Do you want to buy or sell? Do yoooou want to buy or sell. Hey, ready to buy or sell? If your facebook news feed is anything like mine you see too many realtor ads asking if you're ready to buy or sell. The over saturation can make any reasonable consumer go bat crazy! Instead of hearing the same old "pitch" wouldn't it be more effective to understand WHY now is the good time to sell? Yes? I agree..so I decided to dive deep and explain three strategic reasons to list your home right NOW!
Equity in your home
We have been experiencing a sellers market for quite some time now. This means a market imbalance where months supply (inventory) is not keeping up with buyer demand. As a result, home prices in Chicago's popular neighborhoods have been increasing. The equity in your home could be at the highest its been in years. However, you can't unlock this equity unless you list and sell your home. For example, let's look graphically at condo home prices in three of Chicago's hottest neighborhoods. If you do not see your neighborhood I would be happy to perform an in depth market analysis. Just contact me .
Median home prices are up 3% from $330k to $340k.
Median homes prices in Lincoln Park are up 3.1% from $422k to $435k
Median home prices in west town are up 4.8% from $420k to $440k.
There's no secret that overall taxes in Chicago and the state keep increasing. Based upon the financial health of the city/state there is no stopping this increase. Specfiically, property taxes in the city show no sign of stopping. To mitigate against these increases I advise homeowners to both apply (if not done) for homeowner exemption and appeal taxes. I'm talking strictly about cook county property taxes. Other counties have more favorable tax structures so make sure you thoroughly research other counties in Chicagoland. If you need to view homes for sale in other counties/suburbs visit my website. How do these ever increasing taxes impact home values? There isn't definitive answer to that but as serious buyers enter the marketplace high taxes even in popular neighborhoods can have a negative impact on decision process.
With an improving economy we run the risk of inflationary pressures. Inflation signals future increases in interest rates (as described in this marketwatch article) What the future impact will be in one year is anyone's guess. However, If you attempt to delay the decision on selling you may end up having to buy your move up home/new home at a higher price point and interest rate. Your own home may sit longer on the market as the pool of prospective buyers shrinks as the interest rate increases. So, don't delay! Reach out to me so I can perform a proper net proceeds calculation. If the preliminary numbers work for you then I provide you my complete 2018 seller marketing plan to getting you top dollar in today's market.
Just as first impressions are important for people, they can be make or break for a home. When potential buyers walk into your house, they will start to evaluate everything they see. Their impression will ultimately determine how much they’re willing to offer on the property… or even if they’ll be interested in buying it at all. Therefore, in order to get you the most money possible for your home, we at Anant Deoras Chicago Real Estate put a ton of care into its preparation before we put it on the market. Quality preparation that will leave buyers with the best impression of your house involves four elements:
4 Elements Of Home Sale Preparation
1. Pre-Listing Inspection to determine Repairs
There are several reasons to complete repairs on your home before you put it on the market. Ultimately, buyers will pay more for a home to avoid the work of fixing it, and they will pay faster. Moreover, any money you invest into repairs before you list — when you have time to price-shop and to use a little bit of elbow grease — will be far less than the quote from the home inspector or the concessions for which buyers will ask. The good news is that most repairs are merely cosmetic and fairly inexpensive. Think of the things on your to-do list: that leaky faucet and the cracked bathroom tile were bothering you when you lived in the house, and they’re going to bother the new owners too.
In our experience, we are advising more and more for our sellers to conduct a pre-listing inspection. Why? Its best to proactively determine any issues with the home so they can be properly fixed prior to going live. Many times Sellers are not aware of potential issues until the buyer does the home inspection after going under contract. Then, there is delay in negotiation of repairs. Get those repairs fixed upfront so any potential stress is reduced once the property is under contract.
You wouldn’t want your mother to come over when your house was dirty, would you? And you’re not even trying to get her to shell out thousands of dollars for the place! Buyers are easily distracted, and they will tend to focus on the negatives instead of the positives of each home they tour. Each dish left in the sink or dust bunny in the corner is going to detract from the perceived value of your home, which means a lower offer amount and more time on the market for you. Your trophies or antique collectibles are very important to you and they should be. However, to the most discerning buyer those personal items need to be removed from a listed home. Its best to contract with a local storage company if necessary and store those valuable personal items while the property is on the market. De-cluttering your home this way keeps the focus on the killer paint job and unique features of the home.
