Welcome to the New RealTown! Submit Feedback
Member Login | Join RealTown
The Real Estate Network

Chicago RE with Julie

Chicago, Illinois

A consumer-centric real estate blog with articles, tips, and tools geared for buyers, sellers and the curious.

Subscribe

Your E-mail Address:
Subscribe to:

Recent Comments

RE: Chicago Code Regarding Grills
HI: To recieve a copy, contact Tim at the bottom...
RE: Changes to the City of Chicago Zoning Certificates
Hi Matt: Tax records will indicate what is record...
RE: First Time Home Owners Tax Credit
If you owned a home within the last three years, a...
RE: Best Prayer I Ever Heard
I agree. ...
RE: Changes to the City of Chicago Zoning Certificates
Laura: Wow, this is a very complex situation.&nbs...

Favorite Links

Site Feed

RSS Feed

Chicago RE with Julie

I am On TV!

Jan. 22, 2008
Categorized in: Market and Trends
HGTV, My House Is Worth What?, TV, Premiere

Staging Under Fire

Aug. 21, 2007
Categorized in: Staging
Tagged with: buying, selling, staging

Currently under circulation in the real estate media is the alleged deception of staging.  Exculsive Buyer's Agents are attacking the ethics of staging a home and are warning Buyers the dangers of it.  Yeah, okay.  Apparently, there is a need to use scare tactics in order to plug their services.

Let's begin by pointing out the obvious.  If a seller, with or without the aid of their agent, wishes to deceive a buyer by hiding defects in the home, that can be done without staging.  In fact, I would venture to say that if a seller is cheap and lazy enough to not want to fix up their home before putting it on the market, they sure in heck's are not going to spend the money to stage it.   Seriously enough, you cannot blame the art of staging behind the failure to mention the hole in the floor that has been there for years, hidden by the large dresser.  Staging has never been or will ever be the excuse to disguise latent or material defects.  In fact, I think that action could be in some cases, ground for a lawsuit!  I won't even point out that there is the inspection period where a buyer can do a thourghout examination of the house, or even the fact that if we are going to attack staging, well, Developers will just have to ban using Model homes because that IS staging!  Oops, I guess I just did.

In addition,  I am an Accredited Buyer's Representative who has for years serviced and advised buyers (many of them first-timers) with purchasing a home.  I have dedicated myself to my clients and offered many of my insights to the surface marketing of homes from a seller's and seller's agent's perspective.  I am also, for the record, an Accredited Staging Professional. 

Now as I stated, I work extensively with Buyers, but I also list and stage properties.  I have yet to meet a buyer or a seller who is made "dumb" because of staging.  In fact, quite the opposite happens.  For the sellers whom I have staged and sold their home find it fun shopping for the new one and notice how others have been staged.  It's almost a game if you will.  Their appreciation for presentation is solidified.  The messy homes we enter, the first thing my client will say is, "That needs staging!". 

As for buyers new to the market, well, having a background in staging helps me discuss possibilities with them.  Concerns about their furniture, etc. are always part of our dialogue when we view homes.  If an agent is not helping their clients to visualize and even at times, play the devil's advocate, then I feel they are doing a dis-service.  Ultimately, the buyers decide, good or bad, which home they want. 

Lastly, to say that staging blinds a buyer is a crock!  Anyone who has a working knowledge of staging knows that it is never to replace condition.  If the property needs repair, it needs repair.  We are ethically upheld to advise clients to the limitations of staging; just check out www.StagedHomes.com and see the checklists given to sellers discussing repairs. 

In conclusion, I would imagine there are plenty of other agents like myself whose biggest challenge does not lie in Buyers making offers with rose colored glasses on, but getting them past the small, insignificant items that they manage to turn into mountains out of fear.  Which by the way, is a much larger emotion behind buying decisions (or the lack of) than bliss.  I think these agents should be supportive of staging given their buyers will perceive value in the purchase than of a home that looks like a dump with a lofty price tag.

