This blog post is entitled, what’s happening with the Real Estate market in Springtime Chicago? Hello everyone, Charles McShan with Century 21 Universal. My office is located at 7300 N.Western Ave in the West Ridge area of Chicago, Ill, on the city’s North-side. The last time I posted a blog was the month of March. A lot of things have happened during the last 2 months. This website along with my Facebook business pages and Instagram has been comprised. I was also in Facebook jail and you do not want to be there. It was hard to get my administration’s rights back but I am back in control 90%. Posting on my Instagram page is still a challenge.
We see on the news daily about computer sites being hacked nationally and individually, it is an ongoing problem. In my case, my Seo person suggested that we temporarily take the site off the air, re-tighten our security, and at the same time completely redesign the blog site to make it more SEO-friendly. As of May 12th, the site was back on the air. It is 90% complete with the final touches being updating past blogs so they too will be SEO-friendly. Also, I have shortened the domain name of cmacakachicagolandrealtor.com to charlesmcshan.com. I hope you like the new look and we will continue to move forward. For those who want to know the name of the person responsible for the new look of my website his name is Micheal Ewarawon and he can be reached at [email protected]. Once again thank you, Micheal.
Like I said earlier my last post was in March it was cold then; it is warmer now. I wrote this post in the first week of April but because of the above problems, I could not post it until now. The month of April is now behind us it is still springtime in Chicago. There are also many people wanting to know what is happening with the Real Estate Market in Springtime Chicago? As you can tell by the above photo, spring is here. Baseball season is here. This blog post will talk about all the latest events, local news, and of course, my favorite topic, Real estate. So let’s get at it.
Article Guide
Latest Events!
In April, the coronavirus pandemic was still an ongoing event. April of 2020, the virus was tightening its grip on America, and the death toll was rising. This April, we are fighting back with three vaccinations. I personally have taken both of my vaccination shots, It has been a rough year for everyone. I am mentally drained but we all have to keep moving forward. The virus is surging in certain states and we see what is happening in India, South America, and Vietnam. This virus will not let us go. We have a long way to go before we ]see the light at the end of the tunnel. Children from 12 to the age of 18 can now receive a Pfizer shot The city, county, and state are doing their part to get most people with the shots in their arms. We still have a long way to go.
Local News!
Like I said earlier, Baseball season is back. This year, the league started off allowing only a limited amount of baseball fans inside the stadium, but some stadiums have reversed that ruling and are selling 100% of their tickets. Here in Chicago, the Chicago Cubs and White Sox while not still not allowing full attendance are appreciated by their fans who are allowed inside and the surrounding business is appreciating their restored revenue. Once again the Chicago Bulls basketball team and the Chicago Blackhawks hockey teams fail to make it into the playoffs. The city and State are 1 step away from full reopening so stay tuned.
As you travel throughout the city and suburbs, you see amateur sports is alive and going strong in the various parks and forest preserves. Multiple museums are now open with prearranged appointments. The Sears Tower observation deck officially opened in April. Yeah, I said the Sears Tower and for those who say the new name has been the Willis Tower for years, I say that I hear you, but I like the name Sears tower name better. Last year Downtown was a ghost town, today downtown Chicago, and many suburban downtown areas are booming with pedestrian traffic. I was in downtown Oak Park the other day, it was busy. A lot of movie theaters have reopened their doors with limited attendance. The city and state are only one step away from fully reopening but you have the personal responsibility to keep your family safe this summer. Do what you think is necessary as far as protection is concerned.
Besides the coronavirus, the other event dominating the news is the civil unrest/protests which are for the most part connected to police shootings here and in other cities, along with mass shootings and wars worldwide. Many ask the question, what is the solution to all this madness? The answers to these questions will come down from a higher source will soon. The majority of schools are back in session with students either personally attending school, attending classes online, or a combination of both.
