The best way to avoid furniture supply chain issues!
Raise your hand if the supply chain issues of the past several months have impacted your life? (I’m raising my hand!) Statistically speaking that should be almost all of us, right?! Furniture deliveries especially have been affected in a huge way. And as with all things real estate, whatever the news of the day is either quickly or not so quickly starts trickling into the market.
What we’ve seen over the past several weeks is deals starting to include the sale of furniture along with the home. Some sellers see the lack of new furniture as an opportunity to set their listing apart, and are therefore including the furniture as part of the sale. Other times buyers are requesting all or some of the furniture during negotiations.
For sellers especially, including furniture can greatly cut down on logistics. For one, it means you won’t have to pay to move it. Plus, there are never any guarantees that the furniture that fits in a current home will fit in the new place. Just make sure that you have enough furniture for your new home because...supply chain issues!
If done right, buying and selling furniture alongside a real estate deal is relatively straight forward. However, there is one very important watch out to know about. The number one thing to know is that any and all personal property going from seller to buyer should be included in a separate bill of sale, NOT on the real estate contract. There isn’t a lender out there that will be excited to see any type of personal property on a contract (TV, audio visual equipment, etc). The mortgage the bank is lending you is for the value of real estate alone, not personal property. Payment for the furniture is also a totally separate transaction – usually a buyer brings a check to closing made out directly to the seller.
Including furniture in a real estate transaction can be a great win-win solution for both buyers and sellers if executed properly. A handful of our deals over the past several weeks have included furniture and everyone was so happy in the end!
Busby Group can help you move anywhere!
We called 2021 the year of the “Great Reshuffle” with our clients and friends dispersing across the country in search of something different, and 2022 shows no signs of slowing down!
As a team we have spent the past decade growing our reach by becoming experts in the Chicagoland suburbs, plus initiating and strengthening relationships with top brokers across the country. At this point, we either have a close colleague in every major city across the country (plus Canada and Europe!), or are licensed there ourselves! We also have plans in place to expand Busby Group, so please reach out if you are considering a move...anywhere!
Many of our friends and clients are at the very beginning stages of considering a move, which is sometimes the most daunting part of the process. If you are in that boat, do not fear! We put together the below resource list with answers to some of our most frequently as questions and requests.
Plus, stay tuned for a fun series we are about to launch featuring short chats with our broker friends across the country. We will discuss their current real estate market trends, favorite neighborhoods, property values, best restaurants and more!
In no particular order:
Thinking of selling, but have nowhere to go? Read this.
How one BG team member bought and sold her home in 9 days.
Need help find the right movers? We have great referrals and connections for all of the following:
Interstate and local movers
Cross-country movers
Local storage
Specialized movers (high-end art pieces, wine, oversized etc)
Need help packing? We will put you in touch with our amazing local organizational partner.
A great resource for understanding property and income taxes by state.
The best public and private schools in the country. Browse here.
Interested in a few home repairs without doling out the cash before closing? Read this.
6 home repairs to make before listing.
Specific questions about the Chicagoland school system? Let us know and we will put you in touch with our local expert. Plus, with Julie as a Neighborhood Parents Network (NPN) board member, our team is well-versed on the subject too.
Need help editing/staging/organizing your home before listing? This is our forte! We have tons of tips and tricks to share, plus we have a whole network of the city’s best designers, contracts and stagers at the ready.
From BG client to part of the BG team!
Today’s blog post is a guest post by our new Director of Concierge, Emily Steiger.
Hi everyone! My name is Emily, and I am the new Director of Concierge for Busby Group! I am so excited to be on the Busby Group team. And the story of how I got here is actually a very fun one: before I joined the team, I was a Busby Group client! I loved my experience as a first-time buyer with Busby Group so much that I knew I wanted to work with them.
To take a few steps back, my husband Andrew and I decided last spring that we wanted to move back to the midwest (I am originally from Michigan). We also decided it was time for us to buy our first home. I started researching brokers and pretty quickly found the Busby Group’s website. I really liked that they are an all-female group. I dug into the website and read bios, blog posts and most of all the neighborhood guides. Because I was relatively unfamiliar with Chicago, this unbiased and accurate information was very helpful.
Just a few minutes later I had an email in my inbox from Julie with the neighborhood guide and more helpful resources and information. I jumped on a call with Julie and Ali the following day, and they let me know they believed we would be able to find a home in two visits. I was skeptical, but decided to trust the experts!
