Your home hasn’t sold yet, now what?
Picture this: we are in the heart of the Spring Market, which has more activity than anticipated and yet your house is still sitting. Is this you? The spring market is such a pressure cooker, and I know it is stressful for buyers and sellers alike because the stakes feel so high. BUT, fear not. There is still time to make the adjustments that will make the difference.
The advice I give sellers in this situation isn’t necessarily the easiest, but it is the most effective. And since I am in the business of selling homes, this is the advice I offer. And trust me when I say I have tried EVERYTHING--this is my list of the tried and true, get the job done-type stuff.
Paint: I am shocked by the power of paint every single time we repaint a room for a client. Wear and tear disappear. Imperfections--gone! Dark corners are no more. Bad smells? Erased like magic. All of this with just a bucket of paint and some time. In 100% of cases, go with a shade of white or very light gray for the walls, and bright white for trim work.
Light fixtures: If your light fixtures are outdated or intricate, it pays to update with something on-trend and simple. Right now lighting is trending toward minimalistic, modern designs with clean lines. Go to West Elm or CB2 and buy a set of complementary fixtures for at least the living areas and kitchen. Also, don’t forget to take a look at the color of light emitted from your light bulbs! Avoid anything that looks too blue, and instead look for more natural or warm in tone. Home Depot has an incredible selection of bulbs to choose from.
Create designated spaces: This is all about maximizing space. If your home doesn’t have a designated office or playroom, create the look through staging. Move a desk to the corner of a guest room. Put all the toys in one area of the family room. Stage your home so that buyers can see the vision rather than having to imagine it themselves. Make buying your home easy!
Rearrange furniture: Just because you’ve lived with a room setup one way for ten years, doesn’t mean that this is the setup that best highlights the room to a buyer. 99% of the homes I enter I am able to find at least one piece of furniture that should be put away. Buyers like to see big open spaces. It’s not necessarily how we live day-to-day, but it is what looks best in photos and in showings.
And last, but not least, consider your pricing. No amount of paint or organization will sell a house at the wrong price. It just won’t happen. There’s an old real estate concept called the Four P’s: Product (your home itself), Place (the location), Promotion (i.e. marketing - our team definitely has this covered!), Presentation (i.e. staging, as discussed above) and Price. If the first three Ps have been addressed, then you have to look at price. If your house has sat on the market for anything over 45 days, it’s time to consider a price adjustment. If you are in this situation, time is of the essence--we usually see the spring market start to taper off and the end of April.
Chicago’s real estate market: 4 big reasons for optimism
Let’s talk about some exciting things going right in the world of Chicago real estate! Sure you can read tons of news articles about all that is wrong in the third largest city in the country. But I find so often that there is a lot of positivity buried beneath all that negative news and commentary. And I for one see a lot of positive indicators right now, and on top of that, my team and I are busier than ever! From Millennials finally hitting the market, to corporate relocation, here are my top four reasons to be excited for a strong 2019.
1) The trickle down effect of corporate relocation to the city
2018 saw the relocation of four huge corporations to downtown Chicago: McDonald’s to the West Loop, ConAgra to the Merchandise Mart, GE Healthcare, and Gogo to the West Loop. McDonald’s move alone effected 2,000 employees, many of whom will buy real estate closer to downtown versus the suburbs. Additionally, new and better jobs will be created for urban dwellers. According to PayScale, Gogo’s average salary is approximately $90K. With so much daily professional traffic, the subsidiary businesses around the West Loop and Merchandise Mart -- restaurants, pharmacies, etc. will only continue to grow and flourish.
2) Millennials are finally starting to buy
Even with 2018’s lackluster market, Millennial home ownership increased 5.3%. On top of that, 41% of Chicagoland Millennials already own real estate--which is on par with national averages all according to Realtor.com. In fact, in one West Loop zip code, nearly 75% of residents are Millennial! That’s the highest concentration of Millennials in the country. And while a large percent currently rent, projections show that almost half will purchase within the next few years. And, this trend shows no signs of stopping since Millennials will continue to head to Chicago after graduating. As this article alludes to, Chicago is THE Midwest hub for Big 10 graduates. We’ve waited so long for Millennials to buy real estate, and I’m cautiously optimistic that the time is now.
