Cost of Living Calculator

Have you ever thought about relocating to a different part of the country, but were unsure of how it might effect your ability to maintain or enhance your current lifestyle? We all know that the cost of living in New York City or Santa Barbara or even Miami is probably at least as high as it is in Chicago's North Shore, but how about Ann Arbor or Walla Walla? Here's a tool from CNN and Money Magazine that could help you make some general conclusions about a distant location:

http://cgi.money.cnn.com/tools/costofliving/costofliving.html

Don't use this as your final decision-maker, but at least it can set you off on beginning that dream.

Ten Most Overpriced Places To Live

High home prices got you down? Well, remember, everything's relative. According to Forbes Magazine, the ten most overpriced housing markets are at least 1000 miles away from here. They based their results on factors like slowing job markets, cost-of-living, lagging salaries as well as the cost of home ownership. Try and guess which communities are on the list and then go to this link to see if you were correct:

http://realestate.msn.com/Rentals/Articleforbes.aspx?cp-documentid=648559

So... How's the Market Doing?

Time to take a look back at the month of May here on the North Shore. We thought it would be interesting to see how many properties came on the market in May (defined as a listing date between May 1 and May 31), and how many of them are already under contract (or perhaps even closed!) This is just a quick snapshot, covering the broad spectrum of property offerings: new construction, resale, a cancelled/new listing situation (ask your friendly realtor what that means!), etc. Generally speaking, it seems there is plenty of buying opportunity on the North Shore.

ROLL CALL:
Single family/ condo or townhome
(# under contract or closed) (# under contract/closed)

EVANSTON 10/ 193
(24, or 22.4%)/ (27, or 13.9%)

WILMETTE 84/ 4
(15, or 17.8%)/ (0)

KENILWORTH 4/ 0
(1, or 25%)/ (0)

WINNETKA 45/ 1
(8, or 17.7%)/ (0)

GLENCOE 26/ 5
(5, or 19.2%)/ (2, or 40%)

Life Expectancy...Home Appliances/Components Extreme Edition

This survey by Bank of America Home Equity and conducted by the National Association of Home Builders (NAHB) gives real world estimates of the life expectancy of a variety of home components. Some examples:

1. refrigerators 13 years


2. dishwashers 9 years


3. decks less than 20 years


4. gas range 15 years or more

See this article for more info:

http://money.cnn.com/galleries/2007/real_estate/0703/gallery.home_longevity/index.html

Happy Memorial Day

One of the newest sports to reach our provincial midwestern shores is the frantic search for “slightly” less expensive gasoline for our gas guzzling second (third, forth, and fifth in some cases) homes. Many of us think nothing of driving several miles to save a nickel on every gallon. Here is a website that allows consumers to let their fingers do the walking:
http://www.chicagogasprices.com/map_gas_prices.aspx

Give it a try!

Love that "new house" feeling?

New construction abounds on the North Shore, just as in the City of Chicago. North Shore Home Advisors will pause briefly to list a limited number of them here. We can provide greater detail for our blog readers on any of them, of course, upon request. So for your consideration:

Mallinckrodt In The Park - a magnificent project to convert the former Mallinckrodt College into condominium residences. Located at 1041 North Ridge in Wilmette, prices range from

$349,000 to $1,990,000. This is an 180,000 square foot Italian Renaissance structure, part of Wilmette's community since 1918, originally a convent and college, and more recently associated with Loyola University. Sales are targeted to buyers of a minimum age of 62 years.

The 900 Chicago Avenue Condominiums - brand spanking new construction at the corner of Chicago Avenue and Main Street in southeast Evanston. Where once stood a bank, there is now a modern mixed-use project of small retail outlets and residential units on the five upper floors. Not all units are sold yet, still time to get in. Literally across the street from the Main Street Purple Line "L" train station and Metra station, and across the other street to a smorgasboard of dining establishments that include seafood, Japanese, Italian (Trattoria D.O.C. rules!) and Americana (the Lucky Platter is a fixture in Evanston - at least stop in for a look at the ambiance.). And did I mentioned the choclatier? Yummy!

And then we have the Winthrop Club at 1567 Maple in Evanston. It is being billed as not only an

elegant condominium building, but a decidedly "green" one. Winthrop Club has earned some 25 "credits" under the guidelines of the LEED rating system, developed by the United States Green Building Council. These credits were earned for sustainable site measures, water and energy conservation, characteristics of materials, resources and indoor environmental quality. Prices start in the $300's.

Moving up the Shore a bit to Wilmette, which has not seen a new construction project in quite some time, eventually there will rise from the former site of the Ford automobile dealership on Green Bay Road between Wilmette Avenue and Central, a lovely red brick mixed used project. The plans have just recently been approved by the Village of Wilmette, so details are sketchy right now. But North Shore Home Advisors have seen the renderings of the building designed by the architectural firm of Otis, Coglin, and Wilson, and we promise you will not be disappointed. It has a strong flavor of Prairie School of Architecture, and will be set back some distance from the sidewalks to avoid overpowering the block visually. The ultimate address for Metra commuters, this new condominium building will face the train station in Wilmette. Line up now to save your space!

And one more for today's blog, last but not least, is the elegant Winngate Condominium at 718 Green Bay Road. There are 13 planned units on three floors. Underground garage parking is featured, with choices of 1, 2, or 3 bedrooms. Each unit will have either a balcony or a patio.

Designed for people looking for a maintenance free lifesyle, there are only seven units still available for your consideration. Six units have already been pre-sold. The first occupancies are planned to begin in early September. Construction is well underway now, so drive by the site, and then stop into the Winnetka Baird & Warner office at 714 Elm Street to get more detailed information from the sales team for The Winngate. Please call ahead to ensure a private appointment time: 847-446-1855.

This is but a small sampling of what's "new" on the North Shore. We'll outline more in coming days. Happy shopping!

