Condo owners sue city over vacation-rental limit | Residential News | Crain's Chicago Business
Hello all,
This article brings up a very good debate. Should the city be able to restrict the right of condo owners to rent out their homes as a vacation rental?
In recent years, many travelers have opted for a "home away" experience. This entails renting out someone's apartment or home instead of staying in a hotel. A few of my friends swear by it. I haven't tried it yet, but can see the appeal. Most of the hotels in cities are located in the downtown area or business district. You know where this is in Chicago. Sometimes when I travel overseas and we stay in hotels like this, I don't feel as if I get a real feel for the city and get stuck in tourist traps.
Staying in someone else's home may give you the feel of experiencing the life of the Chicagoan, New Yorker or Parisian. You can go to a local market or pub and hang with the locals. It is a great feeling! Sometimes, meeting someone in a bar and making a new connection is worth more than going to a local tango show where my husband felt like he was being herded like cattle. Talk to a local -- they'll tell you the best places to visit in their city and steer you away from the tourist traps.
But I digress.
Should a condo owner be restricted from renting out their home in this fashion? And should the city be allowed to impose this restriction?
I can see the negatives to this. There will be numerous unknown people walking in and out of the condo building. That can be a little unnerving for the people who live in the building. If they cause damage to the building, it may be hard to find them and collect money for any damages.
But, does the city have the right to restrict this?? I think no. In my opinion this is something that should be addressed and voted on by the individual condo association. It would be like having the city saying that condo buildings could not permit dogs over a certain weight limit to live in that building. I don't think it's any of their business. This law may have something to do with big hotels getting involved and strong arming the city to enact a law such as this due to low occupancy during this economic time. Here's an idea, why not make hotel rooms more affordable?
It will be interesting to see how this plays out. Stay tuned....
Thursday, October 6, 2011
Friday, September 9, 2011
Too Many Condos!
Glut persists at some downtown projects | Residential News | Crain's Chicago Business
There are currently 7,525 condos currently on the market on the northside of Chicago. That is an astounding number! Who are the buyers that are going to absorb these properties?
This is one of the current struggles condo owners face today. There is so much to choose from in every area of the city. What I would like to address today is whether to buy a new construction condo or a pre-owned condo and the pro's and con's of each.
Buying New Construction
Buying a new construction condo can be very exciting. Normally when visiting a new construction development you'll start your tour in a model which will showcase the finishes you can choose from. This normally includes a cabinet choice, hardwood floor color, and countertop choice. The developer will also offer buyers optional "upgrades" to the unit. These are things like a backsplash choice, higher end granite for your countertops, a possible appliance package upgrade and paint choices for the walls. These will always carry an additional cost, however, your agent can outline them in the contract and try to get as many included in the price as possible.
There are still quite a few unsold developments in the city. The problem I see with buying in a new construction development is that as an agent, I don't know where the developer's bottom is. For example, if you purchase one of the first units in a new development, how do you know that the prices of the remaining units will not fall drastically below your purchase price? It has been taking years for these large condo projects to sell out. If you bought a condo in a new building in 2008 and there are still units left today, you will find that today's buyers will pay significantly less than what you paid for the same product.
Another concern is the developer's financial stability. With an ever increasing short-sale and foreclosure market, many developers are in default. If this is the case, it will probably be very difficult to get a loan on a property like this.
My best advice in today's new construction condo market is to buy a unit in a building where there are only a handful of units remaining. A condo association will have already been established and the developer is ready to be done with the project.
If you do decide to move forward with a purchase in a new construction condo building where is less than 75% of the units sold, please beware that there could be further "price improvements" in order to entice new buyers.
Buying a Resale Condo
More often in today's market, buyers will purchase a "resale" condo. This just means that someone already owns the unit other than a developer. The con's here in comparison to a new construction unit is that you don't have any control over choosing finishes. You also will have some normal wear and tear in the unit as well as older appliances and mechanicals. The pro is that you will most likely pay less than what the owner paid if he/she purchased the property around 2005-2007. You will also be buying into a building where the condo association has been established and a lot of the kinks have been worked out.
