Our top 3 tips for navigating the 2022 Chicago real estate market

“What are your best real estate investment tips?” We are asked this question constantly – and for good reason. Our “tips” constantly evolve with the ever-changing Chicagoland real estate market. Today we are focusing on three of our latest investment tips. 

1) Are the Chicagoland suburbs a good investment right now?

The short answer is yes, as long as you have a long-term strategy! One aspect of the real estate market we know to be true is that there is a pendulum that swings between the city and suburbs in terms of interest and overall market strength. For the past 15 years the city market has seen crazy huge growth while the suburbs were not nearly as strong. In 2020, fueled by the pandemic, the pendulum rather quickly and very forcefully swung toward the suburbs, and I anticipate it staying there for at least the next seven to 10 years. 

So, even with the current craziness in the suburban real estate estate markets, I wouldn’t say you are buying at the “height” of the market. We anticipate suburban demand for many years to come. 

2) I can’t find what I’m looking for: should I buy a lot and build?

If you know me personally, then you know I am a huge advocate for customizing a home! I have done so several times, and am currently in the midst of renovating a lake house! As such, I am also experiencing all of the trials and tribulations that go along with renovating a home in 2022! Our start date is about a year delayed already, and we are significantly over budget due to the ever-rising cost of materials. 

Knowing all of that, if you have the time and budget to tear down and start from scratch, then by all means do it! But, if you are looking for faster and less expensive results, consider a remodel. You still get the customizations you are after, but with significantly less risk. Find a property with great bones in an amazing location (real estate 101 is still true!), and renovate. And remember: most buyers want move-in ready, so you may even have more negotiation opportunities. THIS is a great value play! Plus, we have contractors on speed dial that can help estimate the time and costs associated with your vision.

3) What about a short-term rental (AirBnB/VRBO) investment property?

I totally understand the allure of  a short-term rental investment property! But, I strongly advise you to do your homework before going down this path. Chicago, for example, is really cracking down on short-term rentals and most condos at this point have banned them. If I were going to buy a short-term rental property, I would buy a two-flat and either rent out both units, or live in one and rent the other. With a two-flat you have more flexibility and freedom than a condo. 

In summary

In summary, when it comes to the current market, my advice is all around timing: don’t be afraid of investing in the suburbs in this market. The same goes for customizing a home. If you are OK with long and expensive construction, then tearing down and rebuilding makes sense. Otherwise, renovate the existing home for a faster, cheaper payoff. And, if you are considering a short-term rental property, I urge you to consider a two-flat over a condo because of the added flexibility and freedom.

Welcome to the team, Adriana Bahena!

We are excited to have another native Chicagoan at Busby Group! Between her on the ground experience as a real estate broker, plus recently graduating with her master’s in business administration and real estate, Adriana KNOWS real estate inside and out! Plus, she is a born and bred Chicagoan with a real passion and love for her city. I asked Adriana a few questions so we can all get to know her – read the full interview below, and join me in welcoming Adriana to the team!

What did you do before starting in real estate?

A lot of studying! I recently graduated from Roosevelt University with my master's in business administration with a concentration in real estate. 

What is your favorite part of working in real estate?

It's multi-faceted. It's not as simple as buildings and sales. To me it's about architecture, design, infrastructure, necessity, neighborhoods and the people living and working in those communities. I love meeting new people, guiding my clients through their real estate goals and exploring the real estate in our city. And capturing any of those moments and adding it to social media, of course! :)

What are you most excited about in the coming year?

I'm excited to achieve new goals, professionally and personally.  I look forward to helping my clients achieve their real estate goals, and sharing new knowledge I acquire along the way.  

What does your typical day entail?

Every day is a little bit different, but to keep myself organized I do block certain times for activities including checking on the status of pending transactions and touching base with any clients. Typically, the first thing I do in the morning is read through important market news and updates. Evenings and weekends are usually the busiest times with showings and open houses.

What was your big ah-ha moment in your real estate career thus far?

When I started out I didn’t realize just how big an impact helping a client buy or sell real estate can have on their life. It really can be life changing! I love working with Busby Group because each of us genuinely have our client’s best interest at heart. 

Where do you live in Chicago, and what is your favorite neighborhood?

I currently live in the near west side of Chicago. All 77 neighborhoods in Chicago offer something special, so choosing one as my favorite is difficult, but I really enjoy the restaurant scene in Pilsen, Wicker Park and the West Loop. This year I am challenging myself to explore beyond my go-to neighborhoods!

LIGHTNING ROUND:

You are a born and bred Chicagoan! What is your favorite:

Restaurant: Chicago has an amazing restaurant scene, always somewhere new to go, but a few of my faves are La Vaca Margarita Bar, Butterfly Sushi, Cafe Ba-Ba-Reeba, Tango Sur and for breakfast, of course, Wildberry!  In 2022 I want to explore more Asian cuisine – recommendations are welcome! I also look forward to trying the newer restaurants in Chicago such as Avli on the River and Bar Mar.

