My hardest client yet!
I’ve worked with numerous clients over the last 20 years, but the hardest client I’ve ever worked with is one that I worked with this year. Who was it, you may ask - it was my own family!
For those who haven’t yet heard, we sold our home. Gulp. Yes, the home that we spent years lovingly and painstakingly remodeling into our dream home – that is the one! But you know me, I am always ready for the next project! This home is truly everything, but with interest rates so low, I figured now is the time to sell and start looking for another diamond in the rough. And I already know your next question: no, we haven’t found it yet! Until we find our next Chicago home, we are renting a great place in Bucktown down the block from the girls’ favorite park!
Our home sold fast. So fast we were only listed on the MLS for about 8 hours. Going through the process of selling my own home was eye opening in ways I didn’t even realize, and I want to share some of those insights with you!
In terms of preparing my home for the market, there are a few points worth noting:
Creating a blank slate: My own advice was echoing in my ears the whole time I prepared my home to list. I put away all of our personal photos, most of our knick knacks and any child-related clutter. I wanted to create streamlined fields of vision wherever possible.
Baskets: To accomplish this more minimalistic look, I used a lifetime supply of baskets. Anything that didn’t have a purpose went in a basket and either on a shelf or in a cabinet.
Staging as necessary: This may be surprising, but I actually did stage a few areas! After removing so many personal items, it felt just a little too bare for my taste, so I finished the look with coffee table books and just a few other smaller pieces to bring it all together.
Cabinets + closets: The end goal for cabinets and closets is to make them look clutter-free and spacious. I am definitely a neat person, but listing my home forced me to get very intentional with the organization of these spaces. I basically tackled one closet or a few cabinets per night until I had gone through all of them.
Storage unit: There is no shame in the storage unit game! For non-essential items, renting a storage unit is a great solution. Pack it up and get it out of the way! For things we needed but that I didn’t want around for showings, I dragged to my car until the showings were over.
Maximize lighting: I made sure I had lightbulbs in all of my light fixtures so that every room looked light and bright for showings. On that same note, we also washed all of the windows, which I highly recommend. You don’t realize what a difference it makes until you’re done!
Last minute landscape: Our outdoor spaces are a huge selling point of the home, so I wanted them to truly shine. I had our landscapers come as close to the day of photos as possible and it was the best decision. Everything looked crisp and clean and camera-ready.
Improvements to sell: Even after remodeling for years, there were still some projects we wanted to take care of before selling as we know today’s buyer wants EVERYTHING move-in ready. It seemed counterintuitive to make improvements that we would never enjoy, but I had to keep reminding my husband that it was to help us sell quickly and at the right price. In the end, the updates we made absolutely paid off.
Once the house was ready for photos, there was the whole business of getting the exact perfect shots. Our seller clients will tell you that we take photo day extremely seriously. All during photo day, I kept saying to myself, “I wish I had Busby Group!” It was one of those moments when I really saw the value and service we provide our clients. From physically opening up window treatments to making sure the lighting is perfect, photo day is an “all hands on deck” experience.
When it came time to actually show the property, it was tough! I want to fully acknowledge what a difficult time this is to schedule showings. Between remote learning and working, finding a time to leave your home is difficult! I experienced this first hand, so I totally understand. We do our best to stack showings as much as possible to make things a little easier.
Last but definitely not least, I want to share my pricing strategy because I listened to my own advice, which was hard to do. We marketed our home through some off-market networks, including Top Agent Network (TAN). I had a good idea of market value and priced it slightly higher than this value. We had about five groups circling, but no offers at the end of the week. From there, I took my own advice and listed it on the MLS to create urgency and also adjusted the price to be right at the market value, instead of slightly higher. Once we did that, we received multiple offers and ended up with better terms than we could have imagined.
The biggest takeaway for me is that pricing right out of the gate is everything. Today’s buyer is very price-sensitive, and you are going to turn away buyers if you exceed their expectations when it comes to price. Plus, it’s key to create urgency to motivate buyers to make offers.