3. Coat of Paint
The chips in the paint on the walls or dirty baseboards may have grown on you but to a new buyer they're deal killers. Look into hiring painters to give the entire or partial re-paint of the home. There are many great painters and we have referrals that are competitively priced. Think neutral scheme as you decide on colors. We have interior designers and stagers that can provide a professional consulation on which colors will go with your specific home. Contact us today to schedule a free consultation!
According to the National association of realtors 2017 profile of home staging, 77% of buyer agents said staging a home made it easier for a buyer to visualize the property as a future home.
But a picture is worth a thousand statistics. Take a look at the images below.
1506 N. Campbell #1S
This picture above was taken prior to the staging consultation.
This picture above was professionally staged, painted, and photographed.
1428 W. Cortez top floor penthouse condo
This picture above was taken prior to the staging consultation.
This picture above was professionally staged, painted, and photographed.
To receive my 2018 Chicago marketing plan guide click here. I look forward to answer any and all questions you may have!
The NAR (National association of Realtors) recently completed a 23 page brief on the impact of the 2018 tax reform on Homeowners. For a copy of the NAR brief please Click here. I wanted to take sometime and address concerns and non-issues with this recent legislation. *PLEASE KEEP IN MIND THIS BLOG POST IS STRICTLY FROM A REALTOR PERSPECTIVE. IF YOU SHOULD NEED SPECIFIC TAX ADVICE PLEASE CONSULT A LICENSED ACCOUNTANT/TAX PROFESSIONAL.
OK, now that we got the "legalese" out of the way let's get to business. Overall, the tax rates for all Americans on the federal level have changed. Please refer to this image for the 7 new tiers.
Exclusive of Gain on sale of Principal Residence
One of the benefits on selling a home was being exempted from paying capital gains on seller positive net proceeds. Prior to the 2018 tax law if you lived in your primary residence at least 2 out of the last 5 years you qualified for the exemption. For single home sellers the amount exempt was up to $250k. For married filers the amount was $500k. Originally, legislation was to increase this requirement to 5 out of the last 8 years. In addition, the amount of gains that were exempt were to be phased out for incomes above $250k (single) and $500k (married). Through the efforts of NAR (national association of realtors), the existing law was left unchanged. This is excellent news and if you have been on the fence about selling now in 2018 is a great time to considering selling!
Mortgage Interest Deduction
Going forward, for home buyers the mortgage interest deduction will be capped at $750k. This amount is for the loan of the new home. If you're a move up buyer considering selling your home this could affect you in many Chicago neighborhoods (due to prices of homes). Use my website, anantdeoraschicagore.com, to see homes for sale and if you may be impacted on the mortgage loan cap.
State and property taxes
The cap is now $10000 for deducting state and property taxes. This impacts single and married filers equally.
The final bill provides a standard deduction for single filers at $12000. For married filers it is $24000. If during itemizing deductions, the mortgage interest for home buyers is less then the stated standard deduction amounts they will use the standard deduction. This reduces the incentive from a tax perspective for prospective home buyers. Specifically, many first time home buyers who value the tax benefits may consider to continue to rent vs buy. However, the benefits of homeownership are not simply tax savings. Many home buyers purchase a home to start a family, have a pride in owning something, want forced savings, or simply do not want to deal with a landlord.
The personal exemption of $4150 has been removed from the new legislation.
At the end of the day, if you're a prospective home seller 2018 is the year to sell. Do not let the tax reform scary you from considering selling your home. Keep in mind while the mortgage interest cap does hurt loans above $750k those home buyers may in fact have their overall fed taxes lowered (by the new tiers). The NAR projected that due to the tax reform home prices will grow nationally only 1%-3% in 2018. However, low inventory will continue to plague many neighborhoods include Chicago neighborhoods. Real estate is local in Chicago so that 1%-3% does not accurately reflect local prices. If you want to understand local neighborhood Chicago home prices year over year or a snapshot contact me Check out this infographic on the impact of interest rates and where home prices overall (national) will be.
Contact me today so you can know what your home would be worth in today's market.
To say this deal was unique was an understatement. I was referred through a nationwide agent network to a Noble Square home seller. Unfortunately, I was not the only city agent referred. At least 7 agents in the facebook agent referral group responded to the referring agent's post. So, my interview process started with the referring agent. As in the case with all of my listings, I want to quickly establish value by stating EXACTLY what I can do for the Chicago home seller. That good conversation lead to a property walk-through with the home seller. Keeping open communication and proactively setting proper expectations with quick follow up allowed me the privilege of winning this seller’s business. Let’s go through from appointment to promotion how we sold his condo.
