Sunday in Chicago

This is a perfect weekend for being a tourist! The weather...sunny, with a slight breeze and temperatures in the 80's. So, what could be better than playing tourist.

We drove to Chinatown which is several miles south of downtown Chicago. There we met family and dined at Three Happiness Restaurant, which serves Dim Sum. They have mango pudding which is a favorite.

Then we decided that the Museum of Science and Industry which is few miles south would be fun. The museum was originally built for the Columbian Exposition in 1893! And, it's the only building still standing. The current special exhibit was on glass, glass blowing and all the different disguises in which we find glass.

They had examples of glass Chinese Snuff Bottles; some "pearlised" antique bottles; glass bottles of many colors and several video demonstrations of how glass is made. Wow...the furnace to make glass gets really hot and the workers were wearing heavy fire proof coverings.

We saw examples of Tiffany Glass (which I'd love to have!) and Frank Lloyd Wright's stained glass designs and Dale Chihuly's daring, colorful glass "things". Several exhibits and a video were devoted to his incredible glass art. Truly, he's a master at the craft.

Then we were able to see a live demonstration of creating glass art. They asked the children to draw an object that they, the professionals, would make in glass. And, everybody watched as the glass was heated and shaped.

We decided that it was time to visit the "old" street. I had forgotten that Jewel (our local grocery chain) was originally called The Jewel Tea Company and appeared over a 100 years ago. Same for The Walgreen Drug Store which opened its first "shop" on the south side of Chicago. Today, Walgreens is all over! And, there was a poster for a four cylinder Cadillac. And, along the paved road was an old fashioned ice cream palour, which beckened.

We ended our visit by watching the model trains go from Chicago to Seattle with stops in between. At one point we had three trains on adjacent tracks. What fun everybody has playing with that exhibit!

And, the good thing is that Naperville is only an hour away! And, we get to sleep in our own beds.

Radon in Granite Counter Tops

I was taking an Ethics class yesterday and the instructor, Lynn Madison, mentioned that there's a problem with high levels of radon in granite counter tops.

I hadn't heard about this. But after reading the article on Snopes.com, then I'd say that yes some granite counter tops will have high radon levels. Strange, huh. We get rid of our old formica tops and put in these expensive, beautiful granite pieces and now will be breathing in radon!

So, the safe thing to do? First get a radon test on the counter tops. Then find a company that can put a sealer on the stone. And, make sure to continue to have a sealer put on.

The granite industry is talking about certifying which granite is "safe." Will probably take time to do.

And, if you're going to upgrade your kitchen and/or bathroom? Use Corian® (yes, that's a trademarked name) or some other man-made material that's similar. And, what I like about Corian® is that when you redo the counter tops you can have them put in seamless Corian® sinks. No more cleaning out that mucky overlip.

Can Fannie and Freddie Survive?

“Washington-based Fannie Mae and Freddie Mac, have lost a combined $3.1 billion between April and June,” according to an article in the Chicago Tribune today, August 20, 2008. “The two government-sponsored companies are the largest source of funding for home mortgages in the U.S,” the paper added.

Now we know that government can not, repeat, can not, afford for these lenders to go under.

So a rescue plan will be devised…probably by the end of the year. And, who will pay?

Why, you and me and every other tax payer. But, keeping these quasi-governmental companies alive is necessary, as they’re the only ones doing low down payment mortgages and guaranteeing loans.

And we thought that a $3 billion loss was a lot of money. Wait till this is over…and the total will probably reach $5 billion.

Could this have been prevented? Yes…but that’s another story.

© 2008 Move UP to Naperville Blog, Eileen Landau

Some Seller Advice

Yesterday I was out "on tour." That's where listings are available for agents to see without an appointment.

And, I noticed the following at one of the listings:

1) the lawn was brown and weedy
2) the cement pad at the front door was severely cracked and coming apart
3) there were weeds in the landscape area near the front door
4) the screen door was ripped
5) there were rust stains on the front door

Now, these were just the front door impressions. In today's market, when a buyer has a choice of 25, 50 or even 100 homes in his price range, if your home doesn't have curb appeal you're not going to get the buyers into the house.