We flew in and met Ali a few weeks later, and what should have felt stressful and difficult was instead a fun weekend looking at curated properties with Ali. Busby Group did a great job helping us narrow down exactly what we were looking for, and by our second visit we had found several properties we loved. It felt like Ali and the Busby Group support staff were one step ahead every step of the way. I also loved that there were set processes in place, which gave me such peace of mind. Everything felt efficient, polished and professional from recommending attorneys, lenders and inspectors to negotiating on our behalf. It was clear that the whole team had our best interests in mind.
We put in an offer and got our dream home! Honestly the whole process was smooth and seamless, and felt like the highest possible quality experience. Everything we needed was provided before we knew we needed it.
Fast forward a few weeks and I saw on Instagram that Busby Group was hiring! I read the job description and a lightbulb went off in my head: I want to work with Busby Group. After speaking with Julie, we collectively put together a job description that perfectly capitalized on all of my previous experience and skills for the maximum benefit of the team and all Busby Group’s clients.
Now that I am in the job, my favorite part is helping other clients experience the same fun and enjoyable experience we went through. I feel so fortunate to have found my new home in Chicago in more ways than one!
Buyers: Is waiting until the spring market the right move?
Oh, the spring real estate market. It’s sort of legendary! And rightfully so: it is definitely the busiest time of year in real estate. But it is always around this time of year when I start thinking about the virtues of the fall market, especially for buyers. Today I am sharing the top reasons I believe it may be best NOT to wait until the spring.
Competition is fierce in the spring
We recently wrote a blog post about the current market slowing, which opened a window of opportunity for home sale contingencies. If you are someone who needs to sell in order to buy, you should know that in the spring market, home sale contingencies are pretty much off the table in the Chicagoland market. Competitive offers are as “clean” as possible, which means no contingencies of any kind.
The spring market also means the year’s highest level of active buyers are out making offers. Increased buyer demand means increased multiple offer situations, tighter timelines and overall a more frenzied marketplace.
More sellers are motivated now
Many sellers who have been on the market the last few weeks or months are ready to get their property off their books before year’s end. And with Q4 typically being one of real estate’s slower quarters, sellers may be more motivated to make a deal. There are also some sellers who need to relocate by the end of the year for one reason or another, and they are also highly motivated to sell. In these cases, contingencies may once again be an option for buyers.
While inventory may be lower, what is available is solid
Sometimes in the spring market you have a seller who is testing the market to see what they can get for their property. We really don’t see this happening in the fall, meaning that what is for sale is ready to go.
Rates are currently low
We never know what the future holds for interest rates. But what we do know is that they are currently very low.
Next steps
If you are thinking of buying and this information motivated you to get started now versus later, the first thing to do is contact us. We will put you in touch with a great lender, who will get you pre-approved for a mortgage loan. We will also start the conversation around what you are looking for and send you some options, both on and off the market!
Are home sale contingencies back?
It has been a whirlwind year in the world of real estate! The market has gone through lots of “chapters” this year, and the chapter we are in now is one of a slowing market in some micro markets throughout neighborhoods. When a market slows, lots of variables change for both buyers and sellers. One variable that has cropped up several times over the past few weeks is home sale contingencies. So let’s chat about what home sale contingencies actually are, and how to use them properly.
What is a home sale contingency?
A home sale contingency is something that a buyer can include in their offer that indicates that they will only buy the subject property if they are able to sell their current property in a certain amount of time. If they can’t sell their home, then the deal is off.
Usually when the market is hotter/faster, home sale contingencies are not even considered because sellers can choose another offer without a contingency – thus making for a stronger offer. However, in the past three weeks we have had three offers accepted that include home sale contingencies!
The ideal home sale contingency timeline
The timeline I am outlining is ideal for both current buyers and sellers because it increases the probability for the buyer’s home to be sold. In Chicago, the spring market actually starts in January, so by listing then, the buyer is one of the first on the market to capture the wave of spring market buyers.
September/ October: House hunt
November/December: Go under contract on the new property with a home sale contingency indicating that the buyer will sell their property in three months.
Early/Mid-January: Buyer lists property
February-ish: Close on both properties!
Negotiation tools for sellers
In the end, a home sale contingency is just one of many negotiating tools. And actually a slower market makes it easier for us to try several tools to make a deal work for both buyers and sellers. We recently wrote a blog post for sellers outlining some of the tools available to them, which you can read here.
