Is staging worth it?

One of real estate's age old questions is if staging is worth it? And I get it! Staging can be a significant investment. The answer to the question is that it truly varies: varies by marketplace and also the type of home. 

In a seller’s market
In a strong seller’s market there is so much demand for a property that full-service staging is usually not necessary. But, because Chicagoland buyers have trended toward move-in ready homes for the past several years, we many times like to use a little virtual staging in the professional photographs of a property. This way buyers can quickly and easily see the potential of a particular room or two. When we do virtual staging, we always print out the photos and bring with us to showings (we attend every showing!), so that buyers can see the potential while in the home.

The good news for Busby Group clients is that virtual staging is not only complimentary, but we also use our own in-house stager for fast turnarounds and highly custom layouts. To help complete a room, Busby Group also owns a curated repertoire of small staging items that we know look great and appeal to buyers. 

In a buyer’s market
A slower market may call for full staging depending on the property. We look at potential buyer objections, and decide if staging may help. For example, if we think buyers will have trouble visualizing a dining area, we may stage a dining table and chairs. We also have other tools at our fingertips including floor plan drawing and our professional organizer partnerships. 

With floor plans, sometimes we will have specific furniture drawn in to scale so that buyers can see that a queen bed and night stands would fit for example. Or, we may call our professional organizer partner to stop by for a few hours of organizing and editing. Many times they use furniture from around the home, but set up in a way that emphasizes features like size, functionality and utility. 

Property dependent
There are also specific types of properties that call for some sort of staging, regardless of the market. If a property is vacant, we may want to stage it in some way for example. Or sometimes we may want to virtually stage the kitchen cabinet color, or show another way to use a room. 

The good and bad part of staging is that there is no “one size fits all” answer. We look at each property through the lens of the current marketplace and decide what makes sense. Please contact us with any questions regarding staging! 

4 hot topics in Chicago real estate right now

One of the most amazing and equally frustrating parts of real estate is that the market changes constantly. What is true today, may be obsolete tomorrow! Today I am sharing four hot topics for the Chicagoland real estate market, and what they could potentially mean for you. 

Downtown high rise interest is returning
Before the pandemic neighborhoods like West Loop and Gold Coast were some of the most competitive. When the pandemic struck, interest in downtown high rises quickly and drastically tapered off. And while the rest of the real estate market rebounded quickly, high rises have been one of the last parts of the market to come back – but recently we’ve started to see some uptick in interest! 

In addition to much of life returning back to normal, I believe this trend is also due in part to buyers frustrated with the competition in Chicagoland suburbs and other popular cities (Nashville, Denver, Austin, etc), and picking downtown Chicago as their next best option. 

“The Bring Chicago Home Campaign” or “Mansion Tax”
Currently, Chicagoland buyers pay a one-time $7500 transfer tax per million in purchase price. This new proposal would more than triple that tax to $26,500 per million. The amounts sellers pay in transfer tax ($3,000) would not change under the proposal. In the past 12 months, approximately 5.4% of homes sold in Chicagoland were more than $1 million. Funds from the tax would go toward funding efforts around combatting homelessness. Both sides of this proposal are strongly convicted one way or the other, so it will be interesting to see how this plays out. 

Airbnb crack downs
Are you thinking about a second home or investment property? Wherever you are considering, it pays to do your research around the local/county-level feelings around Airbnb. For example, in New Buffalo, MI, a popular vacation destination for Chicagoans, short-term rentals have been banned since May 2020. Traverse City and Mackinaw City limit short-term rentals to specific areas. Other popular destinations like Union Pier remain friendly to the short-term rental scene. If you are considering a home in Michigan, keep in mind that Busby Group team member, Mara Walsh, is licensed there! Also a note that at this point most condo buildings in downtown Chicago do not allow short-term rentals either. 

Increasing interest rates
By this point we’ve all heard rumblings about the uncertainty of the nation’s economic future, at least in the short-term. Some experts are saying rates may reach 7% in the not so distant future. I recently wrote a whole blog post on this issue that you can read here. The overall takeaway is that, yes, interest rates have buyers and sellers talking, but there are also strategies you can use that can make a real difference. 

5 strategies for combatting increasing interest rates

If there is one thing I know about real estate for sure, it is that interest rates keep us all on our toes! And this reality is again proving true right now: interest rates are unpredictably increasing, and buyers are panicking. I totally get it! Without the full story, and all of the available options, it sounds like a bad situation. But fear not! Today I am sharing five strategies for how to stay calm and competitive amidst this uncertain situation. 

1. Consider buying down your interest rate: Definitely talk to your lender about this one in detail (or we can make an introduction), but here is a quick overview: to lower/buy down an interest rate, the borrower pays discount points/mortgage points at closing. As a result, the overall interest rate of the loan decreases. The cost of one point is dependent on the borrower and the amount they are borrowing, and it is also important to figure out your break even point, which is essentially the cost of points / monthly savings. Further information is available here. 