Remember, that almost all of our listings are online and they either have the exact address or a map which shows the approximate block. I know that most of my buyers do drive-bys of property to cull the list. They'd take a pass on this one.

So, what are the things that sellers need to know in today's market?

1) Price
2) Location
3) Condition
4) Financing

Price: It can't be low enough! If all the similar homes have sold between $375,000 and $390,000, then don't expect a buyer to pay $400,000 or more. It's not going to happen!

Location: Next to freeways/tollways or busy commercial streets, electric high wires, landfill dumps, devalue the property. Could be by 2%; could be by 10% or more.

Condition: It must look like a model! Store your "stuff." Or better yet, have a garage sale and what you don't sell, donate. Hire a home stager.

Financing: FHA/VA financing permit a first-time buyer to get into a property. Don't hold out for "conventional" financing. And, do offer to help with closing costs.

Now, the above only applies IF you're motivated to sell!

C Move UP to Naperville Blog, Eileen Landau

Possible Real Estate Trends for 2009

Key real estate trends for 2009

1) Social

A) Increasing numbers of SENIORS. Many will keep on working past their "normal" retirement age as they've lost money in the stock market in the past 8 years.

B) Pent-up demand from first-time buyers as they establish new households.

C) People staying in place while aging. My "average" client has now lived in his home for 19 years.

D) More real estate people using Linked-in, YouTube and FaceBook.

E) Fewer real estate companies and agents. Those that survive take larger market share.

2) economic

A) Continuing high rates of unemployment. Fierce competition for jobs in distressed areas such as Ohio and Michigan.

B) Relocating buyers will negotiate so that their old home is no longer their responsibility.

C) Lenders underwriting standards will continue to evolve into stricter guidelines. Strange concept that buyers will have to have funds for a down payment in addition to a job.

D) The foreclosure states of California, Florida and Nevada will be inundated with foreclosure properties. The lenders will not have enough people to handle them efficiently.

3) technology

A) Increased use of online search engines for buyers. Expect that over 90% of all buyers will be surfing real estate on line.

B) Increased use of 'smart' phones. More Blackberry and I-phones which receive email and permit an immediate reply.

C) More agents writing unread, poorly written blogs.

D) Lead generation companies coming between the potential client and the agent and charging hefty fees.

E) Newspapers in print format disappear. We get our news online or from TV or podcasts.

4) Political

A) The candidates will make promises but their actions after election will be too late and too weak.

B) The American taxpayer will bail out the banks and Fannie Mae/Freddie Mac to the tune of several billion dollars.

C) The economy will remain sluggish and until the overwhelming housing inventory sells off, prices will remain depressed.

D) California, Florida and Nevada will take several years to recover

5) Fringe drivers or Black Swan Events. (Black Swan are events that are so outside the realm of possibility that they surprise most everyone. Thanks to Doug Kass of Real Money for introducing me to this term.)

A) A terrorist attack on U. S. soil decimates an entire city. The shock, much like 9/11, causes us to sit and watch the developments on TV, forgetting our business for at least a month.

B) A flu pandemic kills millions of people world-wide. The U.S. is put on curfew and only essential services and service providers are allowed out. Eventually, this will occur.

C) A war over an oil pipeline causes gasoline prices to soar over $6.00 a gallon. People on fixed incomes can’t afford to heat their homes and shelters are overcrowded.

D) Potential buyers trying to buy and finding that the underwriters demand their wallets and their lives (an old Jack Benny routine), continue renting.

This was in response to a question on Linked-in. I write a real estate prediction blog every year. Here’s the link to what I wrote: http://moveuptonaperville.blogspot.com/search?q=predictions”

C 2008, Move UP to Naperville Blog, Eileen Landau

Mount Trashmore

This is a picture of the view of the Greene Valley Hill, or as the locals call it: Mount Trashmore. Greene Road runs parallel to the Greene Valley preserve area and if you take it south of 75th Street you'll come upon our local high spot: 291 feet. Why the name? Well, it was a dump for many, many years. Now with all the land fill it's become a little hill.



