Eric's Chicago Real Estate Local

Bottom of the Chicago Market? Just some thoughts...

Eric Rojas (Rubloff Residential Properties) — Fri, 22 Jun 2007 20:18:57 -0700

Sorry for the tiny, somewhat weak rant here but...

We just had a little conversation in my brokerage the other day about the bottom of the market. It is also a common theme we hear from some "would be" home buyers... "I'll wait until next year, or, two years from now and get the same condo for half the price!"

Unfortuantely, it doesn't work this way. If there is a bottom of the market then builders will stop building and converting units... rent out their existing units or sell for a slight discount over the other sold units. Existing units in nice neighborhoods in nice locations with the best views and finishes will become more valuable as construction slows.

There is such a thing as buying at the top of the market. That may have happened to some over the last two years, but a home is a home. You bought it to live in it, not for the sport of the investment. You may build equity and rent it out if you have to move... or just stay put. Or, if forced to move fast without improving the home, some may lose a couple bucks (but this has been the case at almost any point in market history).

But in Chicago, good luck waiting for the bottom in the likes of Lakeview, Lincoln Park, Lincoln Square, Gold Coast, River North, Bucktown, Ravenswood and many other desirable neighborhoods.

You may get a re-sale, upper bracket home for less than people paid in 2005...this is a luxury buy anyway. But don't count on this for $300-$700K condos and single family homes in the aforementioned neighborhoods. They will retain their value because people have dozens of reasons to live here.

So buyers... don't expect sellers to do back flips for you if they live in one of the great Chicago neighborhoods. Don't expect that bottom to magically appear if you want to live in Lakeview on a tree lined street with parks five minutes in one direction and nightlife five minutes in the other. Oh, and work a 20 minute "L" ride away...

Keep trying to "game" the market ...and watching everyone else buy homes, build equity and move up to the next purchase.

Price ain't going nowhere for you. And I don't feel sorry for spec buyers either. I work with people who want to really live in this city and can't stand throwing away their money by renting crappy places. There's a lot of us out there.

Chicago ranks in the top three of a young, educated demographic swarming to any area in the country. I think only Sanfrancisco and Atlanta are in front of us. These are owners. So, the most desirable spots can only go up, while, there will be many collar neighborhoods around transportation that will benefit. Also, watch for three bedrooms and up becoming much more desirable as these young professionals stay and raise families in this desirable city.

New construction in Ravenswood pictured above

The North, South, East and West of neighborhoods in Chicago

Eric Rojas (Rubloff Residential Properties) — Fri, 22 Jun 2007 19:11:02 -0700

As the title suggests, there are not just Chicago neighborhoods, but four sides to every Chicago neighborhood. Man, people love their BLOCKS in this town, and sometimes name them too! Andersonville is no exception.

I have lived in Andersonville and the Ravenswood neighborhoods a couple times... currently own a home in NORTH Ravenswood. However, the whole direction thing hit me some time ago when I walked down North Ravenswood Avenue in Chicago. Therie were these sighs alond the parkway btween the street and the Metra tracks... West Andersonville Gardens. Here's a look:

I like a good walk, and these days a walk with my boy comprises most of my social life.

West Andersonville Gardens pictured here stretches from the 5100 north block of Ravenswood (at West Winnemac) to about the 5900 N block (at West Rosehill in front of The Fireside).

Well, the actual "gardens" probably do not make it all the way to The Fireside, but this stretch of road is a great way to kill some time and admire "going green thumb" in the city for real. And, I don't know... end up having a few beers along the way.

In fact, there are lot of great spots and stops along the West Andersonville Garden walk. Check out my fave The Ravenswood Pub. Many of my friends and I use to go to this place all the time back in the day for drinks, smokes, classic juke box... and a game of pool. Now, it's a great mix of old school VFW and modern bar amenities. Great specials and events. The bar owners are some really great people... people... so check this place out.

Maybe brunch at Paulines is your thing... or a glass of wine at dusk at Joie de Vine

Join the West Andersonville Neighbors Together (WANT) in planting days each summer.

The latest one is this Saturday 6/23/07!! I have to work.

Working hard on a Sunday in Chicago Real Estate

Eric Rojas (Rubloff Residential Properties) — Fri, 22 Jun 2007 18:54:12 -0700

Sundays in the biz can be brutal... here's a quick example of what goes on. And what it takes to be mentally and logistically on the ball. I really believe this career has made me realize, each and every year, how much can be done. The tough part is "turning it off", which many professionals deal with.

A lot of events, research, marketing, and planning go into pulling off a busy weekend. Clients have commented how they are surprised how agents synch things up. In Chicago, most agents, or their team member, is present for a showing. Trust me, this is much better... the client will get the whole story and be able to make an informed decision. But, it's not always easy to pull off.

Outside of showing appointments with a client, there is meeting and hiring contractors and cleaning crews for listing preparation, writing advertising, hosting our development open houses, showing my own listings, and researching properties for clients... this can all be done in one day. The challenge of being "out there" actually makes one very resourceful. If you can first be a problem solver for yourself, you can be one for clients:

A real Sunday...

Sunday in the biz

Sunday... 9:30am to 11:30am with a client looking at three bedrooms in the Lincoln Square, Northcenter and Ravenswood areas. We're going back for second showings at couple probables and one off-market condo we have not seen. I'm a particular expert in this market... three bedroom condos, duplex units and townhomes on the north and northwest sides of Chicago.

12:00 noon to 1:00PM... Drive to Bucktown, prep for an open house at a five bedroom, three and one-half bath single family home at 1845 Winchester. While there, I wrote up a listing agreement for a client's condo and organized the paper-work. It was a good afternoon and I spoke with a couple groups that were definately new construction home buyers in the $1.5M range that this house is in. I met another couple looking for a three bedroom condo in Bucktown for $450-$550K. We discussed some options and I look forward to working with them.

After the open house, I met great clients of mine for a walk-through of their single family home they are closing on in Lincoln Park. This has been a pain-in-the-ass negotiation and a good walk through was necessary to check the condition of the home. Looked good, outside of a minor refrigerator issue. The single family home was listed at $1,099,000. Watch for the closed price tomorrow!