Glencoe – A Gem on the North Shore



There sits Glencoe, just north of Winnetka, south of Highland Park. It is a smaller community, some 8,762 souls according to the 2000 Census. But just as the other communities we have highlighted in our North Shore Home Advisors blog, this village has a rich history that has molded its character of today.

Back in the days of a wilder Chicago (have you read “Devil in White City” yet? You’ll know what I mean!), one Anson Taylor decided he needed some fresh air and peaceful days for his family; so he packed up and started exploring the shores of Lake Michigan to the north of Chicago. The year was 1835, and this young entrepreneur settled on a bluff overlooking the lake with his wife. Several children and a post office and a hostel and a general store later, Taylorsport became a waystation for travelers headed north, and west. Logging came to Taylorsport, and its pier was crucial in the transport of cord wood back to the big city a few miles to the south. Farmers came to Glencoe as well. We know the train lines were starting to run north to Milwaukee, and the travelers needed way stations, and the trains needed wood for their engines. Taylorsport would have been a natural site for a station, but the wise Anson Taylor denied the train lines any land on which to build a station as long as he could; a train station would have drained his stagecoach way station business!

But it was impossible to stop Progress. A wealthy retired physician, Alexander Hammond, became enchanted with the natural beauty of the young community and simply bought up some 520 prime acres of land with the intention of building a planned town. And he did just that! By 1869, the community was incorporated as “Glencoe” with some 150 residents. And now Glencoe boasts about the talented and famous folk who have either grown up there, or lived there: poet Archibald MacLeish, actors Bruce Dern and Lili Taylor, the “Hoover” in vacuum cleaners, advertising mogul Leo Burnett, and Judge James Wilkerson who put Al Capone in a compromised residence (that is to say, jail).

(Hollis Root house at 1030 Meadow Road, designed by Frank Lloyd Wright)

Visit Glencoe today and enjoy the varied architectural styles of its homes: the Ravine Bluffs subdivision from the genius of Frank Lloyd Wright, Tudor, Colonial, 1950’s Keck & Keck subdivision characterized by flat roofs and skylights, bi- and tri-levels, and into the glass and metal contemporaries of the 1970’s. New construction homes are also part of the residential fiber. Glencoe has a strong commitment to its architectural history, and empowers its Historic Preservation Committee which designates and certifies landmark homes on the basis of historical or architectural significance.

Downtown Glencoe is charming, and no parking meters deter the avid shopper or errand-runner. The public library on Park Avenue feels more like somebody’s elegant living room than a public gathering place. There are many specialty shops, banks, and eateries to satisfy every palate. (Enjoy a leisurely meal at “An Apple a Day,” one of our favorites.) And today there most assuredly is a train station for the commuters who enjoy a Metra ride to the city instead of driving their car. Is golf your passion? Glencoe wants you to know about the 18-hole course right in town. And the most lovely spot to spend a day anywhere in Chicagoland is the Chicago Botanical Gardens, located at the edge of the Edens Expressway at 1000 Lake Cook Road. A very special upcoming event at the Gardens is the Antiques and Garden Fair, April 20-22. Here is a link to the details. http://www.chicagobotanic.org/antiques/

Families with school-age children are pleased with their education choices: public schools that feed to New Trier High School, or private schools such as North Shore Country Day School in neighboring Winnetka.

Single family homes that are currently on the market in Glencoe range in price from $499,900 to $10,995,000 (a 2-acre restored 1930’s estate, with 9 bedrooms and 9 ½ bathrooms). Need something in a condo or townhouse? Glencoe has it all – condos from $196,000 and townhomes up to $839,900.

We hope this brief overview of Glencoe is enough to pique your curiosity about this lovely village. Come spend a day in Glencoe and expect to be charmed.

Here Come The Bugs

If you haven’t heard about it yet, you soon will. What are we speaking of? The latest fad, the newest restaurant, the hippest fashion? No…the emergence of the seventeen year cicada. Soon, in an outdoor area near you, you will find these noisy and abundant visitors. The following is a link to a website put together by the University of Illinois Extension Service: http://web.extension.uiuc.edu/cicadas/ This should provide any and all information relating to the arrival of this mass horde beginning in late May of this year.
According to James Shuster, U. of I Horticulture Educator, "Cicadas are sometimes mistakenly called locusts. In actuality, they are not related to locusts. Locusts are grasshoppers. The male cicadas 'sing' during the day to attract females. The northern Illinois brood, which will emerge in late May 2007, has a reputation for the largest emergence of cicadas known anywhere."
Shuster goes on to say "During the 1956 emergence, they counted an average of 311 nymphal emergence holes per square yard of ground in a forested floodplain near Chicago. This translates to 1½ million cicadas per acre. In upland sites, they recorded 27 emergence holes per square yard, translating to about 133,000 per acre. This number is more typical of emergence numbers but is still a tremendous number of insects. By way of comparison,” Schuster added, “a city block contains about 3½ acres”. "When the cicadas start dying and dropping from the trees later in the spring, there are large numbers on the ground, and the odor from their rotting bodies is noticeable. In 1990, there were reports from people in Chicago having to use snow shovels to clear their sidewalks of the dead cicadas."
If you’d like to avoid these incredible natural phenomena, call your travel agent.

Is the North Shore Spring Market in Gear Yet?

Statistics - Realtors love 'em! And for good reason: those otherwise boring little bunches of numbers have the power to reveal the needed answers to buyer and seller strategies, pricing, timing, ... you name it.

With all the talk on the street about buyers sitting on the sidelines, waiting for some internal "green light" to blink "Go!", it is worth taking a moment to see if properties are selling in our neighborhoods. Let's run a simple, quick measure of activity for the month just ended, March, and compare it to March of 2006. Ask any agent from our office in Winnetka, and they'll tell you that their sense is that the buyers are out in force now, snapping up well-priced properties of all types: single family, condos, townhomes, and in every style and price bracket.

