Rates...

30-year holds at 5.76%; 10-year Treasury down at 4.57%
Friday, July 30, 2004

Long-term mortgage interest rates were flat Thursday, and the benchmark 10-year Treasury bond yield slipped to 4.57 percent.

The 30-year fixed-rate average remained at 5.76 percent, and the 15-year fixed-rate stayed at 5.19 percent. The 1-year adjustable was down slightly at 3.37 percent.

The 30-year Treasury bond yield dipped to 5.3 percent.

Rates are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

In other economic news, the Dow Jones Industrial Average was up 12.17 points, or 0.12 percent, finishing at 10,129.24. The Nasdaq was up 22.8 points, or 1.23 percent, closing at 1,881.06.

Stock and bond figures are current as of 7:30 p.m. Eastern Standard Time.

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Copyright 2004 Inman News

Some interesting Chicago facts!

Some other facts . . .
The 4 stars on the Chicago flag represent Fort Dearborn, the Chicago Fire, the World's Columbian Exposition, and the Century of Progress Exposition.

Among the Field Museum's most prized jewels is the 5,890-carat Chalmerz topaz, which weighed 10,200 carats in the rough.

Chicago has 29 miles of lake frontage and 15 miles of public beach.

Lake Michigan:
more than 10,300 years old
307 miles long, 118 across at its widest point
average depth is 279 feet, maximum depth is 923 feet
contains roughly 1,350 trillion gallons of water
covers an area of 22,300 square miles

Chicago is home to the world's largest population of Poles outside of Warsaw.

The Chicago Public Library is the world's largest public library with a collection of more than 2 million books.

The world's largest cookie and cracker factory, where Nabisco made 16 billion Oreo cookies in 1995, is located in Chicago.

The central water filtration plant, located on the lakefront north of Navy Pier, is the largest in the world.

Chicago's Oceanarium is the world's largest indoor marine mammal pavilion and doubles the size of the John G. Shedd Aquarium, which is the largest indoor aquarium in the world.

The Chicago Post Office at 433 West Van Buren is the only postal facility in the world you can drive a car through.

The official flower of the city of Chicago is the chrysanthemum.

The Art Institute of Chicago holds the largest collection of Impressionist paintings outside the Louvre in Paris.

The Chicago River is always dyed green on St. Patrick's Day.

Jesse Owens, Frazier Thomas, "Wheaties," and Muddy Waters all have a Chicago street named in their honor.

Stephen Douglas, who beat Abe Lincoln in debates by defending the rights of slave owners, lies buried beneath a monument to him off 35th Street at South Shore Drive in the heart of Chicago's South Side black community.

Bungalow Initiative Program

Today, nearly a century after they were first built, Chicago's bungalows, which account for nearly one-third of all Chicago single-family homes, remain a solid foundation for family life and for the neighborhoods they constitute. At the same time, having been in service for nearly one hundred years, evolving families and lifestyles pose new and challenging space requirements. Structures need to be updated or enlarged and some are in need of repair to preserve their unique architectural style.

With these things in mind, the City of Chicago has created the Historic Chicago Bungalow Initiative – a comprehensive program involving education, marketing and financing to ensure Chicago Bungalow owners and communities receive the needed resources and recognition. In partnership with the newly created Historic Chicago Bungalow Association, the City is taking the steps necessary to preserve the past while preparing for the future.

The Historic Chicago Bungalow Association is a non-profit organization, chartered by the state of Illinois that administers the Historic Chicago Bungalow Initiative. The Association's mission is to preserve the Historic Chicago Bungalow and to assist homeowner's, through education and resources, in adapting the bungalow to meet their current needs.

Chicago!

New York is one of the capitals of the world and Los Angeles is a constellation of plastic, San Francisco is a lady, Boston has become Urban Renewal, Philadelphia and Baltimore and Washington wink like dull diamonds in the smog of Eastern Megalopolis, and New Orleans is unremarkable past the French Quarter. Detroit is a one-trade town, Pittsburgh has lost its golden triangle, St. Louis has become the golden arch of the corporation, and nights in Kansas City close early. The oil depletion allowance makes Houston and Dallas naught but checkerboards for this sort of game. But Chicago is a great American city. Perhaps it is the last of the great American cities.
- - - Norman Mailer, Miami and the Siege of Chicago, 1968

Mies van der Rohe

The Creator's Words

"Skyscrapers reveal their bold structural pattern during construction. Only then does the gigantic steel web seem impressive. When the outer walls are put in place, the structural system, which is the basis of all artistic design, is hidden by a chaos of meaningless and trivial forms...Instead of trying to solve old problems with these old forms we should develop new forms from the very nature of the new problems. We can see the new structural principles most clearly when we use glass in place of the outer walls, which is feasible today since in a skeleton building these outer walls do not carry weight. The use of glass imposes new solutions."
—Mies van der Rohe. from Martin Pawley, introduction and notes. Library of Contemporary Architects: Mies van der Rohe. p12.