After the walk-through, my clients and I met to go over their listing. I have to project manage the preparation prior to putting the place on market. Got them covered and up to date.

At 7:00PM, met back with my client (from the morning) to write an offer on one of the three bedrooms we saw earlier in the day. We talked strategy on and off throughout the afternoon and prepared the offer at my home.

12:00 midnight... writing this blog post. I'm sure something happened today in the world, but I only know what was going on in Northcenter, Lincoln Square, Bucktown, Lincoln Park and Ravenswood... not in that order.

Labels: Bucktown, duplex, Lincoln Square, North Side, Northcenter, Ravenswood, three bedrooms

Chicago condo inspection tips from the pros

Eric Rojas (Rubloff Residential Properties) — Thu, 10 May 2007 01:24:05 -0700

Chicago has a ton of new conversion and new construction condo developments. And they all ain't made alike.

I have several inspections this week of new and re-sale condos that my clients have purchased. One of the main reasons they decided on the homes is the good, solid feel the condos gave them. Its kind of an intangible, "This place just feels good". But that's no accident. You usually get that feeling from condos that were well constructed and have great layouts in general. When you look at 10 places and one just seems better from the moment you step in... it usually is better!

Yo Chicago contributer Tom Corbett offers up some things to look for when shopping condos. These indicators may help you decide one development or re-sale condo over another when you've narrowed things down.

I usually get a good feeling one way or another about a development pretty quickly. We like to say, "Don't let the flash of new appliances and counter tops fool you, determine if this place is solid and lays out well". We as in some fellow agents an me. Read Tom's article linked above for a list of indicators the pros look for.

My pet peave has been bad wood around doors and trim... it's the first thing I look for and advise my clients we may have an issue. Above is one of our developments in Lakeview... no crappy material here!!

Who's buying Chicago Real Estate? The needy

Eric Rojas (Rubloff Residential Properties) — Sat, 05 May 2007 22:18:32 -0700

So my new condo building "developer turn-over" meeting turns into a raging party Thursday evening (if I didn't answer your call or email... now you know). Turns out, everyone in our intimate six unit Ravenswood hamlet can GET IT DONE when you light up the bar-b-que and pass around the Peroni and Mondavi. I know, I know, Mondavi... it was a house warming gift. Even mom and dad (us truly) can still get it done.

During one of the rapid rounds of conversation, my next door neighbor asked me soemthing like "what you think about real estate now that things are going sideways". He meant, "things are bad, what are you going to do to feed your kid?"

Funny thing is, he asked this at a party (er... meeting) of six recent real estate consumers. Real estate changes my friends, but doesn't go away. In fact, it's as dynamic as you get.

I promptly let him know this is a career. Good Realtors, if you will, are not timing the market... jumping into real estate when the market's "hot" and getting out for a 9 to 5 when it's "not". Career Realtors know there are people that NEED to buy and sell a home every day, every week, every year. I mean this country is founded on property ownership to an extent (took Europe a long time to catch up... and they are still catching up). And those NEED circumstances are universal... never going away.

I know this because of the 16 hour days I work (weekends too) from January until October with a little get-a-way here and there. Just ask my kid. On second thought, don't ask my kid. He probably thinks I'm the handy-man stopping by the house once- in-a-while.

What am I getting at? Work with someone my broker calls a Career Realtor. The only timing we know is its TIME to get it DONE when you're in NEED of a home.

Read about MY need from my past column and my guy Geno

Chicago Stereotypes

Eric Rojas (Rubloff Residential Properties) — Sat, 05 May 2007 21:46:46 -0700

Live on the Chicago Transit Authority Red Line, Brown Line, Blue Line? This Buds for you.

Nothing is more lame then trying to spoof a Chicago stereotype to shill a product and not doing it right.

Who could forget the Old Style "Stand Up Comedian" spots during Cub games? They were almost enough to make me pass on an icy cold Old Style (almost).

But Bud Lite just started running "Mr. Apartment next to the L tracks guy" in their salute to Real Men of Genius series.

My favorite line in the jingle goes something like, "You asked your broker for a place near public transportation. How's three feet sound to you?"

I'm yet to see "Mr Apartment next to the L tracks guy" posted online, but HERE is a list of all the others to listen to.

Secret million dollar homes in Ravenswood

Eric Rojas (Rubloff Residential Properties) — Sat, 05 May 2007 21:32:53 -0700

Who wants to be a Ravenswood Millionaire?

Ravenswood is a North Side neighborhood in Chicago experiencing it's share of growth and appreciation. Six miles from downtown, Ravenswood offers many amenities you would like... public transportation, tree lined streets, parks, retail/restaurants, and a good mix of housing stock.

The historical boundaries are North Clark Street to the east, the Chicago River to the west, Foster Avenue to the north, and Irving Park Road to the south. Those new to Chicago generally do not have much knowledge of this area ...even though it's home to million dollar plus homes and half million dollar condos.

As an owner of a duplex condo in Ravenswood, I like to know how much gets you what on the street... and why. Not only as an agent, but as a guy looking for the next place for my family. We bought our current place to improve both our neighborhood and our living space for our needs. Ravenswood happends to be our first choice of Chicago areas to live in and I can see moving up to a single family home in a few years here too.

My invesitgations as a nosey neighbor have led me to several "off market" single family homes for sale in the $1M to $1.5M range. Two are my block and being sold "by owner". One owner is a real estate broker and the other... well, I have not met him/her yet.

So I got to thinking..., how many million dollar homes are available to buy in Ravenswood at the moment? A quick look at the MLS shows that between North Ashland to North Damen and West Montrose to West Foster there are eight active listings on the market from $1M to $1.5M. These do not count the unrepresented sellers or cancelled listings that may come back on shortly.

In the past year, only three homes on the MLS have sold for over a million, and currently, there are four homes one million and up under contract. However, there are surely more in the bunch that sold in development, privately or just were not recorded on the MLS (for instance, niether my last personal home sale or purchase are recorded on the MLS). It's good to have knowledge of a few of the "unrecorded sales" to go into battle with when negotiating a single family home.