On to the data:

March 2007 vs. 2006 single family homes that went under contract:

Evanston - 52/48

Wilmette - 47/53

Kenilworth - 8/3 (keep in mind Kenilworth's small roof count)

Winnetka - 25/20

Glencoe - 13/13

March 2007 vs 2006 condos and townhomes that went under contract:

Evanston - 92/89

Wilmette - 4/7

Kenilworth - 0/0

Winnetka - 4/2

Glencoe - 0/0

Buyers are waiting in the wings? Perhaps not. Evanston and Kenilworth and Winnetka surpassed their single family 2006 tallies. Glencoe matched. And many of these newly written contracts to purchase were pulled together within 2 to 7 days. Wow!

With mortgage rates STILL sitting near their historic recent-history low mark, the promise of a new home for springtime is pulling our buyers away from those sidelines and up to the line of scrimmage. (Or, if you prefer, out of the bullpen and up to bat.) With so many exciting homes on the market, a wise buyer will find a great agent to help him/her navigate the offerings and find just the right one, at the best possible price.

We are your North Shore Home Advisors; do WE have an agent for YOU!

What Is An "As-is" Property?

Occasionally, you will see a listing with the notation that the property is being sold “as-is”. Some buyers will see this and immediately head for the hills. Others will view it as an opportunity. What does it mean and why would a seller employ this in their selling strategy?
Essentially, stating that the property is “as-is” implies that the seller is not making any warranties or representations about the property. As in the sale of any other property, the seller must disclose any latent defects that may be present in the property; however they are also saying that they will not take financial responsibility for any problems that may be obvious or that are uncovered in the inspection.
Many potential buyers will assume that the home is either a disaster or that the seller is hiding something with the hope that it won’t be uncovered in the inspection. Sometimes this is a valid fear, but there are a variety of reasons why a seller may choose the “as-is” route:
· In some situations, the seller has not lived in the home for a very long time and does not feel they are familiar enough with the property to identify the potential issues
· Often in an estate, the executor will choose to sell “as-is” because of their unfamiliarity with the home
· Sometimes the seller is financially unable or just doesn’t have the time or energy to have repairs made prior to putting the home on the market
· The participants in investment property may not be aware of potential issues

It’s important to note that in spite of the “as-is” designation, it is still crucial for the buyer to have a thorough home inspection performed by a qualified inspector. If the buyer finds through the inspection process that there are greater problems than they had envisioned, the buyer has the right to attempt to negotiate with the seller to either repair or remunerate the buyer for the cost of the repairs. As is the case in any real estate contract, if the inspection findings cannot be successfully negotiated, the contract can be nullified.

Please keep in mind; we are not attempting to provide legal advice here. For a legal opinion on this topic, please consult your attorney.

The science (and art) of pricing real estate: Part 2

In Part 1, we looked at the Comparative Market Analysis and what might be included in this document. You now know that a CMA takes between 3-5 hours to produce. It will include various data that can be used or misused to price your home. Keep in mind that these posts and the ensuing pricing methodology are based on current market conditions. In a strong seller's market, a different methodology and/or set of guidelines might likely be employed.

It’s all in how you look at the numbers

As you look at a CMA for your home, you will likely see ‘active’, ‘pending’ and ‘sold’ listing sheets depending on what data the prospective agent has culled. What are the most important of the group? Surely the best indication of current market action is the most recent sale or ‘sold’ prices. These prices tell you where the market of comparable homes has actually traded.
Next, look at the ‘pending’ sales data. These listing sheets tell you the price where comparable homes were listed when they went under contract. When looking at pended properties, pay attention to the market times and the original listing prices. If market times are high and original list prices are significantly lower from current list prices, we can see where/how the market is moving through time. Often an agent’s and client’s perception of market value can differ drastically from the reality of where comparable homes are actually selling.
Lastly, look at the ‘active’ listing sheets. These will tell you what prices your neighbors are listing their comparable homes for. STOP and remember this – now is not the time to ‘keep up with the Jones’! Do not play the subjective game of pricing your home according to where you neighbors have priced their property. Intelligent buyers and their intelligent buyer agents (there are some out there) will be looking at sold prices of comparable properties as the benchmarks for negotiation. It makes little difference to a buyer if your home is priced 5% less than a similar home down the street. Your home may still be overpriced in relation to where the market has recently traded. What you may perceive as value in relation to your neighbor’s home might be nothing more than two over-priced homes at an inflated price point!

Evaluate what the prospective listing agent says about price

Listen to how the prospective listing agent interprets the CMA data. Remember, there is good logic, fuzzy logic, bad logic and/or a combination of these. You are looking to the agent for a logical presentation on where the market has traded recently (the ‘solds’), to where the market has facilitated contracts (the ‘pending’), and to where the market for currently listed properties (the ‘actives’) is. If an agent’s suggested listing price is far greater than where comparables have recently sold then ask the agent where the added value has come from? Conversely, if an agent’s pricing comes in much lower than recent sold comps; ask what demerits were used in the analysis of your home.

Be objective

Most importantly, be as objective as possible. Look at the data and decide if what the prospective listing agent is telling you about price sounds realistic. By all means, do not just list with the agent that gives you the highest suggested listing price. Some agents will try to out price the competition with an inflated list price in order to ‘buy the listing’. This is an old practice that still works on many very intelligent people. The tactic appeals to a seller’s greed factor and almost always adds weeks or months to market time. It might be very charming to hear an agent tell you how beautiful your home is in relation to your neighbor’s home. You might even be told that your home is worth a lot more than comparable homes on the market. While it may be music to your ears, it will strike a sour note when your home is not attracting showings and/or offers and sits idle as the days go by. Remember, an agent is giving you their opinion of value and opinions are only as sound as the logic that backs them up.
While we hope that this two part post on pricing has been informative, it merely scratches the surface on this complex subject. Look for other posts on this topic in the future.