The Art of Staging: A Vintage Kitchen

Mar. 30, 2007
Categorized in: Staging

A kitchen does not need all the bells and whistles to have a positive effect.  It does however need to address function and create an overall good feeling.  Here is an example of a where you can focus on a kitchen's assets instead of the negatives and have appeal to buyers.

PROBLEM:

This kitchen is vintage in design and lacks up-to-date appliances and features. Clutter was apparent in flow as well as in the pantry/storage areas.

SOLUTION!

The first item on the agenda was to remove any restrictions to the room’s natural flow. The microwave was relocated to a baker’s rack next to the fridge instead of the stove which opened up the door way instantly. The pantry and countertops were scaled down and all items that were not regularly used were to be packed up and removed for a more organized, spacious appearance.

 Lastly, fresh fruit added just the right touch of color to accent the beautiful detail in the tiles along with simple art work that also played into the color theme and vintage appeal.

The Art of Staging a Dining Room

Mar. 23, 2007
Categorized in: Staging
Tagged with: preperation, selling, staging

 We continue this series with an example of a formal dining room in a vintage home.

This dining room looked scarce and offered little interest to the eye.

 

Here you can see huge transformation by adding a few small details that add color, texture and invite guests to sit down and enjoy an evening of togetherness. The corner chest was moved to center the opposite wall and adorned with a piece of art for color. A large plant in the corner added texture to the room and the opposite corner displays a large serving plate and a station for drinks. The table was set minimally with chargers and napkins in a matching hue to the red drape across the windows. The finishing touches included a centerpiece for the table and simplification of the owner’s china collection

Don't Overlook Preparation

Mar. 20, 2007
Categorized in: Selling Real Estate
Tagged with: preparation, selling, staging
5 Ways to Speed Up Your Sale
 
1.      Price it right. Set a price at the lower end of your property’s realistic price range.
 
2.      Get your house market-ready for at least two weeks before you begin showing it.
 
3.      Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.
 
4.      Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.
 
5.      Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.
 
Reprinted from Realtor Magazine Online by permission of the National Association of Realtors. Copyright 2005. All rights reserved.
 
 

Secrets to Simultaneous Real Estate Closings

Jan. 28, 2007
Categorized in: Selling Real Estate

Are you one of the many who will need to strategically sell your home while buying your next?  Click on the link below from Bankrate.com for tips.

Secrets to Simultaneous Real Estate Closings - It's a normal situation: close on both a home sale and a purchase the same day. But it's fraught with peril.

What is in Store for 2007?

Jan. 26, 2007
Categorized in: Market and Trends
Discussions at a recent sales meeting at my brokerage firm confirmed for me the predicted outcome for 2007 will be another year of reality.  While 2006 was the year of coming off the high of quick sales and escalating prices, we as professionals were again faced with the facts that buyers and sellers were not on the same page.  Many sellers, still believing their home was subject to a market shift, or better yet, not accepting there was one going on, and buyers refusing to jump the guns with offers for fear of being too haste. 
 
What has always been the burden of real estate professionals is that the actual consumer market still lags considerably with market changes.  You would think with the information age, this would not be the case.  Sadly, it still is.  I find many of our helpful, consumer advocated websites (so they claim) perpetuate the problem with a revolutionary attitude and less about unity. 
 
2007 will continue to be a year of correction.  Every market has one.  This is ours.  Thankfully, we are not experiencing severe overall losses other that false expectations.  Where we cannot compromise as an industry, is setting a standard to bridge the gap between buyers and sellers.  Sellers need to be educated with pricing and presentation, and buyers need to be educated with deciphering choices and realistic approaches to offers.   What we cannot allow ourselves to do is coddle or enable crippling consumers.  Do not take over-priced listings.  If you can't make them see reason in the first place, you will not be able to later.  You will only add another stone of mistrust and disgust for our profession.  Sellers rarely see themselves as being at fault for the lack of success.  Do not work with buyers that want to behave like jackals.  If their primary goal is to "clean up", you are participating in what will most likely be a sour experience (if it actually makes it to close) for everyone involved.  Fair and reasonable behavior will be respected by all.
 