We successfully closed a little while ago. I can personally say selling is a stressful, time consuming whirlwind. At Busby Group, we have always kept that in mind, but it rings even more true now and we are fine tuning our concierge services even further to ensure the selling process is as stress-free as possible for our clients.
2020 has brought many challenges, obstacles, twists and turns. This was definitely a twist I didn’t even have on my radar, but I am looking forward to seeing what 2021 holds and am grateful to experience the selling process through a consumer’s lens. I want to thank all of our sellers out there for your confidence in working with us, and pledge to use my experience to make your experience even better!
Six benefits of investment properties in Chicago
Have you ever considered investing in real estate? I love helping clients find investment properties because there are so many benefits! One of our listings, 716 N Willard Ct recently had me thinking about all the positives of investment properties, especially this one! I love this property because it is not only a great first-home option, but it can also be a great “toe dip” into becoming an investor! It is a two-flat, with a gorgeous owner’s unit up top with two beds and one bath, and a rental below (that is currently rented out through April for $1800/month!), with two beds and one bath.
Facts and figures for 716 N Willard
Willard is currently listed at $649,000. With the current incredibly low interest rate of 3% for a 30 year fixed mortgage, and a 5% down payment, your monthly payment would be $2,599. If you deduct the $1800/month rent, you could live in this beautiful home for just $799/month + taxes and utilities!
Here is all the math laid out:
List price: $649,000
5% down payment: $32,450
Monthly payment with 3% interest rate: $2,599
Monthly rent for lower unit: $1800
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$799/month + taxes and utilities!
General benefits of investment properties
Plenty of potential renters: The homeownership rate has dropped 9% since 2004 nationwide due to several factors, but two in particular. First, home values have risen faster than incomes. Second, younger people appreciated the flexibility of renting rather than being tied down to a mortgage. All of this adds up to a huge pool of potential renters!
Passive income: Owning an investment property is a great source of passive income, or income that requires relatively little work. There is also the possibility that the income you receive from an investment property will be taxed differently than a paycheck.
Portfolio diversification: Investment properties are a great way to diversify your portfolio. Diversification provides an added layer of protection against market volatility, and conversely also takes advantage of market upswings.
Long-term appreciation: The best way to see significant property value appreciation is to hold a property for as long as possible. Renting out a property makes it easier to do this.
Long-term travel flexibility: With the pandemic, tons of Chicagoans are taking long-term “trips” to other cities, working remotely and trying a change of scenery. Renting gives you the flexibility to be gone for longer, with the rent offsetting the mortgage.
Market flexibility: In Chicago we know that the market can vary from year to year and season to season. Renting out a property can give you greater flexibility in waiting for the right time to sell since you will have the passive income to offset the mortgage.
Please contact us for any questions relating to 716 N Willard, or investment properties in general. We would love to help!
What Chicagoland real estate inventory means for you
I thought I would give a little market update today since that is always the first question I am asked by clients, and for good reasons: the market is evolving at record speed. The word of the day today is inventory, or basically how many homes are on the market in a given area. This is an important metric to consider because it is the basis for supply and demand when it comes to real estate. High inventory creates a buyer’s market because of the larger supply. Low inventory creates a seller’s market for the same reason.
Where is inventory in Chicago right now?
The short answer is all over the place. It truly depends on what type of inventory you are referring to. The good news is that inventory for detached housing, or single family homes is relatively low. Many Chicagoans who perhaps thought about moving are now staying put and waiting. Lakeview saw 40 new detached listings in September, Lincoln Park had 70 and the Near North Side (downtown and Old Town), had only 16.
With good news, there is always some bad news, right? The less great news here is that inventory of attached properties, or condos, is high. And it’s actually high throughout the city, even though some believe that is only true downtown. In Lakeview there were 600 new listings in September, which is part of an overall trend of steeply increasing inventory since April. In Lincoln Park there were 400, and attached inventory there too has been increasing since the spring. And lastly on the Near North Side there were 900 new listings, with the same upward trajectory since the spring.
Where is inventory in the suburbs right now?