Lincoln Park & negotiations!

What's the best way to negotiate a contract?BY BILL RUMBLER SUN-TIMES REPORTER

Negotiating to buy a home is not what you think. Buyers and sellers don't sit across the table giving each other steely eyed glares. There is no pounding on the table.

Most of the buyers' work is done before the bid is made. If the process is handled correctly, it's an amiable and satisfying experience for both sides.

In fact, a major part of the buyer's job is to put the seller at ease about the seller's concerns and needs, which, of course, include the price. But other factors might be more important, such as a quick or a later closing date, said Sara Benson, head of Benson-Stanley Realty, a buyers broker in Chicago. The better you can satisfy the seller's non-price concerns, the better deal you might get.

"You can't put a price on peace of mind," she said.

If the buyer did things correctly, only he would know that he got what he wanted. A lower price typically is a buyer's goal, but other considerations often weigh heavily. These can include a timely closing date or including some furniture in the deal, said Gary Eldred, an expert on first-time home buying.

In the hot city market, just landing the home after fighting off competing bids might be the primary goal, Benson noted.

Space prevents listing all the approaches the experts use, but here is a general outline of what a buyer should do to get a better deal: Get pre-qualified for a loan and get a letter from a lender saying so. This will show sellers you can afford the home and are ready to buy.

In doing this, buyers will find out if their credit reports contain any black marks. They should be fixed before shopping for a home. Being prepared this way sets you apart from other buyers, showing you as a serious player, said Ray Felson, president and managing broker of Buyers Agent of Chicagoland, an exclusive buyers broker.

Sell your old house. Get your old house under contract with a firm closing date, Felson said. This gets rid of excess baggage that hurts your chances of getting what you want.

In the red hot Lincoln Park market, getting a contract on your old house is an absolute must, he said. This is because the person with the cleanest buy offer, the one with the fewest contingencies, such as selling an old house first, is likely to get the property.

"You're in a better position to negotiate price if you don't have a lot of contingencies," he said.

"Never fall in love with a house until you own it," Felson said. In other words, don't get so emotionally involved that you lose perspective and pay too much.

"Maintain your walk-away power," Eldred explained. One way to do this is to have another house or two in mind in case this deal falls through.

Be likable. Sellers are more likely to make concessions to people they like, so Benson writes, or suggests the buyer write a letter to the seller saying something like, "We love your home and wouldn't do a thing to change it."

Such a letter introduces the buyers, telling about their jobs and their spotless credit histories. This personalizes the buyers and makes them stand out in the seller's mind.

Mum's the word. Never communicate to the seller or his agent that this is the house you really want, or any other piece of vital information that indicates what you're willing to pay or when you need to move, Felson said.

If your broker is not a buyer's broker, don't mention this vital bargaining information to him either, he added, as it can be used by the seller to work against you.

Pump the seller. Your agent can't grill the seller because it's against the agents' code of ethics, but you can be friendly and communicate with him, Felson said.

Listen more than you talk, and try to find out the seller's motivation for selling. Does he have to move by a certain date? Has he already signed to buy another home? Such information can be valuable in determining how far to push.

Informal concessions. "Try to get concessions from sellers before you enter serious negotiations," Eldred said.

In a friendly and offhand manner, you might say something like, "Have you thought about a lower price? Have you thought about including the drapes and washer and dryer?" he said. To your surprise, the seller might say yes, but if not, don't push it at this point.

Don't nitpick. Don't walk through the house pointing out flaws or sneering at paint and rugs. Assure the seller that your building inspector also won't nitpick because sellers, especially those with older homes, are afraid of inspections, Benson said.

