on the buyers - "Sorry, I forgot to mention, that $2,200 German Washer-Dryer Pair is not included here!"  Thinking the sellers have been negotiating in bad faith, they fail to sign.  Deal dead!

In this day and age, however, loan issues seem to be the biggest stumbling block.  Speaking as a Listing Agent, it is sad to see Buyer's Agents not keeping up with the latest loan requirements, and relying on the "Loan Broker" to take care of business.

In areas where the appraiser indicates property values have been declining, buyers often have to increase their down payment to a minimum of 5 or 10% down, depending on their credit situation, to complete the sale.  You find this out AFTER inspection issues are put to bed, but often RIGHT BEFORE Loan Commitment is due.  If they don't have the extra down payment funds - deal dead!

Credit issues that were only an "Explanation Letter"away from clearance now often cannot be solved.   Unverified income - ok before - a problem now.  Higher fees, rates - with no recourse for the buyer - often, a certainty for many 2008 home buyers.  Sometimes - deal dead, deal dead, deal dead!

Due diligence on the part of real estate practitioners, especially we Listing Agents in contacting the Lender or Lender's Rep on a regular basis, may head off problems, or allow us time to solve others.  You have to be more proactive now than before.

Today - "You wanna eat - you've gotta hunt!"  But, if you want the money to eat - from the proceeds of your sale, or from your real estate compensation - you've got to CLOSE!

Don't take closing for granted anymore!

For more, please see our post today at BlogChicagoHomes.com, with a link to Marilyn Kennedy Melia's article in today's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

Oooooh - this one is loaded!

Please, folks, no political, evangelical, or red-state-versus-blue-state tirades here.

But now, bearing unforeseen circumstances, we're down to one of three 2008 Presidential Candidates that will be the Leader of the Free World this time next year.

Which Presidential candidate, if elected, would be the best friend to Homeowners?  To Real Estate Investors?  To we Real Estate Practitioners?

Or, does it really make a difference?   Is this a situation far too big for any one new president, with his or her Team, to tackle within the coming few years?

John McCain, best I can tell, hasn't really promised much of anything here.  Hillary Clinton has proposed a 90 day moratorium on foreclosures, and a five-year interest rate freeze.  Barack Obama - a government fund to help homeowners avoid foreclosure, and a tax credit for lower-income homeowners.

Any of these "the steak,"  or are they all "the sauce."  And, BTW, what would John McCain do? 

Would any of these three esteemed candidates, in this upcoming historic election, do, or be able to do, something so different, so radical, so immediate, that it can, in short order, turn the tide on the sub-prime crisis, the mortgage meltdown, and the housing doldrums we're experiencing - here in Chicago, and elsewhere in the US?

And would it last?

Ten months and a few days from now, a new President of the United States (POTUS) will be in the White House.  Eight months from now, we'll know who that individual is (we hope, assuming "chad mayhem" is ancient history).

Will things be better off - worse off - or just about the same?

Again, please stay away from any political slams here.  OK?  Thanks!

Appreciate your shares!

DEAN & DEAN'S TEAM CHICAGO

Hope you're enjoying the weekend, folks!

Effective April 1st, a new, higher Chicago Real Estate Transfer Tax takes effect.  Under the new law, the tax here increases from it's current $7.50 per thousand of purchase price, up 40%, or $3.00, to $10.50/M.  For many years, this Chicago Tax has been the responsibility of the BUYER of the property.  Hence, a family purchasing a $400,000 home here would have to pony up an additional $1,200 to allow the deed to record.

Now, according to near-unanimous action by the Chicago City Council this past Wednesday, the BUYERS keep the same tax bite.  But, by law, the tax must increase!

So the SELLERS must now kick in!

Effective next month, the seller of most properties in Chicago, excluding certain trust, in-family, and court ordered sales, must pay $3.00 per thousand of the ioncreased Chicago Transfer Tax.  On that $400,000 home in our example, the seller will now pay $1,200.

The Chicago Seller Transfer Tax comes IN ADDITION TO a $1.50/M State of Illinois and Cook County Tax - bringing the total seller liability for selling your home in Chicago to $4.50 per thousand of the price.  Again, in our example transaction, the buyer of this theoretical $400,000 home or condo would pay $3,000 for the privilege of his purchase here.  The seller - $1,800.

