The New Sweet Digs

Dear Chicago Sweet Digs Readers,

As part of changes already announced two weeks ago, Redfin is changing up Sweet Digs to focus the format on proprietary, leading-edge indicators of what is happening to home prices in the Chicagoland area.

We had initially tried to provide a personal review of individual homes for sale in the area, but as a broker and an MLS member, we were not in an ideal position to be objective about other brokers’ properties. Since Sweet Digs was so local, it was also hard to keep pace with Redfin’s growth across the U.S.

The new format will largely focus on what you asked for, and what Redfin does best: hard data, delivered in a freakishly compelling way:

• Broker-only data on transaction-volume, median-price and inventory trends;
• Broker-only data on sale-to-list ratios by neighborhood;
• Redfin-only price-drop data, showing what neighborhoods have the highest fraction of price-reductions;
• Redfin-only reports on shifting search traffic patterns and price parameters;
• Local agent round-ups about how current-week offer dynamics anticipate pricing shifts;
• Analysis of Case-Schiller, Census and National Association of Realtor data.

It’s good stuff.

We’ve been preparing a change in format for several months, informed by a survey many of you completed earlier this summer, so we have reason to believe that you’ll like the new Sweet Digs.

For now, we just wanted to say thanks to the folks who helped us get Sweet Digs this far, for your dazzling wit and insight, your verve and dedication to your craft. And thanks to our readers for your steady support!

The new, more analytical blog posts start later this week. If there’s a particular type of analysis you’d like to see, just leave a comment to let us know. We’ll definitely be listening.

Regards, Glenn

Glenn Kelman, Redfin CEO

Good News: Cook County Sheriff Won’t Evict You

Rather, the banks may have to do it themselves. As shown in the Statesman, the Cook County Sheriff refuses to do the bank’s dirty work anymore. While he may face some serious charges and (ironically) jail time, this is tremendous good news for those facing foreclosure in Wilmette, Winnetka, Evanston, and the Chicago area.

The Trib reports that foreclosures “are expected to reach a record high of 43,000 this year, compared with 18,916 in 2006.” That’s a lot of people to put out on the street.

In places where the number of renters is high, it is incredibly bothersome to the police, who must evict tenants who aren’t on the mortgage. Beyond that, it creates a nasty neighborhood atmosphere and puts the anger and misery out on the street for you to watch. You might see why people are calling him an “American Hero” as bad times have hit hard.

Sheriff Dart is making a bold decision, and may set a bad precedent for law enforcement. Some argue that this will allow banks to tighten lending even more, posing a threat to businesses and home buyers who rely on these funds. On the flip side, those high Cook County taxes you may be paying are going straight to the labor of the police, essentially doing the bank’s dirty work.

This isn’t fair to anyone. Except the banks.

I have tremendous respect for Sheriff Dart’s decision–let’s come up with a better plan to fix this crisis!

467 LINDEN St #467
WINNETKA, IL 60093
Price: $342,000
Beds: 2
Baths: 1.1

686 FOXDALE Ave
WINNETKA, IL 60093
Price: $580,000
Beds: 2
Baths: 2

1137 CHERRY St
WINNETKA, IL 60093
Price: $599,000
Beds: 4 On Redfin: 201 days
Baths: 2

How NU’s 50-Year-Plan Affects the Evanston Lakefront

Northwestern’s 50-year vision may change the surrounding real estate landscape as much as it changes its own. A blog on EvanstonNow describes the plans, which include opening up pedestrian corridors leading to the lakefront and expanding views of the water by destroying an existing parking deck. While one commenter claims that North-South bike access will get axed in this plan, many people who attended the meeting were pleased with the increased public access that this plan will allow.

An unwelcome neighborhood dorm complex will be knocked down and replaced with residential buildings, which will do wonders for the real estate around Foster and Orrington Avenues (see a couple of the listings below). Looking at the long-term market in Evanston, aside from the current home value slide, this area is looking good if NU’s plans go though. Not only will there be one less dormitory, but the increased lake access for public residents will be a huge location perk.

Among other plans, there is talk of a “mixed-use gateway” to the campus and knocking down another ugly 1960′s-era administration building. This could make for a friendlier, less obtrusive transition between public and private space, and could definitely benefit the Clark and Chicago Avenue intersections and its surrounding area.

