We're curious. We've always been that way.We like to check out neighborhoods and see what folks are up to. There is always some street we haven't been down recently and we are going to take it. It's a natural curiosity that pays dividends when you are in this business. I frequently get stopped by folks with questions like... "What's with the new place on Spring Street... is that a restaurant or apartment building?" (it's a house) or "What's the deal with that new house with the pillars by the library?" or "They put up a construction fence in Hobson West... are they tearing that house down?" And while I may not always know the answers, I almost always know what they are talking about. One real estate conversation leads to another....My wife Lisa frequently participates in the 60 mile Su... 01/06/2007

In my previous posting I gave a list of words that are used in marketing a home. Some of these words actually helped the property sell faster and for a better price.So, here are the winning words:GraniteGourmetLandscapeGolfWhat do these words have in common? They give the impression of an expensive home; a home with a gourmet kitchen that has granite countertops, over looking a golf course perhaps. And professionally landscaped with trees in our area always brings a better price! So many of the new subdivisions are treeless. The builder puts in one parkway tree!The worst term? "Motivated seller"  Ouch! Those listings took longer to sell...and sold for less.So, from now on I guess that I'm only listing homes with granite counter and gourmet kitchens! 01/05/2007

In a slower market it's really important what we say in both the remarks section in MLS and in our advertising.Several business professors have done studies on the effect of words and language in both ads and remarks and its correlation to time on market and selling price.So, from the list of words below, pick which ones will sell the property faster and for a higher price.Motivated SellerHandyman specialCurb appealMove-in conditionGood valueAs-isLandscapingGraniteCleanGourmetQuietGolfNew paint*Based on a study by Paul Anglin, who teaches real estate and housing trends at the University of Guelph, Ontario, Canada. And, it does make a difference whether it's Canadian or the U.S., buyers react the same way.So, give it your best. I'll post the answers in a few days. 01/04/2007

A few interesting stats for our Naperville market:As of 12/31/2006, there was a total of 848 single family homes on the market. Average list price: $739,588 Average days on market: 204So, there's still lots of more expensive homes just sitting.And, what's sold this past year? We have 558 homes sold, or 65% of the market. Average sold price: $507,583 Average days on market: 97With the list-to-sell ratio at 96%And, the less expensive homes are selling much faster. These stats are courtesy of the Northern Illinois Multiple Listing Service, MLSNI. 01/03/2007

Our first home purchase - "The Life of the Unrepresented Buyer"  1985 We looked at a couple of condos alongside the El tracks in Chicago... nice places, great complexes close to everything... we were assured that we would "get used to the train" the screeching, the rumbling, the shaking... At $48,000 it seemed like a bargain and fit in our price range, but at the last minute we decided NO. The agent was disappointed, but she didn't have to show us much. She was really disappointed when we didn't buy the next house from her either, but we didn't understand how things worked, after all she had only shown us her own company listings up until then. Happily living in a two bedroom apartment in Chicago's Logan Square neighborhood until a new psycho landlord that called himself "The Colonel" m... 01/02/2007

I've been doing predictions for years. Used to send out a letter to all my clients in January with my forecast. Now, I can just publish it!1) Don't expect the market to change much this year. We're not reverting back to the "bubble" days. That's over. It's history for us.Our Naperville market is now officially in a "slower" market. Days on market, or the length of time that listings take to sell has doubled or trippled. Properties over $600,000 are taking up to 150 days on average to sell. The list-to-sell ratio, based upon the last known listing price is 96%, which is still good and what our market has shown for years. Lower priced homes generally will sell faster and closer to list.  2) Seniors will comprise a larger segment of the market. As the baby boomers hit retirement age we'll ... 01/02/2007

We've been having a conversation on Real Talk about what agents wear when working with their clients.And, as I've been doing this since the dinosaurs roamed the earth, I can remember when jeans were NOT allowed as they were considered unprofessional. Now, how did this happen? Some type of commission dispute and at the hearing it came out that the agent was wearing jeans. That agent lost...and the admonishment from the panel: Business people wear business clothes.Well, that was then! Today, I've noticed "anything goes." I've seen agents in flip flops; cut-offs; dirty jeans; tee shirts with a cigarette pack rolled up in the sleever a la Marlon Brando; bras, underwear and everything else you can imagine.I don't own a pair of jeans...don't like 'em. My wardrobe is casual business; generally... 01/01/2007