Please reach out with any questions, contingencies can get confusing!
Busby Group is Growing!
It is an exciting time at Busby Group: we are growing! Are you a newer or experienced broker looking for a team of work hard, play hard real estate brokers to join? This may be the opportunity you have been waiting for!
What sets Busby Group apart
Here at Busby Group we offer our clients white glove, concierge-level service. Whether for a buyer or seller, we are the leader of all aspects of their transaction. To help provide that level of service, we offer our brokers extensive support, including:
Full-time marketing team: Have a marketing idea, but don’t have the time or budget to bring it to life? At Busby Group we employ a full-time marketing team responsible for brainstorming and executing all aspects of marketing.
Full-time scheduler: Never worry about scheduling showings again because our full-time scheduler handles all those details. The same goes for vendor appointments to prepare a listing for the market – we handle all of it!
Full-time Director of Operations: She focuses on your contract timelines so you can focus on what you do best!
Best-in-class training: We are one of the only broker teams that regularly works with a top sales trainer, so you can expert to constantly enhance and perfect your skills.
Mentoring: I love sharing my nearly 20 years of experience with my brokers. We also use a small group system, with each team member assigned to a smaller accountability team that meets weekly to discuss goals and strategies.
Amazing team: I am so proud of our team’s diverse backgrounds, knowledge, intellect, hard work, and kindness. Most of all though, I am proud that we love working together, and are genuinely good friends! Plus, working with a team means easy backup when you go on vacation!
Supplemental compensation: Earn additional income by assisting with my buyer and seller clients – and learn along the way!
So much more: This list really just scratches the surface of all we have to offer! Plus, we are always finding new ways to make our team member’s lives easier and better.
More about Busby Group
Founded in 2016, we are a top 1% real estate team in the Chicagoland area servicing downtown Chicago and the surrounding suburbs. We service a near even split of buyers and sellers in all types of real estate transaction, including: traditional buy/sell, multi-unit, investment properties and new construction/development.
A few words from team members
I asked the team about their favorite part of working with Busby Group, and here is what they had to say!
Maggie: “The collaboration. If you come across a situation you haven’t dealt with before, there is always someone on the team who has been through it before and can provide insight. I also love that the team is made up of women who enjoy being friends. We genuinely like hanging out or grabbing drinks when we can.”
Barb: “Our girl’s night out parties!”
Susan: “Working alongside such an inspiring, talented, and experienced group of women!”
If working with Busby Group sounds like it might be a good fit for you, please contact me directly!
Julie Busby
julie@busbygroup.com
312-890-4818
Why timing is absolutely crucial in Chicago’s current real estate market
We are in uncharted Chicago real estate market territory. In normal years, there are aspects of the market that we can depend on: spring will be our busiest time of year, it always starts earlier than you think (end of January!), and we will see another uptick in activity at the tail end of the summer. During busier times, sellers can get up to 5% more versus selling in the off-season. For example, an $825K home in the spring market we have seen sell for $770K in an off market – a 7% difference in that of case.
The current market
This year, the market is changing on a weekly basis. We saw an incredibly busy winter and spring market for most types of product, but not all. Many anticipated that the uptick in activity would continue on through the summer, but so far that prediction hasn’t 100% proved out. Currently though, what we see is that now that people are vaccinated, they are spending the summer having fun instead of looking for real estate (I guess not everyone thinks looking for real estate is fun!).
Micro activity bursts
What does this volatility mean for sellers in particular? It means that timing is everything. The frenzy mentality is lessening, and the demand is decreasing because there are less buyers aggressively looking. Buyers who were actively looking earlier in the year have lost steam (maybe they lost in multiple offers), and are taking a break. Because my team and I are living and breathing the market every single day, we are able to spot these micro-bursts of activity. Over the past several weeks we have successfully paced out our listings to capture buyer activity in certain neighborhoods.
Our predictions for the near future
In the very near-term, we anticipate the last week of June to be crickets. With Chicago Public Schools last day of school on June 22, people will be out spending time with their kids. It is these sorts of totally unrelated events that can have a huge impact on the market and a property’s ability to attract buyers.
We also anticipate that with the uptick of activity and people returning to offices downtown, there will be more demand than there has been for the past several months.
And lastly, we are counting on our typical late-summer uptick in activity. There is discussion of rates increasing, which usually also creates an uptick in demand from buyers who want to buy before the rate increase.