The science (and art) of pricing real estate: Part 1

What’s the most important consideration for home buyers after finding a home that fits their needs and desires? If you are thinking price you would be correct, most of the time. For sellers, price is equally important and becomes the statement to buyers as to where a particular home is positioned in a given real estate market. This positioning, or pricing, is often very subjective and can lead to inflated listing prices and the dreaded longer market times. Assuming a seller’s goal is to maximize profits in the most efficient and timely manner, how does one price their property most effectively?

It all starts with the CMA

A good real estate agent should be able to assemble the market data for a CMA or ‘comparative market analysis’, sometimes called a ‘competitive market analysis’. The CMA compares the subject (seller’s) property to similar properties in the area. The comparable listings should be as similar in construction, location, lot size, age, and terms of sale as the subject property. The goal of the CMA is to provide a probable market price or market price range for the subject property. Usually agents will also provide a suggested listing price or listing price range. Assembling a quality CMA can take between 3-5 hours of an agent’s time. It’s not just a computer generated document requiring a few keystrokes while logged onto the local multiple listing service. Because of the time and thought involved in its creation, agents prefer to present and interpret the results in a meeting with the prospective listing client.
The CMA should/might include the following:

• Sales of homes similar to the subject property that have occurred within the last 6 months.


• Pending and contingent listings similar to the subject property that have occurred within the last 6 months.


• Currently 'active' listings similar to the subject property that are available for purchase now.


• The market times of the above listings and how these numbers will provide direction in the pricing of the subject property.


• Commentary on current market conditions and the 'tone' of the market as evidenced by supply/demand statistics and absorption rates for the area and price range considered.
  

Please look for ‘The science (and art) of pricing real estate: Part 2’ next week where we will discuss how to use the CMA to price your home competitively. We will also look at some of the common misconceptions when pricing a home and why you should pay attention to the statistics and not to your heart or necessarily, your agent!

What Are Subprime Mortgages? (and how do they affect me?)

We have all been hearing a great deal of discussion regarding subprime mortgage lending in the past few weeks, and many people are asking…What is subprime lending and how does it affect me?
According to Wikipedia, SUBPRIME describes a specific lending market sector. Typically, subprime customers are those who do not qualify for prime market rates because of blemished or limited credit. Consequently, subprime customers are charged a higher interest rate to compensate for the increased risk. The general lending philosophy can be described as "priced to risk"; the higher the risk on the deal, the higher the interest rate. Statistically, approximately 25% of the population falls into this category.
It has been suggested that the recent fall in the stock market is somehow associated with the subprime issue. There has also been mention of a possible collapse in this area of the mortgage market and hence, a greater difficulty in getting mortgage financing.
Yes, the foreclosure rate in this market segment has recently been rising. It is probable that these types of loans will not be written as aggressively in the future as they have in the past. It has been noted by Baird and Warner’s Financial Services Senior Vice President/Chief Operating Officer Donna Burge, the changes that are occurring right now are being driven by 3 factors:

1. Federal bank regulations introduced last fall requiring stricter underwriting guidelines and risk-based pricing
2. A significant increase in delinquencies and defaults in sub-prime portfolios, requiring increased reserves and earnings adjustments
3. Wall Street prices for sub-prime mortgages have declined dramatically, diminishing both the value and outlet for this product.
What does this mean for borrowers? Several subprime lenders have already, or will soon go “belly up”. Most of America’s financial institutions will not experience any serious disruption of business or severe financial losses because they do not have a great deal of exposure to the subprime marketplace. Most traditional mortgage products will continue to be available to borrowers. Stay tuned to see how this story plays out.

Venerable Kenilworth

(Kenilworth Fountain circa 1910)

Modest in size, but note-worthy on the North Shore is the Village of Kenilworth. Tucked in between Wilmette to the south, and Winnetka to the north, Kenilworth enjoys its location along Lake Michigan and a fascinating history. The original acreage that was to become the Village of Kenilworth was purchased by a fellow named Joseph Sears. Sears had a dream: a planned community where streets were plotted to maximize sunlight in every home, where land was set aside for a school building (Sears School bears his name, and enrolls K-8 children) and a place of worshp. The gracious entrance into the heart of Kenilworth at the east corner of Green Bay Road and Kenilworth Avenue is attributed to architect George M. Maher, who also designed some 37 homes in the village. Other notables whose talents molded the growth of Kenilworth include Jens Jensen (landscaping) and Frank Lloyd Wright. The village annexed more land in the 1920's to grow to its current size of a diminutive 0.6 square miles, and a community of some 2,500 souls.

Kenilworth today is primarily residential, with a few commercial sites along the west side of Green Bay Road, primarily service entities (dentist, financial services, etc.).

A visit to the Village's website gives the reader a sense of what Kenilworth is all about: if you promise to help coach the winter basketball league for children in grades 1-3, your child is GUARANTEED to be on the team that you coach!

Kenilworth has a dedicated police force, and receives fire protection services in cooperation with Winnetka. Library services are shared with both Winnetka and Wilmette.

By reputation, Kenilworth is not an inexpensive community in which to purchase a home; the current average list price of home is $2,588,732. That's a significant number, but homes can also be found in the $700-$800,000 range. In reaction to a rising number of "tear downs" by home builders in Kenilworth, the National Trust for Historic Preservation placed the entire village on its 2006 list of 11 endangered places, right up there with the Arts and Industries Building of the Smithsonian Institution in Washington, D.C. and Mission San Miguel Arcangel in San Miguel, California. The image provide here is a home that recently escaped demolition, saved by the efforts of a local community group that is dedicated to preserving these magnificent homes of distinction.