The $1M to $1.5M range will typically get you an oversized lot, 4.5 beds, 3.5 baths and a 2.5 car garage. The homes range from new construction on smaller lots to homes that need a little work on double lots. There are no homes currently priced over $1.5M for sale... but there is one under contract with an asking price of $1,568,000.00. In the past year, the highest priced home closed at $1,450,000.00.

Balcony almost kills deal

Eric Rojas (Rubloff Residential Properties) — Sat, 05 May 2007 21:10:56 -0700

The Balcony: Condo Association or Owners?

"Who's line is it anyway?" is a terrific comedy improvisational television game show that features "players" making up lines and actions depending on one theme. Say you throw out "new home buyers in Chicago" and the players make up a hilarious scene of bumbling through the home buying process. Maybe Al Capone is your Realtor... you get it? Hilarious.

But when it comes to common areas, limited common areas and your condo unit's repairs and maintenance you don't want to hear; whose line is it anyway? As an owner, you want to know who has the responsibility, what are the resolutions, who are the players when it comes to issues concerning your condo building.

I recently listed and sold a re-sale condo in Chicago's Ravenswood neighborhood. When gathering information from the owner about the building and her condo, she disclosed the management company indicated there was a balcony violation and they were taking care of the issue. The violation was stated in the meeting minutes as well.

However, it was not determined what the cost was and how the association and owners were to pay for it. In fact, no one knew clearly how this was "taken care of". My client, the unit owner, was not directed by the association Board or building management that she was responsible to pay any special assessment, nor had this issue been voted on by the association Board at the last Board meeting.

Unfortunately, no one seemed to take the lead in this case and my client (plus me and our attorney) were sent scrambling to provide the correct information to the potential purchaser of the condo. This delay in information concerning the repairs, and who would be responsible, jeopardized the sale of the condo. We eventually received an estimate of repairs at the eleventh hour, and my client graciously provided a credit for the estimated amount at the closing table.

Why did this have to happen? Several reasons: First, the Board upon learning of the violation from the condo management company did not clearly order the management to take action and give them a deadline for resolution. Secondly, the management company, although a professional and legally bound agent to the association Board, was less than proactive in directing the Board in a resolution to the violation. They are the pros... they should get all over it in the interest of the condo association. Third, the individual unit owners with balconies accepted that the Board and management company took care of the issue. Problem was they assumed this for six months!

To avoid these issues of mismanagement, you have to be involved in your building and know who the players are.

1. The Board is the most important piece. As an owner, if you serve on the Board or not, you must insist on regular Board meetings and attend them when possible.

2. If you have a management company, they must be proactive with advice on running the building effectively. They are the pros and there are good managers out there. Call me for recommendations.

3. The Board must meet in a manner proper to the by-laws and make the tough decisions. Certain decisions are the domain of the elected Board and some will require a certain percentage majority of entire ownership vote.

In the case of my last listing, both the Board and the management should have been more proactive in their efforts to resolve the balcony violations. Secondly, depending on the total cost of the repairs it was up to the Board, and possibly the individual unit owners, to vote on how to pay for the balcony repairs. The balconies are a Limited Common Element. They are covered by the common insurance of the building. Repairs to the balconies do not necessarily solely fall on the individual unit owners that have private rights to the Limited Common Element balconies. The Board and unit owners could vote to subsidize the repairs with reserve funds, assess a special assessment to all unit owners or decide the individual unit owners that have rights to the balconies should pay the full amount.

The Board, management and unit owners can't point fingers and ask, "whose line is it anyway?" They must resolve this problem in accordance to the by-laws of the condo association. If you don't know who is responsible for what, retain a condo association attorney to advise on such matters.

Three bedroom condos in Ravenswood and Bomanville

Eric Rojas (Rubloff Residential Properties) — Sat, 05 May 2007 21:04:12 -0700

Three bedroom condos with all the features you want? Must see Ravenswood and Bowmanville

In a city like Chicago, as in most city I suppose, there is only so much you can get in certain neighborhoods. Renting a one bedroom and want to buy a three bedroom? Here is a common scenario I run into when meeting upwardly mobile, but first time buyers, in Chicago.

Recently, I have been working with several clients looking to move up into a three bedroom home. These particular clients have lived in the Lakeview and Lincoln Park neighborhoods for the past several years. Now, they would like a place in the city where they may start a family, or, at least a home they know they won't out grow in less than five years time.

Does this sound familiar? "We'd like a three bedroom, two bath condo with at least one parking space. It must have good outdoor space, be close to a train down town and dog friendly. We'd like a place for a formal dining table and
we don't want to do any work on the place. Our budget is up to $400,000."

Ravenswood and Bowmanville, within the designated Lincoln Square boundaries, are a must see if this is the type of place you want. I write about this area often due to high the quality of life, proximity to the Damen and the Montrose Brownline stops, the Ravenswood Metra station, parks, and proximity to the Lincoln Square and Andersonville enetertainment and retail districts. Plus, Ravenswood itself has seen many successful coffee shops, restauraunts and bars along Damen, Wilson and Sunnyside and Lawrence streets. Perfect Cup for coffee, Over Easy for brunch, Sabor a Cuba, Caro Mio and Spacca Napoli for dinner... these without even walking a few more minutes to Clark St, or Lincoln Avenue for many, many more choices.

But specifically, this area offers the best option for three bedroom condos for just under or over $400,000. Just this weekend I viewed two listings new on the market: one at the 4800 block of North Paulina and one at the 2000 block of West Farragut. These were large three bedroom condos with everything you could want. Located very close to the Metra train stop and under 3/4 of a mile from two Brown Line stops. Basically, I was impressed with the location and condition of the homes. Very usable floor plans, parking, exterior storage, and large common living spaces. Master suites and nice decks...both on quiet residential streets in small buildings. These condos were priced at $399,000 and will sell quickly close to that price (depending who is negotiating for you!).

There are also new construction three bedroom units available closer to the Lincoln Square hub for the very low $400s. These are larger buidings (24 to 32 units) but do include garage parking. There are three particular developments at the 4900 block of North Western, the 2200 block of West Lawrence, and the 5057 N block of Lincoln Ave. that may be purchased pre-construction and will deliver eith later this year or early 2008. Getting in now means buying the best placed units and negotiating the best upgrade packages... once a certain number are sold and the building proves hot, the deals go bye bye!