City of Chicago buyers and sellers must keep this new tax structure in mind when calculating their closing costs.

The increased Transfer Tax in the city was passed last February, after the State of Illinois acted the previous month to use this new tax revenue to fund a big financial shortfall in Chicago-area Mass Transit, and the Chicago Transit Authority.   It was originally conceived as a straight buyer's task.  But, with a strong backlash from The Chicago Association of Realtors, and an already-weak market here, the Chicago City Council, led by North Side 40th Ward Alderman Patrick O'Connor (whose wife just happens to be a successful Realtor here), made the decision to pass the new portion of the tax on to sellers.

The Illinois State Legislature also passed a 0.25% increase in the sales tax in Chicago and Cook County, the county in which the city is located, and a 0.5% tax increase in suburban Chicago counties, to help fund the CTA and mass transit bailout.  (See our BlogChicagoHomes.com post on February 7th for more details).

Still, with the increase, the Real Estate Transfer Tax in Chicago is still far lower than similar taxes in New York City and Philadelphia. 

New Yorkers selling in the city must fork over $14.25/M if the purchase price exceeds $500,000 (in other words, virtually everything in New York).  In addition, New York Home Buyers must pay a Mortgage Recording Fee of $21.75 per thousand.  In Philadelphia, sellers ante up $30.00 per thousand, plus another $10.00/M required by the State of PA.

In sum, folks - MOVE HERE TO CHICAGO - we have a lot of good values in homes and condos for you!  But you'll have to bring a few more bucks to the closing table when you sell.

See our post today via our Blog Center - BlogChicagoHomes.com - for more details, including a link to Gary Washburn's article in last Thursday's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!

I bet you didn't know this Little White Dog is an avid cyclist, just like Chicago Mayor Rich Daley!  It's true, during the spring and summer, I often ride 10 or more miles a day.  I'd go further, but my little four paws barely reach the pedals on my Racing Bike!

This summer, I plan to add a side car, so I can go riding with my Designated Humans - Team Leader Dean and his wife, Sue.

You know, sometimes, it's very tough cycling around the big city!  I'm being "doored" all the time by folks in cars they are parking opening their driver's side door without looking.  By folks not looking before the move into my lane.  And what about those folks that block the Designated Bicycle Lanes that have sprouted up all over town.  They really make me mad!

In his quest to make Chicago the most bike-friendly city in North America, Da' Mayor (that's the CHICAGO Way of referring to our leader) and the Chicago City Council passed a new Chicago Bicycle Ordinance this week.  Those who cut off cyclists when making a turn, who block bicycle lanes, or who "door"  us poor cyclists cruising down the street, just trying to get from Point A to Point B, and get healthy while we're doing it!

The new law imposes fines between $150 and $500 for violations, and would apply to all cyclists - recreational riders, like me, and "professional" riders - like those crazy bicycle messengers downtown!

"More than 6,000 crashes between bicycles and motor vehicles were reported in Chicago between 2001 and 2005. Unfortunately, 30 bicyclists were killed. These new laws will help prevent injuries and save lives,"  says Mayor Daley.  Earlier this month, one unfortunate cyclist was killed when hit by a car while crossing Irving Park Road in Chicago's North Center Neighborhood on the North Side.

Although many of us City Cyclists feel this law might be hard to truly enforce, it is a step in the right direction to make Chicago a safer city in which to cycle.

Enjoy the ride this summer - remember to wave, as you pass a Little White Dog on a Fire Engine Red Racing Bike, cruising down Western Avenue, in our Lincoln Square Neighborhood.

Please check out by blog post at BlogChicagoHomes.com for more information, as well as a link to Azam Ahmed and Gary Washburn's article in Wednesday's Chicago Tribune.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

This is very disturbing, folks - but I'm sure it also happens where you live and work.

Here in Cook County, the county which includes the City of Chicago, as well as neighboring suburban Du Page County, scam artists are beginning to record forged Quit Claim Deeds to transfer properties to themselves in alarmingly increasing numbers.