Let’s take a look at some nearby properties for sale, which happen to be a plethora of 1960′s and 70′s-era condo units (go figure):

2033 SHERMAN Ave #501
EVANSTON, IL 60201
Price: $299,900
BEDS: 3 ON REDFIN: 113 days
BATHS: 2 YEAR BUILT: 1965

2025 SHERMAN #408
EVANSTON, IL 60201
Price: $359,000
BEDS: 3 ON REDFIN: 32 days
BATHS: 2 YEAR BUILT: 1966

1738 CHICAGO Ave #802
EVANSTON, IL 60201
Price: $299,500
BEDS: 2 ON REDFIN: 49 days
BATHS: 2

Go See A Football Game! God!

Unlike many Big Ten matchups, Northwestern just can’t drive people into seats. According to the Trib, officials expect 17,000 vacant seats at the next game.

Let me tell you, there are perks to a Northwestern football game.

First: free beer. Goose Island does a promo before every game, with FREE 312. Everybody in Chicago likes 312, so why would you go to Wrigley and pay six dollars for an Old Style? Heck, you can’t even do that this time of year.

Second: superior tailgating. While we may not live in a place like South Bend, IN, top-notch tailgating can be enjoyed a few hours before each game. The stadium opens up to people, and you can hang out with the cheerleaders and the band before the game. And there’s free beer.

Third: screw parking; you can walk. The Davis Purple Line is a few blocks away, but compared to other college towns, getting around is a breeze. In other words, free beer and no driving is a good thing.

While you check out a Northwestern game before the season’s end, check out these homes that are just off of campus:

1101 GARNETT
EVANSTON, IL 60201
Price: $530,000
Beds: 6 On Redfin: 66 days
Baths: 3.1 Year Built: 1898

812 GAFFIELD Pl
EVANSTON, IL 60201
Price: $789,000
Beds: 5 On Redfin: 221 days
Baths: 3.1 Year Built: 1902

841 ASBURY
EVANSTON, IL 60201
Price: $700,000
Beds: 4 On Redfin: 75 days
Baths: 2.1 Year Built: 1898

Bold and Beautiful: New Construction in Evanston!?

I’m not sure whether an exclamation point or a question mark is appropriate, but Evanston Devco is moving forward with plans to build a contemporary rental property on the corner of Chicago and Kedzie Avenues. EvanstonNow cites a strong argument from project developer Steve Ross, who believes that the housing market fallout will bump up the rental population in the area. Also construction costs are lower than ever at this point, and this company that bought the failing Fountain Walk out of bankruptcy in 2006 is ready to invest heavily in the future.

This new building will boast just over 200 rental units, and the mock-ups look like it will have a contemporary brick facade and a lower-level commercial space. While these units could sell like hotcakes in a better market, it will be interesting to see how this rental building, and renter’s culture in general, will change in the next few years. As demand grows, rent will inevitably increase (mine has!) and force us to ask the same question all over again: should I rent or should I buy?

Evanston is a special case: search for “new construction” units and you won’t find anything for sale. Vintage units, on the other hand, are a dime a dozen. You can easily find a two-bedroom for under $200k, and some rehabbed units rival the perks of new construction. Right now, new construction rentals are primarily owned by homeowners like this one who aren’t ready to sell in this market, and few developers have ventured into the rental arena on the North Shore. Devco might have the right forecast for the rental market; would you move in?

906 OAKTON St #2
EVANSTON, IL 60202
Price: $190,000
BEDS: 2 ON REDFIN: 142 days
BATHS: 1 YEAR BUILT: 1925

824 MULFORD #1W
EVANSTON, IL 60202
Price: $150,000
BEDS: 1 ON REDFIN: 178 days
BATHS: 1 YEAR BUILT: 1922

Welcome to Your Bailout, Comrades

Every morning on the El, I like to glance around and see what other people and reading.   I’m just curious that way.  To my amazement, Dreams From My Father has lately been supplanted by a whole lotta Wall Street Journal.  God, I think to myself, how boring is this?  But I have to say it’s gotten to the point where the old hidebound Journal is actually becoming interesting, even to me (gasp!).

Today, for example, no less a personage than Mr. Ben Bernake wrote a column in the Opinions section of WSJ today and it is here. 