Just a few observations from this past couple weeks. If looking three bedroom homes in the best neighborhoods for $400K, Ravenswood, Bowmanville (and even Lincoln Square for a little more), are true considerations.

The CTA and the Chicago Cubs have conspired against me

Eric Rojas (Rubloff Residential Properties) — Fri, 16 Feb 2007 01:22:54 -0800

The Chicago Transit Authority has announced it will "flood" (Tribune's words) the North Side with buses to accommodate the reduction in commuter train capacity. The CTA will have to dramatically scale back capacity by a third as a part of the ongoing rail renovation, expansion and accessibility plan.

Great. I've discussed by sensory disgust with buses in the past... so the prospect of more of them on the roads during rush hour times is a kick in the you know what.

Can you imagine two, three, four buses stopping to pick up passengers on the same corner... one after another? Yes, that was a shiver down your spine.

Read this story and others discussing the decrease in train capacity at the Chicago Tribune. If you have not already done so, please register at their site to receive the content. Good real estate and commuter coverage.

Call or email me now to go look at homes near the Metra stops around Chicago... or for a good bicycle shop.

In totally unrelated news, Kerry Wood injured himself getting out of a hot tub in spring training. I can't take this.

Buy a multi-unit

Eric Rojas (Rubloff Residential Properties) — Wed, 14 Feb 2007 00:32:11 -0800

The great thing about Chicago real estate is the variety of housing stock. Highrise, bungalow, condo, mid-rise, multi-units. Depending on the tide, you can spread your purchase dollars around.

The Chicago Tribune Real Estate section ran a story about buying multi-unit buildings for investment. The gist is, rents are pretty good again so multi-units offer a good way to invest in real estate. Several local real estate heavyweights were tapped for advice (somehow I must have missed that call).

I was pleased to read this advice... if you are not handy and will not do the work, it will be hard to make the numbers work on the investment. Everyone with real estate dream forgets this little fact. Also, unless your planning to leverage more than 20% in Chicago, it will be tough to make the numbers work for two or three flats. The focus was on 5 plus units in the suburbs for today's investor and market.

The two flat is still a great choice for moving to an area you may like in Chicago. A renter can still help you qualify for the property and you have the option to convert or expand the property in the future. For instance, convert to a single family or duplex- up and duplex- down the units to increase rents and value of the property.

For income, the more units the better... and buy it in the suburbs.

Early in the home search?

Eric Rojas (Rubloff Residential Properties) — Tue, 13 Feb 2007 23:06:20 -0800

In my day to day business habits, I come across many real estate consumers. I directly contact those who register on our Chicago Home Estates brokerage web site. Many walk right up to me at an open house. Several mention they are looking when the conversation turns to real estate at a cocktail party. The conversation ALWAYS turns to real estate in Chicago. There are people who call our office from a for-sale sign. There are several commonalities in their responses at times. The most uttered is, "We are early in our search". It's almost as if they read some "how to talk to Realtors" guide.

When is it time to actually look at a homes seriously? Not this Internet stuff (although a great start)... but actually go into a home. I encourage many I come across to get out there... now.

No matter your situation, if you are curious about owning a certain type of property, it pays to look at the real deal. Walk into condos, single family homes and two flats in different neighborhoods such as Old Irving, Sauganash, Avondale and North Park. I also suggest having me create the schedule and attend the targeted appointments. You may not get a realistic picture by just popping into available open houses from time to time. It also helps build trust in our working relationship if we start early on, and not last minute.

This is probably most beneficial for single family homes and multi-units. If you have not owned these types of properties or do not know the areas available in your price-point, physically looking them early on will help you plan and warm up to the idea. Many of my clients did not realize they could get the house they really wanted if they bought well below their budget and fixed it up before moving in. They needed to get out and figure out what this would cost and where it was worth making this type of purchase.

If you own a condo and will need to move up to a bigger space, it will benefit you to take a look- a real look- at your options early on to start planning.

Lakeview to Uptown to Andersonville to Lincoln Square...and what I ate (or, The Realtor Diet)

Eric Rojas (Rubloff Residential Properties) — Tue, 13 Feb 2007 22:49:51 -0800

For anyone who looks at a Realtor as soft... who looks at the the career of a Realtor as a cush job... here is a little insight.

Each weekend I tell myself to prepare so to avoid the following scenario. I use to be in great shape before this career! I'm back in the gym, but the diet and eating habits need a boost!

Was out with a great client Saturday... before leaving the house at 8:30AM, I had a bowl of Mini-Wheats.
Met at Julius Meinl in Southport Corridor and had a mocha. After showings with my client in Wrigleyville, Uptown, Andersonville, Ravenswood and Lincoln Square, dropped off open house signs back in Wrigleyville, booked into the McDonald's on Clark and Addison for a six piece Chicken McNugget and a medium coffee (two creams, two sugars. Great coffee).

Left the open house and ate a Jewel brand raspberry cereal bar while picking up signs. Darted back to the office to drop off keys. Ran to the White Hen for a banana, two hard boiled eggs and an orange juice...proceeded to email clients open houses and listings for Sunday.

Left the office at 7:00PM

Geez.

Chicago Condo Contracts

Eric Rojas (Rubloff Residential Properties) — Thu, 08 Feb 2007 23:18:36 -0800

Everyone knows that they want a condo... and mostly what kind of place they want. They don't always know what kind of money gets what and how to get into the condo once they find it. That's my career description (that part about knowing... not the part about not knowing).

Once we have the where, what and how much pinned down, I whip out a contract (look out!). Actually, theri are two kinds of contracts in general when buying a condo.

1. The Chicago Association of Realtors/MLS Condominium Real Estate Sale Contract

2 The builder's contract

The first contract is used in most re-sale condos and town homes. It is a template contract developed so Realtor's can "fill-in-the-blank" without practicing law. I won't get into the history, but the State Bar Associations had much to do with the formulation of this standard. There is also a "multi-board contract" that suburbanite Realtors and agents will use when trespassing on my turf. Both are just fine.