Lastly, on the subject of local news, the economy is slowly recovering but conventions are still non-existence, which means most major Chicago hotels remain close. I was in the transportation industry, and I worked closely with the Palmer House, Hilton Tower, and the Blackstone Hotel, and the Congress hotel doormen for years. I knew the people, I knew the inside of those hotels. They were a part of my life. When those significant hotels reopen, those older employees might not be rehired. Every time I drive past those hotels, I think of all the good memories I had with those people, and it leaves a pit in my stomach. For many people this coronavirus has destroyed a lot of lives, it will never be the same. But life as long as you live will always be about changes.
Real Estate News!
So what’s happening in the real estate market in Springtime Chicago? Well for starters the month of April is Fair Housing Month. The Fair Housing Act was created in 1968. This Housing Act was designed to protect Americans from discrimination in the sale, rental, and financing of housing based on color, race, national origin, and religion. The act was later extended to cover sex, disability, and family status. There was a time a landlord could discriminate against potential renters if they had too many children. Today they can no longer ask how many children you have. We have come a long way, but it is not over.
To The Homeowner!
What’s happening in the Real Estate Market in Springtime Chicago for the homeowners? The housing market was experiencing a housing shortage long before the coronavirus pandemic began. The housing shortage was evident in 2019, in 2020 because of the virus; few people were willing to let homebuyers into their homes. Today more home shortages are still occurring. I am tired of using the word low inventory but it is a fact. When will it change? Who knows. But if you are a homeowner and you listen to your Realtor and price it right, your home will receive multiple offers, with some homes selling for 20 to 30% over the asking price. If you have a home for sale on the market today and you are not receiving offers, you need to talk to your Real Estate Broker. Speaking of low inventory, here is an article from the National Association of Realtors that addresses that subject. If you wish to read it, please click here.
If you are a homeowner wishing to sell your home and you can not afford major upgrades to your home do the minor things. What are they? Clean the carpets, fix all broken wooden floor cracks, windows, railings leading the home, doorknobs, leaking faucets. Eliminate all pet stains in carpets and floors. If you love to cook certain foods that leave lingering odors now is the time to start eating out and to professionally hire someone to eliminate those smells out of your carpets, drapes, and furniture. Also since the weather is now warm get rid of older furniture to reduce clutter. I do not know if the local governments are allowing homeowners to do yard sell as of yet. If not. Take your excess stuff to the resell stores or place it in the alley it will disappear as that commercial says. So if you can’t go big on the upgrades then do the small things to make your home more appealing to home buyers.
To The Homebuyer!
To the home-buyers out there, 3 or 4 years ago; you could low-ball homeowners with your asking price. For now, those days are gone. You must come with your best offer because you might get that second chance. You might also have to look outside your neighborhood of choice. Single-family homes are still scarce in the Chicagoland area, but there is an abundance of Condos and co-ops on the market. What is a co-op? Well, use this link and read one of my earlier blogs, and you will learn the differences between a co-op, a condo, and a townhouse. Please click the link here.
If you feel that the rising prices of housing have priced you out of the market, then wait. In time things will change, and prices will come down. But for now, I like wrote earlier the homeowners are in the driver’s seat, they are receiving multiple offers. With that being the case some homeowners say I will not help the home-buyer with the closing costs. If you run across homeowners unwilling to help with half or part of the closing costs, you decide to make. Remember those costs could be around $12.000.00 more or less, so be prepared in advance if the seller does not decide to help you with the closing costs. For those who are unaware of what, closing costs are check out this blog post I wrote on that subject a year ago. Please click here.
For those behind in Rental/ Mortgage Payments!
What’s happening in the Real estate market in Springtime Chicago as far as renters of apartments are concerned? The year 2020 was rough for you renters of apartments. As I reported in a blog last year. Many apartment dwellers in January 2020 were preparing to move when their rental leases expired. In Chicago, your rental lease could end in either May or September. Either way, these apartment dwellers had either saved up money to move or were in the process of saving their money to move. Then pow! the coronavirus hit the Chicago area. The Governor ordered businesses to shut down; people were laid off with no income coming in, so they had to live off their savings. By the time their rental leases expired, they no money to leave, so the renters were stuck. They were trapped.