LOW, across the board. The Chicagoland suburbs are having a huge moment right now, and demand is off the charts. Approximately 50% of single family home sales in the suburbs are multiple offer situations at this point. As a result, pricing is all over the place, so it is as important as ever for people moving from the city to the suburbs to work with a real estate broker who understands market value in a given area.
What does this mean for buyers and sellers?
City condo sellers: This is a game of making your home shine amongst the competition. This means a combination of the perfect price right out of the gate (i.e. don’t start high and whittle down later, there isn’t room for that in this market!), and make sure your home is absolutely move-in ready. All the small projects are taken care of, so buyers can see themselves moving in and immediately relaxing.
City condo buyers: You need to be aware of market value. Many buyers are assuming that there is tons of wiggle room in every negotiation, and this just isn’t true. Many sellers are listing at market value, leaving less room for back and forth. Know the comps, and know what is fair market value to be a competitive buyer.
City SFH sellers: You are more in the driver seat than those selling condos, but know that there is also less demand than there was in a pre-COVID world. Buyers of single family homes are still expecting move-in ready, so your home should look and feel ready to go. It is crucial to price the home well right out of the gate, and don’t be alarmed if a low offer comes in. We still recommend countering the low offers since there are times buyers will make a jump in price–which we won’t know if we don’t counter.
City SFH buyers: Increased competition means you need to be ready. You should have pre-approval in hand, and be ready to make an offer on the home you love. And assume there will be other interested parties.
Suburban SFH sellers: We are so happy that the uptick in the suburban markets is finally here! Suburban sellers should still make sure that their home looks its very best in photos and showings to secure top dollar. And because there are so many multiple offer situations, you want to work with a broker who has experience handling competitive deals.
Suburban SFH buyers: Get ready for a competitive field. If a house is priced properly and sells well, chances are it will end up in a multiple offer situation. When this happens, it is all about strategy. At Busby Group we are helping our suburban buyers navigate these situations on a daily basis, ensuring they not only “win,” but also do not overpay. Working with an experienced broker, plus one that knows about properties before they hit the market (hi!), is the key to success.
All of this advice underlines the point that there is a real comprehensive strategy to buying and selling real estate in Chicagoland right now. The market is in a constant state of flux, so it is crucial to stay on top of the market on a daily basis–or work with a real estate broker who is!
Our best kitchen remodel advice
For a lot of people, this has become a season of really making your home into the perfect special place you always intended. Nothing like spending six months straight at home to kick it into high gear, am I right? And for many, creating the look you always wanted starts in the kitchen with either a big or small remodel. I’ve seen my fair share of successful and less than successful kitchen remodels, so today I’m sharing my biggest advice on how to make sure you get the kitchen of your dreams!
Start with a triangle!
That’s right. You’ve probably vaguely heard about the kitchen triangle over the years, but maybe you weren’t entirely sure what it meant. A kitchen triangle pertains to the sink, stove and refrigerator, and if you were to draw lines connecting all three it would create a triangle. This ensures that there aren’t obstacles between you and your soup when you have raw chicken all over your hands! Here’s a great article with further reading on the kitchen triangle.
More is better with storage
Have you ever heard someone complain about too much storage in their kitchen? Me neither. When in doubt, go for additional storage, and also think about additional places you can cram even a little more in like the pantry. I also recommend taking a full inventory of all of your kitchen items before designing your storage space so that you can customize the size of cabinets based on what you have.
Invest in a big refrigerator
Now more than ever people want space to cook at home. If you are looking for places to invest a little extra, go for the bigger, nicer refrigerator and I promise you won’t regret it.
Think outside of white
Of course a white kitchen will always be classic, but love this new trend I see all over the city featuring soft natural wood cabinets. It’s a warmer, slightly Scandinavian take, and I think the whole look ties together so well with this bit of texture. I also think it probably shows hand prints less than white, but this is an untested theory.
Always oversized for sinks
There is nothing better than an oversized sink! It not only looks modern, but is so much easier to clean larger pans. When in the design phase, I recommend asking what the maximum looks like for your space in terms of width and depth.
If you are seriously considering a kitchen remodel, do reach out! I know so many great designers and builders, and would love to get you a few referrals. Many times that is the hardest part of the whole process–finding the right team!
