Move into your new home before you start your new job!

Eliminate the concerns about spending money on short-term rental agreements or possibly having to live at home! Graduates with guaranteed employment through employers can close on a new home before graduation. Through verifiable income on a non-contingent offer, you can now be guaranteed a purchase mortgage loan with Key Mortgage Services and close early to better prepare your future.

Experts will tell you: Great deals in real estate are typically made when you buy a home, not when you sell!

Start today by calling me at 312.344.3279.

You’ve been looking online at homes for sale in Chicago. You’ve identified a few that you’re financially qualified to purchase and you’d like to see them. Here’s how to request showings.

WHEN TO REQUEST SHOWINGS

How far ahead of time you need to request showings depends on where in Chicago the homes are located.

If the homes are located in the city closer to the suburbs than downtown, you might be able to see them with less than 24 hours notice. However, showings typically must be confirmed by the sellers, so don’t expect to be able to see homes for sale in less than a couple of hours. If there’s a tenant living in the home, they typically must be given at least 24 hours notice of showings.

If the homes for sale are downtown or near downtown you’ll need to request the showings at least 24 hours in advance. The listing agents also need to be present for the showings most of the time, so the showing times need to fit into the listing agents’ schedules as well as the tenants’ and sellers’ schedules.

If you want to see more than 2 homes downtown or near downtown, you need to request the showings at least a few days in advance. It sometimes takes a day or more to get a showing confirmation from a listing agent, so scheduling consecutive showings can take a few days.

Schedule showings well in advance through a buyer agent

WHO TO CONTACT

There are 2 ways to request showings of homes for sale in Chicago, through the listing agents for each home or through a buyer agent.

I don’t recommend scheduling showings through listing agents. First, listing agents represent the sellers. The second reason not to schedule showings through listing agents is that you’ll need to take the time to contact multiple agents, if you want to see multiple homes for sale.

By scheduling showings through a buyer agent you’ll be fully represented by an agent who works for you, not the sellers. The buyer agent will also handle contacting all of the listing agents and coordinating schedules for multiple showings. Even though a buyer agent is compensated by the listing broker, his or her fiduciary responsibility is to you.

To schedule showings of downtown Chicago homes for sale call me at 773.793.4516 or email me at fran.bailey@bairdwarner.com. To schedule showings of homes for sale in Lincoln Park and Lakeview call Mary Kaye Buettgen at 847.651.3955 or email her at marykaye.buettgen@bairdwarner.com. For all other areas of Chicago, contact either of us for a recommendation of a buyer agent who specializes in that area.

A few Gold Coast condos don't allow pets

While I have pets, I pass no judgment on those condo associations that choose to prohibit pets. It’s their building and they’re entitled to vote in any rules they want within the law.

The Carlyle is one of a handful of Gold Coast condos that don’t allow pets. Below is the full list as best as I can determine. If you know of any other Gold Coast condos (or co-op apartments) that don’t allow pets, please let me know.

• 70 W Burton Place
• 155 N Dearborn
• 1040 N Lake Shore Drive – The Carlyle
• 1240 N Lake Shore Drive
• 88 W Schiller
• 1419 N State

Thinking about buying your first rental property?

1. You’ll probably need a down payment of at least 20%.

2. The interest rate will probably be an extra 1/4 point (0.25%) to 1/2 point (0.5%) higher for a rental property than an owner-occupied home. So, if you qualify for a 4.0% owner-occupied mortgage, you can probably get a mortgage for a rental property between 4.25% and 4.5%.

3. If you don’t currently have any rental properties, the lender may not consider any potential rental income when qualifying you. You may need to qualify for the mortgage with your current income. After you’ve had a rental property for a year, the lender may let your apply around 70% of the rental income to your income.

There are different mortgages for rental properties. So you should talk with a mortgage consultant who has access to a variety of mortgage products. If you would like the names of some reputable mortgage consultants, call (773.793.4516) or email me! I get no fees for my mortgage referrals.

Cats & dogs are welcome in Loop condos with limitations

I haven’t found one condo in the Loop where pets are not allowed. I’ve only found one that has a “no dogs” policy – 40 E 9th – Burnham Park Plaza in the South Loop.