Unfortunately, back in the heyday of condo developments, developers cut a lot of corners in some main areas. So, if the developer has been out of the picture for a while, the condo association may have already addressed any problems with the building.
In summary, while it may be safer to purchase a condo unit that has already been previously owned, you will be the one living in the home. If you fall in love with a certain property move on it if you think you are getting a good deal in today's market. No one can predict the future.
Good luck out there!
There are currently 7,525 condos currently on the market on the northside of Chicago. That is an astounding number! Who are the buyers that are going to absorb these properties?
This is one of the current struggles condo owners face today. There is so much to choose from in every area of the city. What I would like to address today is whether to buy a new construction condo or a pre-owned condo and the pro's and con's of each.
Buying New Construction
Buying a new construction condo can be very exciting. Normally when visiting a new construction development you'll start your tour in a model which will showcase the finishes you can choose from. This normally includes a cabinet choice, hardwood floor color, and countertop choice. The developer will also offer buyers optional "upgrades" to the unit. These are things like a backsplash choice, higher end granite for your countertops, a possible appliance package upgrade and paint choices for the walls. These will always carry an additional cost, however, your agent can outline them in the contract and try to get as many included in the price as possible.
There are still quite a few unsold developments in the city. The problem I see with buying in a new construction development is that as an agent, I don't know where the developer's bottom is. For example, if you purchase one of the first units in a new development, how do you know that the prices of the remaining units will not fall drastically below your purchase price? It has been taking years for these large condo projects to sell out. If you bought a condo in a new building in 2008 and there are still units left today, you will find that today's buyers will pay significantly less than what you paid for the same product.
Another concern is the developer's financial stability. With an ever increasing short-sale and foreclosure market, many developers are in default. If this is the case, it will probably be very difficult to get a loan on a property like this.
My best advice in today's new construction condo market is to buy a unit in a building where there are only a handful of units remaining. A condo association will have already been established and the developer is ready to be done with the project.
If you do decide to move forward with a purchase in a new construction condo building where is less than 75% of the units sold, please beware that there could be further "price improvements" in order to entice new buyers.
Buying a Resale Condo
More often in today's market, buyers will purchase a "resale" condo. This just means that someone already owns the unit other than a developer. The con's here in comparison to a new construction unit is that you don't have any control over choosing finishes. You also will have some normal wear and tear in the unit as well as older appliances and mechanicals. The pro is that you will most likely pay less than what the owner paid if he/she purchased the property around 2005-2007. You will also be buying into a building where the condo association has been established and a lot of the kinks have been worked out.
Unfortunately, back in the heyday of condo developments, developers cut a lot of corners in some main areas. So, if the developer has been out of the picture for a while, the condo association may have already addressed any problems with the building.
In summary, while it may be safer to purchase a condo unit that has already been previously owned, you will be the one living in the home. If you fall in love with a certain property move on it if you think you are getting a good deal in today's market. No one can predict the future.
Good luck out there!
Wednesday, August 31, 2011
Home sales: A price cut, by any other name, smells sweeter | Business Of Life | Crain's Chicago Business
Home sales: A price cut, by any other name, smells sweeter | Business Of Life | Crain's Chicago Business
So, the gist of this article is to put a positive spin on the dreaded but all too familiar "Price Reduction". Instead of calling it a price reduction, some agents are now calling them "Price Improvements".
I have mixed feelings about this strategy. On one hand, I think anything you can do to make a price reduction sound more appealing is a good thing. By calling it a "price improvement" you're sounding less desperate. Kind of like a close out sale where "Everything must go!" Instead of conveying that message, they're saying, "Please stop by and see our home with a newly improved price."