After the deed is forged then recorded, the new "owner" enlists this help of a scam-friendly mortgage broker, and appraiser.  He re-finances with cash out, or takes a hefty home equity line of credit draw, against the property he "acquired."  Then - he is GONE.  And, often, the equity, and credit, of the duped homeowner.

Many of these scam artists have intercepted small postcards notifying legitimate homeowners of the Quit Claim Recording.  Of course, they never make a mortgage payment, and the property gets foreclosed upon - even while the real homeowner is still making mortgage payments!

In fact, Eugene Moore, the Recorder of Deeds here in Cook County, found out his own cousin was nearly duped out of her property recently, and was saved when the law intervened.

Moore is now training his cashiers and clerks to spot red flags - deeds recorded with cash payments, obvious forgeries.  But the Recorder's Office has no authority to arrest the bad guys - but they hope to make progress, by adding more staff to keep better watch.  According to Recorder Moore, with over 5,000 legal documents being recorded in Cook County every business day, it is tough to spot every fraudulent deed .

In Wayne County MI, which includes Metro Detroit, the County Register of Deeds, Bernard Youngblood, has fought an effective campaign against mortgage fraud scam artists since 2005.  He has a task force that often sits in on suspect closing, nabbing culprits before title changes hands!  He claims a 100% conviction rate on those he catches in the act!

Often, lenders are red-faced by the scam, and fail to report their loss.  One scammed home, in prestigious Grosse Point MI, was appraised and mortgaged for double its $1 Million Dollar Value.  The "buyer" never made a mortgage payment, and foreclosure proceedings began.  The lender elected to eat their losses, ratehr than prosecute.

Here in Chicago, in the South Side Kenwood Neighborhood, a legitimate Warranty Deed drawn and recorded in 1996 was forged and quit-claimed in 2006.  When the property sold in foreclosure auction early this year, the new owners, upon inspection, found the years-old skeleton of the previous owner's son, who was long dead in the home.

Have you heard of this scam in your market area?  Please let us know!

I would imagine, in today's real estate market, in Chicago and elsewhere, lenders are being more vigilant about granting unverified lines of credit.    But, even then, I'm sure a few might slip through the cracks.

Please review our post today at BlogChicagoHomes.com for more info, and a link to Susan Chandler's article in last Saturday's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

Everything goes up, right?  Gasoline?  Heating Oil?  Groceries?  Home Prices (well . . . )?

Well, here in Chicago, the cost to turn on your computer, to run your shredder, to cut your plywood, and to flip on that reading light, is going up, once again!

Commonwealth Edison, or, as we call them here in Chicago, Com Ed, is raising rates once again, to relect the higher cost for energy to be purchased at auction after June 1st.  The electrical utility, which serves the Chicago Metro area, will boost rates by an average of $2 a bill effective this Summer.

I know - it doesn't sound like much - but the company increased rates over 22% on in January, 2007, after a ten-year rate freeze on electrical service here expired.  This coming September, the utility plans to ask for another average $8 per bill increase, to pay for aging infrastructure replacement, mostly.

In total, they say the average electric bill here in Chicago will increase from the average $60 per month in December, 2006, to $77 after the proposed September increase.  In reality, many bills for residential customers and some small businesses, rose quite a bit more.

During the hot summer here, my classic, poorly-insulated Chicago-style Brick Bungalow - with only old lathe board, plaster, newspaper, then two courses of brick separating our family from the elements - our electric bill can approach $300, with moderate use of air conditioning.

In 2009, the State of Illinois will launch the Illinois Power Authority.  The independent state agency will be charged with procuring, most economically, electrical power throughout the state.  Until they are working, Commonwealth Edison will be responsible for procuring power for Chicago area residents.

See our blog post today at our Team Blog Center - BlogChicagoHomes.com - with links to Robert Manor's article in today's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

Hey, Gang - hope all is well!

One aspect of today's buyer-oriented real estate market, here in Chicago and elsewhere, is the absolute brazen attitude of many buyers toward inspection repairs.

You know what I mean, don't you, you Listing Agents?

Hard, extended negotiation after long seller market times.  Seller frustration.  Finally, success - an accepted offer.  Everyone breathes a sigh of relief!  Or should they?

