Zidiculous

You might have heard of Zillow, the home valuation website. For many homebuyers and sellers, this has become one of the many stops on their real estate path. My own clients have even mentioned it to me on occasion and asked me what I think about it, including it's accuracy. I've played around with the site a bit out of curiosity and what I found was scary. While some Chicago condo estimates weren't terribly far off, others were clearly out in left field somewhere. I actually saw a three year old South Loop high-rise valued at $100,000 less then the original owner paid for it and it was only $240,000 to begin with. Zillow doesn't claim to be more accurate than plus or minus 7 percent which in real estate terms is a whole lot of money. Let's say that the home you're looking at is $400,000, plus or minus 7% is a whopping $28,000, so the home could be worth anywhere from $428,000 to $372,000. And that's supposed to provide a guideline as to a home's worth? I would be laughed right out the room if I went to a client with that kind of estimate! Another interesting twist to the values is the public's ability to add information about their home. I can see where this additional information would be helpful, but what concerns me is the objectivity of the homeowner, or lack thereof. It will remain to be seen if this kind of information will help or hinder the accuracy of the home values.

I guess the moral to the story is basically consumer beware. Admist it's disclaimers, it states that their Zestimates are not appraisals, but suggests that a buyers use them to avoid overpaying and sellers to arrive at the right price. Zillow could turn out to be a very helpful tool for consumers down the road, but until that day arrives, I wouldn't recommend relying on the data that's there.

Zillow home 'values' rile consumer group

Have you used Zillow? How did you feel about the accuracy of their information? Do you feel their disclaimer is appropriate?

Open Sesame

On a totally different note, check out these great articles on the new take on room dividers and ways to break up those open floors plans. In recent years with the emphasis on open, the living room, runs into the dining room, runs into the kitchen, runs into the office, runs into the bedroom, and on it goes. They can be great given the right space or a bit of a challenge. And don’t lie, I know there are those of you out there that are screaming, “give me my separate dining room.” Is it possible to have your cake and it eat too? I think so. I love the idea of making space flexible, and I’ve done it for years with screens and fabric. Now it’s easier then ever.

Divide and Conquer
High-style, low cost room dividers (Right up my alley and for those that are “commitment” shy.)

Photo courtesy of Industrial Revolution

Trumped Again

As if Trump Tower was talked about enough, the Donald makes the headlines again. This time it’s over the kiosk on Michigan Avenue, a ground level sales pitch for the new Trump International. As if it needed one, a sales pitch that is. Since some good gossip never hurt sales, Trump seems to have successfully “trumped” Alderman Natarus over this latest addition.



Can't get enough of Trump’s Chicago high-rise? Feel free to watch it go up via its construction cam. Wake me up when it’s 2009 (the projected completion year).

Photo courtesy of the Chicago Tribune

Boo Chicago!

Still trying to figure out where you're going to spend your Halloween? Check out these resources for the latest and greatest haunted houses and events throughout the city and the suburbs.

Haunted House Chicago - Search for haunted houses, check out reviews and even preview some local haunted houses.

Haunted Illinois - More haunted houses, hayrides, trails, mazes, festivals, etc. More reviews and the list goes on.

Metromix Halloween Guide - From parties to costume contests, it's all here.

Photo courtesy of Metromix

Turning up the heat....

So it seems the cool weather is here to stay at least for the moment. Have you turned on your heat yet? I broke down about a week ago when I was working from home one day. It was just downright cold. Ever since then, I've had my heat on and off, well, mostly off, except in the mornings when I just have to get warm. I'm already dreading my first gas bill, though I will say that they haven't been terrible. My husband is pretty handy so he puts plastic on the windows, etc, which seems to make a big difference. Looking for other ways to save on energy/fuel bills? Here's "low cost ways to save on fuel bills." And I love this article on energy myths.

Image courtesy of British Gas

Conversions: The new hot button issue

I think it's interesting that suddenly condo conversions are suddenly becoming the new political issue. During the housing boom of the past few years, who hasn't seen one rental building then the next being converted to condos. With the rental market being so soft during that same time period, it's no surprise. It was just like when Starbucks began to pop up on every corner, just drive a little farther and you'll find another one, either Starbucks of condo conversion. Take your pick. In my opinion, it was great to see some of these older buildings being converted, instead of just being torn down and replaced by yet another new construction project. I even watched as two new rental high-rises were converted to condos, one of which was still being constructed. It all goes back to the highest and best use that I mentioned in yesterday's post. As demand for new housing pushed prices up, you would always hear in the background cries over the loss of affordable housing in the city. Those cries suddenly have a new advocate in Mayor Daley. According to Crain's, Daley has called for a task force to study the loss of affordable housing in Chicago, and potential ways to limit its loss. Daley told Crain's, "We have to have something to offset condo conversions, at least partially." It's no wonder conversions are the new target. There were a record 3,965 conversions in 2005 alone. What I find humorous about the whole thing is that now rentals are on an upswing along with their prices. Will a city like Chicago ever be truly affordable? And what constitutes affordable? As the city continues to grow, it's almost inevitable that a lower priced area will suddenly become trendy and the prices will increase. It's the nature of the beast. Does that mean we shouldn't strive to keep housing affordable, no certainly not, but we do live in a country were price regardless of the product is driven by demand. With the market rebalancing, it will be interesting to see how affordability will be effected over the next couple years.

The NEW Chicago condo conversion

So are you looking for that perfect home right on the Chicago River? Well you have more choices then ever....Trump International Hotel and Condominiums, Riverview West, Solis Chicago Hotel Condominiums, and the list goes on. But the latest additions are not just new construction projects. It's the latest in condo conversions, and it's not rental being changed to condos. Welcome corporate headquarters to home sweet home conversion. More and more Loop office buildings are being re-zoned residential and being converted into luxurious homes, but don't expect them to come without the same hefty price tags new construction projects have. The latest potential conversion, according to Crain's is One IBM Plaza, or 330 N. Wacker Drive. IBM is moving to a new building on Wacker Drive and without it's anchor tenant 330 N. Wacker is in need of a new direction. Given it's architectural significance, it was designed by Ludwig Mies Van der Rohe, and it's prominent location on the river, it certainly isn't difficult to understand that someone will find a purpose for it.

There's a term in real estate, highest and best use. Basically it means that space, land or building if being used in a way that maximizes its potential. With a renewed interest in living in the Chicago's main business district, it's not surprising to see this emerging trend. There has been an abundance of vacant commercial office in the Loop in the past several years. Business have been moving into the latest and greatest high-rises or simply consolidating their existing space, and vacant spaces don't pay the bills.

Sounds cool, but can't afford the price tag? There are a lot of other great options all over the Loop, especially gut rehabs of some of amazing old architecture with all the modern amenities.