Home looking a little tired? Our 4 best tips for easy ways to refresh
Ok let’s just put it out there: does anyone else’s home look tired? I always get the itch to refresh in the fall before the winter months, but this year I feel like it is almost necessary to clean or replace some of our most beloved pieces after months and months of so much time indoors at home. Is it just my kids who without fail gravitate toward my most expensive throw pillows to use for forts or doll beds? In that spirit, we’ve put together our top tips for easy ways to refresh, revive, clean or replace some of our most frequently used or seen home decor.
1) Throw pillows:
Pillows are one of the fastest ways to totally change the look of a room. For monochromatic rooms, I love to add a splash of color with pillows. A primarily white/cream and black room looks amazing with a few burnt orange pillows. I also like to mix a few different textures and patterns. Another option is to replace your insert! After a few years or six months worth of forts, they can lose their fluff. My best advice is to measure your pillow cover and order an insert that is one inch bigger for overstuffed, expensive-looking pillows. My favorite sources are Etsy for incredible handmade patterns, and CB2 for their classic, yet modern designs.
2) Paint + wallpaper:
It never ceases to amaze me what a new coat of paint can do for a space. Months of kids handprints and tiny scuffs can really add up and make a room feel stale. A fresh coat of paint can give a room a feeling of freshness and uniformity in a way that nothing else can. While I do always recommend that most of a home be white/neutral, I do think going bold and dark in one room or on one wall can look amazing! Darker walls can create a cozy feeling, and will also really offset any millwork details. It’s also true that wallpaper is back in a big way! I love grasscloth as a more neutral take on wallpaper, but I also think it’s fun to go for a fun pattern! Start with a powder room and see how you feel a few months in before committing to anything bigger. Another fun smaller project could be painting just the wall that is your Zoom background! This is the one you stare at all day, everyday, right? Make it fun!
3) Lighting:
Do you ever walk into a friend’s home and think, “why does it look so much better than mine?!” Chances are it’s the lighting. It’s such a crucial part of a home’s overall look, but many times forgotten. There are hundreds of different light bulbs out there so it can be very overwhelming picking the right fit for your space. This is a great resource. Also, for those with recessed lighting, don’t forget to include a lamp or two at eye level. It really helps to warm up a space!
4) Art:
Art is like throw pillows: switching it up can change the whole vibe of a space! If you are sick of looking at the same pieces, take a trip to your favorite home store online or in person to get ideas. I then love to shop on Etsy, where you will find a huge variety in price and artists.
If I’m feeling really bored with a room, I also love to rearrange my furniture! It can be really enlightening to try a few different configurations and land on one that really does make a space feel infinitely bigger and more open. Plus, this tip is free!
Our professional organizer's top tips
Raise your hand if you love organization! I am someone who truly thrives in an organized environment. With two kids, it is rarely the case that everything is in its place, but it is definitely the goal. And as much as I thrive in an organized home, I also find that listings truly shine after a few hours of organization. That is why a few months ago we started working with Kimberly Karzen, a professional organizer and owner of Before/After. She has become a true extension of our team and we love working with Kimberly!
Today Kimberly is sharing more about her process and all of her best organization tips!
The beginning is going to be hard, but it is for a larger good
When you first start you are probably going to feel overwhelmed. Kimberly tells her clients that is totally normal, and part of the process! Organizing can be extremely therapeutic because it gives you a sense of control. Kimberly often finds clients saying things like “If I can get this closet to look this good, I can do the same to other parts of my life.” Kimberly believes that for a lot of people, the state of your home is the state of your overall attitude. If your home looks good, you feel food, and vice versa.
How to actually start?
Start by removing everything from the space you are trying to organize. Then, when it is time to actually start putting things back, create two piles: one to keep and one to donate. For clothes, every single piece should be tried on. Kimberly reminds clients that just because something was expensive doesn’t mean you actually wear it! If it doesn’t fit, give it away.