All of that to say, every single property is a unique situation. When we say we create custom marketing plans for every listing, we truly mean it! If you are considering selling, definitely get in touch now so that we can start formulating a strategy plan that will help achieve your goals.
Is Chicago a sellers or buyers market in summer 2021?
If you have been following the national real estate news, you’ve probably seen dozens of headlines about record breaking seller’s markets, bidding wars and property values. The coverage makes it sound like all you have to do is list a home on a Friday and receive multiple offers by Sunday.
And while that is sometimes true in Chicago, it is also true that our city’s micro-market has a much more nuanced story to tell. Of course, some properties do go under contract here with multiple offers and appraisal wavers. But, that isn’t always the case. Today I am chiming it to outline what we are personally experiencing on a daily basis in the Chicagoland real estate market.
The three sellers’ markets in Chicagoland
There are three micro-markets within Chicagoland that are extremely competitive and therefore favor sellers:
Suburban single family homes: City dwellers are heading to the suburbs in record numbers in search of more space. Across the board in the north, west and south suburbs we see seller’s markets, multiple offer situations and lots of competition. Buyers should be prepared for steep competition.
Urban starter homes: Lower priced starter condos (especially in smaller buildings), and single family homes depending on the neighborhood are in high demand.
Urban single family homes: Demand is not quite as high for urban single family homes as suburban, but there is still a good amount of competition. Homes with good outdoor space in popular neighborhoods with desirable school districts see the most activity.
What that leaves is a lot of luxury, both condos and single family homes, sitting on the market. Sellers of these types of properties need to price competitively right out of the gate to generate interest. If a luxury property is priced as if in a seller’s market, my prediction is that it will sit.
Be aware of this emerging buyer trend
The big new trend we have seen emerge this year is that Chicagoland buyers are not nearly as divided as they once were between the city and suburbs. Before this year, a Chicagoland buyer was either exclusively looking in the suburbs or in the city, never both. This summer particularly, we are seeing buyers shop around to see where they can get the most updated space (both interior and exterior) for their dollar.
And for urban sellers, the bar for perfection is actually higher than it is for suburban sellers, meaning that the urban home needs to be as close to perfect as possible to win against a suburban home.
The other difference in these buyer’s behavior is whereas before they would typically exclusively look in Lincoln Park and Lakeview, they are now expanding their sights to include Avondale, Ravenswood, Irving Park and Sauganash in search of more space.
Buyer and seller takeaways
The big takeaway for sellers is that if you want to compete for the current batch of buyers, who will take the time to shop around to find the best of everything (deal, condition, location), there are three considerations: price, timing and condition. This may mean painting, updating, organizing or staging. Here’s a great article we wrote a bit ago outlining our best tips for preparing your home for the market.
For buyers, you should prepare yourself for differing amounts of competition depending on where and what you are looking for, and this competition should be reflected in your offer. Plus, many of these micro-markets change on a weekly basis, so staying informed is a full-time job (hopefully of your amazing real estate broker!).
Why I love Chicago's suburb in the city: Sauganash!
By Liza Balistreri Cahill
I’m a big planner. I like to be prepared, anticipate what’s coming next, and have a plan.
So imagine my surprise (at myself) when bambino #2 arrived and we found ourselves in a townhouse that did not include a bedroom for the new little man in our life. Whoops!
And then… global pandemic. No school. No childcare. Walls felt like they were closing in on us, we were craving more outdoor space and absolutely needing more office space. And of course, more bedrooms. Aaaand a 2-car garage… the list was getting longer and I was becoming increasingly uncompromising in what I wanted.
I had been looking casually for over a year. The planner in me envisioned our family in Lincoln Park, Old Town or Bucktown. We also considered the North Shore. But it was either out of our budget, too far from the city, or didn’t have the space we were looking for.
During the initial quarantine days, we drove over to the LaBagh Woods forest preserve to get some fresh air, and after walking through the amazingly secluded-feeling trails, spotting several deer and waving at friendly kayakers, we stepped out of the woods onto Bryn Mawr Avenue and were immediately greeted by a family playing in their yard. I had been in Sauganash with clients before, but that day I felt like I had rediscovered the neighborhood: people gardening in their yards, kids riding bikes on the sidewalks, grandparents pushing strollers and couples walking dogs. It just felt like home.
We struck up a conversation with this family about how their kids knew all the other kids on the block and how generations of families plant their roots in the community. I remember looking at my husband and saying: do we want to live here? Three months later we had closed on our new home, and it has made our lives so, so much easier. We now have plenty of bedrooms, two offices, multiple living spaces, a yard and a garage – hallelujah!