Let's challenge ourselves as professionals to hold the higher ground and not only demand the best from ourselves, but from our clients and partners as well.  May prosperity be a part of your 2007! 
 
 
 
 

The Limited Purpose of Feedback

Jan. 22, 2007
Categorized in: Selling Real Estate
Agents often go through lengths to secure feedback for their sellers after showings.  What I like to emphasize, is that more often than not, it can be a source of unnecessary stress when it carries more weight then it should.
First, let me begin with the fact that I am referring to the challenges of fielding feedback in the city.  I know from working with buyers who've shopped in the burbs, protocol is quite different.  When it comes to getting tangible feedback from agents and their clients in Chicago, you end up playing a game of tag.  If you can tag em', you may be lucky enough to get an opinion out of them. 
Now the purpose of gathering feedback for sellers is to give them a reference to pricing and how the property is showing.  But to truly understand where this can fall short, lets look at the psychology behind it.  Let's start with the buyers.
Believe it or not, most buyers will know when they like something or don't like something, as a whole.  As simple as that might be, that is exactly how it is described, "No, it didn't do it for me".  As an agent who has worked extensively with buyers, I can tell you, wrestling any specifics can be a mental dance.  They know that they don't particularly care for the property, but what tipped the scales that way, well, not so easy to decipher.  Hence, when a listing agent calls to say, "What did your clients think of my listing at 123 Seller St?”  I am at that awkward moment where I can offer nothing of value.  As agents, we are not fielding for opinions per say, we are looking for potential problems that might prevent a successful sale. 
Now unfortunately, this is an example of listings that may be undermining their own success with a bunch of small things.  Larger issues such as a run down home with an asking price at the top of the market, or walking in and finding dog poop in the middle of the living room speaks for itself.  These are things that cause a double take or a big "WHAT???”  These are very easy points to relate to the listing agent.  It’s those "can't quite put your finger on it" items that cause the indifference.  I am talking about, dirty carpet, outdated paneling on the walls, cat odors, a room you can't get into because it's locked, closets stuffed to the brim, or even curb appeal that is anything but appealing.  Items that become difficult for the buyer to articulate, but none-the-less, is affected by.
Now lets move on to the buyer's agents.  I will admit, and I am sure I am not alone, that unless a property has one of those stand out "What are you thinking" negatives about it, or the client really expressed a liking, it is basically lost in the shuffle.  When a listing agent catches me 3 days later asking what my clients thought of so and so property, I might struggle to remember anything about that listing.  Lets keep in mind, it is a strong probability that I had taken my clients to view many properties that day, and potentially, they were not my only clients for the day.  So, after about 20 plus properties later, remembering what, if anything, about property xyz and give any constructive feedback can be rather futile.  I personally send out email questionnaires with visual reminders on my listings to help with this very problem.  But I can tell you, anticipate less than 50% will ever return anything, email or phone call, with something that you can use.
Now this brings us to the sellers.  Every showing they wait in anticipation like nominees on Oscar Night.  "Did they like it?"  "What did they say?”  You can even have the misfortunate of having a seller home at the time a buyer walks through (something I strongly discourage).  Lets just say that if I had a dime for every paid compliment and generated excitement buyers can create as they walk through a home, I'd be able to retire.  So, this is what I try to remind Sellers as the fundamental purpose of feedback.
1.  Take it with a grain of salt.  Unless you are hearing a consensus of specifics such as, "they hate the bright purple paint in the living room” or "this property seems to be a bit pricey”, each and every buyer comes with their own set of needs.
2.  Don't live in the past.  Focus on the next showing.  If you spend too much time waiting for approval from a past showing, you will ultimately be disappointed.  Even if they seemed like they absolutely LOVED your home, if they are not making an offer, it’s for a reason that may have little to do with you.
3.   Always keep your best foot forward.  Simply applied, make sure your home is "first impression" ready.
4.  Lastly, and this applies to you agents out there as well, don't ask for the truth if you can't handle the truth.  If you want to know what someone thought about the property, but then get mad and defensive when you don't like the answer, don't ask. 
Feedback from showings can be a useful tool, just an unreliable one.  By staying focus on what can be controlled, how your home presents itself, pricing, and marketing exposure, the rest will fall into place and you will find the buyer for you.
 