The best way to store things
Kimberly’s favorite way to store just about anything is clear plastic bins–but not too big! She loves using 12x8 or 12x6 bins that fit the items as perfectly as possible without a lot of overflow space. The key here is if there isn’t space to stick extraneous things in the bin, you won’t be tempted to ruin the organization! When the bin is all done, label with as few words as possible: summer shoes, hair products, etc.
Before you put things back!
Clean! Kimberly always cleans the space before putting everything back in its place. Dust, vacuum, do whatever necessary to make the space look sparkling!
Everything in its place
Once it is finally time to put everything back, for clothes, Kimberly likes to organize by type rather than season. Floral shirts should all go together, for example. This way you can see how many of a particular item you have–and don’t need more of! That is another rule Kimberly always passes onto clients: if you are going to buy something new, be prepared to give away something you already have.
Kimberly also prefers to hang rather than fold clothes because it saves a considerable amount of space and also keeps the clothes looking neater for longer.
Such a useful list, right? For our seller clients, when Kimberly comes, you can either be there to be a part of the process, or not. A lot of our clients have Kimberly come when they aren’t home and work her magic! She works in either four or eight hour shifts, and it always amazes me how much she is able to accomplish in that time!
Second Home Spotlight Series: Three Oaks, MI
Welcome to our new Second Home Spotlight Series! Over the past several months we have noticed tons of new trends emerge with regard to Chicagoland buyers and sellers, and one that pops up again and again is many Chicagoans’ desire for a second home. We of course want to be as helpful as possible with the research that goes into such a purchase, so we got to talking with our network. We found out that tons of our friends, colleagues and clients have second homes all over Michigan and Wisconsin! So, we will spend the never weeks/months sharing interviews with these fine folks about how they chose their community and all the best (and worst!) parts of the area.
We are kicking off the series today with Leo Aubel, a friend and attorney at Howard & Howard. Leo and his husband have lived in Three Oaks, Michigan for 17 years, but Leo has been summering there for close to 40 years! Needless to say he has tons of great information to share, so let’s get started!
A little backstory
Three Oaks is a small town about five miles west of Lake Michigan just north of the Indiana border. It is part of Harbor Country, which is a region made up of Michiana, Grand Beach, New Buffalo, Three Oaks, Union Pier, Lakeside, Harbert, and Sawyer. About ten years ago these communities banded together to pool their marketing dollars and branded themselves as a top summer vacation spot for Chicagoans.
Since then, the community’s goal of becoming a summertime destination has been achieved. Four Winds Casino opening created a boon for the local economies because of a revenue sharing agreement that resulted in millions paid to each community, much of which was used to improve schools and the local infrastructure.
Today, each community is a unique place in terms of the general vibe, and how far money goes when it comes to real estate. Union Pier is some of the most expensive real estate in Michigan. Three Oaks is much more affordable, though prices are creeping up!
Three Oaks is great for...
Three Oaks is a great community for someone looking for land, space, privacy and beautiful scenery. Whereas along the shoreline homes go for $2M - $10M, in Three Oaks, which is five miles from the beach, you can find more moderately priced real estate and much bigger lots. According to Leo, Red Arrow Highway provides both a physical and psychological barrier where anything east of the highway is automatically more expensive (for less land) than anything west. In Three Oaks, three to five acre properties are very common.
A typical weekend
Saturday: Leo will work in the yard, stop by the farmers market in the summer, have lunch at one of the local breweries/wineries/cafe, and stop by one of the commercial properties they own to work on improvements/upgrades. In the afternoon they will play tennis or go swimming, and then head to one of their favorite local restaurants for dinner. It is a very low key atmosphere.
Sunday: For Leo, Sundays are totally relaxation-oriented. They will have friends with kids over to their pool, and then head to the local American Legion for a drink.
Leo has found it extremely easy to meet other like-minded people. Three Oaks is filled with professionals with college graduates who run businesses and have high end lifestyles/expectations. He finds the same sophisticated level of friends he would find in the city.