On the other hand, if it walks like a duck, quacks like a duck, its probably a duck. You can try and disguise it, but it is still a price reduction and that is how buyers will perceive it.
The best advice I have to sellers in this market is to list their home based on what is selling in the neighborhood. Do not think that you need thousands of dollars of negotiating room -- those days are long gone. A potential buyer will still sometimes try to present a low ball offer but if you price the home right to begin with you will have a larger buyer pool right off the bat and a better chance of getting an offer close to the list price. The most activity you will see on your home will be in the first two weeks on the market.
So, do I think it is a good idea to call them "Price Improvements" instead of "Price Reductions"?? It certainly couldn't hurt! My answer is go for it agents.
So, the gist of this article is to put a positive spin on the dreaded but all too familiar "Price Reduction". Instead of calling it a price reduction, some agents are now calling them "Price Improvements".
I have mixed feelings about this strategy. On one hand, I think anything you can do to make a price reduction sound more appealing is a good thing. By calling it a "price improvement" you're sounding less desperate. Kind of like a close out sale where "Everything must go!" Instead of conveying that message, they're saying, "Please stop by and see our home with a newly improved price."
On the other hand, if it walks like a duck, quacks like a duck, its probably a duck. You can try and disguise it, but it is still a price reduction and that is how buyers will perceive it.
The best advice I have to sellers in this market is to list their home based on what is selling in the neighborhood. Do not think that you need thousands of dollars of negotiating room -- those days are long gone. A potential buyer will still sometimes try to present a low ball offer but if you price the home right to begin with you will have a larger buyer pool right off the bat and a better chance of getting an offer close to the list price. The most activity you will see on your home will be in the first two weeks on the market.
So, do I think it is a good idea to call them "Price Improvements" instead of "Price Reductions"?? It certainly couldn't hurt! My answer is go for it agents.
Monday, August 29, 2011
Disaster on the Inside or a Case of the Lazy Agent?
Gone are the days when buyers drive around an area to search out real estate or page through the Sunday paper for local listings. Today's buyers begin their search on the internet. Most of my buyers have looked at numerous listings on the web months before I even get them into my car to see properties.
One key factor to getting buyers to look at my listings on the web is including professional interior photos of the home. I would guess that nine out of ten buyers would click past a property if there were no interior photos. After all, if you can't see what's on the inside, there must be something to hide, right?
Unfortunately that is not always the case. With the number of short sales and foreclosures flooding the market, you may have a case of the "lazy agent". This was the case with our current home. We noticed the property as soon as it hit the market. It was listed at a great price but there were no interior photos. We immediately were suspicious but decided to take a look anyway because of the location. When we walked in were were SHOCKED! There were original mouldings, original french doors to the dining room, updated baths and kitchens and loads of built-ins. It was in pristine condition and we felt like we hit the real estate jackpot!
The home (shown below) was listed as a short sale and we immediately wrote an offer and closed 6 months later. Not once did I ever meet the seller's agent. No interior photos and no face to face meetings. I give you, A Case of the Lazy Agent. This is how she spelled Millionaires on the listing: MILLIONAIRS. Does it get any worse? Absolutely.
Moral of the story: If you love the area and the home is priced right, it may be well worth a visit even if you don't see any interior photos.
One key factor to getting buyers to look at my listings on the web is including professional interior photos of the home. I would guess that nine out of ten buyers would click past a property if there were no interior photos. After all, if you can't see what's on the inside, there must be something to hide, right?
Unfortunately that is not always the case. With the number of short sales and foreclosures flooding the market, you may have a case of the "lazy agent". This was the case with our current home. We noticed the property as soon as it hit the market. It was listed at a great price but there were no interior photos. We immediately were suspicious but decided to take a look anyway because of the location. When we walked in were were SHOCKED! There were original mouldings, original french doors to the dining room, updated baths and kitchens and loads of built-ins. It was in pristine condition and we felt like we hit the real estate jackpot!