The government stepped in with moratoriums that protected both renters and homeowners behind on their payments. Those moratoriums are still in effect today. Renters who are still behind in their rent will not find too many new landlords willing to rent to you, knowing that your past landlord might take you to court for back payments. Keep in mind that the landlords must also pay their bills. Here in the state of Illinois, the Governor has initiated certain programs that will help both the tenant and the landlords. Also, many companies are hiring again, so if you are behind in your rental/mortgage payments then do what it takes to pay off your debt and by 2022 you will be back on track.
While that is the good news of job hiring, the bad news is that there is still major unemployment, and many are collecting unemployment assistance. Millions do not have enough money to move, and they are still staying where they are even though they do not have a job or a new lease. Landlords who still have to pay their bills are prohibited from evicting them for the time being. Also, mortgage companies are prohibited from foreclosing on homeowners behind on their mortgage payments. Either way, the June 30th deadline is looming? What deadline is that? Keep reading
Breaking news in regards to renters and landlords. In Illinois, Governor J.B Prizer has signed a bill that will provide landlords with rental payments that will compensate them for the missed payments from their tenants. There are deadlines to apply, If you wish to know more about this bill please click the link here. Also, the Governor recently extended the eviction moratorium also until June the 30th. What will happen on June 30th for homeowners, renters and landlords? When we get there all will know! It is only a few weeks away. Say tuned!
Forbearance is one option for these homeowners; Moratoriums cannot and will not last forever. June 30th, 2021 is the new date that Forbearance will come to an end. What is your game plan homeowners? Sometimes things happen that are not in our control, and we have to start over. Foreclosures, short sales, evictions are a natural part of the housing/rental market. That is not good for the person or family affected, but that will be an unavoidable process for some. That process will result in more homes being placed on the market thru short sales and foreclosures. Homeowners, here is an article that could help you with your options. Please click here.
What is going to happen on June 30th!
Pending another extension, the homeowners who are 3,6 or months behind on paying their mortgages are in for a rude awakening. July 1st will find the foreclosure filings in the mail. The majority of homeowners who haven’t paid the mortgages will do one of two things.
1:You can sell your home, make a profit, break even, or close to it and get on with your life. You can then pay off all of your back debt then find living quarters to rent. Yes, I did say find a place to rent. Homeowners who seriously want to move can’t move because they cannot find a home to purchase at the price they can afford. So if they sold their home they would become homeless by default because of low inventory. So if they cannot find a place to move to with their good record how will you find a home with those back payments on your credit record.
Yes, those several months of miss payments are on your credit record. You can blame it on job loss the virus or both but those back payments are still on your credit and they are not going away any time soon. For right now you can’t buy a home but all is not lost. You still have an advantage. Unlike the last real estate bust, the majority of homeowners today are not upside down on their mortgages. You have a lot of equity in your home but you are cash poor. Here is what you should do. Place your home on the market now while at the same time start looking for an apartment or home to rent. If you price your home right it will sell quickly. Agree to your contract to stay in the home for 1 month or so and pay the going rate.
You get your cash for the home find that rental unit you like and talk to the landlord. Yes, some landlords will not like the fact that you have several miss payments on your record. To calm their fears you can give them 3 or more months of security upfront and they will be good to go. Now you can use that time to build back up your credit, pay back those missed payments, and in a year or so if you want to you can try and purchase another home.
2: You, on the other hand, can do nothing, stay in your home, not paying your mortgage, and wait for June 30th to come and go. On June 30th, you are sitting pretty with a lot of built-in money in your home. July 1st comes, and they send you a foreclosure notice. That, along with those back payments, is now on your credit report. Because you chose not to sell ahead of this notice, you must now also incur the financial costs of lawyers and court and other fees that will be taken out of your home equity when they force you to sell.
So there you have it, either sell your home voluntarily or the system will force you to sell. So how much you walk away is up to you. So your best solution is to sell your home now. So if you are house rich in equity but you are cash poor, get out from under this mess now and get on with your life. Like the Chicago Cubs, there is always next year to buy.
Are Real Estate Agents just taking your money?.