Downtown Three Oaks
If you live in the village of Three Oaks, walking downtown is easy and filled with quaint restaurants, entertainment and shopping. There is a high end grocery/bakery and butcher shop for foodies, and nice antique and clothing shops along with cafes and breweries that cater to their unique mix of clientele–Chicagoans and locals. There is also a movie theater that shows first run art files and a live theater.
The commute from Chicago
Easy! You are on the highway the whole time and it takes about 75 minutes. When Leo first bought his home, they would go up Friday afternoon, which then became Thursdays, which then became Wednesdays. Now Leo and his husband live in Three Oaks full time!
Least favorite part
Leo says he feels like he is in the car a lot because the distance between attractions is greater and because there is no public transportation. But in Three Oaks if you drive 20 minutes, you can be 20 miles away. For big box-type stores you have to plan ahead because they are a drive away too.
Thank you, Leo, for this great information! Tune in again soon to see where we “travel” to next! This is going to be fun!
How one team member bought and sold her own home...in 9 days
If you would have told the 2019 me that I would be selling my house during a global pandemic…
…with a 4-year-old and an 8-month-old
…with schools being closed
…and without a nanny,
I would have said: Absolutely. No. Way.
But we did. Willingly!
There are a couple reasons our situation is noteworthy:
I am a planner and love organization. (A benefit when preparing to move.)
I am kind of a germaphobe. (A detriment when trying to do anything at the onset of a pandemic.)
Like many couples, my husband and I bought our current home with the intent of starting a family. It was/is a great place: very open, tons of light, on a quiet, dead-end street. But once two kiddos came into the picture, we needed more space and craved a yard.
We looked casually for a while, and when we found The One, we pulled the trigger immediately. We made a strong offer, listed our home for sale, and were under contract on both within one week. Sounds great, but also kind of makes your head spin, right??
Here’s how you do it:
1.PREP YOUR HOME FOR SALE. Say you’re a year out from even thinking about buying a new home. This is an opportune time to tackle that list of miscellaneous home projects. You want your home to show well, and if you have time on your side, use it. The list can vary, and your real estate agent (ahem!) can always consult with you on what to do.
Here’s what our list looked like:
Fresh paint throughout
Refinished hardwood floors
Replaced patio and roof doors (since old ones were showing signs of deterioration)
Installed some new light fixtures
Your list may be longer, or it may be shorter. But the sooner you get it done, the better.
Also think about decluttering and purging, even early on. We did, and it was a life saver. Going through closets, selling furniture or rearranging storage can be time consuming, but it is so worth it in the end!
2. BE OPEN MINDED. For about 2 years, I was 100% convinced I was moving to a specific neighborhood. I knew the school, I loved the restaurants, and I could picture us walking down the sidewalk on the weekends to head to the park.
Guess what? That’s not where we ended up.
Even though I really loved that pocket of the city, I kept my eyes open in other neighborhoods. At first begrudgingly, but eventually more eagerly, I would venture into another part of the city I hadn’t really considered to check out a home that caught my eye. It really forced me to think about our family’s lifestyle and how we could fit our way of life into different neighborhoods.
Think about what’s really important to you – a yard? More bedrooms? Room to host family for holidays? When I didn’t find that perfect home in my “perfect neighborhood,” opening up our search eventually led us to a new perfect neighborhood for us.
3. UNDERSTAND THE MARKET. These days especially, you can find any number of news stories that talk about economic uncertainty and home prices fluctuating. It’s important to have a real estate agent (hi!) who really understands the Chicago market. That means knowing the nuances of different neighborhoods, price point and seasonality. Once you understand the lay of the land, you can develop an appropriate strategy to sell, which is vital because you don’t want to waste any time.
4. KNOW YOUR TIMELINE. Let’s say you’re like me, and in the midst of looking “casually” you stumble on a home that you know just has to be yours. What happens next? Well, you need to act. Fast. Chicago can be competitive, and more and more buyers are looking for the same things.
Here’s what our timeline looked like:
Day 1: Found house. Fell in love. Freaked out that we were in the midst of a pandemic. Decided we were going to move anyway.
Day 2-3: Wrote offer on new home. Prepped current home for professional photos (with kiddos, without school or childcare, with end-of-day glass of wine). Offer accepted on new home.