Park: McKinley Park is beautiful all year round. It's about 72 acres with a pool, tennis and basketball courts, a seasonal ice skating rink and my favorite part, a peaceful lagoon full of wildlife.

Hidden Gem: Not so much hidden as you can't miss it when you're driving by it, but maybe unknown to many, Palmisano Nature Park. The park is slightly south of the Chicago River just north of Bridgeport. Take nice long walks, nature watch or sit back, relax and enjoy the sunrise or sunset with friends.

How I won Rookie of the Year!

Now in my third year of real estate here is what I know to be true: real estate is a wild ride! As you may recall, I launched my career in 2020 in the midst of the pandemic! While I was nervous in the beginning like everyone, 2021 actually turned out to be an incredible year for Busby Group, and me personally! In 2021 I saw a 300% increase in production, and won Compass Rookie of the Year - Bucktown! I was also nominated for the Chicago Agent Rookie of the Year - City, which was so fun and unexpected!

Needless to say, I learned a lot (you can read my four biggest takeaways from 2022 here)! I recently sat down and put my most recent learnings down on paper too. 

Availability is crucial: In Chicagoland, the spring market is a very real part of our real estate seasonality. Buyers and sellers alike are raring to go starting in early to mid-January, which means that from then until May/June, I work non-stop! If you ask my clients, they will tell you that I am always reachable. To stay competitive in our market, things have to happen quickly! From a volume perspective, things moved quickly for me too: by May 31 I had over $9M under contract, all of which closed by early August! 

Use time wisely: Since the real estate market is packed with activity during the first half  of the year, I like to think of ways to use the second, relatively quieter half to my clients’ advantage. For example, for several of my listings we took marketing photos last fall when the weather was still beautiful, but photographers, and home repair vendors were less in-demand. Now we are all set to list whenever the timing is right! We track market activity and as soon as we see an uptick we reach out to our clients to let them know it is probably a good time to begin to at least test the market!

Networks are everything: I very quickly learned that on and offline networks are how many transactions come together! I can’t tell you the amount of time I spent on Top Agent Network (only available to the top 10% of brokers in Chicago) and the Private Listing Network (PLN) looking for opportunities for my buyers. And, it paid off. Nearly all of my buyers bought properties before they even hit the market! For my sellers, I use TAN and PLN to test our price before we hit the market and then adjust accordingly. Busby Group also has an amazing network of brokers throughout Chicago and the country that we are in constant contact with regarding listings and opportunities.

Hands-on approach: While some brokers are strictly there for assistance with a real estate transaction, my approach is much more hands-on. For example, I had clients selling their home and they needed repairs made, spaces modified, walls painted and closets organized prior to listing. We quickly engaged a team to align and execute a plan within a very specific time-frame. Additionally, we brought in our landscaping crew to spruce up the outdoor space prior to our first open house.

When I look back at 2021, I think most about all of the amazing Chicagoans I was privileged to help buy or sell a home. It was truly a year I will never forget, and I can’t wait to see what this new year in real estate will bring. Thank you so much to all of my clients, friends and colleagues – nearly all of my business came from referrals and my personal network last year, which means the world to me!

Welcome to the team, Katie Paczesny!

I am incredibly excited to welcome Katie to the team! Katie comes to us from the title world, so she knows an incredible amount about how to successfully close, closing statements and all the key players. Katie is also an incredible athlete, and played volleyball for the University of Illinois during college. Even now I can see why she was so successful as a collegiate athlete: she wants to be the best in everything she does, but is also an amazing team player. That commitment to excellence is very apparent in Katie’s most recent accomplishment: her certification as a showing specialist through one of the country’s top real estate trainers.

We asked Katie a few fun questions so you can get to know her better! Please help me in welcoming Katie to the team!

What did you do before starting in real estate?
Very early on in my career I realized my biggest passion is in building relationships, plus I’ve always  had an interest in real estate. So when I was presented an opportunity to work for a Fortune 500 title company, I went for it. 

Being in a competitive sales environment for one of the top title companies nationwide had really allowed me to utilize the skills I had been taught throughout my life. Dedication, resiliency, accountability, and hard work is what it takes to reach your goals and always aspiring for more. 

My love for real estate grew tremendously as a title representative. By communicating with all the parties in real estate transactions from residential to commercial, it allowed me to work with attorneys, lenders, investors, and brokers through the ins and outs of the process and what it takes to successfully close deals. From there, I naturally transitioned into wanting to become a real estate broker.

What are you most excited about working in real estate as a Broker?
I’m the most excited about seeing my clients happy and being a part of their success. I’ve always welcomed challenges with excitement and an understanding that each transaction is an opportunity to learn something new. 