Finally, some media have been talking about Real Estate Brokers/Agents and how much money they make. Sure there are Agents and teams of Agents who are now making huge salaries. Why? Because they earned it, Real Estate brokers should not be condemned for doing their jobs and being compensated properly. But the majority of agents are not in that 10% or more bracket making hundreds of thousands of dollars a year. The majority of agents are working stiffs, putting a lot of time and effort into what they do, and I will use the word time again. You put a lot of time into this job. You burn a lot of gas, use your cellphone daily, and a lot of time, it goes for naught. Deals fall thru; people do not return the calls. They do not like the properties, and you also deal with people who do not value your time and do not show up for viewing properties.
Let me give you one example a client ask me to set up a showing. I set up the showing. I drove many miles to get to the property. The listing Broker met me there, we were all there chatting, but my client was not there. So I call my client and ask where are you? Remember she ask me to set this showing up at this specific time. Her response was, “Hey, I am shopping at the mall. They have good deals here. I am busy. Maybe I will be there in 2 hours. OK!” That is one part of the business, the rude/selfish customers who see no value in you and what you do. But on the other hand, you have clients who appreciate what you do, and they see the value of a licensed professional who can guide them thru the home buying process.
Those sorts of clients will see your value, and yes, they will work with you, and when you close that deal, you will feel good. That goes for either the homeowner you represent or the home buyer you help find the home of their dreams. Then at the closing, you will receive that check for a job well done. But a lot of people assume we Realtors keep all that money. That commission check is sliced up in many ways. Here is an article talking about this subject. If you wish to learn more, please click here.
Here is what Charlie Oppier The National Association of Realtors had to say on that subject recently; if you wish to read his remarks, please click here.
For those out there who don’t really know what a Real Estate Agent/ Broker does? We do the following.
Help figure the appropriate listing price. Help buyers determine what they are looking for in a property and what is most important to them. List property onto the market. Stay up to date on and interpret local market data. Help buyers determine how much they can afford. Effectively market properties, choosing advertising mediums that get the most bang for your buck. Target the right audience for properties, find properties that meet the buyer requirements. Work to have properties staged and photographed. Stay up to date on neighborhood statistics including schools, amenities, etc. Schedule inspections, meet inspectors at property, and review inspections.
Schedule appraisal and meet appraiser at property. Schedule and advertise open houses. Schedule and coordinate appointments to show properties. Prescreen potential buyers before showings. Help guide buyers through financing and insurance. Keep a list of recommended service providers such as inspectors, painters, handymen, etc. Keep open lines of communication between buyers, sellers, and any service providers. Negotiate contracts and try to anticipate potential problems ahead of time. Coordinate closing with the Title company. Get executed contract and escrow money to Title company. Protect our clients from all the scams out there trying to access your bank account and these are on the surprise. Last but not least we make sure the buyer gets the keys to their new home.
Whew! That is a lot of work. To accomplish that work we must be on our phones, using fax machines and overnight carriers. Burning gasoline, paying tolls and parking fees, tickets for double parking, or parking in the wrong spot. We do it to get the job done. And like any other profession, there are dangers. Every year worldwide Realtors are robbed, raped, assaulted, and murdered either going to or inside of properties. You can screen all you want and set up apps to alert others but you do not know the intent or the heart of that person you are meeting. It can only take a minute and now you are a victim. So hey this is what we do and encounter to make a living.
In summary, no one forces us to do this job. We love interacting with the public. Real Estate classes are always packed with newcomers, so if this is your passion, go for it, and if you do your job, you deserved to be compensated properly. And let’s not forget a lot of deals fall thru the cracks for whatever reason. You do not get that gasoline, phone usage, and all miscellaneous money you spent back into your pocket when that deal falls thru. So when you are successful and you get to that closing table you want to get paid. That is part of the business. The last point contrary to what some believe there is no fixed commission rate. A fixed rate is illegal. All commission rates are negotiated. The commission price normally is deducted from the selling price or the rental price of the property. As of this writing, the majority of homebuyers or renters still do not pay the buyer’s agent commission but things are changing so stay tuned.
Locally!