This approach puts the seller at ease, but do tell the seller upfront that you're aware of obvious serious flaws--an ancient furnace or a leaky roof--and that these will be reflected in your offer. Sellers will be more willing to accommodate on price at the beginning as opposed to being shocked by an inspector's report later on.

Use a sizeable amount of earnest money to demonstrate financial strength and sincerity, Benson said.

Today, it's $5,000 up to 10 percent of the price. In Lincoln Park, where multiple offers for a property are common, putting up the full 10 percent might put you front and center in the seller's mind.

Do research. Your agent should search the Multiple Listing Service and other records to find out how much the seller paid for the house, how much he owes and whether he took out a home-equity loan.

If it turns out the seller has taken out all equity in the property and is highly leveraged, he's more likely to be strongly motivated to sell, Felson said.

What to offer. A check of what previous homes in that area sold for in the recent past might show that sellers' agents inflate the listing price by 5 percent, Felson said. Since sellers then expect to get 95 percent of list, buyers won't be getting a bargain offering that figure.

Felson said he might start out at 92 percent. But markets vary and different sellers have different needs, so strategies and bids will change from deal to deal.

Don't low ball. Eldred doesn't believe unrealistically low offers are effective, unless price is your only consideration. Low ball offers can alienate sellers.

Additional advice from Eldred: Leave something on the table.

"Never push for the absolutely best deal that you can get," he suggested. No matter how well crafted a contract, problems might develop later and you might need a concession from the seller. But if you've nailed the seller to the wall and created a bad relationship, the deal might fall apart.

The Process, from A to Z...

THE BUYING PROCESS

YOUR HOME-BUYING TEAM WILL CONSIST OF:
YOUR REALTOR
YOUR MORTGAGE BROKER
YOUR INSPECTOR
YOUR ATTORNEY.

All members on your team work on your behalf to help you reach your goal. While your Realtor does the most for you, he or she is the only one that DOES NOT GET PAID BY YOU!

Following are the basic involved in buying a home

Decide to buy. You’re sick of lining someone else’s pocket with your rental dollars and would like to start building your own equity and securing your own future – IT’S TIME TO BUY.
Explore the Market. Since you’re reading this, this is probably the stage you’re at now. We will guide you through what type of property you want and where you want to live. Enroll in our FREE property search system to view listings from the MLS Realtors use and get notified when new properties that match your criteria come to market. Contact us to discuss you ideal home and neighborhood. We will help direct you to the most appropriate areas for your needs.
Get Prequalified. How much home can you afford? Find out with our easy mortgage calculator. Get prequalified with a mortgage broker for an “official” amount. All it takes is a 15 minute phone call!
Research and Tours. The GreatChicagoRealEstate.com team of experts has many ways of providing you with information. We can send listings to you via e-mail, direct mail, fax or we can even set up a custom web-page for you to which are posted listings that fit only your criteria, price range and area. This service is your own direct access to the Multiple Listing Service that is only accessible to Realtors. When you determine the properties you would like to view, we will schedule your custom property tour.
Make an Offer. You found the perfect place! We will write–up your offer to purchase, advise you on a reasonable offer price and negotiate the offer to acceptance on your behalf. Once accepted, we will track all necessary deadlines for you through your closing and after.
Choose your Attorney and Property Inspector. We will advise you on who to use, what they do for you and associated costs. We will accompany you on your inspection and negotiate any potential inspection issues. We will also manage all aspects of attorney review to approval.
Close and move in! Along with your attorney we will accompany you to your closing to make sure everything goes smoothly and to provide any necessary documentation.

Useful info on 60622 zip code (Bucktown, Wicker Park)

Chicago, IL 60622
Neighborhood Summary
This neighborhood is Middle Suburban
About the schools

Average Home Qualities
Home Price: $416,459.11
Age: 42 yrs.
Sq/Ft: 2061 sq/ft
Lot Size: 4.08 acres

Find Homes:
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this neighborhood



What's Nearby
Neighborhood Merchants and Coupons

School Detail
There are several public school systems in this ZIP code area. Click on a name below to get more information about any of these school systems.
Chicago 2 w/Clemente Cmty Acd schools (Chicago City)
Chicago 3 w/Crane schools (Chicago City)
Chicago 2 w/Kelvyn Park schools (Chicago City)
Chicago 2 w/Lincoln Park schools (Chicago City)
Chicago 3 w/Marshall Metro schools (Chicago City)
Chicago 2 w/Orr Cmty schools (Chicago City)
Chicago 2 w/Steinmetz schools (Chicago City)
Chicago 2 w/Wells Comm. Acad schools (Chicago City)

If you are interested in a property in this ZIP code, consult the listing agent to identify the system that serves the property of interest to you.