It was a rainy day when I stopped and took these pictures...but as the sign says on weekend afternoons, you can drive up to the top and get a view. What will you see? The stone quarries; Lake Whalon which the park district just opened; Greene Preserve and the roof tops of the surrounding homes.


There's a protected information board complete with a map of the area. And, there's a gravel walking path that goes thru the area. Very bucolic in the midst of highways and byways. Makes for a nice outing...and the best thing is the price: FREE!


© 2008 Move UP to Naperville Blog, Eileen Landau

Naperville's Frogs

Tina and I went to downtown Naperville for lunch yesterday between the thunderstorms. And, at the corner of Chicago and Washington sat a 3 foot painted frog. And, yes, I did take some pictures, but the computer doesn't want to open the disk. Oh well...

And, the frog we saw was painted with wonderful Asian dragons and sponsored by Bangkok Village, where we had delicious Pad Thai.

There are painted frogs all over downtown and they will be auctioned off in September. Naperville has had different themes for their summer art. They probably got the idea from Chicago's Cows on Parade which attracted so much attention.

Giving back to your community!

Yesterday, a perfect summer day, we visited with Shawna of www.thecasualgardner.com

She has been doing landscape design for several years and discussed some of her philosophy with us over lunch. The City of Warrenville bestowed a signed and numbered stepping stone for her work recently.

She is actively involved in beautifying her community, and as she lives next to Fermi Labs, she also helps with their nature preserve.

What evolved over several years contemplation, is that giving back to the community is a way of showing appreciation to the neighborhood, the city and the world. Start small and grow. And, that's what Shawna has done. The pictures here show a newly planted garden wall that runs about 100 feet, on the north side of Batavia Road near the Fermi Lab entrance.

When she's out there working people stop their cars and tell how much they appreciate the beauty. She tells me that people leave her plants and thank you notes all the time. And, while I was out there photographing the site, people did stop their cars and wave or even shout out: Nice garden.

This is all done on city parkway area...with the city's blessing. It's turned a weedy area into one of beauty.

And as Shawna's into recycling...any found object becomes part of the garden. Someone left an old wicker sofa out for garbage...as well as an old tricycle. A coat of bright blue paint and voila, an interesting section of shade garden along the side walk. Clever...and not expensive either.

And behind the fence? More private landscaped areas. When Shawna bought this house six or seven years ago with me, there was no garden...just some old, tired yews in the front yard. It's taken time, but the beauty will last.

Currently, they're working on updating the house...new windows and siding. I took a before picture...when it's completed, I have some after pictures.

And, Shawna is self-publishing a book about her ideas, you can order it from her website: http://www.thecasualgardener.com/Book.html

An uplifting story! And, I'm proud to have Shawna as one of my clients!

© 2008 Move UP to Naperville Blog, Eileen Landau

A Hummingbird Moth

If you've been reading my blog you know that I'm a gardner...or at least a weed puller on a daily basis.

So imagine my surprize when last week while I was out admiring some flowers I saw this tiny, little "thing" sticking its probocis into these flowers to get sap or remnants of rain water.

I ran inside and got my camera and the little creature was still there. I had no idea what "he" was...until I checked with my gardner mentor, Shawna of www.thecasualgardner.com fame.

You just never know what you'll find in your garden!

And, having a nicely landscaped garden does add value to your home!

© 2008 Move UP to Naperville Blog, Eileen Landau

Questions YOU should ask your agent before you hire her.

Here are some questions that you as a consumer might want to ask the agent you hire to represent you.



1) How long have you been in the business? I started in real estate back in the pre-historic days. 1976 to be exact. Took a full year of business courses which included real estate sales and management. And, passed my exam and got my assigned desk in a brand-new office with several other brand-new agents. No computers in those days. No electronic keyboxes. No internet. We kept a black notebook and made changes to it on a daily basis. We toured all the new listings several times a week and attended mandatory weekly meetings, even though we were independent contractors.