The area of West Ridge has emerged from the shell of the coronavirus. It looks like the annual carnival that takes over the Warren Park parking lot on Western Ave is in the preparing stages to open. Warren Park itself is always busy with people playing all sorts of sports. Devon ave is still the main street where people come from the tri-state area to shop and the auto traffic is back. Metra is in the pre-construction stages of building a new train station at Peterson and Ravenswood. Peterson ave is like the connecting ramp between Lakeshore drive and the Edens expressway and is always busy. While some businesses/restaurants were forced to close due to the pandemic, most are still open. One of my first blogs was about my West Ridge home area. If you would like to read it, please click here.
Bordering West Ridge is East Rogers Park. A lot of people also call West Ridge West Rogers Park. When I left, I moved to the Greenleaf Glenwood ave area. I really love it there—the Southside of the city. I really love it there. It borders the shores of Lake Michigan, and just a few days ago, a friend of mine caught a huge salmon off the Pratt ave. Beach. Yes, I did say he caught a salmon. A lot of people are shocked when I say Salmon exists in Lake Michigan but they are not alone you can also catch trout, perch, carp, sturgeon, and sometimes northern pike. Pratt ave beach is an excellent location to try your hand in fishing on the Northside of the city.
There Rogers Park area is well known for its vintage huge 2 and 3 bedroom units with large living and dining rooms. There are also co-op buildings along with condos for sale and rent. If you desire a modern mid-rise apartment building may I suggest the Morgan at Loyola? Located around 6500 N. Sherdain road across the street from the Loyola campus. You have the CTA red and purple lines right at your door along with the CTA 147 route for express service to downtown Chicago. If you are interested please click this button for a representation of what rental units might be available at this time. I can always set up a showing. Please click here https://www.morganatloyolastation.com/?gclid=Cj0KCQjw–GFBhDeARIsACH_kda2fv-8yxt05wttQwEOSY-d8w7Te4mAAU6ozy86mCJfRbNjrDYfa84aAmoYEALw_wcB.
Yes, Rogers Park, as well as the rest of Chicago and its Suburban areas, have a rich history of older buildings while at the same time newer buildings with built in- technology for your comfort. All you have to do is chose. Speaking of Loyola University there basketball team did not make it to the top 4 this year in March madness but they put up a good fight. I wrote about East Rogers Park a few years back in a post. If you wish to read that blog, please click here.
These are two excellent northside neighborhoods, but I want to throw out a shouts to Edgewater, Uptown, Albany Park, Lincoln Square, and North Park. Add to the list the suburbs of Skokie, Lincolnwood and Evanston, and Niles. These have excellent shopping areas and feature many good living quarters. But do not read this wrong, my travels take me throughout the whole city. I am always on the South and West sides of Chicago and the expressways and toll roads take me into all of the outlying areas.
Conclusion
Being an essential worker, my Real Estate office of Century 21 Universal was never closed. Even if they relax the rules for face masks we will still encourage you to wear a facial covering when visiting us and I will do the same when I visit you. This way we keep each one of us and our families safe. Even though there is a low inventory, we do not give up. We continue to work hard for the clients who are selling their homes as well as clients looking to buy a home. We are an international office with over 20 different languages spoken there. We maintain a high code of ethics, and the best manager in the business is constantly retraining us. While many offices close their doors at 5:30 pm sharp, we are open late for people who get off work later. I have over 20 reasons why you should choose our office/me to help you with your real estate needs. It is all about you, the client.
This blog was entitled” What’s Happening with the Real Estate Market in Springtime Chicago.” I hope I have covered that subject well. Spring is almost over and soon summer will be here along with all of its heat. The month of June is also Homeownership month. I will cover that point later but needless to say, I am here for all of your questions be it selling your home or purchasing a home. Despite low inventory, the selling of homes will continue. Buy or sell Chicago area homes was the original motto I started off with years ago. I still own the rights to that motto to take and if you Google it will take you to my website. This summer will have me engaging in the Real Estate process in many ways so stay tuned and keep on the watch. I will be here when you need me please let me know your thoughts and comments below. I hope to meet you soon one day. Stay safe until then, and have a nice day.
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Thank you for reading this blog post; even in this time of low inventory, homebuyers should not give in their quest to find the home of their dreams. So for future homebuyers, this free e-gift is for you. Please click this link below and after reading it, share it if you would like to.
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