The contracts include these customary and important terms in a Chicago real estate transaction. In a nutshell:

Address and parking space
Date of offer
Price
Personal property
Financing terms and contingency
Earnest money
Closing
Taxes
Possession
Disclosures
Agency
Attorney modification and physical inspection
Addendums and riders
Client information

Now, that was just a quick run down. Some deals may require extra, special forms and a whole list of addendums I'll attach to the contract. The way this puzzle is put together is what keeps me in this career. This, and the working all the time part, if you like that sort of thing.

The "Chicago" contract also is written in a way that protects both sides in the transaction. Each clause is plain as day (after we explain, but not advise, each clause). Each clause lays out the responsibility of the purchasing party and the selling party. Sounds like a great party to me! Although a template... not all deals are the same. So make sure you have someone experienced filling this out. If it's a new agent, they should bring in a heavyweight. No harm or embarrassment in this... you want a smooth process and the brokerage should help the new guy.

A builder's contract will typically be used in a new construction or new converion development.
The builder's contract may contain all of the above or very little of the above. It is prepared in the developer's favor in general. This is not sneaky... it's just on their terms for their risking the housing development. Most builders' contracts are well laid out and include many buyer protections and warranties. Some do not, and, can be a bit ridiculous in their obligations.

Just tonight a new agent asked me to take a look at a builder's contract before he sat down with clients. The contract explicitly indicated that the unit was sold "as is" and did not have any warranties. This is an area the client needs to be made aware of by the agent and should take up the issue with a good real estate attorney during the approval period.

Long story short... I like to bring up all the steps of the buying process with my clients and potential clients right off the bat. Have you discussed mortgage financing with a trusted banker, mortgage broker or credit union? Are you familiar with the earnest money procedure? When do you need to be in a place? And, "As long as we are out at showings, let's talk about the steps in a sales contract... because I think you're going to flip over this next one".

Remember... this isn't meant to be pushy. You're gonna need to know this stuff and I'd rather you hear it from me early on. All the above questions pertain to the sales contract. After all this teeth pulling, you'll work closely with a good real estate attorney before everything is signed off. A good reading, writing and explanation of the various contracts will make the process surprise free.

Going from A to Z with first time buyers

Eric Rojas (Rubloff Residential Properties) — Thu, 08 Feb 2007 23:12:22 -0800

With many clients jumping on deals this early spring (including myself), one notices certain similarities amongst clients... They don't know how to take that first "step".

What do we do once you've found a place? Before my wife and I bought our first home in Albany Park, just west of Ravenswood Manor, we didn't have a clue what was involved in the first stages of purchase process. Information and education is king, however, and once our Realtor Julie Varones (now my associate... we'll I'm her associate) simply laid it out for us, buying became a very real possibility. Then, when we found the condo with all the fix'ns, we jumped. Photo by Eric Rojas

So, clients, when we get out on the road, I like to ask right away..."Do you have a good grasp of the buying process?" If not, I want to alleviate that anxiety before the $350K duplex -down with three beds, two baths and a garage spot comes up in Lakeview or Lincoln Square. This probably won't happen. But if it did... don't you want to jump?!

In a nutshell, once you have your budget figured out with the help of a financial professional and mortgage broker/lender, you'll start looking. When the right Bucktown condo comes up near the Blue Line you will be confident you will have a mortgage ready.

We basically grab a standard Chicago contract (read my last post) if it's a re-sale and put the offer together. You will submit an initial Earnest money check of $1,000 to $3,000 to hold the condo if your offer is accepted. The money will be eventually applied to the closing costs and down payment if any.

By this time, you will have your lease situation figured out (buy-out, sub-lease, month-to-month) or have listed your property with me (and sold it if needed). But the point here is, together we've prepped you to make an offer so the when the right deal formulates, you can act. That act starts with making a written offer with the purchase terms you are requesting. That's the step... that's it.

Is Parking Included?

Eric Rojas (Rubloff Residential Properties) — Thu, 08 Feb 2007 23:07:34 -0800

Recently, an Internet client of mine asked a great question. To paraphrase, she was wondering why a listing indicated no parking, but then showed 1 or 2 in the parking space by-line on the listing. Why does it say no parking, but then list a space?

Many listing agents will do this to indicate there is some form of designated parking available... somewhere. Maybe there is a transferable rental spot or rental lot. Sometimes listing agents put in the space when there is Chicago zoned permit parking on the street adjacent to the property. This drives me crazy. Nice to indicate it in the remarks... but to indicate there is parking in the listing? Geez.

Which brings me to the next topic... how valuable is parking and should you only buy a place with parking included?

The answers: Very valuable and no.

Clearly it depends where you live. Lincoln Park and Goldcoast locations can demand $30K to $50K plus for a deeded parking spot. Lincoln Square and Lakeview can be $10K to $20K generally. In Ravenswood, a parking spot easily offers an extra $15K to $20K in value as the area grows in popularity and luxury condo conversions have increased in price.

However, if you get a nice deal near transportation and you take the CTA, you may find you can pass on the parking. Why skimp in size and amenities of the home when your car will be sitting in the street 75% of the time? Please, no calls when you can't find a spot on that one crazy snow storm we get each year. But hey, it's one snow storm and what doesn't kill you makes you stronger. And guess what? You may not own a car!

Back to the question of parking. Let's just say there are many ways to look at your next home purchase. In hot markets like Chicago with desirable locations, something has to give. Parking may not be the sacred untouchable that you initially felt it is.

When putting the condo buying puzzle together, keep an open mind. If not parking... then maybe that second bath?

401(k), 403(b), stocks, you and me.

Eric Rojas (Rubloff Residential Properties) — Fri, 26 Jan 2007 23:44:07 -0800

401(k), 403(b), stocks, you and me: Financing your mortgage

Todays Tribune real estate section featured a great article about using securities accounts, 401(k)s and 403(b)s as financing options for home purchases. For instance, one can use these accounts as an equity line with various payback requirements. This is no way condoned by the author of this here blog or the Tribune's contributer Marilyn Kennedy Melia who wrote the story. But it is a valid option, or temptation, for those with much of their equity and net worth tied up in these vehicles. The only cash you have may be in the 401(k), 403(b) or a securities account.