Dominant Lifestyle Profiles A variety of factors make up the Lifestyle Profiles

33.85% of residents in this area fit the following profile:
Demographic:
Median age is 33.6 years.
Almost 40 percent are foreign born; over half of the households speak a language other than English at home.
Half are couples or single-parent families; half are single-person or shared households.
Predominately people between the ages of 20-34 years.
Socioeconomic:
Median household income is $29,500.
Represents 2 percent of all households.
More than a third of the workers cross county or state lines to work.
Average commuting time is 43 percent longer than the U.S. average travel time to work.
Residential:
The dwellings are mostly renter-occupied and built before 1950.


31.66% of residents in this area fit the following profile:
Demographic:
Median age is 25.9 years.
Almost 60 percent of the households are families with children.
Average family size is 4.2.
Socioeconomic:
Median household income is $26,400.
Most are employed in manufacturing.
Residential:
Residents are renters, primarily in older apartment buildings.


24.58% of residents in this area fit the following profile:
Demographic:
Median age is 30.6 years.
Average family size is 3.56.
Socioeconomic:
Median household income is $21,900.
Represents 1.2 percent of U.S. households.
Unemployment and poverty are twice the national average.
Almost half of the adults (age 25 and over) have completed high school.
Residential:
Housing is apartments, often in high-rise buildings.

School data provided by The School Report. Lifestyle Profiles are supplied by ESRI Business Information Solutions, 800-292-2224. It is not guaranteed and should be independently verified for accuracy.

Thinking of a 2nd home?

Buyers pushing farther north, inland in Michigan

By Laurie A. Cerny
Special to the Tribune
Published May 16, 2004

Michigan has become more than just a summer weekend getaway for Chicago-area residents.

For today's buyer, locating on or near Lake Michigan means having a place to retreat to year-round. Buying on an inland lake, or in the country, means having some elbowroom.

And for some buyers, buying a place in Michigan means being close to family and friends who live in the area.

"I call it my escape hatch," said Susan Henry. She recently bought a home in Marcellus on Big Fish Lake, close to where her two brothers live with their families. During the week Henry works as an accountant in a downtown Chicago accounting firm and lives in a condo on Lake Shore Drive. "It's a pretty luxurious life, but it's a hectic one, too," she said. "Getting out to the country -- there's a lot of serenity to it."

Henry represents a growing number of second-home owners from Illinois who are buying on inland lakes farther east from the traditional Sister Lakes area.

The trend along Lake Michigan has also changed; it has moved north and inland as demand and prices for lakefront property have increased.

Ten years ago demand for "bluff" property was minimal. In addition, in towns like Lakeside, Harbert and New Buffalo, areas one or more blocks from Lake Michigan are now hot commodities.

"We're seeing houses that are easy walking distances from the beach at $1 million," said Gail Lowrie, a real estate broker with Rubloff of Michigan, in New Buffalo. Her office has sold more than 100 homes in the lakeside area to Illinois residents.

Colin and Michelle Hebson of Chicago's Bucktown neighborhood don't mind buying a second home that's walking distance from Lake Michigan. "We're buying this for a retreat as much as an investment," Colin Hebson said. "Our goal is to keep it indefinitely." Three years ago they looked at a home in Lakeside listed at $325,000. It's back on the market for $575,000. "I wish I would have bought three years ago," he said.

Brian and Stephanie Walls, of the same Near Northwest Side neighborhood, recently bought a second home in Harbert. It's a short walk through the woods to the beach. "The walk is nice, too," Stephanie Walls said. They bought the home to use seasonally but have been going there nearly every weekend. "There's a lot of peace of mind when you know you're just a 1 1/2-hour drive away."

Like the Walls, Margie Bradley, of Palos Park, wants to find a place with some privacy. She's been looking farther north along the lake in Allegan and Saugatuck. "I don't want a heavily populated area with your neighbors on your doorstep," she said. "I just need to be near the water; it's my renewal."

In addition to requests for lakefront, and inland lake properties, Tom Angelo, owner of Coldwell Banker Anchor Real Estate, in St. Joseph, gets about six requests a year for 5- and 10-acre "farmettes" in Hagar Township and Bainbridge Township, traditional fruit belt areas of Berrien County.