(157 Kenilworth Avenue)

Beautiful in its design and proud of its tradition, Kenilworth offers the blend of hometown ambiance and a Metra commuter train station in the heart of town to whisk you into the city.

A great way to meet new people

It is always difficult to come to a new area where you know very few people and try to make friends. Almost every area has its own International Club, usually through the local Elementary School. But here's some important pieces of information... Once the kids have left grade school you do not need to leave the International Club. In fact you do not need to have kids to be a part of these clubs AND you do not at this point need to be international to be part of these clubs. You just need to like people from other places. These groups are often the primary social groups in these areas and have some interesting and fun activities and are a great place to start making new friends.

Behind the scenes: "Brokers Tour"

Open the Sunday newspaper, or log on to the Chicago Tribune's real estate section, and you will find the familiar listing of Sunday afternoon "open house" opportunities. This is the time when you are invited to stop by for a brief look into every conceivable type of residential property, and at virtually any price point. Look for the modest studio condo, or the stately multi-million dollar mansion. They're all there for a few moments of your idle curiosity or, perhaps, serious home buying evaluation.

But the hard-core open house activity happens on weekday mornings throughout Chicagoland, the time set aside by real estate agents to traverse a wide geographic area in a short period of time, hoping to stay current with the market's latest offerings by ALL broker companies. We agents call it "touring", but this "tour" is hardly a relaxed guided tour of properties for sale. Far from it.

In order for an agent to fully experience the weekly tour, he/she must first determine which communities will be the morning tour for himself. Wilmette only? Or should he try to include Winnetka as well; and maybe that new listing his client is so excited about in Glencoe will be on the tour. The first step is to hunker down in front of the Internet-based MLS the night before tour, and pour over the published listings. This is serious business, folks, determining which to include on one's personal "list" of must-see properties: how many of the 72 in Evanston need to be seen? And the 25 in Wilmette? or the 21 in Winnetka. (Kenilworth's 5 are a walk in the park!) But Glencoe has 16 possibilities. And the spring market hasn't even kicked into high gear yet! Determination of which to include on one's personal tour is a combination of curiosity, client needs and wants, and simply staying on top of what the marketplace is doing as far as pricing and preferences go. And this can be complicated if the agent has agreed to carpool with one or more additional agents who each has his/her own personal agenda of what to include on the tour. Logistical nightmare. And then try to figure out the route to get to all those properties efficiently. Whew!

And one more critical factor in choosing which properties to view on tour is whether there will be snacks or lunch offered by the sponsoring broker. Really. Somtimes an agent will tour on his/her stomach. Hey - agents have to eat to keep their strength up!

And here's the really interesting part: all of this touring activity must take place between the hours of 9:30 AM and 12:45 PM. Exactly. This is dictated by the rules of our North Shore/Barrington Board of Realtors.

The final nuance to all of this is that multiple communities have their weekly brokers tour on different days of the week, enabling an energetic agent to be out on tour more than one morning per week, if desired.

But it's all for the good of the industry and the public; the agent has first-hand views of properties that a client might want to see, or be able to judge better how to price a new listing that will soon be offered to the public, based on how other similar properties are priced. Reading about a listing online, and viewing the photos online, can never take the place of an on-site visit.

Brokers tour: just one more activity that your hard-working North Shore Home Advisors embrace with enthusiasm to better serve the needs of our clients.

Even More Statistics

As a follow up to the previous post regarding statistics, it might be interesting to poke a little deeper. As we view the year-to-year statistics on appreciation, we are often awed by what appears to be the huge increase in home values in many of our communities. One of the factors which are often ignored is the effect of teardowns on these rates. As an example, during the past several years, homes that were valued at $400,000 - $500,000, were torn down and replaced with new homes that sold for approximately 3 times the cost of the original house. These numbers can be reduced or increased based on the price of the “before” and “after” project. In our example, this displacement shows up in the statistics as a sale one year, at half a million dollars, and a sale on the same property the next year at a million and a half. Multiply this by the number of teardowns that we have seen in recent years, and you will see a phenomena that plays a major role in skewing the statistics. It would be interesting to only view the appreciation rates for existing homes.
Yes, there has been a great deal of appreciation over the past several years, but perhaps it has not been as extreme as the numbers might indicate.

More Statistics

Purchasing a home is partially an emotional decision (do I LOVE it!!!????), but also a financial/business decision (can I afford it, is this property going to make money for me over time?). Does it make sense for you financially to sign that purchase contract? Is this a home in an area that can reasonably be expected to increase in value over time?

One way we can make some judgments on the financial side of a purchase agreement is to study the data on home sales for the area that interests you. Because this blog focuses on the North Shore, here are some critical stats for these communities: (information published by North Shore/Barrington Board of Realtors)

APPRECIATION RATE 2006 vs. 2005/MEDIAN SALE PRICE 2006/#UNITS SOLD in 2006

Evanston: 10.5%/$550,000/453
Wilmette: 8.14%/$810,000/335
Kenilworth: -20.28%/$1,120,000/25
Winnetka: 10.2%/$1,394,000/197
Northfield: -8.54%/$750,000/47
Glencoe: -9.38%/$1,051,250/110

It is important to note that every one of these communities saw significant increased volume in units sold during the years 2003 and 2004, when the real estate market was "hot." When we look at the rate at which homes are selling now (the absorption rate), the difference is startling.

As of February 2, 2007, the absorption rates (the length of time it would take to sell every single property that is currently on the market, without any new properties coming on market) are:

January 2007 - 69 weeks
December 2006 - 48 weeks
November 2006 - 60 weeks

The average market time for North Shore homes as of February 2, 2007 are:

January 2007 - 145 days
December 2006 - 136 days
November 2006 - 115 days
October 2006 - 105 days
September 2006 - 102 days
August 2006 - 90 days

Interpretation of these statistics is not for the faint of heart! Seriously, it is imperative that a buyer or seller of real estate speak with a Realtor to explore the meaning of these numbers for the specific market that is of interest to that person. Each market is different, and the inside information comes from the agent(s) who work in that market.