2) Are you a REALTOR? I am a card carrying REALTOR, a member of the National Association of REALTORS, the Illinois Association of REALTORS and my local association, Mainstreet Organization of REALTORS (MORe). As REALTORS we subscribe to an ethical model to run our business. We are governed by many rules and regulations.



3) What certifications do you hold? I passed the Broker's exam in 1982. Then I started the classes to earn my Certified Residential Specialist designation, and received the award back in 1987 after 3 years of classes. I also took several classes toward my Graduate REALTOR Institute. And, then in 1998 I took the Accredited Buyer Representation course. And, most recently in 2005, I completed my course work for e-Pro, proving that I'm a certified internet expert.

I will be taking the Senior Residential Specialist class this September.

And, while I was taking these classes I was coached by the following people: Tommy Hopkins, Mike Ferry, Steve Shull, Matthew Ferry, Tom Ferry and Mark Strothers. I attended lots of seminars over the years, both learning and presenting and networking with agents all over the country.



4) What is your specialty? I really enjoy working in residential real estate. I started my career as a listing agent and now with the internet I've found that I'm working mostly with buyers. So, my experience in both sides of the business is vast.



5) Can I have a list of past customers? Yes…and you'll find testimonials on my websites with former clients' names right there. And, yes, they've agreed to have these made public.



6) Who is your Broker? Can I call him? Of course you can call him. John Veneris-630-515-9500. And, please be sure to say why you're calling. I've worked with John for over 30 years. And, he's a great manager, in fact, he was Manager of the Year when we were at Re/Max many years ago.



7) Is this your full-time job? YES! I spend vast amounts of time previewing property; emailing information to clients; answering questions; showing homes; going to inspections; and solving problems. Full time...but I do take time off. Saturday nights are reserved.



8) What makes you different? I never thought you'd ask! I'm highly analytic. Really. Many of my clients are engineers, doctors, lawyers, teachers and scientists. And, I do have a very logical system as pertains to buying a house. I'm also good at negotiating. I don't get angry or upset. And, as I've seen so many "strange" things, that I can roll with the punches. This market that we're in, is a slow market, and many agents don't know how to work foreclosures, bank real estate owned or short sales. Time is a great teacher. I've seen interest rates as high as 18% in 1982, to a low of 4.5% back in 2005. A great agent adjusts to the market and educates her clients at the same time.



Any other questions? Add a comment or email me.

My 2008 Real Estate Predictions-Revisited and Revised August 1, 2008

My 2008 Real Estate Predictions-Revisited and Revised August 1, 2008

It's hard to write a blog that contains downbeat news. 2007 was just awful for real estate. And, 2008, I believe, will even be worse. Wow! How true. This housing depression is almost as bad as the depression in the 1930’s. Some people feel it is worse!

According to RealtyTrac there are over 200,000 homes a month in the foreclosure process, and they expect that number to increase. By next summer we may have 2 million homes across the country in the foreclosure process. Yes, the Case-Shiller monthly housing report of 20 major metropolitan areas has shown that every area has decreased housing prices and increased inventory. In my sub-division homes have dropped anywhere from $75,000 to over $100,000 in price. And market times have increased.

And, this means:

1)Increased Inventory. More and more homes coming to market.

Yes, lots more homes just sitting, for months in many cases. In fact, many sellers have opted to rent their homes. And, the rentals are also sitting.

2)Increased Market Time. In Naperville currently it's about six months for a home to sell.

The average market time is six and one half months. The average list-to-sell is 94%. In the past six months about 67% of the listed homes have sold.

3)Decreased Prices. Sellers who have to sell will reduce their price.

Most sellers have reduced their prices by 10 to 20 per cent!

4)Increased Inducements. Sellers will offer to pay for closing costs; homeowner's association payments; and repairs.

More seller contributions to get to the closing table.

5)Tighter Lending Requirements. Those marginal buyers who might have purchased a home two years ago are now shut out of this market.