The listing appointment
Brett S, the Chicago home seller, at that time had tenants. His place was a wonderful 3 bed 3 bath top floor condo with two outdoor spaces. The place to put it mildly was in adverse conditions. Tenants thought they could assist in getting the place ready for market and share in the net proceeds. Therefore, they had already started pulling out the door frames! To say my seller client was upset is also putting it mildly. The space was great but was in desperate need of some TLC. I had noticed at least three realtor business cards on the table so I knew my work was cut out for me. On top of that, the building was 17 years old with no major maintenance/upkeep completed. So, let’s get into the meat and potatoes on how I specifically showed my seller our strategy while concurrently keeping the seller’s costs to prepare the property in check. To view my systematic marketing plan click here
The condition of the property was basically unchanged since the seller purchased back in 2013. Current tenants did not do a good job of maintaining the floors or walls. Therefore, there had to be realistic price expectations prior to even preparing the condo for market. For 3 bed-3 bath top floor condos in an exciting neighborhood such as Noble square prices were anywhere from 500k-530K. Seller client did not want to put more than 15k into the unit and required a quick listing market time. My price recommendation was to actually price the property just below market to create a multiple offer and massive buyer demand environment. We agreed to price the property at $499k. However, in order to even price at $499k the property needed to be properly prepared. Preparing your condo involves some degree of repair, painting, and if possible staging.
There were several sections of the Noble Square condo that needed some love. On the south side of the unit, there are six beautiful windows. Some of the window frames needed repair. We referred some great vendors to the client and they got to work.
By hiring a single contractor that handles multiple projects we were able to save our seller client $$$. The floors were in bad shape so the team began the process of re-finishing.
The single most important return on investment we advised our client was the paint the condo. This was not a project to take lightly. This condo had beautiful cathedral like ceilings not to mention significant size (nearly 2400 sq. ft). The painting job wasn’t just a room or two it was the ENTIRE home from walls to ceiling! Just as important as the quality of the work is the color scheme used in the work. During the staging consultation our preferred stager recommended a soothing agreeable gray color with basic white ceilings. The verdict? Well, you judge:
Finally, it was apparent that to maximum the excellent preparation our client was doing staging would be critically needed. In fact, the National Association of Realtors released a 2017 profile on staging survey. In it 77% of buyers agents stated their buyers could better visualize/retain properties that were properly furnished. So, what do you think of the final product?
After pricing and preparing the condo promoting it to the largest pool of buyers really set us apart from other realtors. Below was the exact blueprint we used to get our client Brett S 99% of list price! Keep in mind in order for these marketing efforts to achieve maximize impact they must take place at least one week prior to first open house.
Hiring a professional is critical. See a couple of more photos of 1428 W. Cortez
What’s the point of beautiful hi-resolution photography if its not exposed on not ten but hundreds of websites? Zillow, Realtor dot com, Redfin, and homes dot com are just some of the websites that receive the property details online.
Facebook, with over billion users, is not just a social network. Done properly actual buyers can be reached using specific demographic, interests, and behavior profiling. We created a JUST listed ad leveraging the beautiful HD quality property video:
Gorgeous HD quality video
Buyers are visual and typically can view 2D photography to make decision on viewing properties. However, having a more immersive experience can take a good property to great! Please view our property video shot by our in-house videographer:
The first weekend of Open Houses
All these marketing efforts would be moot without a professionally run open house. In order to have maximum turnout we advised our client to allow at least one week prior to weekend open houses. The result: we had over 25 groups come through the open houses on a Saturday and Sunday! Multiple offers received within one week on market. One happy seller receiving 99% of list price and more importantly could get on with his life!
Questions? Contact AD Anant Deoras at 312.884.9793 or email@example.com.
1120 North Wood #1 | condos for sale in East Village Chicago
Living this close to the Division entertainment scene and Wicker Park can't get any better. Meticulously maintained 3 bed 2 bath condo in the Chicago East Village neighborhood. Not interested in spending money out? No problem, cook gourmet food in the Chef inspired Kitchen . Dine in not one but two outdoor spaces highlighted by a pvt walk out patio (21x12). Each bedroom is generously sized to suit a wide variety of uses for the most discerning buyer. Have two cars? No worries two garage spaces are included in the price! Blue line train access is minutes away using the Division stop. Five to seven minute walk to Mlke/Damen/North intersection. Flawless hardwood floors, security system, soundproof master bed, shared garage roof deck, and nest thermostat round out a wonderful home!