Naperville Stats as of December 26, 2006 ACTIVE Single Family detached homes Currently there are 148 3 bedroom homes on the market with an average list price of $420,243 and a market time of 155 days. Currently there are 601 4 bedroom homes on the market with an average list price of $742,479 and a market time of 204 days. Currently there are 115 5 bedroom homes on the market with an average list price of $1,182,317 and a market time of 252 days. Highest Priced Listing: $3,300,000 Lowest Priced Listing: $234,900                         Statistics compiled from Multiple Listing Service of Northern IllinoisIf you look back in my blog you'll see that I did these same stats in October. So, what's the big difference now?1) Fewer properties for sale2) Much longer market time3) Higher pricesAn... 12/26/2006

I was reading a story about a house that was built as though it were a ship! Everything in it was nautical.So, that got me to thinking...what's the most unusual property you've ever listed or sold?One of mine that comes to mind, was a brick 3 bedroom ranch...now the house was just an average 3 bedroom ranch. Its owners were an older couple who were extremely short. They had a crawl space that was accessed from the exterior and its height was only 4 feet. But, these sellers carved  gnomes and elfin garden figures in their secret hide away.I can remember trying to squeeze into the space as they demonstrated how wonderful the space was for their hobby! They had lights and fans. Benches for sitting at shortened tables. Almost thought it might be a secret Santa's workshop.So, even the plaine... 12/25/2006

Remembering those that give...   I've been to New Orleans many times...  This time was different... the city was still reeling from Katrina and fighting to come back... they were glad we (NAR) were there, but it was different than before. I've had cause to reflect on this as a Naperville custom home builder  has just recently sold the "Katrina" house. Last Year Doug Overstreet, pledged all of the projected profits from this house, and asked his suppliers if they wanted to participate (no pressure). Then he pledged $10,000 from each additional sale that year. But he didn't wait for the money to come in... he projected the profits and wrote the check. A check for $173,000 to the American Red Cross... no small sum for a small family run company.  So, here it is a year later, the home sold ... 12/16/2006

Your real estate agent has just brought you an offer on your home, and you want to think about it. You would like your agent to contact the other people who have shown an interest in your home. Whether your home has been listed for three days or three months, there is always a desire to hold out for a better offer, and sellers can feel considerable resistance to making a decision.Some buyers will include in the offer a deadline for getting a response, but the seller should respond to an offer quickly even if a deadline is not specified. The interval between when an offer is submitted and when a response is made is a crucial period because the buyers are free to withdraw from the transaction during this time. Even though they are mentally landscaping your yard and arranging their things ... 12/15/2006

Here is a situation that many buyers have experienced. After searching for weeks, you found the perfect home and you made a very low offer. The sellers responded with a counter-offer which was several thousand dollars lower than their asking price. You came back with a slightly higher bid, and they came down some more. After many days of back and forth, you finally reached a meeting of the minds, and you are very pleased with the results.If you have driven a hard bargain in purchasing a house, be sensitive to the seller's feelings as the transaction proceeds. They may be suffering from the impact of a rough negotiation. Try to minimize any additional requests you might make of the sellers. As you move toward your closing date, keep in mind that the sellers may not share your elation. If... 12/15/2006

Single Family Naperville  detached homesas of December 15, 2006 Currently there are  157     3 bedroom homes on the market with an average list price of $416,041 and a market time of 144 days. Currently there are 629    4 bedroom homes on the market with an average list price of $734,086 and a market time of 196 days.   Currently there are 118   5 bedroom homes on the market with an average list price of $1,186,522 and a market time of 243 days.                                                 Courtesy of MLSNI(What I've noticed is the longer market time. These are some of the longest times I've seen in years.) 12/15/2006