3) Mortgage rates aren’t as bad as everyone said
As of the writing of this post, conventional rates were around 3.87% for a 5-year ARM, and conventional 30-year loans were at a fixed rate of 4.45% according to Freddie Mac. This is actually lower than where we were last year. Coupled with the modest home value increases we have seen in Chicago the past few years, affordability is there for buyers.
4) More people are applying for mortgages nationwide
The first week of January in 2019 we saw the highest amounts of new mortgage applicants since 2010. Buyers were prepping for the spring market, and happy to see the lower interest rates, which increasing housing affordability, and will add to the amount of buyers out there in the field.
While there will always be factors out of our control, good jobs + vibrant neighborhoods + increased affordability is a great equation for a strong real estate market. All we need now is some nice weather, and we will be ready to take this market by storm!
How my au pair saved my life + my top tips for finding the right one for you
A few weeks ago was one of the scariest days ever. Let me set the stage: my husband was out of town and I was not feeling well at all. I went to urgent care, where they immediately told me to go to the emergency room for further testing. I am OK now, but it was all so scary and so fast. Without my au pair, my three-year-old and seven-month-old would have made the trip with me first to the clinic and then to the ER. Can you imagine?
For those that don’t know, an au pair is a young adult from another country who lives with your family and provides child care for a maximum of two years. It is a cost-effective childcare option, that is a government-sponsored program. When people find out that we have an au pair living with us, I am bombarded with questions. We truly love our au pair so much, though there is a lot to learn along the way. Today I am answering all of my most frequently asked questions because us mamas have to stick together!
Are there organizations you work with to find an au pair?
There are multiple services out there for finding an au pair. We used Cultural Au Pair, and it seems like most of the people I’ve talked to in Chicago use it as well.
What does Cultural Au Pair do?
They facilitate the screening process for the American families and also the certification process for the au pairs.
What is the certification process?
There is an approximate six month certification process for the au pairs before they are eligible to work. This includes English training, CPR certification, and an optional infant care certification.
What is the screening process like?
This process is different for every family. I have friends who interviewed au pairs for six months until finding the right fit. We interviewed three and chose the first one we met. I did a lot of filtering up front so that when we interviewed people, we were already very familiar with them. My friend Shannon Norwood, the popular mommy-blogger behind Graytmama, was also a huge resource in guiding me through the process.
Once you are in the screen phase, Cultural Au Pair’s website becomes like Match.com. You are able to filter around their family status, driving skills, allergies, experience, etc. After you’ve made your selections around who you would like to interview, we started with a video with just my husband and me, and if that went well, then we did a video with the kids as well. This was the best way to gage the connection with our kids.
What did you look for in your au pair?
This is a very personal part of the process, but here is the list of criteria we used in making our initial selections:
* My most important criteria was to find an au pair about to start their second year. Au pairs are legally allowed to stay for two years. My goal here was to find someone who was already acclimated to living in the US and had already received their driver’s license, social security card, etc. I lead a very busy lifestyle, so having all of this done already was important to me. The downside to this setup is that we only get our au pair for one year, but for us the pros outweigh the cons.
* At least 21 so they are able to enjoy going out in the city and create a fun life for themselves here
* Since we live in Chicago, it was important to me that our au pair have experience driving in snow. This is a great question to ask during an interview!
When is the best time to look for an au pair?
While you can certainly start the process at any time of year, I have seen some general seasonality trends. Families seem to hire au pairs so that they start right around the beginning of the school year. If this is the timing you are going for, then start the screening process early for the biggest selection.
What is it like having someone live with you full-time?
I 100% understand that this setup isn’t for everyone. But for our family it works very well! With my husband’s travel schedule and my late hours, we need someone with flexible hours (which sometimes means late night assistance). We also love having an extra hand around the house, plus the idea that there is another adult in the house if we have a last minute work request. Our au pair has become part of our family! It will be very hard to say goodbye!
Have you considered hiring an au pair? I would love to hear about your experience!