Day 3-4: Professional photos taken and floor plan drawn for current home. Began pre-market (off-MLS) marketing.
Day 5: Began showings. Due to the pandemic, every potential buyer that entered our home wore gloves and masks, and we spaced out showings so no one felt crowded. And hubs took kids for a nice long walk and a picnic.
Day 6: Went live on MLS.
Day 7-8: Whirlwind of showings. Trooper kiddos napped in the car up and down Lake Shore Drive. Received multiple offers.
Day 9: Accepted offer on current home.
Phew!
We were lucky this went as fast as it did. Getting listed ASAP and pricing for the market were most definitely key factors.
I thought I wouldn’t be packing boxes until next spring, but here I am, headed out to Home Depot to pick up a stack and some bubble wrap. Now that I’m in the midst of the transition, I feel so grateful that I was able to act quickly because we were prepared. My kids will have the summer to enjoy more outdoor space and my husband and I can spread out in our new home offices.
There’s nothing I love more than helping people navigate this process so they can achieve their next chapter in life. If you’re thinking of a move, let’s talk!
Summer 2020: Where is the real estate market?
How is everyone doing? I really mean it, how are you? 2020 has been quite a year so far, and we’re only in Q2. One of the big buzz words of 2020 so far has been “uncertainty,” and I think that’s right. A lot of what has happened so far this year has been unprecedented, so where we go from here is unknown.
A big part of my job though is providing answers to my clients. What DO we know? I’ve spent the past several days sifting through the data and my own experiences over the past several months, and I have come up with some facts that we can hold onto.
The market overall
The market is surprisingly strong. According to Crain’s, the seven days leading up to May 11 showed a 2.9% increase in median home price over the same period of 2019. There are a few reasons for this uptick. First, inventory is down. Even before the pandemic inventory was down. When quarantine started, houses were pulled off the market, so our inventory continued to decline.
Couple that with the fact that quarantine started at the time that would normally be the height of our spring market, and you get a lot of pent up buyer demand. The real estate industry in Chicago also did a great job of making our listings virtually available to buyers, so they were able to do their homework. Now that things are beginning to reopen, there is a frenzy of activity.
The new homebuyer buyer
That said, buyers went through a transformation during quarantine. What they wanted and prioritized then versus now are drastically different. Here’s a quick list of what we see buyers looking for now:
Move-in ready: This was true before the pandemic, but it feels true for almost all buyers now. Buyers don’t want to parade tons of people through their home fixing, painting, remodeling. They want to move in and settle in.
More, flexible space: Rooms that can work in a variety of ways are essential now. A space that can convert into a classroom, kids hangout area, craft room, etc. Extra bonus rooms are on many buyers’ must have lists.
Outdoor space: People have learned that parks can close, so having their own outdoor space is a necessity for many buyers.
Community feel: People want to know their neighbors now more than ever.
What this all means for sellers
First and foremost, if you are thinking of selling your home, please call us! We have a long list of buyers ready to jump when they find the right property. For many, it is more important than ever for this to be a fast process, which means making sure your listing is ready for the market and then promoting your listing as much as possible. To make their home as appealing as possible, sellers should:
Take care of all the projects: As mentioned above, buyers want move-in ready. Take care of all the repairs that may catch a buyer’s eye. Your home should feel fresh and well-care for.
Greenery! Show off your home’s outdoor space with as much greenery as possible. Add potted plants and small trees to make the area feel lush, private and natural.
Stop worrying about entertaining: Entertaining has been replaced with flexible spaces in buyer’s minds. Showcase your kitchen as a great place to cook meals, and your bonus room as the perfect homework area.
What about pricing?
Pricing is harder than ever before for several reasons. First, it truly is a case by case, neighborhood by neighborhood calculation. Some homes and neighborhoods intrinsically meet what new buyers are looking for, and some don’t as well. It is also very difficult to use comparables right now. Homes that went on the market during the quarantine are not good comps. Homes that went on the market before the quarantine are not good comps. It’s more than ever to have a finger on the pulse of the market since things change so quickly.
