I have not changed these photos in any way. These are for a property that is currently for sale in Chicago and these are the marketing photographs that the listing agent uploaded into the MLS for publishing to the web.
Open House on Saturday from 11:00 to 1:00
Two beds from $255,000 and one duplex left for $325,000
Open house on Saturday from 11:00 to 1:00
1 bedrooms from $135,000
2 bedrooms, 1 bath from $155,000
2 bedrooms, 2 baths from $215,000
It has come up in a couple of conversations with clients recently, as well as a discussion during a recent office meeting, that buyers are asking about locating homes in foreclosure in order to get a deal. It turns out that they're not quite as easy to find as you might think.
First, one important statistic: Half of all foreclosures are occurring in six states. Those states are California, Florida, Arizona, Nevada, Michigan and Ohio. (CNN Money)
All the other foreclosures in the US are divided among the remaining 44 states.
A personal anecdote:
One of my buyers asks regularly about locating a foreclosure deal. Working at odds, however, is her desire to live in the Gold Coast.
Well, they don't call it the Gold Coast for nothing.
Most of the condominiums we have seen are for sale by sellers making a lifestyle choice, not out of necessity. Realtors showing us their listings in the Gold Coast tell how the condo is their sellers' second or third home; an in-town apartment or perhaps a former first home before relocating. Almost universally, though, no tales of woe or hardship. Some of these homes are also listed for rent. Some owners will simply keep the home empty or enjoy it for another Chicago Summer.
Some of our younger buyers are devotees of Robert Kiyosaki's and Sharon Lechter's famous book "Rich Dad, Poor Dad" which goes into great detail about finding the best investment deals. Invariably this leads to the foreclosure discussion.
Second important statistic: A foreclosed property is usually available for at least a 30% discount. Often more.
Third important statistic: There are plenty of foreclosures in Chicago. (Stats from RealtyTrac.)
The Catch: Most of our company's clients are home buyers and are searching for a place for themselves and their family to live. Take a look at the map of where these foreclosures are taking place (Map from RealtyTrac.) The areas with the highest concentrations are the south and west sides. But the buyers don't want to live where the foreclosures are; they are asking for traditional lakefront neighborhoods.
When confronted with these facts, some of these buyers stubbornly remain insistent. And homeless.
Another factor to take into consideration when pursuing foreclosed properties is the condition of the property. In most cases, the property is neglected. In some instances, ransacked.
The best condition I have ever seen of a foreclosed property was a condominium in an amenity high-rise in Edgewater. A small investor purchased a condominium in original condition and began renovating it in the hopes of fixing it up and selling at a profit. When the project took more time and resources than he predicted, he stopped making payments and the condo was foreclosed on. A buyer of mine who already lived in the building purchased the unit and finished the renovations.
Many foreclosed properties in Chicago are houses or small apartment buildings. If vacant, these tend to fall into dis-repair quickly. Our advice is that chasing deals on properties in distress is best left to the most experienced investors & rehabbers. A Chicago winter can be very hard on a building with no running utilities. Burst pipes, broken windows, vandalism are just some of the problems that foreclosed and neglected buildings are subject to. They're not 30% to 50% off for no reason. Even experienced investors can be surprised by how much time and money it can take to get a property back in good condition for renting out or selling at a profit. Cost overruns, improper planning, shortages of man-power or materials, and even City bureaucracy can stymie you at an inopportune time sending your finances into peril. It's all to easy to fall a few months behind schedule and a few thousand bucks in the hole and the property is right back in the bank's possession again.
Check with your local expert in your marketplace during the planning stages of your new home search. Even though foreclosures are everywhere in the media, they might not be so right where you're looking for your next property.
Fathers' Day 2008
Dedicated readers who truly have too much time on their hands, along with a few of my clients, have asked on occasion about the quote in my bio about “having real estate in my blood for my entire life.”
This Fathers' day post is a perfect time to look back at how it all started.
I think my earliest real estate development memories begin with our family building a new house across town from the first house I remember. My father and uncle each purchased lots in a suburb of Chicago in the early 1970's as potential investment lots or as the site for a new house. My uncle decided to sell and selected somewhere else to settle; my dad chose to build on his.
I remember this lot being one of the last undeveloped pieces of land in our town. It was quite a favorite play space for neighborhood kids. A city park was located only a block away, but I remember all the neighborhood kids playing on the lot rather than at the park. Perhaps it was the unkempt and uncontrolled nature of the lot. Though only 100 feet by 65 feet, at the time it seemed enormous – with a wild slope to the rear and even a dirt dune for climbing or BMX bike riding. It was regarded by the neighborhood kids as quite the tragedy that construction began on a new home on this treasured play area.