Sellers: Is your home prepared for the spring market (it’s already started!)? Here are my top 5 tips to get ready asap.
While it certainly doesn’t feel one bit like spring in Chicago, the spring market is very much here! Over the past few years, I’ve noticed that simultaneously the spring market in Chicago is starting and ending earlier. We used to say the Super Bowl was the the official start of the spring market, but for 2019 I believe it really started in January!
If you’re reading this and panicking because you were thinking of listing your home for the spring market and thought you still had plenty of time, take a deep breath. We can still make this work! Your goal for going live should be March, or April at the very latest since this is when the most amount of serious buyers are out there. “Second home markets” like Streeterville and Gold Coast are slight exceptions to the rule since those markets are a bit more evergreen.
To hit the goal of a March go-live date, here are my top tips for getting your home in order, asap. After reading this, the next thing you should do is call me!
Keep an eye on the weather for exterior shots! An exterior shot is actually a legal requirement to list your home because it must be the first photograph anyone sees. The first time it rains and some of the dirty snow is washed away, call your broker. I work with the best photographers, and they are always able to run over to at least snap a few outdoor shots.
DON’T worry about the weather for interior shots. For interiors, we are able to “create” a nice day by adding in blue skies during editing. So don’t fret! Spend your energy instead on making your home look it’s very best.
Baskets are your friend! Seriously though, baskets make organization so easy. Use baskets to house all of your “everyday life” clutter (dog toys, paperwork, exercise equipment) so that spaces appear open, clean and airy. A good rule of thumb is to put away half of your decor--more is not more here, less is more! Store whatever you put away at the top of a closet. I love the basket selection at The Container Store or Target.
Touch up paint is a must. Everyone has at least one spot in their home that could use a tab of touch of paint. Check your baseboards, moldings, doors, etc. to make everything look as fresh and new as possible.
Don’t forget the closets. My rule of thumb here is to clear out any clothes that our out of season. An emptier closet is definitely the goal here, so also remove any of those plastic dry cleaner bags.
I can’t count the number of times my team and I have prepared a home to list in four days! Are you thinking of selling? Now is definitely the time to start making some calls--and buying some baskets!
This will be the most important spring market to date, and here's why
“What would Warren Buffett do?”
I have decided this is going to be my mantra in 2019! If you read about real estate news and projections for the coming year, things don’t look great. But, I’ve done my own research, and all I see is opportunity—just like our friend Warren, who has built much of his fortune during down markets. But I’m not one of those real estate brokers that sugar coats the situation. As with all things, there is an upside and a downside. I feel it is my job to educate my clients so that they are fully aware of the larger situation.
The downside
The larger Chicago economy is down: Generally, predictions are based around the idea that the Chicagoland housing market will echo the larger Chicago economy, which is not forecasting growth.
Taxes are high, and negatively impacting growth: Property taxes are high, which is lowering the maximum home values that people can afford.
Mortgage rates aren’t helping: Mortgage rates are increasing, and while they are nowhere near as bad as they have been historically, in Chicago in particular, higher home values and taxes are exacerbating the problem.
The upside!
For buyers, now is the time! While Chicago has never been known for real estate “deals,” properties are not appreciating as quickly as they were a few years ago. The value is there for buyers, but that also means buyers need to be quick on the uptake and ready to make a move. There are plenty of frustrated buyers still out there waiting for the spring, so I anticipate there being a good amount of competition. Plus, rates are still decent, and only looking like they are increasing after spring. For buyers, this also means you should do your best to capture the momentum of the spring market.
Adjusting to the market still works: We are no where near close to the 2007 recession. For one, average market time in Chicago is still about three months. For sellers serious about selling, if you price your home strategically right out of the gate it WILL sell—especially with interest rates holding through the spring. What does strategic pricing look like? It is a delicate art (not a science!) that takes into account comparable properties, the condition and location of your home, and the market at large.