I anticipate the next few months to be a strong summer market whether you’re buying or selling, so if you are thinking about buying or selling, don’t wait to take action!
Silver linings are all around
One of the few silver linings of this whole experience has been watching communities come together in new ways. The creativity and thoughtfulness of some of these ideas is so heartwarming, and truly does make a difference. Today the team is sharing some of the “silver linings” they have witnessed so that we can spread these good feelings as far and wide as possible!
Julie
I love all of the community involvement so much! In Bucktown, all of the neighbors have done an amazing job coordinating efforts to make things more fun for the kids. Over St. Patrick’s Day everyone decorated shamrocks to put in their windows. More recently we had a neighborhood-wide safari hunt! People would put whatever animals they had in their windows, and the kids loved it!
I’ve also seen birthdays of all ages celebrated throughout the neighborhood with happy birthday signs, or balloon banners in the yard. It’s fun to see what people would normally keep inside out on display for everyone to enjoy!
Liza
The kiddos in Mila’s preschool class did a drive-by “Happy Birthday” parade to a friend in her class. She had her windows open and there was lots of waving and squealing. :)
I have seen signs and social media posts from people in Lakeview and Lincoln Park offering to shop or run errands for others who need assistance.
Local restaurants–who are already having a massively challenging time themselves–are donating meals to hospitals for healthcare workers. And as a family we are ordering take-out much more often from all our favorite local spots (Miso Asian in Uptown, Sal’s Trattoria in Lakeview, Pequod’s in Lincoln Park...to name a few!).
I have to give a shout-out to the crew working the drive-through at the Starbucks on Western. Such a positive, happy vibe serving looooong lines in the morning. When I thanked them for being open and working for all of us looking for our caffeine fix, the immediate response from the two employees who heard me through the window was “Thank all of YOU for coming out!” and “We are so happy to see all of you!”
Susan
Raising money through donations to provide J.P. Graziano’s subs to 12th District Chicago Police Officers
Organizing community orders from the “Tamale Guy” to support him during this time. He made his living by selling tamales in bars that are now closed.106 dozen tamales were ordered & delivered to residents in one day!
Chicago Unite at Night, which encourages residents to sing from their balconies, hadn’t been working in the West Loop because we don’t have the same density of other neighborhoods, so a local singer, Andrew David, went out to an empty field and live streamed his performance for the community.
Saturday Night Quarantine Dance Party with Justin Quandt, a local dancer
Jane
There is a Little Free Library a few doors down that stocks treats (for dogs and humans) and little sayings on the inside of it to try and keep spirits up! I see people stop by it everyday to check out what is inside.
Maggie
In the suburbs people are drawing big suns, animals, or shapes depending on the day and putting them in their windows so the little kiddos can look for them when they go on walks!
Mara
I have seen neighbors turn on their lights at a specific time each night (7pm -8pm) to thank medical staff, also one neighbor makes cupcakes each Sunday with gloves/mask and places a plastic cup over each of them so you take them from her porch in a paper/plastic cup – all the kids are super excited and look forward to Sunday afternoon.
Kenya
Some schools have done teacher parades where our teachers ride around in the neighborhood and kids waive from their front door. Some of my neighbors have also wrapped their mailboxes with Christmas lights to cheer neighbors up.
Pamela
I live in a high rise and I’m noticing people are much more considerate of their neighbors and they are taking time to have more conversations in the elevator and lobby. I also live next to a park and when I’m out with my dog I’ve noticed that strangers are more talkative with one another. I’m connected to many neighborhood associations through social media and there are numerous posts everyday about neighbors helping neighbors. There are a lot of people doing a lot of good for their neighbors, first responders and people in need. It’s heartwarming to see this side of people and the community.
Ali
I have been seeing more and more people chat with one another, stop and introduce themselves (at an appropriate distance) and just show kindness with a smile and a wave. I’ve even gotten to know and speak with the mail, UPS and Amazon delivery people. It’s amazing to be able to slow down and take time to be kind to each other because we are all going through this together (pretty sure that’s a direct quote from Ellen, but I’ll take it 😉).