It was completely natural for my father to take both me and my sister, Jeanne (VP, Finance, Fancy Schmancy Downtown Developer), where we watched the whole process for the first time. Looking back, I distinctly remember excavation being punctuated by hours spent playing on bulldozers and earth moving equipment. It seemed like forever for the puring and curing of the foundation. Thinking back, this must have been the typical late fall pour before the winter, with a hiatus until the weather broke again in Spring. Framing was quite a marvel to behold.
Installation of major systems – electrical, heating, plumbing, each brought new revelations. Leftover junk became treasure – I collected punch-out slugs leftover from electrical boxes and saved them for years. The neighborhood kids warmed up to us as they were welcome to climb all over the construction as well as get to know the new playmates that would eventually move in.
At the same time as the house, Dad was also working on the first of four memorable construction events that I can recall. I am sure there were more, but the four were milestones in our childhoods.
First was a racquetball club in Westmont. The size and scale of this building was wondrous, what with nearly 30 foot tall ceilings in the courts and enormous glass walls for viewing. I can only describe the the interior as the ultimate in late '70's chic. Envision the décor influenced by both whoever imagined the set for the original movie version of “Hairspray” along with a healthy dose of modernism inspired by the Picasso in downtown Chicago. Shagadelic, baby! (Indeed, the vending area and lounge were finished with textured and patterned carpet that seamlessly scaled up the walls.)
Though I never saw our family name in the newspapers nor was anyone ever indicted for bestowing political favors, somehow my father became aware of the development and construction of what was Illinois Highway 5 which is now I-88 running roughly parallel to Ogden Avenue through the western Suburbs. Envisioned as the main artery for a High Tech Corridor, major technology companies such as Amoco Oil and Bell Labs were planned and built near major interchanges in Oak Brook, Westmont, and Naperville. Somehow dad know where and when the major interchanges were going to be located and bought up the parcels that he could afford.
Next door to the Racquetball Club in Westmont, Dad and my uncle developed a small office park. The small one and two story office parks in a landscaped setting that were all the fashion in the late '70's and through the 80's. I don't know if anyone goes for this kind of space anymore, but at the time was a perfect setting and product for the booming small business economy.
Next out in Naperville, Dad started on another, grander, racquetball AND tennis club (very exciting and innovative) along with a strip mall next door.
Today, the whole concept of a strip mall is quite routine. But back in the day, I remember that we were the landlords for a Chines Restaurant, a Quick Printer, AND a dry cleaner. This was quite impressive to me.
Dad and my uncle held onto most of these developments and managed them, but at some point during my High School career, Dad went corporate and took a job as a commercial appraiser for one of the downtown appraisal research firms. During my College years, I think the mini-empire was slowly sold off.
When I returned from the U of Iowa, we still owned the Westmont office park, and Dad had returned to working for himself. The brothers had sold the racquetball club to the Westmont Park District (I think it's still there today.) I went to work at the family owned commercial Real Estate Brokerage which was just breaking into Residential Sales. I think it was East-West (no relationship with Steve West, my current Real Estate partner) Darrow Realty.
The Naperville club was converted into an office building and I think the strip mall is still there. Oddly, these two are the smallest buildings around as the Naperville Road interchange on I-88 is home to some pretty famous corporate HQ's and is surrounded by towering hotel towers and mega-malls.
Shortly thereafter, Dad decided to close the residential brokerage and I located a job with a Relocation Company. The Relo company had me first in Lombard, then Naperville, Downers Grove and Oak Brook. At some point, I transferred to the Chicago office. It wasn't long thereafter that I switched to brokerage and have stuck with the same career ever since.
Dad retired to the Gulf Coast of Florida, and in keeping in character, started buying up land, lots and pre-consruction condo's in advance of the coming aging Baby Boomer migration to the south. I don't think I envision myself in the "Republican Riviera" but I certainly wish I sent some cash that way a few years ago...
Another fun widget from our friends at ChicagoCondosOnline.com. This widget displays the number of units sold in 2007 in each neighborhood of Chicago and its ranking.
Open from 11:00 to 1:00
2034 W. Warner & 6504 N. Seeley
Newly renovated condominiums from $155,000. Two bedrooms from $199,900
Open from 1:00 to 3:00
Wellington Park Townhome. Two beds plus den, two and a half baths, on four floors of living with a two car garage plus a two car driveway. Just dropped the price to $539,900 for a really fast sale!
This weekend brings a full schedule of fun things in Chicago.