2. Lock and Shop: Read a full overview of this product that we outlined here. Buyers lock in the current interest rate without an address, then shop for 30 days with their locked in rate. This is a great option for our current market. 

3. Consider an Adjustable Rate Mortgage: On average, Chicagoans stay in their home 3-5 years. An Adjustable Rate Mortgage can be a great option because typically the initial interest rate (which holds constant for 5, 10, 15 years) is lower than a fixed rate. 

4. Look for “deals”: Most Chicagoland buyers are still looking for move in-ready properties. Consider going against the grain and looking for something that needs work since these properties are typically not seeing as much attention for buyers. By spending less your principle will also be lower. 

5. Remember a historical perspective: If you talk to anyone who bought a home in the 90s, they will tell you their rate was right around 15%! If you plan to stay in your home for more than a few years, I wouldn’t worry too much about where the rates are now. 

Are increasing interest rates ideal for a buyer? Probably not, you do have a lot of really solid options for ways forward. The most important piece of the puzzle is clearly working with a creative lender! Especially this year, I have seen such a difference between transactions with strong vendors and not. If you would like a referral, we have a short list of Chicagoland’s best, so please reach out!

Buyers: The best way to avoid creeping interest rates!

With interest rates creeping on a weekly basis, I went in search of solutions for our buyer clients – and found an amazing option from my friend, Mark Johnson with Citizens Bank. We chatted about a new program he is offering called “Lock and Shop,” and I was blown away! Historically, buyers are only able to lock in a rate once they have found a property, which is difficult to do in this current crazy market! With Lock and Shop, buyers are able to lock in their rate before finding a home, and then shopping with a locked rate for the next month!

Lock and Shop overview

Lock and Shop basically takes a 90 day rate lock and breaks it up into two parts. The first part, which lasts 30 days, is initiated by what looks and feels like the pre-approval process – just a W2 and paystub required. From there, buyers now have a locked in rate and up to 30 days to find a home. Within the 30 day window, an address is tied to the loan and it then proceeds normally into underwriting and closes within 60 days.

There are no fees or payments required upfront, so if by chance someone doesn’t find a home in the 30 day window, they don’t lose anything. Plus, Lock and Shop works with any loan product, so there are endless options.

What are the advantages?

According to Mark, the real estate market hasn’t seen this level of volatility in 8-9 years, so Lock and Shop provides buyers the peace of mind that they are getting the best possible rate right away versus waiting until they are under contract. With home buying being especially competitive right now, Lock and Shop takes one big stressor off the table.

Another big advantage is that when buyers go through the upfront pre-approval process for Lock and Shop, instead of receiving a pre-approval letter, they actually get a Loan Commitment Letter. This is advantageous because a Loan Commitment letter will make an offer to a seller that much stronger and help a buyer win in a multiple offer situation – one of the hardest/most common obstacles in today’s market.

And lastly, though we are in a rising rate environment according to Mark, if rates do end up decreasing, there is an option to relock at the lower rate.

For more information, please reach out and we are happy to introduce you to Mark and his team!

How about a staycation while we sell your home?

The pandemic has impacted our lives in innumerable ways, and one of the biggest is that we spend so much more time at home – which is great, except when you are trying to sell your home! 

Let me know if you fall into this category: you and your family have spent the better part of the past few years at home, you are still working from home, and you have kids at home on a regular basis too. You want a change, but you have no idea how you are going to work/school/function while your house is in “showing ready” shape, and people are traipsing through your home at all hours!

I totally understand! We have dealt with this very situation with many, many clients, and I am happy to say we have solutions in hand, ready to go. 

Prepping your home for market, pain-free
One of the results of us all spending so much time in our homes the past few years is that “lived in” feeling. Stuff has multiplied, and the space to put it away has somehow disappeared. The dining room has become a homeschool classroom, and the family room is the school gym. This is where our partnership with top Chicago organization firms comes in! Let our professional organization partners go work clearing, editing and staging your home so that it shines in photos and showings. They will address closets, cabinets, and entire rooms to make them look their very best…and you don’t have to lift a finger!

Go on vacation while we sell!
The next big concern is where to go when we are showing and selling your home. Our answer? Go on a staycation! As Busby Group clients, you receive exclusive access to Compass Capitol, which provides you a debit card to pay upfront for a hotel stay wherever you wish! The house stays neat and clean, you can work in peace, and you don’t have to worry about scheduling showings around naps, meetings, meals, etc. It’s truly a win, win. Funds are repaid at the closing table, or 12 months – whichever comes first. We have had so many happy clients set up their sale this way recently, and it works out so well!

Please reach out if you have any questions, we are so thrilled to offer these exclusive services to our clients!

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!