This makes the Loop more pet-friendly than the neighboring Near North Side where several buildings prohibit pets or at least dogs.

There are limits. Most buildings allow a maximum of 2 pets. Some impose a weight limit. Some may restrict certain breeds.

If you know of a condo in the Loop prohibiting dogs or all pets that I’ve missed, please leave a comment or email me!

To learn more about Loop condos see my Condo & Co-Op Reviews in the right column.

Say little as possible when anyone but your agent is present.

Yesterday’s Chicago Tribune had one of the best real estate articles for both home buyers and home sellers. Titled, “Loose lips might sink deals“, the article gave examples of how talking too much can cost you when it comes time to negotiate a real estate purchase or sale.

The Tribune article also pointed out how easy it is to end up sharing information that the other side will use to their negotiating advantage. Think you’re too business savvy to make such a mistake? I’ve had business owners and corporate presidents as buyer clients who didn’t have loose lips, but they didn’t have to say that they loved a home. Their non-verbals said it all and right in front of the listing agents!

You don’t just have to be careful when the other agent is present. While vacating the home for the showing the seller could be visiting a neighbor next door and able to hear what you say in the back yard or out on a balcony. The cab driver taking you to your next showing could be friends with the door staff in the building you just visited and happy to share your comments in the cab with the door staff who will be more than happy to pass them on to the seller. Some of my clients had lunch one day in a restaurant next to a new development I had shown them. They heard other buyers loudly blabbing away about their purchase in the same building.

Years ago buyers viewed one of my listings with their buyer agent. I wasn’t present, but the owner’s cousin was. She overheard the buyers talking with their agent about how much they liked the home. So when the initial offer arrived I advised my client not to budge on the price. She held firm and got full price.

Even in a buyers' market not all buyers get what they want.

THURSDAY, APRIL 21

Buyer #1 views my listing for the first time. It’s obvious that she really likes the condo, but she wants to bring family members back in a week to get their opinion.

TUESDAY, APRIL 26

Buyer #2 views my listing for the first time. It’s obvious that she really likes the condo too. I mention that another buyer is coming back on Thursday for a second showing. A few hours later buyer #2′s agent calls requesting a second showing on Wednesday.

WEDNESDAY, APRIL 27

Buyer #2 views my listing for the second time. That evening I receive an offer from her agent.

THURSDAY, APRIL 28

Buyer #1 views my listing for the second time bringing her family members. She tells me that she is very interested in the condo. I share with her that I received an offer from another buyer the night before, but that my seller has not responded to the offer. A few hours later I receive an offer from buyer #1′s agent.

I then inform the agent for buyer #2 that I have received another offer. The agent for buyer #2 talks with his client and then calls me back telling me that the offer she has already submitted is her highest and best offer.

FRIDAY, APRIL 29

Since the offer from buyer #1 was definitely much better than the offer from buyer #2, my seller negotiated with buyer #1. We reached a verbal agreement early Friday afternoon. Buyer #1′s agent said he would send me the updated offer around 4:30 pm for my client to sign. In Illinois real estate contracts must be in writing.

Around 5 pm I received a voicemail from the agent for buyer #2 asking for an update. I called him back and left him a voicemail that my seller had reached a verbal agreement with the other buyer. I told him that I was sorry that it hadn’t worked out for him and if things didn’t work out with the other offer, he would be the first person I would call.

At about 5:30 pm I received the updated offer from the agent for buyer #1. Instead of crossing out the items that changed, writing the new values next to the crossed out values and having his client initial the changes, the agent for buyer #1 used Wite-Out™ to change the contract. Not only could you not see what the changed values had been, there was no proof that his client had agreed to the changes! I was on my way to an event, so I decided to deal with this issue first thing the next morning.

After my event ended I picked up a voice message from the agent for buyer #2 asking if his client could make another offer. As a listing agent I am required to present all offers to my seller no matter when they arrive. It was late so I sent the agent for buyer #2 an email asking what his client’s new offer was.