What are you most excited about in the coming year? 
Although 2021 was an interesting time, there were many positives that it brought on in my life. Last year we planned our wedding and got married, bought a new condo, got a new puppy and switched careers – there was never a dull moment!

I am SO excited about this coming year! I really look forward to being a part of this strong, knowledgeable and talented team of women. I’m excited to help contribute to the team through my hard work, dedication and positive energy, as well as bring over my knowledge from the title world.

What was your big ah-ha moment in your real estate career thus far? 
Communication is key! I believe the best way to gain trust is through prompt, thorough communication that provides solutions to challenges. 

Where do you live in Chicago, and what is your favorite neighborhood? 
I currently live in Buena Park and absolutely love it! Being within walking distance to the lakefront trail, dog beach, Wrigley Field, and many restaurants, there really is so much to do year round! Before Buena Park, I lived in the West Loop for five years, and truly enjoyed being in the heart of the action as well. From walking down to the restaurant row off of Randolph street, to walking the riverfront, and all the many festivals happening throughout the neighborhood. My love for city-living all started in the West Loop and that’s where I really explored all that Chicago has to offer.

LIGHTNING ROUND:

You are a crazy amazing athlete, what is your favorite:

Workout
My favorite workout is HIIT! (High-Intensity Interval Training). I write down all of my workouts and create them usually the night before. HIIT workouts are definitely my favorite because you're putting in maximum effort within a shorter amount of time, usually mixing in some light cardio whether that be incline walk on a treadmill or simply going for a stroll down the Lakefront Trail. 

I also play in volleyball leagues throughout Chicago. It’s a great way to meet new people and still get to enjoy the game I love! Something that I’ve recently picked up since I moved to Chicago is Pickle ball. It really is great cardio and so much fun as well!

Gym in Chicago
I use the gym in my building during the winter. But, when the weather is nice, I head out towards Montrose Beach, there’s a giant hill called “Cricket Hill”. That’s where I like to do hill sprints and body weight HIIT workouts as well! It’s always satisfying with the views to end workouts looking out to Lake Michigan while sitting at the top of the hill.

Best workout tip! 
Do workouts that you enjoy! I really love to workout because I truly enjoy doing the workouts I create. And, it makes it way easier to stay consistent! Writing down my workouts has always helped me track my progress and to challenge myself as well.

What is your biggest athletic accomplishment? 
My biggest athletic accomplishment was committing to the University of Illinois my freshman year of high school. Committing my first year of high school to a full ride athletic scholarship, really kept me focused and motivated to work as hard as possible for success both in the classroom and on the court. All of the skills that I learned from playing at U of Illinois have been transferred into my everyday life. From having self discipline, time management and being accountable to myself and others, to creating and achieving goals, overcoming obstacles and keeping a positive energy,  to really dedicating myself to my work and what I’m passionate about is something that will always be a part of me.

Is 2022 a good time to buy and sell in Chicago? Here are our best predictions

2022: what do you have in store for us?! It seems that the wild ride we have been on the past few years shows no signs of stopping! Today I am sharing my predictions for the 2022 real estate market. 

Virtual is here to stay

Omicron has made it abundantly clear that virtual meetings are going to be a necessary part of 2022. For real estate that means we will continue to do virtual client meetings and the option for virtual showings – at this point we have both down to a science! I would advise anyone looking for a real estate broker to check on their willingness and expertise in virtual business. 

Move-in ready space is at an all-time premium

With many businesses postponing their return to office plans, space is still the number one feature buyers are looking for. Space can come in all shapes and sizes: bigger rooms, separate home offices, outdoor space – all of it is good and attractive to buyers. 

We have seen the move-in ready trend evolve over several years and it seems to only emphasize with time. Chicagoland buyers want move-in ready! No one wants to deal with the current supply chain issues or finding a vendor with time on their calendar. Anything sellers can do to enhance their home prior to listing is hugely beneficial. 

Rates are increasing sooner than later

The Fed has announced their intention to raise rates potentially up to ¾ of a point, and it may happen sooner than later. After the first rate increase buyers will scramble to buy as soon as possible. If rates continue to increase, buyers start affording less, and many decide to wait. As a result, prices begin to plateau. This makes the spring market more important than ever this year.

Anticipated market seasonality 

Omicron has already magnified the itch to move. Spring market has started, and we see not enough inventory and pent up buyer demand. I predict our spring market this year will be very strong through April/May. Summer will then be slower, and how slow will depend on the rates. 

City versus suburban markets

I anticipate that interest in the suburbs will continue to be strong. City interest will be seasonal, with the strongest market in the spring. 

Overall, my main piece of advice is if you are thinking of buying or selling to start the process now. For buyers, get in the mix before rates go up. You will also have the most variety of choice throughout the whole year if you start looking soon. For sellers, I also recommend selling this spring before rates go up, which inevitably impacts prices – at least in the city. Please reach out anytime with questions!

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!