"It's gradually moving along the lake into Berrien County," said county Treasurer Bill Wolf. The county is experiencing what he describes as an "extremely active" second-home real estate market. "You don't have to be very far from the lake to get a nice rural setting and still get the benefits of the lake," he said.

In St. Joseph, second-home development has also moved into town with several condominium projects in the Silver Beach and Lions Park areas. "When I was growing up that was the other side of the tracks. Now you can barely afford to buy property there," Wolf said.

State Equalized Value (SEV), which Wolf considers a reflection of property turnover in locations desired by second-home buyers, continues to grow in Berrien County. According to the Berrien County Equalization Report the City of New Buffalo has a compounded annual growth rate that nearly doubled in the last 10 years. Out of 2,148 homes in New Buffalo Township, 990 were classified as a second home, according to the 2000 Census, many of which Wolf said are owned by Illinois residents.

Thomas F. Jerdon, associate broker with Jerdon Real Estate Inc., in Dowagiac, estimated that ownership of second homes by Illinois residents on several of the six lakes in the Sister Lakes area is nearing 50 percent. "It's the fastest growing category," Jerdon said.

Many buyers, having heard about Sister Lakes, end up buying on lakes that aren't as developed. "There's 70 other lakes and they're just as good," Jerdon said.

They also like the convenience of using Interstate Highways 80/90 to get to the lakes in Cass and St. Joseph Counties. "The Illinois demand keeps pushing east," Jerdon said. "Before it was difficult to get Illinois buyers to get out of Sister Lakes; it was like going to Canada."

While some inland lakes still have vacant lots, new construction on others like Magician and Indian Lake occurs only when a seasonal cottage is torn down and replaced with new house. On average buyers are spending around $253,000 for second homes in the area, Jerdon said.

According to Lowrie, in communities along Lake Michigan a year-round cottage a block or two from Lake Michigan can cost from the high $200,000s to around $450,000. New houses in platted developments with association beaches start around $400,000. Several of these developments are in the New Buffalo and South Haven areas.

Lake Michigan property averages about $15,000 to $20,000 per running foot for vacant beachfront. Homes with a private beach start around $2 million, Lowrie said.

Copyright © 2004, Chicago Tribune

We've got your lofts...

Call Ron Knoll today to get a list of LOFTS that fit your criteria. Ron can be reached at 773 330-2353 cell. Happy Loft Hunting!

Bigger is not always better!!!

FOR MANAGERS
Best Practices

Profile of residential brokerages
Small companies still backbone of industry, NAR study shows.

Small, single, independently owned residential offices continue to dominate the real estate industry. And despite the sweeping growth of a few selected franchises, franchise affiliation has stabilized following the spike of growth in the early 1990s.

Those are the key findings of the 2001 NATIONAL ASSOCIATION OF REALTORS® Profile of Residential Real Estate Brokerages, which will be published in November.

About 77 percent of all real estate companies, regardless of the number of sales associates, are single-office operations, the survey shows, and only 4 percent of all companies have four or more offices.

2000 was a profitable year for most companies; profits increased or stayed the same in 2000 over 1999. And 90 percent of respondents said they expect profits to remain the same or increase in 2001, but those predictions were made before the events of Sept. 11.

Internet activity was also taking hold last year. About 15 percent of companies reported they had closed at least some portion of their transactions online, and three-fourths said some of their business was conducted on the Internet or by
e-mail.

One thing hasn't changed: Sales associates across the country generally aren't receiving the health and financial benefits available in other industries. Such benefits as health insurance, disability, life insurance, long-term care, and pension/401(k) plans are offered to very few.

For a glimpse at the state of real estate companies and to measure how yours stacks up, see the charts on the accompanying pages.

To order a copy of the report, call NAR Information Central, 800/874-6500.

Rates are Falling Again

Rates on Mortgages Drop

(July 16, 2004) -- Freddie Mac reports that 30-year mortgage rates slipped from 6.01 percent to 6 percent this week, marking the fourth straight week of declines. Interest on 15-year loans also dropped, falling from 5.42 percent to 5.40 percent. Meanwhile, one-year adjustable mortgage rates dipped from 4.05 percent to 4.02 percent.

Source: New York Times (07/16/04)