Contact us to explore the North Shore market and how you can optimize your selling or buying needs here.

There was a jazz tune called....

"Big Noise from Winnetka," composed in 1940 by New York jazzman Bob Haggart. (watch a live performance of the tune on YouTube by directing your web browser to this URL:

http://www.youtube.com/watch?v=-Xr4YWSAitw

But this is a REAL ESTATE blog, you might say to yourself. What's the connection?

It's just a fun way to introduce the lovely Village of Winnetka to you readers. Winnetka sits along Lake Michigan, just north of Wilmette and Kenilworth. Winnetka is one of the smaller North Shore communities with a population of only 12,419. The name "Winnetka" means "beautiful land" in a Native American Indian language.

The Village's vision statement reminds us that Winnetka is "... a village in a natural setting committed to its tradition of residential neighborhoods, citizens involvement, local shops, and education excellence..." And that sums it up rather well. Take some time to meander through the Village and see for yourself the enchanting residential streets, the lovely specialty shops, and the nationally-recognized public schools. There are three elementary schools and a junior high school (District 36). Of particular note is the high school in Winnetka, New Trier High School, District 203. The alumnae of New Trier include notable people who have had huge impact in national politics, entertainment, and more. Names? "Never discuss politics and religion" is our motto, but famous personalities in the entertainment world who came from New Trier High School include Rock Hudson, Chris O'Donnell, Charlton Heston, Virginia Madsen, and Lili Taylor.

In addition to the public schools in Winnetka, there are three private elementary schools and a private high school (North Shore Country Day School).

The user friendly park district offers four beaches, a boat launch, ice rink, golf, and more. There is terrific library, of course, and the Winnetka Community House is available for multiple recreational programs.

Winnetka was incorporated back in 1869. It grew from commerce needs, especially the growth of the Chicago & Milwaukee Railroad Company. Even today, the Metra commuter trains run through Winnetka and service three separate stations: Hubbard Woods (just before crossing into Glencoe), Winnetka downtown (at Elm Street), and Indian Hill (servicing New Trier High School). If the Metra Union Pacific North Line does not take you where you need to go, it's a short ride to the west side of Winnetka where you can access the Edens Expressway, taking you north towards Wisconsin, or south into the Kennedy Expressway and Chicago.

But what about the housing choices in Winnetka? There is a variety of ownership options and style selections in Winnetka. There is a rental market (apartments and single family homes), but the bulk of residents do own their home. Most of the housing units were built before 1939, but there is evidence of a healthy new-construction market as well, replacing older homes that no longer fill the needs of today's families.

Prices of homes on the market today look like this:

- single family: $644,900 (a resale) to $9,875,000 (new construction on Sheridan Road)

- townhouse: $339,000 to $435,000

- condominium: $199,000 (a resale unit) to $855,000 (new development on Green Bay Road)

Have we captured your interest? Come up for introductory tour of this very special community. We'll be happy to see you.

And if I am unhappy with my property tax assessment...

A collection groan often goes up to the heavens when the County Assessor notices go out to property owners. And it's no wonder; some increases on property assessments have the capacity to burden some property owners, if not incense them.

This phenomena is nothing new; waaaay back in 1789 a rather influential fellow named Benjamin Franklin wrote "But in this world nothing can be said to be certain, except death and taxes."

Ok, so you open your latest property assessment notice and are, shall we say, displeased. "What to do?" you ask. Fair question. There are three levels of appeal, which in theory can all be accomplished by the property owner without assistance of a legal expert.

For more direct assistance in appealing your property assessment, stop by or telephone your township assessor's office. Here on the North Shore, most communities are covered by either the Winnetka office (739 Elm Street, 847-446-8200), the Evanston office (846 Dodge Avenue, 847-332-2465), or the Northfield office (3801 West Lake in Glenview, 847-724-8300 ).

An excellent description of your rights to appeal are found on County Commissioner Larry Suffredin's website. Whether or not Larry is your elected representative to the County, this is a great resource:

http://www.suffredin.org/issues/issue.asp?issueid=8

As for the question of hiring an attorney to represent you in an appeal, well, you can if you want, but if you can research and manage the data needed to file and defend your appeal, you probably don't need to. Having said that, condominium board of directors might benefit from an attorney's expertise because the issues are a bit more complex in such an appeal. Condominium owners are advised NOT to file an appeal on their own for their individual unit. You are potentially going to stymie the attempts of other owners in your building (or your entire association) to also file an appeal. Talk to your Board of Directors if you have any questions about appealing the property assessment in your building. If you really need to have an attorney help you, search for expert representation on this website:

www.findlaw.com

And may the fates smile on your appeal efforts.

Back in the good ol' days, if a home buyer did not have at least a 20% downpayment towards the purchase of a property, the mortgage lender stuck a little gift called PMI (private mortgage insurance) onto the home buyer's monthly mortgage payment. This PMI was, in fact, an insurance policy to protect the LENDER from possible future default on the loan by the BORROWER. But the borrower was forced to pay for the insurance policy, and received no benefit from having that insurance policy applied to his/her loan. The additional charge on the monthly mortgage payment could easily run anywhere from 0.19% to 0.9% of the total loan amount. Things were rather dismal for the borrower when it came to PMI.

Until now.

Effective in 2007, a tax reform measure regarding PMI now gives the borrower a reason to smile just a little bit. Here's the scoop: if household income is less than $100,000, mortgage insurance premiums are now tax deductible, just like mortgage INTEREST is deductible. Hoorah! This tax reform change applies to PMI, as well as FHA mortgage insurance and the VA funding fee. The purchase of a home or the refinance loans that involve such mortgage premiums must have closed on or after January 1, 2007.