Here comes the inspector - mostly minor issues arise.  Reverse polarity here.  A loose toilet there.  Slow tub drains.  Drafty old windows.  Cracks in the sidewalk.

Real health and safety issues, right?  (I'm being cynical, folks!)

And what to the buyers request?  $500 to repair reverse polarity.  $1,000 to repair a toilet.  Complete replacement of front sidewalks.  And the beat goes on and on and on!

When working with buyer clients, we've stressed over the years that only important HEALTH & SAFETY and STRUCTURAL ISSUES are worth raising.  But what happens when our buyers ignore our suggestions and ask for big money to correct small issues?  They often get it!

Last year, we had one of our buyers ask for a $10,000 credit to replace a 7 year old, still-serviceable roof.  He got $7,500 - and was later upset that he didn't get the full Ten Grand!  Another couple received $3,500 for concrete repair - one year later, his new sidewalk hasn't been touched!  But he and his family took a nice vacation to the Bahamas last year.  Hmmmmm!

A few times, sellers refuse to give in.  The buyers, still emboldened, try the same strategy on the next house we help them find.  And they expect us Realtors to fully support their unreasonable behavior!

We have a couple of transactions in progress now where the outcome is in doubt over this new crazy buyer dance - 2008.  Resolution?   Stay tuned!

Has this happened to you recently?  How was it resolved?  And, how has this changed your attitude about the selling-buying process in 2008?

Please share!

DEAN & DEAN'S TEAM CHICAGO

Hey, hey, everybody!  Hope all is well!

Keller Williams Chairman Gary Keller, speaking online and at the Keller Williams Family Reunion Conference last month in Atlanta,  spoke again and again about the importance of continuing LEAD GENERATION in weak markets. 

Those that master the art of CONSISTENT Lead Generation will not only survive any market downturn, but will THRIVE through it, and BUILD MARKET SHARE for when things turn around, as you know they will, later on.

How do we agents and brokers generate qualified real estate leads?

Many use Open Houses, Mailings, Telephone Contact ("Telemarketing" is a DIRTY WORD - never use it!).  Others use extensive Networking, or sponsor or host Community Events.  Others develop and run Seminars - Buying in This Market, Selling in this Market - or, as is more common these days - Handling Distressed Property Sales in this Market.

Here, at Dean's Team, one of the "legs to our table" involves good old fashioned PROSPECTING!  Expired Listings.  Pre-Foreclosures,  For Sale By Owners.  Buyers or Sellers Around our Listings.  (Listings priced, of course, to sell!)

When we talk to others about prospecting and phone calling, however, many raise the new-age excuse - "We can't prospect.  You know . . . there is THE DO NOT CALL LIST."

Heck, these folks never prospected BEFORE the Do Not Call List - the List now gives them a great alibi!

A few say they IGNORE the rule!  Wrong answer, folks!

There is a way to quickly, easily - and WITHOUT CHARGE - screen all phone numbers for Do Not Call Status.  How?

Click on www.Telemarketing.DoNotCall.gov, and register as an Individual "Telemarketer."  You DO NOT have to ask your Managing Broker to do it - please, do it on your own!

The directions are easy to follow, and you get a user name and password with which to log in to their national phone database.  Here, you can sign up for up to 5 Local Area Codes (in Chicago, we have eight, so we chose the ones we use most frequently - I imagine you can do the same, especially if you are in a smaller market area). 

They have something called "Individual Phone Number Lookup,"but INDIVIDUAL is a misnomer.  You can actually check up to TEN numbers at once, in seconds.  (First, you have to certify that you will not abuse the law or the system, which is a pain, but a very brief one).

Those FSBO's and Expired Listings that are Do Not Call Positive - drive to the house, walk up the stairs, and door knock - better impact anyway, although it does take a bit of moxie (I've been doing it for 14 years - no one's hurt me yet - but don't do this at 11:00 at night!)

The folks that are NOT on the do not call list - roughly, 30% - call!  Here you'll be doing something that most agents do not do, because they do not fully understand.

You never know, you might get a listing or two out of this.  Perhaps?  And you'll never have to use that "Do Not Call" alibi ever again!

Try it - and let me know how it works for you, of if you have any questions! 