Chicago continues to evolve: There is still tons of growth throughout the city, and it shows no signs of stopping. In Lincoln Park, Lincoln Yards continue to solidify and finalize plans, there is still buzz around Elon Musk’s high speed train project, new construction popping up everywhere, and there is also P33—a collaborative effort between Chicagoland leaders to make Chicago a tech hub by Chicago’s bicentennial in 2033. They city is giving people a great reason to invest in living here, which is always a good thing for the market!
In summary
It’s all about the larger picture, and playing the long game with well-timed and strategic decisions. When in doubt, ask yourself, “What would Warren Buffet do?”
A big announcement!
Big news! We are thrilled to announce that we are joining the Compass team! It has been a wonderful 12 years at Coldwell Banker, but it was time for a change and we were fortunate enough to be handpicked by the Compass CEO to join the team. We are absolutely thrilled about the move!
We are moving for our clients
We chose Compass for one simple reason: Compass is the future of real estate. Our sellers will get access to the latest marketing technology and service. Our buyers will gain access to the most user-friendly, intuitive and results-driven mobile apps created to date. For example: so many of our buyers have such a hard time searching for homes within a certain school’s boundaries. Compass’ apps are set up with school searches from the get go!
Compass’ amazing and innovative new ways of working
For sellers, Compass is in the business of lifting barriers. To help ease the financial barriers around getting a home ready for the market, Compass will lend sellers a deposit of up to 3% of the projected sales price upfront to fund staging, painting, fixing up…whatever projects are necessary. For others, the barrier may be a desire or necessity to sell before buying a new home. In this case, Compass offers clients a one year interest-free bridge loan. Once our homes are listed, Compass’ marketing capacity is unparalleled. One of the coolest tools we use is their proprietary predictive algorithm that tracks people’s online real estate searches. These are just a few examples I am most excited about (call us for more details on how it all works!).
Compass is constantly innovating. One of my favorite tools is their Collections tool. Within the tool, I store all the comparable listings for properties, and status changes will update in real time. And, all of the tools look as amazing as they work. The marketing team at Compass is made up of designers, strategists and producers from brands like L’Oreal, Conde Nast, WeWork, Twitter and J. Walter Thompson.
An incredible foundation
All of the corporate team at Compass is incredible. Ori Allon and Robert Reffkin are the two founders. Ori was a Director of Engineering at Twitter after selling his company to the company in 2011. His first business was acquired by Google, making him the first to have companies acquired by both Twitter and Google. Before founding Compass, Robert worked at Goldman Sachs as Chief of Staff to the President following five years working in the firm’s private equity arm. In 2005, Robert served as a White House Fellow and special assistant to the Secretary of Treasury. Most recently, Joseph Sirosh, the former CTO of Microsoft, joined the team.
We are always looking for the next best way to maximize our client service, and I truly believe that joining Compass takes our business to the next level. It is going to be an exciting 2019!
We sat down with Chicago's top schools consultant, and here's what we learned
I could talk about Chicago’s school system all day long if I had to. And sometimes I actually do. I work with so many clients with young families, that I am constantly reaching for the latest, greatest information. A few months ago we hit a point that we were working with so many young families, that it only made sense to host a dinner to chat schools all together.
We invited our friends at Chicago School GPS to field the questions since this organization was literally formed to help Chicago families navigate the school system! It was a fun evening—great food and informative conversation—what could be better on a school night?! (By the way, we host events like this often. If you would like an invite, please shoot me an email!).
Here are some of my own biggest take aways from the night:
The application process:
Preschool:
Start thinking about schools if your child will be two years old by September
Check chicagoearlylearning.org to see which CPS schools offer preschool
Elementary + High School:
Chicago residents have the option to enter the lottery for schools outside of their neighborhood school and can select up to 20 schools.
There is no application fee to apply to your neighborhood school or the lottery.
School boundaries rarely change. If they do change, your child will be grandfathered in to your old neighborhood school. If you sell your home, your buyer will not be grandfathered in to the old neighborhood school.
When applying to neighborhood magnet schools, there is a proximity consideration for students who live within 1.5 miles of the school.
Don’t be afraid to make a switch, CPS schools are free to apply each year.
Thanks again to all of our friends and clients who attended. If you weren’t able to join us this time, email me and we will get you on the list for our next one!