We have absolutely fallen in love with Sauganash for so many reasons, but the ones that stick out the most are:
The sense of community: Sauganash feels like a village. Multiple generations populate each street, and you can run into someone who has lived in the neighborhood for 30+ years just as easily as you can meet a new young family. I’ve yet to encounter someone who doesn’t say hello, and I’ve met dozens of people just by walking around the neighborhood. Parents know all the kids up and down their street, and when someone new moves in, it’s not uncommon for neighbors to drop off welcoming goodies to their front door. Just yesterday I saw a sign in the window of a home that read: “Children, bikes and dogs are welcome on this lawn!” It truly doesn’t get any better.
The architecture: From 1920s Tudors to mid-century ranches to French revivals to Cape Cods and even new construction, Sauganash is anything but cookie-cutter. The Sauganash Community Association prides itself in being a resource for renovation and construction, encouraging property owners to embrace different architectural styles.
The location: This was a huge consideration for me. As someone who lived near the lakefront for over a decade, I never thought I could let that go. But living by the forest preserves means we have access to trails and nature, so jogging, biking and unicorn hunting is covered. And Sauganash’s proximity to I-94 means you can get downtown in 15 minutes or less (my husband and I can get to the West Loop for dinner in 12 minutes!), can get to O’Hare also in about 15 minutes, and can easily bounce around the greater Chicago area.
The value: There is such a wide variety of homes in Sauganash, there truly is something for every price point. While the inventory does tend to get snatched up quickly (which is why you need a well-connected real estate agent… hiiii!), if you act quickly you can find fixer-uppers in the $300s and more updated homes starting in the $600-$700s. For the square footage, you can easily double your purchase power for a home here compared to neighborhoods like Lincoln Park, Old Town and Bucktown.
The schools: There are excellent pre-k schools in and around the neighborhood. Sauganash Elementary is a highly rated (Level 1+) K-8 school that soon will have a brand new addition to house more classrooms – including dedicated STEM rooms - and a new gym. Queen of All Saints, which enjoys a robust athletic program, is also in the neighborhood.
Since moving to Sauganash, our day-to-day life as a family has become so much easier, and we can still navigate around the city easily, too. Sauganash may be one of the not-so-best-kept secrets in Chicago. If you’re thinking about a move here, let’s talk! Just don’t tell anyone else…
Thinking of selling, but have nowhere to go?!
I can’t tell you how many clients I have spoken with recently who are interested in selling, but wonder, “where will I go once I sell?!” And this is a totally valid question. Right now we are seeing a strong seller’s market for single family homes and depending on the neighborhood, condos with three bedrooms or more. This means that sellers are definitely in the driver’s seat during negotiations, and that many homes are going for over list price.
As I mentioned though, many of our clients who want to sell their home are getting tripped up wondering where they will go once they sell. Afterall, the lack of inventory impacts sellers too when they are ready to look for their next home.
My overall message is that there are several ways to make it work, and it is definitely worth it to make it work. Interest rates are low but climbing, and similarly, inventory is low but also climbing. So, if you are thinking about selling, now is the time – do not wait! We are here to help work out all the details. In fact, I am sharing my three best tips and advice for clients to navigate this current market and find a great replacement home!
Negotiate a longer close on the property you are selling: Due to high demand, buyers are willing to be flexible on nearly every contract point, including a longer close. Negotiate additional weeks or even months in some cases to find your replacement home.
Close and lease back: Another option is closing on your current home and then leasing back from the buyers. This way you have the funds from your sale available to make your next purchase and you don’t have to include a home sale contingency (which would weaken your offer!).
Find a short or long-term rental: Many sellers are opting to sell now to take advantage of the market, and are moving to either short or long-term rentals. Some of the short-term rentals are also furnished, which allows sellers to pack up everything and leave it until they find their next home. Others are opting for longer year-long leases and moving in and settling while they look for something new. These options also give you access to your funds, which is great for your next purchase.
Bridge loan: Compass offers a bridge loan program that offers qualifying sellers a loan on their purchase, and then paying back the loan at closing of their current home. This is a great option for a busy market like we are in where home sale contingencies will weaken an offer.
As you can see, there are a number of ways we can help make this transition work for you and your family. Please give me a call if you would like to discuss further. Every situation is different, so our conversation may spark even more ideas and options.