After the buyer and seller come to a "meeting of the minds" on the price of a house, there is one more person who must be convinced that the house is worth the selling price--the mortgage company's appraiser. The appraiser looks for three similar houses that have sold in the same area within the last several months, and compares the selling prices of these homes with the one that is now on the market. The appraiser makes adjustments to account for the differences in each property, and averages the adjusted prices of the other three homes to arrive at a final opinion of value. In subdivisions or condominium projects where there are many similar properties and numerous recent sales, the appraiser's job is relatively easy. In neighborhoods of older homes that have been renovated or remodel... 12/14/2006

It is not unusual for homeowners to yield to the temptation to try to sell their own home. It seems easy enough--just place an ad in the weekend paper and wait for buyers to show up. Although it may seem simple, real estate sales transactions are extremely complex proceedings.The first pitfall can come with pricing your property realistically. Homeowners often price their property too high initially, then drastically slash the price when weeks go buy without an offer. Even if a prospective buyer agrees to the initial asking price, there could be complications if the buyers begin to feel that they have agreed to pay too much, or if the lender's appraisal values the property at far less than the agreed-upon price. Some clients hire agents to market their home professionally after weeks or... 12/14/2006

When you buy a house or refinance your present home, your lender will ask you to pay for an appraisal to help ensure that the sales price and mortgage amount is consistent with the property's market value. The appraiser will look for "three caballeros" or three "comparables" -- homes that are very similar to the one you are buying -- and will make adjustments to reflect the differences between the properties.Housing patterns tend to be homogenous, meaning that homes worth $300,000 are usually located in $300,000 neighborhoods. It is important for properties to be within the general pricing patterns of their neighborhoods because over-valued homes, even if they are exceptional, are sometimes difficult to sell at full market price.This is not the only factor considered in determining the ... 12/12/2006

Technical terms can be confusing to people who do not work in a profession, and real estate agents use language that may be confusing to many home buyers and sellers.If you find your eyes glazing over when your real estate agent starts talking about escrow, clear title, easements, encroachments, contingencies, financing, appraisals and the closing process, don't hesitate to ask for a translation. Buying or selling a home is a major step, and professional real estate agents are totally committed to helping you understand the process thoroughly so that you can make informed decisions. The simple transaction of trading the sellers' house for the buyers' money has become complicated by several hundred years of custom, common law, and state and local government requirements. Consumer demands... 12/12/2006

Interest rates fluctuate as changes occur in the general economy. If you purchased your home when interest rates were higher, you may want to consider re-financing your loan at a lower rate.You will have to apply for the new mortgage and have your current income eligibility assessed. Depending on how long you have had your present loan, a current appraisal may be required. There are closing costs, such as attorney, title fees, recording and notary fees, and appraisal charges. The biggest factor in your decision should be the length of time you plan to remain in your home. If you will be there for only a year or two more, it might not pay to re-finance. If you will be in your home longer, re-financing could provide you with lower mortgage payments. Your real estate agent can help you wor... 12/12/2006

Before your mortgage application is approved, the lender will order a professional appraisal of the home to make sure that the agreed-upon selling price is justifiable based on the current market value of the property. The cost of the appraisal will be based on the complexity of the appraisal report and the time required to complete it.A professional appraiser will choose the appraisal technique that is applicable to the particular property to arrive at an unbiased opinion of value. One approach is to look at comparable homes in the area that have sold within the last six months. If there are a number of similar properties that have sold recently, the appraiser's job is easy. It is more complicated to arrive at the appraised value if your home is located in a rural area or a diverse nei... 12/12/2006

Many sellers think that the price of their home is determined solely by what they are willing to accept and what the buyer is willing to pay. However, there is one more variable that can affect the sale of a home assuming that a bank loan is involved -- the lender's appraisal. To protect the interest of their investors, the buyer's mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth. The appraiser compares the house with similar homes in the neighborhood that have recently sold. Square footage, amenities and the condition of the home are taken into account. Renovations and home improvements made by the seller usually add value to the home, while defects such as needed repairs or code violations decrease the property's value.... 12/11/2006