Look, everyone is looking for all kinds of ways to use OPM (other people's money) and paper gains to leverage real tangible purchases. And it's just damn hard for working stiffs to afford Lakeview. But before you borrow from that 401(k) account to put money down on a house... please see a good CPA who is versed in these retirement plans and financial planning in general.

Hopefully, you've read the short story linked above by now and can now imaging the following scenario. Or like me, have been here before. You want to buy your first place. You dilligently contribute 5% of your paycheck to your 403(b) retirement account used in the health care industry (your job). Your allocation of this account is mainly small capital equities and they have performed well. Your company generously matches the 5% contribution. At the same time, you pay $750 a month in rent (your share), half utilities, car payment, party and travel fund (come on, your maybe 27 by now), taking out your girl, guy... whatever your into, clothes for work, cell phone etc... you get the point. You have no cash.

But, you have $30,000K accumulated in your 403(b). It's been five years since you enrolled in the plan and this will be your first home purchase. The rules dictating your account allow you to borrow from the amount you have in the fund for your first home and pay yourself back the principle and interest. The cash will allow you to qualify for a mortgage. Should you buy the condo or house if this is the only way you can finance it?

I'm telling you, there is a lot of people out there faced with this decision. My wife and I decided not to borrow against the account we had. This was due to the fact interest rates were low on the 100% financing products we were qualified for, we felt the employer match plan of the 403(b) we had was performing to well to mess with it, and we had a rightful expectation of increased income in the near future. So, we could skimp by on our first place without borrowing from the retirement account. Fortunately, we were able to pound down the ARM we had with the increased income and were left with 85% of our loan at a great 5 year fixed interest rate. Whew!

Just take a good look at your financial habits with a qualified CPA before you go messing with this stuff. If your values are really geared towards getting you in the right neighborhood and you demonstrate fiscal responsibility, creative financing can work.

What makes a Chicago neighborhood hot?

Eric Rojas (Rubloff Residential Properties) — Fri, 26 Jan 2007 23:36:24 -0800

Albany Park... Not so Hot

Crain's featured a short little story about neighborhoods that haven't "popped" and heated up as thought. Albany Park was on that short list which is a little upsetting... guess where I live people. Anywho, I really hate those hit and run articles... so let's add a little context here.

Albany Park owners have been pleased with an appreciation of 10-12% a year on the average during the housing boom. As a Realtor, I can honestly say I'd get at least 15K more for my unit than I paid for it a over two years ago. Crime is down, green space up and access to transportation, universities and the highways are eye openers. Plenty of local stores, restaurants and ethic flavor... if your into that kind of stuff. Real close to Ravenswood Manor and my wife and me (I?) walk to Lincoln Square from our place (about 20 minutes through some beautiful areas) for exercise and to hang out.

There is no doubt that there is a growing amount of condo stock available. One of the problems is many of the larger conversions are of the blahhhh type. The units do not feature decks, parking, outdoor space etc... The finishes can be nice but the developers are hit or miss.

However, I would argue that the well done conversions and smaller condo buildings that feature good outdoor space or parking are selling well--and at ever increasing prices. New construction buildings that line West Lawrence Avenue west of California Ave have sold briskly at the $320-389K price points (on Lawrence!!). I believe town homes on the river and Lawrencewent for $450+ well over a year ago. Many younger couples and families have bought multi-units and single family homes too. In fact, there was a rush of two-flats that hit the market this past spring. My neighbors bought a three flat next door to my conversion and will make a killing whenever they sell.

It will be interesting to see how the many conversion units play out. I'd like to believe the fact that since home ownership is increasing due to condos in the area, it will help the price of my place... one of those well done units with parking and great outdoor space. My philosphy has been, you are competeing with comps to your place, not the great number of less desirable units on the market.

As for the area, how would it become hot? We do need our own cluster of modern bars and restaurants. Grocery shopping (major chains and independents) are pletiful, but boutique shops remain very ethnically orientated. The main commercial strips and some side streets feature too much trash and occassional riff raff. That part will have to change. There are many low income rental buildings that do not scream HOT! But, the area is stable and as safe as any in the city. There is more violent crime and sexual assault in Lincoln Park (sorry Lincoln Park).

Overall, the patch work of green space and infrastructure is well laid out. And the proximity to treelined streets and neighborhoods that have already "popped" make Albany Park a heavy hitter for first time buyers and those looking for a house or multi-unit. My wife likes the "AP" as we call it... and living here doesn't stop us from living/working/playing in many Chicago neighborhoods.

I wonder what would be considered hot, if and when, hot hits?

Hey brokers and lender... weigh in on incentives

Eric Rojas (Rubloff Residential Properties) — Fri, 26 Jan 2007 22:38:47 -0800

Mortgage 101: Preferred lenders and builder's incentives

We've seen it a million times (and when I say WE, I mean me). Maybe you have seen it. A builder of a new home subdivision, condo building, or new condo conversion offers incentives somehow based on the preferred lender. "If you use our in-house lender when buying our condos, we'll throw in a spice rack and matching pot holders for free!".

This may be an overt promotion, or some guy sidles up to you at an open house suggesting you use ACME Lenders. Yes, the same ACME Lenders from the Roadrunner Cartoons. But their rates turn out to be higher... so you don't want to use their lender and you lose the spice rack and the potholders... and you are sad.

Kenneth Harney's latest cloumn explains the difference between "tie-in" incentives (those incentives offered by a builder only if you use a preferred lender), and regular incentives... which are just fine. Tie in incentives are illegal when they prevent competition.

The preferred lender needs to be defined as well here for clarity. These chaps are okay too. They have struck a deal with the developer and/or brokerage to sit at the open houses and offer you special rates. Sometimes the preferred lender does not have anything particulary special, but just has a solid working relationship with the brokerage- and first crack at those consumers walking through the door.