 

 

The Three P's of A Sale

Jan. 12, 2007
Categorized in: Selling Real Estate
You will see a lot of gimmicks in today's market where sellers and agents alike are desperate for buyers' attention.   I prefer to stick to simple, yet effective methods.  Ones that I think, transcend any market condition and will create opportunity.

First Rule:  Presentation.  This is a must.  Now when I say presentation, I am referring to staging, not decorating.  Staging is the process of depersonalizing a home, decorating is personalizing.  Future buyers do not wish to purchase your style.  Not to mention, style is subjective.  What you may think is beautiful and charming someone else can think is trashy and obnoxious.  Your ultimate goal is to sell your space.  By carefully planning a home's presentation can easily determine how buyers receive it. 

Need proof?  Okay.  Let's take food for example.  I am throwing a dinner party for people whom I don't have a personal relationship with.  I decide that I am going to serve fish.  However, instead of placing it on a lovely platter with an arrangement of vegetables, lemons and a sterling silver serving fork, I place it on a paper plate, whole (head, eyes and all) and require my guests to use their hands to serve themselves.  Now there plenty of fish lovers who don't mind digging in since they know the delicacies that lie under-neath.  But there are many of those who cannot get past how something looks to know how truly wonderful it is.   Think this is extreme?  Well, I can tell you from experience that most sellers have little awareness of how their home is perceived.  Pet smells, dirty dishes in the sink, garbage that is noticeable, dirty clothes on the floor, piles and piles of stuff in every corner and closet that spell one thing to a buyer:  dirty.   Bottom line is, you would not sell your used car without detailing it first, why would you sell your home any other way?  Are you willing to chance that you will find that selected buyer who can look past your home's distracting appearance?

Second Rule:  Preparation.  This is actually a spin off from the first rule.  Preparation applies in a few areas here.  First, is with presentation.  You negate staging your home if the condition of it is less than reasonable.  You will save yourself a lot of headache and a lot of money if you fix those items before listing your home.  Loose tiles, replace caulking in the bathroom, leaky faucet, broken window, etc.  In regards to larger projects, such as a older roof or mechanics, discretion here is the operative course of action.  If you are unable or unwilling to address problems such as these, then be up-front.  Either offer a home warranty or credit as a means to avoid dragged out negotiations after an inspection. 

The other application to the preparation rule is having all necessary documents and receipts handy.  If you own a condo or belong to a homeowners association, have a copy of your minutes, declarations and by-laws, budget and board contact information handy.  If its a room or area that goes with your property, make sure its accessible.  If you have up-graded or repaired/replaced something of significance in your home within the last 5 years, showing receipts can dispel any concern a new buyer might have.


Last Rule:  Price.  This is perhaps the largest pill to swallow.  You will eventually cost yourself more money to list a property high and reduce it's price than to price it correctly in the first place.  A home's price should reflect current market conditions, not what it is you need to net, not what your bank says it's worth, not the many wonderful memories you've collected over the years, not by all the improvements you have done, not even what your neighbors received for their home.  The successful pricing of your home may take these factors into consideration, but is not determined by them.  What a buyer is willing to pay will ultimately decide the value of your home, and what a buyer is willing to pay is determined by perceived value.

The bottom line to it all, you will get out what you put in.  By investing in the process of preparing your home for sale, you ultimately increase your chances of a successful outcome for both you and the buyer.