For more detailed information on how this tax change might be helpful to you, please talk with your tax advisor, or contact our local (Winnetka) Baird & Warner mortgage expert, Reed Brunzell, at 847-446-1855.

Just north of Evanston you'll find ...

Beautiful Wilmette! (pronounced Will - MET)

Like it's neighbor to the south, Wilmette treasures its history, as well as its modern day progress. Wilmette was named after a fur trader named Antoine Ouilmette. The United States government awarded him 1,280 acres of land, which he eventually sold in 1848 to farmers and developers. It grew to be the community of Wilmette as we know it. Wilmette fronts Lake Michigan with beautiful public access parks and beaches. It reaches west to the Edens Expressway, and north to the village of Kenilworth. Bicyclists beware: there are still many cobblestone residential streets in Wilmette, making for a rather bouncy ride. But the residents love those cobblestones, and the village maintains them; they are a link to the honored past.

Wilmette home ownership opportunities range from condominiums to cooperative apartments to townhomes and single family homes. The prices range from moderate (by today's market standards) to luxury levels. You will find older homes, brand new homes where older ones once stood, condominiums built decades ago, and the recently approved mixed-use project that will rise along Green Bay Road where a Ford auto dealership once stood, near the Metra train station. Another fascinating residential project is the transformation of the former Mallinckrodt College into luxury seniors-only condominiums. The village trustees have taken great care in guiding these recent projects in their planning to protect what Wilmette already has, and to maximize the benefit for the citizens of the village.

Attached homes (condos, co-ops, townhomes) sold in Wilmette last year from $113,000 up to $841,000. Single family homes sold last year from $300,000 up to $2,900,000. There's something for everyone.

Wilmette is the last outpost for the North Shore "L" train; the end of the Purple Line that links commuters to the Red Line into the heart of Chicago is found in Wilmette at the corner of 4th Street and Linden. If the CTA train does not take you where you want to go, the Metra's Union Pacific North Line might be your ticket, delivering you to the Ogilvie Transportation Center in only 32 minutes.

If boating is your preferred way of getting from here to there, Wilmette can help you out with lake access as well. A beautiful harbor awaits the local avid boaters. Sign up for lessons at the Sheridan Shore Sailing School!

A really nice place to call "home," take some time to discover Wilmette.

"Your commission is too high!"

Got your attention with that headline?! Probably so, and with good reason! Real estate broker commissions seem to be a hot topic: in the newspapers, on Internet advice blogs, and over the backyard fence.

We real estate professionals sometimes have to remind ourselves that so many of our customers and clients (there IS a difference between the two, a topic for another day) really do not understand the compensation situation of most agents. Case in point is the next door neighbor of one of our North Shore Home Advisors. The neighbor is a college professor, holds a doctorate degree, and is a homeowner. Just today this lovely neighbor came to realize what it takes to make a living as a Realtor, after chatting with this member of NSHA.

So here's the scoop: the business model of most real estate brokerages sets the agents up as "independent contractors." What does that mean in the real world? It means there is no salary paid to the agent. None. Indeed, the brokerage and other entities are engaged in assessing multiple fees and other fixed costs (such as local multiple listing board subscriptions) against the agents. The cost of doing business for a Realtor is far from minimal.

Here's a pop quiz for everybody: when a Realtor represents the seller, the property sold for $300,000, and the sales commission agreed to by the seller is six (6) percent, how many dollars will that agent earn for the closed transaction?

Answer: (Choose only one answer, and don't peek below to find the RIGHT answer before you think it through.)

1. $18,000
2. $7,500
3. $10,500
4. $5,250 - $8,400

We know from speaking with people who are not in the real estate business, that most folks assume the listing agent will take home $18,000 when the transaction closes. We wish it were so. That $18,000 is, of course, six percent of $300,000. But that $18,000 must be divided among several real estate professionals: the listing brokerage, the listing agent, the buyer's agent, and the buyer's brokerage. The listing agent will actually earn (drum roll please) somewhere between $5,250 and $8,400. That is the gross paycheck. Now subtract income tax, social security etc, gasoline for the car, the Blackberry and cell phone and wireless network laptop service, monthly subscriptions to the local multiple listing service, dues to the state and national realtor associations, monthly lease fee for that fancy electronic lockbox "key" we all carry around, refreshments for open houses, annual errors and omissions insurance, health insurance, office supplies, and and and and and and...... You get the idea.

Yes, a successful Realtor can earn a good living. No, we don't take home ALL that commission check that the title company prepares for a closing. We just take it back to our managing broker so that it can be dispersed to the several individuals who took part in the transaction.

We are required to disclosure to our customers and clients exactly how we are compensated, and by whom. Sometimes there are slight variations on how this all plays out; each deal is different, as any agent will tell you. But you now know the boilerplate version. Any questions remaining? Please give us a chance to explain what is still unclear. We love hearing from you!

The Taxman Cometh

Yes, it's that time again, time to acknowledge that along with home ownership comes - a property tax burden. If you currently own a home anywhere in Cook County, you have probably received a copy of the first installment of your tax bill in the mail.

Some confusion usually swirls around this tax bill, so a few basic factoids are presented here.