Hope This Helps!  BTW . . . No Referral Fee Requested Here - but, I will take a cup of coffee the next time you come to Chicago.   Just call!

DEAN & DEAN'S TEAM CHICAGO

The price to transfer Real Property in Chicago is going up April 1st!

Effective for transactions that CLOSE after that time (those that close earlier but do not record until after the cutoff do not pay the increase), the Chicago Real Estate Transfer Tax increases to $10.50 per thousand of sales price, up 40% from its current $7.50 level.  Here in the city, this tax has been the responsibility of the buyer since its inception many years ago.

Under a new proposal being considered by the Chicago City Council, however, this incremental tax amount would either be split between buyer and seller, or passed on to the seller in its entirety.  The plan is being spearheaded by Patrick O'Connor, Alderman of Chicago's 40th Ward on the North Side.

We Realtors, and other real estate professionals, and many homebuyers, are concerned that the new tax might adversely affect a Chicago Real Estate Market already left a bit shaky by the sub-prime mortgage market crisis.  Those that are already on the fence - might just stay there, many contend.

Sellers across the State of Illinois already have to pay $1.00 per thousand of price to the state, plus and additional $0.50 per thousand in every Illinois county.  This tax has not been increased recently - but a split of the new Chicago transfer tax increase could increase what sellers pay to $3.00 per thousand, or perhaps more.

Opposing the split proposal are The Home Builders Association of Greater Chicago.  They feel splitting the new charge would pose an undue burden on sellers, and strip their equity.  Far North Side Chicago Alderman Bernard Stone, of the 50th Ward, disagrees.

Other big cities - New York, and Philadelphia, for example, have higher Real Estate Transfer Taxes than Chicago.  But the increase, passed to fund Chicago Area Mass Transit, might put a bit of a damper on property transfers at a time when we in Real Estate would like to experience more of them!

Please see our post today at BlogChicagoHomes.com, our Team Blog Center, as well as our post from February 7th further discussing the Chicago Real Estate Transfer Tax increase.  We also cite Gary Washburn's article in today's Chicago Tribune discussing Alderman O'Connor's proposal.

DEAN & DEAN'S TEAM CHICAGO

Good Morning, Boys & Girls -

Here are updated Chicago Real Estate Market Stats for Monday Morning, March 10, 2008.

Properties Pending Sale figures are starting to rise this week - perhaps in anticipation of warmer weather, and the traditionally-hotter Spring market.  However, jumps this year are somewhat subdued - but nonetheless welcome.  We are also encouraged by the jump in Average Selling Price, but would like to study this for several weeks into the Spring to see if this is a trend.  Average Days on Market still high!

Sold Units and Expired Listings typically fall the second week of the month, but very encouraged by Sales Volume, helped this week by a jump in the Average Selling Price.  Absorption Rate and Percentage of Sale Within Six Month (180 Days) remain high, although there was another  drop - 3.7% - in the three-month Absorption Rate versus the week ending March 2nd.  The chances of selling a home within a normal six-month marketing time frame improved very slightly, to 21.65%.

Communities and clients we serve reside, or plan to reside, in the Chicago Neighborhoods of The Chicago Loop, The Gold Coast, River North, Lincoln Park, Lakeview, Uptown, Edgewater, North Center, Lincoln Square, Albany Park, Ravenswood, Wicker Park, and Bucktown. 

Also, these Great Chicago Neighborhoods: Logan Square, Rogers Park , West Ridge, Portage Park, Jefferson Park, Norwood Park, Sauganash, Edgebrook, and Edison Park.   Plus All Chicago Suburbs. 

SINGLE FAMILY, CONDOS, AND SMALL MULTI-UNIT PROPERTIES - NORTH SIDE OF CHICAGO, NORTH OF ADDISON STREET, WEST OF ASHLAND AVENUE

                             ACTV LISTINGS        JUST SOLD         CLOSED        EXPIRED

Please visit and review our Chicago IL Real Estate Stats Pack Archive via our Team Blog Center - BlogChicagoHomes.com. 

Call or write our Team if you have any questions about the Chicago Real Estate Market, and trends within any Chicago Neighborhood,  or suburb nearby. 

DEAN & DEAN'S TEAM CHICAGO