There is nothing wrong with using a preferred lender for a particular development. Just shop around. The rate isn't everthing either people... you need to make sure the broker/lender is competent... what's their track record? But if things check out okay, the preferred lender can sometimes offer awesome deals, such as $3000 towards your closing costs.

How? One example is a recent new condo conversion at the 4600 block of South Drexel in North Kenwood. There is a TON of action in this area just outside of the historic Kenwood Mansion District and Hyde Park, home of University of Chicago (or Chicago, as they were trying to be called... like Princeton and Harvard and... Cher, Madonna... Yanni. You get the picture). The developer paid very little for the building itself and is charging better than very little for the condo units. So, they have a little leverage to bring on a preferred lender, who may offer $3000 towards your closing costs. They may be cutting each other deals to better market the property, and you benefit from the competetive incentives.

Note, however, the builder is not offering upgrades only if you use the lender...they are just say, "use this lender and get $3000 towards closing costs. So make sure when you see one of these "deals", that the builder's incentives are not predicated on using the specific lender.

Finding stuff in Chicago...a series

Eric Rojas (Rubloff Residential Properties) — Fri, 26 Jan 2007 22:25:50 -0800

Find a bar, restaurant, theatre... bar! Interactive map

I was perusing the Chicago blog scene and came across this interactive map at the Chicagoist site. The map allows you to select an "L" stop for a drop down list of amenities. Really cool. I'd be wary of the updating, but gives you a great sense of what type of neighborhood straddles each stop.

It's like that guy on PBS who travels Chicago by the "L"... expect you don't have to watch the whole part about Chicago's meat packing history to find a bar in the West Loop. Just click away.

For Chicago neighborhoods... it's all in a name

Eric Rojas (Rubloff Residential Properties) — Fri, 26 Jan 2007 22:21:15 -0800

The West Wilson Corridor: Chicago's North Side

What's in a name? In Chicago the short answer is: Everything. People identify themselves not only by their neighborhood, but by their block... and their street... and their building! You just don't live in Lakeview, you live on Seminary Street, or Halsted or on Lake Shore Drive. Not just downtown, but in the "Legacy".

Names of neighborhoods have been broken down into mini communities... sometimes within the same four block radius. One good example in Chicago is an area in western Uptown from Montrose running north to Wilson. "Malden" and "Beacon" streets have a sub-community within Uptown where a Chicagoan would know exactly what they are referring too. It's like saying "Michael" in Chicago... only one guy comes to mind (if I have to tell you, you're either not a Chicagoan or not a basketball fan). Say "Malden" and we know where you're at... to the block!

For the outsiders... think MAG MILE. This is in downtown... but you don't say I want to go downtown, or I want to live downtown. You break it down to the Magnificent Mile. I mean... you could end up in Streeterville, South Loop, the Loop, West Loop, River North. Be specific please. So, it's this need to identify areas with lifestyles that leads us Realtors to get specific... and get creative. The latest greatest incarnation that has really stuck in the last few years is an area referred to as, "Southport Corridor". If Madonna lived on the North Side of Chicago, it would probably be on Southport.

I'm throwing in my hat! Yes, a new -buzz-catchphrase-says-it-all-hot-hot-hot neighborhood name to market my properties. I've never invented anything! But here it goes, my coining of a phrase if you will... The Wilson Corridor.

I will begin to market and sell listed properties along West Wilson Avenue as the "Wilson Corridor". That's the sound of fire catching, of the phrase hitting. Of marketing genius.

The Wilson Corridor consists of these boundaries...North Ashland Avenue (1600 west) to North Kedzie (3200 west) and West Montrose Avenue (4400 north) to West Lawrence (4800 north).

All kidding aside (and I'm not), this stretch offers a laidback, tree lined, pleasant existence. The entire stretch is close to many Brown Line stops (one Metra stop) and offers close proximity to restaurants, theatre, music venues, shopping and parks.

The price and housing stock varies greatly. You can get a one bedroom condo near the train for under $190K on a nice street in Albany Park. Or, you can buy a $2 million dollar estate that nestles the North Branch of the Chicago River on an extra wide Chicago lot in Ravenswood Manor... these two properties only about 3 blocks apart. Take in the action of the Lincoln Square strip, located directly in the middle of the Wilson Corridor. This stretch rivals any in Chicago for entertainment, shopping, dining and recreation choices.

New construction is starting to dominate the main arteries of Lawrence and Montrose. This while total gut-rehab condo conversions have slowly compounded over the last ten years in the interior grid of pleasant streets. Houses have had make-overs... some torn down to make way for a new born. But here too, the stock is diverse. Mainly, there is a colonial look to the style of homes, with a good helping of grey stones and a spattering of contemporary... but not too contemporary in these parts.

I will add a few entries describing the several moods in each pocket of the Wilson Corridor over the coming days. It would help if I solved my Blogger sign in problem on my home PC, but alas, I'll have to post from the office until then.

I love to take new clients here looking for a little more space than Lakeview or Lincoln Park to this stretch. Many easily find a new home here, even though they had never before crossed Irving Park Road.

Chicago has a Northwest Side according to the Chicago Tribune

Eric Rojas (Rubloff Residential Properties) — Thu, 18 Jan 2007 10:37:54 -0800

Discover Chicago's Northwest Side

The above title sounds innocent and pedestrian enough, but you should know me better.
The Chicago Tribune ran a story concerning the religious epiphany many soon to be buyers/home owners are having; there is a Northwest Side to the city. However, the story misses the boat on where it is really happening and hops to some neighborhoods that will be a tough sell to a Lincoln Parker or Lakeview aficionados. These of the home buyers the author seems to be suggesting are moving to the "sticks".

The author of the story more realistically alludes to the corridor of West Irving Park Road west of North Western Avenue (say that three times fast!). The story mentions a few developments. Several at the not- very-far -out locations sprawling from the 2700 block West Irving Park Road to the 3300 block west (the later apparently is considered a dream by the young buyers in the story). My favorite quote from one of my fellow Realtors describes the 2700 block of Irving Park Road... making it such a paradise that "you don't even know you're in the city"... except that you live on Irving Park Road.