Indeed. Especially when purchasing a condo or townhome with an association. The underwriters want every document. They’re even reading the budgets and checking out the reserves. This is also taking longer to get to closing.

6) Fewer Relocation buyers. If a relocation buyer cannot get his home sold, then he's not taking the new job. Or, if the relocation appraisal price to buy his/her home is too low, again, he/she may not take the job.

And, as so many companies are “rif”-ing (reduction in force), many new hires are rightly concerned that they may not have a job a month, or six months from now. And, also the number of companies filing for bankruptcy has increased exponentially. And, companies are downsizing both in physical locations and in employee numbers.

7) Fewer buyers. Many buyers are afraid to buy and watch the value of their newly purchased home decrease. So, they will continue to rent for another year or two. Why buy now if prices will be lower next year? Good point, although sometimes you just have to bite the bullet. If you’re planning on staying in your newly purchased home for five years, you should be fine.

The effects of the "sub-slime" mortgage mess will be felt within the entire economy. The notion that the credit problems can be "ring-fenced" or limited are naive. Someone or somebody will have to come in and rescue the lenders, the builders, the insurance companies that underwrite these loans. If it is the government...then, in essence, it will end up being the tax payers.

Hmmmmmmm. I must have a crystal ball. Could you have imagined a credit mess this worldwide?

The general economy will slow as gasoline stays above $3.00 a gallon (currently it's $4.00 a gallon) and heating oil continues to climb. There will be less discretionary funds available for home improvement, home decorating, eating out, entertainment, vacations, hotels, airplane flights and purchasing new cars. Food price will continue to rise as the cost of grain will increase as we manufacture more ethanol from corn. We've seen the reports that consumer spending was at the low end for holiday gifts. And, the only area showing strength was electronics.

The consumer's pockets are near empty and his house, which was his personal piggy bank, is not longer worth what it was two years ago. And, as most Americans, we live from paycheck to paycheck and have little to no savings for an emergency.

In our Naperville market, prices will continue to come down and market time will expand. In my sub-division, a home which was priced originally at $630,000 finally sold at $500,000. And, its competitors are still on the market...unsold.

Buyers will need some money for a down payment to purchase. At least 3% for a FHA loan. Now, it will be 3.5% down payment, plus 1.5% for FHA insurance.

And, documentation and verification will be required. Buyers will wait as they expect prices to continue down. The question is how long until prices start to go up? No one really knows. We can guess. Perhaps 18 to 24 months will be necessary to get the inventory cleaned out. I now expect that we’ll see improvement in the Spring of 2010, that’s almost 2 years out.

It's going to take time...after all the bubble was approximately five years so it would not surprise me that we have another 2 to 3 years left. And, that can be a very long time.

The lower end of the market will have more activity as those prices are reasonable and affordable, especially if interest rates stay under 6.5%.

The higher end of the market, especially the million dollar spec homes will sit and sit and sit. And, it amazes me that several builders are still putting up these McMansions…which just sit and sit. There are several million dollar homes near Hobson Road which were built in late 2006. They are still unsold!!!

However, this too shall pass! Do we have the patience? That’s my mantra…patience and more patience!

Copyright 2007 and 2008 Move UP to Naperville Blog, Eileen Landau

Some Changes in the new housing bill

You probably know by now that the new housing bill will become law shortly.

But, did you know that there are some "hidden" changes that the bill has?

For example: FHA will now require 3.5% down payment, increased from 3%. And, that the buyer must have the FHA insurance fee of 1.5% in their checking or savings account. This amount (1.5%) cannot be gifted or borrowed. The 3.5% can be gifted by anyone, and will require a gift letter to that effect. These changes go into effect October 1, 2008, when the new Federal budget also goes into effect.

The other point...the $7500 "credit" is really an interest-free loan. It must be paid back over 15 years at the annual amount of $500. So, it's not that great.

Just be careful out there. If it looks too good; if it seems too good; if it smells too good...well, I'd be looking for some attached strings.