1. This tax bill is due March 1, 2007.
2. This tax bill is to pay for the 2006 tax year (we always pay "in arrears" in Cook County).
3. This tax bill, due March 1, 2007, is EXACTLY one half of what the final total bill was for your property in the tax year of 2005.
4. IF (and this is a biggie, so read carefully) you carry a mortgage on your property, and your lender collects money from you every month to maintain an escrow fund with which to pay your property tax bill, DO NOT send the County payment for the bill which you received in the mail. Again, DO NOT pay this property tax bill if your lender has this responsibility. If you are not certain whether or not your lender is supposed to pay your tax bill, please contact your lender's customer service department immediately and inquire. Having said all that, it is still a wise idea to make certain your lender has indeed paid your tax bill. You can do this online by logging onto the County Treasurer's website, click on the pull-down menu on the far left margin labeled "payments" and select the payment status report, type in your property PIN number (find this on your tax bill mailing), type in the 4-letter security code the screen will supply to you, and you will instantly be shown the status of your property's tax payment. That URL is http://www.cookcountytreasurer.com/.
5. If you purchased your home in the past year, do not assume that the previous owner of the property is responsible for the payment of the 2006 tax bill. This is probably not the case. Check your purchase contract for the paragraph that details how the property taxes will be prorated between you and the seller, and check your closing statement (also called a HUD-1 or a RESPA statement) for the detail of the tax credit that probably was granted to you by the seller. Any questions on this? Contact your designated Realtor, lender, or the attorney who represented you in the purchase transaction.
6. Exemptions are one last tidbit that we have not touched on here. If you feel that you are entitled to a homeowner's exemption and do not see it stated on this first installment bill, don't rush to the phone to call the Treasurer's office. Any exemptions to which you are entitled will be reflected on the SECOND installment bill, which will be finalized and mailed out in the early fall of this year.

Hope some of this is helpful to you. Don't hesitate to ask questions, if any remain; we had to explain all of this in the past couple days to a new homeowner whose day job is attorney at a large bank. It's ok to ask!

And speaking of asking, all of us here at North Shore Home Advisors are always available to take your questions about purchasing a home on the North Shore. Drop us a line, or pick up the phone. We are glad to help!

Variety in Evanston Housing Options

Of the many communities along the North Shore, you might be hard pressed to find a broader selection of home options than exists in Evanston. And in a broad range of pricing as well.

• Older homes from the 19th Century and early 20th Century: Georgian, farm houses, Cape Cods, bungalows, Dutch Colonial, and more


• Contemporary condominiums that stretch high above street level to provide stunning lake views


• Newly built single family homes that are designed to blend into their more established neighboring houses, but with today's amenities


• Renovated older homes that offer a nod to the past, but with an eye to the needs of today's buyer (design, energy efficiency, cook-friendly kitchens, etc.)


• Multi-unit properties for the investor or owner-occupied property owner, some from the early 1900's, and others from the mid-century era.

Today's market in Evanston has condominiums that range from $104,000 to $1,195,000.

There are single family homes on the market from $180,000 up to $2,500,000.

Townhomes can be found between $220,000 and $895,000.

And multi-unit properties are currently listed between $235,000 and $1,150,000.

The possibilities are not "endless," but they certainly are bountiful. Evanston is a dynamic city with a rich history and interesting contemporary attitudes shaped in part by the presence of Northwestern University and Evanston Northwestern Healthcare (ENH) Hospital, as well as multiple strong retail centers and a light industrial center.

Come on up and take a look at Evanston!

Cell Phone Safety in Winnetka

Word to the wise -

Effective February 1, 2007, Winnetka Village Ordinance MC-7-2006 makes it illegal for a person to talk on a hand-held cell phone while driving a motor vehicle in Winnetka. Hands-free devices may be used while driving, either a mounted speaker phone or an earpiece that connects to your cell phone. The new ordinance does NOT apply when you are calling 9-1-1 in the event of an emergency.

According to the Illinois Secretary of State, using a cell phone while driving increases your chances of getting into an accident by 400 percent. Whew!

I believe that the group of persons hit hardest by this ordinance are the multi-tasking Realtors who are otherwise seen steering the car, dialing a client on the cell phone, thumbing through half a dozen listing sheets, and checking an appointment time on the pda while balancing a take-out sandwich on his/her lap - simultaneously. The North Shore streets are just a little safer now, thanks to the Winnetka ordinance! :-)

Superbowl Monday...February 5, 2007

The Superbowl of residential real estate is about to kickoff. As we cheer the Bears next Sunday, the local real estate market will be preparing for the proverbial commencement of the spring market. Last year saw a large number of homes hit the market on the Monday following Superbowl Sunday. Interestingly, some villages (Northbrook & Glenview) have already seen a fairly large number of properties offered for sale in recent weeks. Other towns (Wilmette & Winnetka) have had very little new inventory over the last few months. Several questions remain to be answered in the coming weeks. They include:

· Will sellers continue to insist that their asking prices remain high?
· Will buyers feel more motivated to “pull the trigger” rather than sitting on the sidelines…waiting to make their move?
· Will the market find a level of equilibrium where neither buyers nor sellers have the upper hand?

As was mentioned in the previous post, some local markets have seen exceptional activity so far in 2007. Is this a prelude to the spring market? Stay tuned. By the way…Go Bears!

The Pace is Picking Up for Sales!

There is definitely an increase in the pace of contracts being written on the North Shore since the new year has begun. A quick review of the five communities from Evanston to Glencoe shows these results (any residential property that went under contract, whether it is now "closed" or still pending):

Evanston saw 54 properties go under contract in all of December 2006; in the first three weeks of 2007 we find 56 properties already under contract, with 9 days in the month still to come.

Wilmette saw 17 properties go under contract in all of December 2006; in the first three weeks of 2007 we find 30 properties already under contract.

Kenilworth saw only 2 properties go under contract in December 2006, and there is one property under contract in the first three weeks of 2007.

Winnetka saw 6 properties go under contract in December 2006; in the first three weeks of 2007 we find 15 properties already under contract.

Glencoe saw 14 properties go under contract in December 2006; in the first three weeks of 2007 there have been no new contracts (an oddity, in comparison to the activity in the other communities detailed above).

It is important to remember how diverse the population count is from one town to the next on the North Shore; this can account for some of the disparity in the sales statistics we are studying here. According to the U.S. Census Bureau, the 2005 population estimates for each town are:

Evanston: 75,236
Wilmette: 26,922
Kenilworth: 2,445
Winnetka: 12,452
Glencoe: 8,979