SATURDAY, APRIL 30

At a little after 9 am I informed the agent for buyer #1 that his client’s updated offer was missing his client’s initials by the changes. He tried to tell me that he hadn’t updated the changed pages, but that he had sent me whole new pages that didn’t require initials by the changes since there were no changes.

I compared the “new” pages to the pages from the original offer and informed the agent for buyer #1 that the initials at the bottom of the pages were exactly the same as the initials on the original offer. These weren’t new pages. The initial offer had been modified without proof that his client had agreed to the changes.

The agent for buyer #1 replied that his client had no printer or fax at her current place and he was out and about all weekend. He said that she told him to do this as this was the only way to get this done expediently.

I talked with my seller who just happens to be an attorney. She agreed with me that how the offer had been modified was unacceptable. She was, however, willing to the accept the agent’s initials on the changes for the buyer, if he also forwarded an email from his buyer authorizing him to make those changes. I presented this solution to the agent for buyer #1 at 10:30 am.

At around 11:15 am I received an email forwarded from the agent for buyer #1 giving him permission to make the changes. I replied that the email was fine, but that we still needed the updated offer.

Around 11:30 am the agent for buyer #2 got back to me with a better offer from his client, but it still wasn’t as good as the offer from buyer #1, so my seller rejected it.

Around 1 pm I received a better “highest and best” offer from the agent for buyer #2, but it still wasn’t better than buyer #1′s offer.

A little after 4:30 pm the agent for buyer #2 sent yet an even better “highest and best” offer from his client. It was a better offer than buyer #1′s offer, so my seller started negotiating the finer points of the offer.

After 10 pm I received an email from the agent for buyer #1 that he would be sending me the updated offer tomorrow because he had just gotten home from dinner.

SUNDAY, MAY 1

Around 11 am my seller and buyer #2 reached a verbal agreement. Just after that the correctly updated offer from buyer #1 finally arrived in my inbox.

Around 2:30 pm the agent for buyer #2 delivered his client’s updated offer to my office while I was out with a buyer. After finishing with the buyer I reviewed the updates and forwarded the updated offer from buyer #2 to my seller who signed the contract. Buyer #2 got the condo and my seller got 100% of her asking price.

So is it Buyer #1′s own fault that she lost the condo or is it her buyer agent’s fault? I would love to hear everyone’s thoughts on this! Please share yours below!

Don't agree to additional fees from service providers

There’s often a time during closings when those attending start talking while papers are being processed. That happened during this closing. Somehow the subject of the inspection came up and the first time home buyer, a young woman, shared how the home inspector asked her to pay for his parking in the Loop in addition to his fee. No one else had arrived for the inspection yet, so the young woman not knowing any better paid for the home inspector’s parking.

Parking in the Loop isn’t cheap, but it’s part of the cost of doing business in the Loop for all of us: Realtors, home inspectors, appraisers and other service providers. Don’t let an unscrupulous service provider try to convince you that paying for his parking is customary.

Earnest Money in Chicago Can Vary from $1,000 to $100,000+

Earnest money is a deposit made by buyers to prove that they are committed to the real estate purchase. If buyers back out of a purchase without good cause (e.g. can’t get financing, unacceptable inspection) in Chicago, they can lose their earnest money.

Last week one developer in downtown Chicago that my buyers and I visited asked for 10% of the sale price for earnest money with an offer. When I later shared with him that my clients won’t have that amount of cash available until they close on the sale of their house, the developer asked for 5% of sale price with the offer and another 5% due after attorney review.

Another developer asked for no earnest money with the offer, but 10% of the sale price would be due 2 days after attorney review.

I’ve found that resale sellers are often satisfied with a few thousand dollars due at contract acceptance and increased to 5% of sale price 2 days after attorney review, but a seller I submitted an offer to last week countered with a request for earnest money equal to 10% of sale price after attorney review.

Sellers of lower priced resale homes are often satisfied with $1,000 due at contract acceptance.

Trulia’s Rent vs. Buy Index for Q2 2011 shows that if you can buy, but are thinking of renting in Chicago, you might want to reconsider your decision.

Trulia's Rent vs. Buy Map for Q2 2011

Chicago scores a 13 on the Rent vs. Buy Index putting it in the middle of the buy side of the index.