Or perhaps you can avoid the congestion and street closures that accompany these festivals.
U.S. Air Guitar Championships Regional Finals - 9:00 pm at the Metro
www.usairguitar.com and also check out the Blog
Bike to Work Day Rally - 7:30 am at Daley Plaza
Chicago's Bike to Work Day website
Live music, free T-shirts, food and free breakfast for dedicated souls who ride their bicycles to work on Friday.
Not to be too much of a party pooper, but it IS Friday the 13th. And the weather looks crappy. Your guides are leading a tour of Rogers Park on Friday, so we'll be in the gas guzzler.
Resurrection Lutheran Church is proud to announce the 6th annual Wrigleyville SummerFest.
June 14, 2008 from 11:00 a.m.–10:00 p.m. on Seminary Avenue at Roscoe Street.
In addition to the bands and the Kids' Zone, plenty of food and beverages will be available, and many local vendors will be showcasing their products and services. We are proud to partner with Chicago Beverage Systems to provide Miller Lite, Miller Genuine Draft and Heineken beers this year.
59th Annual Old Town Art Fair - Just west of Wells & Lincoln and north of North Ave.
(Do not try to drive anywhere near here this weekend)
The tree-lined streets of Chicago's historic Old Town Triangle District will again provide a charming setting for the 59th Old Town Art Fair, the oldest and most prestigious juried outdoor art fair of its kind. Produced by the Old Town Triangle Association, this annual fundraiser benefits a host of local schools, youth groups and neighborhood preservation projects. With the support of more than 750 neighborhood volunteers, this year's Fair will be held on June 14 and 15 from 10am to 6pm rain or shine. The main gate is at Lincoln and Wisconsin Avenues. Requested donation is $7.00 ($5.00 after 4:00) ; there is no requested donation for children 12 and under.+Neighborhood parking is extremely limited. Public transportation is highly recommended.
43rd Annual Midsommarfest in Andersonville - Clark at Foster
For the Northsiders: Midsommarfest is one of Chicago’s most unique street fairs. Born out of Andersonville's Swedish heritage, Midsommarfest retains its quaint, international flavor. Old-world Swedish traditions, including a festive dance around the Maypole, are incorporated into an unrivaled array of entertainment for families and adults.
Another nifty widget from our friends at ChicagoCondosOnline.com that ranks Chicago's neighborhoods in sales and price. Remember that these figures are for condos and townhomes only (Type 2/attached).
Online viewing of Real Estate seems to be on the decline just as it has felt in the real world in the past few weeks. From a high of nearly 8,000 views per week, viewership seems to have fallen about 1/3 to approximately 5,000 views per week.
Viewing in person seems to have fallen off even more than the 30% drop off in online viewership.
At some point every summer, the level of traffic at open houses eases off about 50%. Throughout summer, we will still get good traffic from phone calls and Realtors, but curious buyers just getting started who are willing to drive around and explore different neighborhoods have their wish lists and goals focused by this time in the shopping season.
Stats from Realtor.com for 25 active listings.
When it comes to musical diversity, the 8th annual Jeff Fest (Jefferson Park Community Festival) on Chicago's northwest side pretty much has something for every taste!
Among the performers at the three-day event (Friday-Sunday, June 6-8) will be legendary British blues-rockers Foghat& Chicago party band Dick Holliday & the Bamboo Gang& good-time Southern rockers Heartsfield& the funk of TimePeace& the Latin stylings of Rico& and '60s music cover band The New Invaders.
In addition to music, Jeff Fest will feature food booths from the neighborhood's eclectic mix of restaurants as well as arts & craft vendors and activities for kids.
Lincoln / Damen / Irving Park Intersection.Two exciting days of food and fun! Two stages of live music with 20 bands! It doesn't get any better than this.
Kick off the summer at Ribfest Chicago! What started in 1999 as a community block party has exploded into Chicago’s most anticipated street festival. This hot summer event offers something for everyone -- rib aficionados can vote for the restaurant with the “Best Ribs,” not to mention, fest goers can also honor restaurants with a “Fest Fave” award (favorite food item at the festival) and “Hot Off the Grill” award (best overall griller). Love to dance in the streets? In true Ribfest tradition, we’re bringing you some of the best music you’ll hear all summer -- and won’t hear at other festivals! Bring the kids! Our famous Kids Square provides hours of entertainment for kids of all ages … allowing children to slide, climb, run, complete, jump, ride, sing and dance all weekend long. Ribfest Chicago promises to provide a memorable weekend of lively music, family fun and satisfied appetites as we celebrate ten years of unforgettable barbecue.
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