The home (shown below) was listed as a short sale and we immediately wrote an offer and closed 6 months later. Not once did I ever meet the seller's agent. No interior photos and no face to face meetings. I give you, A Case of the Lazy Agent. This is how she spelled Millionaires on the listing: MILLIONAIRS. Does it get any worse? Absolutely.
Friday, August 26, 2011
Men Help Logan Square Sexual Assault Victim After Hearing Screams, Suspect Escapes
Men Help Logan Square Sexual Assault Victim After Hearing Screams, Suspect Escapes
Posting this article saddens me. I am hopeful that the city's finest can locate this criminal and lock him up.
This brings to light an important topic: personal safety. Being a woman, I am try to always be aware of my surroundings at all times. I have been carrying pepper spray with me since my college days. Thankfully I have never had to use it. However, if I do feel unsafe, I will take it out of its holster (which is on my key ring) and keep my index finger ready and on the trigger. Who knows if this would actually be able to fend off an attacker, but it makes me feel a tad safer. Another trick is to take your car keys and put them in between your fingers as a type of brass knuckle arrangement.
I have also thought of taking a self defense class. Maybe this is just the sort of event that will motivate me.
My thoughts go out to the victim and her loved ones. I will be following this story and look forward to the day when I can write about the arrest of her attacker.
Posting this article saddens me. I am hopeful that the city's finest can locate this criminal and lock him up.
This brings to light an important topic: personal safety. Being a woman, I am try to always be aware of my surroundings at all times. I have been carrying pepper spray with me since my college days. Thankfully I have never had to use it. However, if I do feel unsafe, I will take it out of its holster (which is on my key ring) and keep my index finger ready and on the trigger. Who knows if this would actually be able to fend off an attacker, but it makes me feel a tad safer. Another trick is to take your car keys and put them in between your fingers as a type of brass knuckle arrangement.
I have also thought of taking a self defense class. Maybe this is just the sort of event that will motivate me.
My thoughts go out to the victim and her loved ones. I will be following this story and look forward to the day when I can write about the arrest of her attacker.
Thursday, August 25, 2011
CPS board passes tax hike
Sorry to have to report some bad news for my very first post! It looks like our property taxes will be increasing around Chicago.
Property owners have felt a lot of pain in the past few years. In April 2008, the City of Chicago Transfer Tax was increased to a whopping $10.50 per $1,000 of the total purchase price of the home. The buyer is responsible for $7.50 per $1,000 and the seller is responsible for $3.00 per $1,000. For example, if a buyer purchased a home in Chicago for $250,000 that buyer would have to cough up $1,875 for this tax. The seller would be responsible for $750. Quite an entrance fee!
It is important to know what these transfer taxes are -- regardless of what part of the state you live in as there is also a State and County transfer tax. Most municipalities also have their own, although most are not as high as Chicago.
This property tax hike will be just another way to stick it to property owners. On the bright side, there are a ton of great housing deals out there! So hopefully the new taxes will not be a major deal breaker for you if you are looking for a new home.
CPS board passes tax hike
Property owners have felt a lot of pain in the past few years. In April 2008, the City of Chicago Transfer Tax was increased to a whopping $10.50 per $1,000 of the total purchase price of the home. The buyer is responsible for $7.50 per $1,000 and the seller is responsible for $3.00 per $1,000. For example, if a buyer purchased a home in Chicago for $250,000 that buyer would have to cough up $1,875 for this tax. The seller would be responsible for $750. Quite an entrance fee!
It is important to know what these transfer taxes are -- regardless of what part of the state you live in as there is also a State and County transfer tax. Most municipalities also have their own, although most are not as high as Chicago.
This property tax hike will be just another way to stick it to property owners. On the bright side, there are a ton of great housing deals out there! So hopefully the new taxes will not be a major deal breaker for you if you are looking for a new home.
CPS board passes tax hike
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