Home inspection...don't buy a home or condo without it!

I'm really not trying to sound cliche, but the home inspection is truly an essential part of the home buying process. Now, if you're going to tear down whatever property you buy, then please be my guest, feel free to go without an inspection, but if you're like most people you actually want to live there. Consider for a moment the size of the investment that your making, the average home (including condos) in Chicago is over $500,000, a few hundred dollars for an inspection is worth the piece of mind. A good inspector will check everything from the electrical and plumbing systems to making sure the appliances work properly. And don't think that because you're purchasing in a high-rise building that an inspection is not necessary. I was recently at an inspection with my client who was purchasing a unit in a 1950s high-rise. It was a fixer upper, but during our inspection we discovered that the electric panel in the unit had never been updated and those funny little "plugs" were definitely not circuit breakers, they weere fuses. As if that wasn't bad enough one of the fuses was double-tapped, meaning it had two wires running into a single fuse. This is a potentail fire hazard. And yes, the easy solution is that you can just add another fuse, the key being if they even make this particular style anymore! If the needed fuse couldn't be obtained a whole new electric panel would need to be installed which would likely cost in the ballpark of $1000! We have asked the seller to resolve this potentially issue and he has agreed. What an costly surprise that would have been for my client when it was discovered down the road or when there was a fire.

Media Schmedia

One of the most frequent questions I've been asked lately has been is what I think about the market in Chicago, by clients and non-clients alike. Well, I know it doesn't seem like a surprise to be asked that kind of question, but there has been one specific common thread to all these conversations....the media. The media whether it is print, television or on-line has been droning on about how the housing market is slowing down and oh, no the world's going to end because interest rates are higher than they were 4 years ago! And while both of these are true to varying degrees I believe in many cases the message the media sends is out of context for two reasons. One, the housing market is very much a local phenomenon, but the media largely uses nationwide and regional generalizations. There are so many factors that affect housing and many are specific to that local. There are even differences between Chicago and the Chicago suburbs! One factor is demand. The demand or need for housing is not the same across the country. For example over the past few years demand for housing on the East and West coasts has driven the 20 and 30% price appreciation they had been experiencing, while in Chicago, demand was high and price appreciation was significant, it was not of the same intensity. While Chicago's growth was steady, the activity on the coasts is what fueled much of the talk of the housing bubble and leads me to my second point. Everyone seems to forget that the past five years have been a period of record housing growth fueled in part by record low mortgage rates. Well it's no surprise the market is slowing down, how long can record growth be sustained? Eventually it has to balance out and that's exactly what's happening. Is that a bad thing? From my perspective, no, balance is a good thing especially when it doesn't have to be the result of some "catastrophic" event. On a somewhat lighter note, in such good times, we often forget what "normal" is. Until the past few years 9 or 10% on a mortgage was considered a great rate and there actually was a period about 20 years ago where interest rates were 18%! Gasp!!!

Going Green in Chicago

At one of my open houses this weekend I was asked about what it would take to cover the garage rooftop with grass instead of traditional decking. Having not done it myself or known anyone who had I didn't have the answer for him, but it really peaked my curiosity. More and more buyers are looking for a home with outdoor space, whether it's a balcony or the rooftop of the building they live in, but I have yet to see a grass rooftop. In most cases, garages, which is a "must have" for so many buyers, have practically wiped out what little backyard was there could have been. So why not create a "backyard" on your rooftop? The idea sounded great to me. Like a little kid, I still love the feeling of grass between my toes and having lived in the city for so many years I feel pretty nostaglic about grassy feeling. And no, the patches of grass that line the sidewalk outside my home don't qualify. The fertilizer provided by the neighborhood dogs certainly doesn't add to the appeal. So what would it take to create the "rooftop backyard?" Apparently I'm not the only one that is curious. The City of Chicago set-up the Chicago Center for Green Technology, located at 445 N Sacramento. Not only is it a prototype for green building design, but more importantly the go to place for people with questions about the "how to." Rooftop backyards or gardens are only the beginning when it comes to going green. Bamboo flooring, dual flush toilets, tankless water heaters and the list goes on. If you want more information on going green in Chicago, check out the links below.

City of Chicago Department of Environment
Green Roofs for Healthy Cities
Greenmaker Supply Company

To do or not to do Dual Agency

Dual agency is one of those terms that as a realtor was drilled into my head during training, but one sellers or buyers rarely think about or even know about. First, let's start with a quick definition of dual agency. Dual agency is the practice of "representing" both the buyer and the seller in the same real estate transaction provided each have given their written consent. You may ask, well how can a dual agent represent both the buyer and the seller, isn't it a conflict of interest? In reality you don't truly "represent" the best interests of buyer or seller. The seller is looking to get the highest price possible for their property, and the buyer is looking to pay the lowest possible price and in the midst of this the agent needs to remain impartial and keep each parties position confidential. In my opinion as an agent, I think it's a tricky place and I find that my clients, buyer or seller, want to have someone to advise them and look out for their best interests exclusively. I'd love to hear your opinions or if you have been involved in a dual agent transaction, how it went and if you would do it again.

North Ave Bridge Construction Project

For those of us who watch the minutes of our lives tick away as we attempt to cross the North Avenue bridge, finally, it is being widened to four lanes and will remain open during construction. That's the good news. The bad news is that the project will not be completed until the very vague timeframe of Fall 2007. For the full details including what the new bridge will look like and all that jazz, check out the CDOT website.

Pets need homes too!

We all love our animals and they are undoubtedly an important part of our lives. More and more, people treat pets like family. I even call my 2 cats, Puc and LuLu, my children and have my parents calling them the grandkids. Anything to take a little pressure off! Puc and LuLu make me laugh, cry, and sometimes I want to wring their necks when they misbehave, but seriously I can't imagine not having them in my life. With this trend, more and more condos are permitting pets of all shapes and sizes to reside with their human companions, but there are still many condos out there that have pet restrictions or do not allow pets at all. Pet restrictions are not uncommon, especially in high-rises, and can vary from the maximum weight a dog can be to a maximum number of animals that are allowed. Periodically you run into a condo that requires a pet deposit and they generally don't discriminate between cats and dogs. In a highly unusual scenario, I even had a client who loved a particular building so much that he was willing to pay a $600/year fee so he could keep his cat. Now that's love! If you have pets or are thinking of making an addition to your family in the future, this is something to consider as part of your home search criteria. I have seen too many people search without this in mind, find their dream home and give up their beloved pet as a result. With so many pet-friendly options available in Chicago, there is no reason to make this sacrifice.

Buying vs. Renting

Over the last few years the rental market has been great for renters. There have been plenty of available units and even incentives including things like free rent. I even heard stories about landlords that reduced the rent so tenants won’t leave. It was great. It seems like those days have come to an end with a huge drops in vacancy rates. Landlords are increasing their rents as much as 10%. And remember the increases don’t stop after the first year. I know buying your first home can be a daunting process, but given the number of great properties that are on the market and still so low (at 6.2% for a 30 yr fixed at time of publication) it’s something worth seriously considering.

A couple benefits to buying vs. renting….
* Your payments will not increase on a fixed mortgage, but more than likely your
income will
* No one can tell you that you can’t paint your walls whatever color you want even if it’s
avocado green
* You’re now eligible for property tax credit, never a bad thing
* It’s yours all yours
* You’ll build equity in your new home that you’ll be able to use in the future
* It’s a stepping-stone to your dream home