Now, I consider myself the Northwest Side expert in our brokerage... pushing the boundaries of our Lincoln Park office. I was born and now live on the Northwest Side and giggle a bit when 2700 West is considered "just in reach". A couple more observations for the reader of this story...

The Irving corridor has developed past Western Avenue and I agree that this should be on the radar. But new construction heading out all the way to Pulaski will still cost you (in most cases) 309K and up exponentially for two bed, two baths with parking at about 1200 sq/ft. This stretch is terrible for train access, so plan on taking the bus. You have to live all the way up in Old Irving around 4200 West to catch a train, and there is little condo stock here. I did sell my clients a three bedroom two bath, 1800 sq/ft awesome rehab in a three flat (super rare) on Keeler. But the units that make it worth pushing out there are still $350K plus and must be near the train.

The single family houses, move-in quality around the train, start at $450,000K and will need some work. Nice place though, if you want a nice single family home for $500K and-up to settle down- but still live in the city near hotter neighborhoods. Not much to do as far as retail/restaurants, but the parks are terrific.

The story completely missed out on Lawrence Avenue heading west from North Western Avenue. This is farther north than Irving Park Road (so should fall in the boom of the great Northwest Side) and one of the more interesting transformations in the city. This stretch all the way out to Kimball (and a few blocks west) offers access to the Brown Line along with buses and easy out to 90/94 if you need it. It's here that you are seeing the greatest amount of conversions and new construction, combined with a ready made retail/entertainment district that can extend from Lincoln Square.

Lawrence Avenue from Lincoln Square through Albany Park, and the surrounding blocks, has the most amount of development... stretching all the way to Jefferson Park.

My take... just try to get a Lakeview or Lincoln Parker looking to buy a condo to push out to Norwood Park! Sorry Norwood Park. Basically, the Tribune article makes a good point... condo developments happen West of Western and North of Irving Park Road. But not in great numbers once you pass Kedzie or Kimball Avenue going west or northwest of Foster and Western. A lot of these northwest areas are still sleepy when it comes to retail and entertainment clusters, but offer nice single family homes close to transportation downtown... sometimes close to transportation downtown I should say.

I like to be creative with my North Sider clients' home search, but I'm not sure most are ready for Peterson Park, Sauganash, Edison Park, North Park, Jefferson Park, Norwood Park....even Rogers Park, Albany Park, Edgewater, Mayfair, North Mayfair...

Chicagoans want new...NOW

Eric Rojas (Rubloff Residential Properties) — Thu, 11 Jan 2007 08:30:23 -0800

Chicagoans want new...NOW

Or like new. Where do you want your market research from...national news or the real estate junkie on the Chicago streets?

Several observations since January 1st:

1. Buyers are flooding the market. In November... well, I should have taken November '06 off. Maybe a nice island somewhere. It was crickets in November. In the second half of December '06, consumers started walking into my open houses and talking the talk. They were looking to get serious about their search and home purchase for the upcoming spring. Now remeber, I host open houses almost every weekend year 'round and take the same "ready to get the job done for you" attitude. But the difference was apparent... December marked a change.

2. Buyers are writing purchase offers. In just the second week of January, my clients are writing strong offers to purchase their homes. Again, I had a good last year picking off the deals for my clients in the "gloom and doom"... but the no one was jumping off the fence the last two months of the year. Now... I can hardly keep up with demand as my clients leap in.

3. Buyers are buying the better finished homes. There are certain spots that you pay for the space no matter what's in it. Lincoln Park? Re-sales may have windows from 1919 and an out-house in the back... still got $400K. There is less of an "add value" buyer out there. I see more buyers willing to push out to the improving neighborhoods for more space and better finishes.. passing on 7-12 year old rehabs. Improvements may be needed to simply SELL your home, rather than to get more money when you sell it.

4. Sellers still don't get it. You have to have your home in great shape, looking good, feeling good to move it for top dollar. To match the comps from 2005, your place has to be spit shined. Have a professional handy man and painter come through and give your place a tune-up before listing. Listen to me.... please. We will all be happier!

Chicago Local reaction to Hussein hanging

Eric Rojas (Rubloff Residential Properties) — Sun, 31 Dec 2006 19:59:19 -0800

Albany Park weighs in on Hussein hanging

Albany Park, here at Lawrence and Kedzie, doesn't make the news too often... usually a building collapses or a dictator is hanged... normal stuff. But the local news was all a flutter, staking out the Iraqi restaurant Mataam Al-Mataam for some immediate local reaction.

I'm glad to say that the patrons of this Middle Eastern haunt for the undergound foodie and native Iraqi were as classy as it gets. CBS aired a little celebration in Dearborne, Michigan, but Iraqi citizens of Chicago gave some perspective on the hanging for the news audience instead.

Amazing... just down the street you can hang with these guys and get a history lesson for one of the hottest spots in international debate and turmoil. Kudos to CBS for seeking out some intelligent commentary on a subject... I expected the local news channels to screw this one up by seeking out a nutcase for a sound bite.

Your condo is uglier than mine

Eric Rojas (Rubloff Residential Properties) — Fri, 29 Dec 2006 21:52:02 -0800

There is a lot to be said for making improvements to a place that will only return the money dollar for dollar... or more. But in Chicago when you are about to put your 2 bedroom, one bathroom condo with parking on the market... what have you done with the place in the last three years?

My wife complains because I want to improve our place in certain ways that out-pace the neighborhood return in price for a condo like ours. But so what? We'll enjoy the improvements while we live here and sell the place faster when we put it on the market. Even if we do not get dollar for dollar for each small improvement, we'll still make money over the long run and not languish on the market amongst the other units.

Ceiling fans? Paint? Pot hanger/holder? New closet doors that are not hideous (like the cheap ones you had when you moved in)? Built in shelving? Window coverings? CLOSET ORGANIZERS?

When you bought that new conversion 3 years ago for $250K and now want $300K... why will someone buy yours over the other 200 condos at $300K?

The Sale: At least professionally paint your place, professionally caulk the bathtub and improve the light fixtures, closet doors and organizers while living there and prepping to sell. Look NEW and CLEAN if you want to stand out and get market price. Would you spend $2,000 to make $50,000? I would...and will :-)