I shamelessly read it over my seat neighbor’s shoulder and let me tell you it was a real knee-slapper.  In case you missed it, good old Ben, the chair of that Mother of all Banks, the Federal Reserve, tells us that banks are doing just fine now, thanks, and the bailout came just in the nick of time, in case anyone for some crazy reason might have been fretting their silly head about that.  In fact my favorite part was this statement:

“History teaches us that government engagement in times of severe financial crisis often arrives very late, usually at a point at which most financial institutions are insolvent or nearly so. In these conditions, the consequences and costs of inertia and inaction can be staggering. Fortunately, that is not the situation we face today.”

Um, yeah, you can say that again. If our government bought shares in the primary financial institutions that are (to hear Ben and his buddies tell it) holding up the entire global economy, doesn’t that kinda sorta mean the government now controls our banking system?   Forgive me if I misunderstand because hey I’m a liberal arts major, ok? But what does this article say to you?  And I quote:

“Band of Brothers:The U.S. is set to buy preferred equity stakes in several top financial institutions as part of a broad effort to bolster the banking system. Not all of the banks involved are happy with the move, but agreed under pressure from the government. All told, the moves tie the banking sector to the federal government for years to come.”

So welcome to your bailout, Comrades.  Not to be too glum, but while you still have a choice in your housing options, here are a few goodies in Uptown:

935 W LELAND Ave #1W CHICAGO, IL 60640

Price: $369,900

4848 N ASHLAND Ave CHICAGO, IL 60640 Price: $390,000

Odd Man Out: Owning a Condo in Winnetka

If you typically drive down Green Bay Road, this image won’t surprise you:

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That’s the map of condos on the market in Winnetka. As I’ve discussed the charm and appeal of Winnetka before, you can see that its less charming elements are left to its main driving thoroughfares. Now take a look at these condos on or just off of Green Bay, and take a look at how long they’ve been on the market:

650 WINNETKA Mews #312
WINNETKA, IL 60093
Price: $479,900
Beds: 3 On Redfin: 70 days
Baths: 3 Year Built: 1970

380 GREEN BAY Rd #3E
WINNETKA, IL 60093
Price: $1,295,000
Beds: 2 On Redfin: 249 days
Baths: 2.1 Year Built: 1997

518 WINNETKA Ave #302
WINNETKA, IL 60093
Price: $795,000
Beds: 2 On Redfin: 418 days
Baths: 2.1 Year Built: 2003

Our friends over at the North Shore Insider note that Winnetka has one of the smallest condo markets on the North Shore. Unlike Evanston, it’s hard to find a relatively inexpensive condo here. Even though the market has slowed to a near halt, condo prices here have remained stable, if not inflated (if i’m going to cough up over a million for a condo, it better be in Grand Plaza downtown with lake views and a personal sushi chef).

As the newer construction units remain stable, I’ll be checking to see if there will be fundamental price difference between homes and condos in the area. Home prices have been relatively stable compared to competing markets, but it will be interesting to see if condo prices remain the same. The few, proud prospective condo owners can only hope to find a deal in one of the “Best Places to Live” of 2007.

Will prices come down? We’ll have to wait and see.

Desperate for a Sale? Raffle It Off!

There is a relatively new trend rolling across the country: Sellers who are having trouble moving their homes are using raffles in a last ditch effort to find buyers for their property.

It is poorly understood, even by some real estate attorneys, because it is not used that often. Many states have laws against it, in fact, and the process generally needs to involve a legitimate charity for legal reasons.

In Illlinois, it is legal to sell a home using a raffle. Here is how it works: A prospective home buyer needs to find a non-profit organization to run the raffle and to receive any proceeds that exceed the legitimate selling cost of the home. For example, if a home is determined to be worth $200,000, and the charitable organization and homeowner sell 3,000 tickets for $100 each, the extra $100,000 will go to the non-profit organization. The homeowner can keep the legitimate amount that the home is worth.

The real trick to this is that even though the process is legal in Illinois, the state has some of the most complex charitable gaming laws of any state where these raffles are legal. The state law defines “net proceeds” as “the gross receipts … less reasonable sums expended for prizes, local license fees and other reasonable operating expenses incurred as a result of operating a raffle.” The complete law falls under The Raffles Act.

One of the largest web sites listing homes for sale via raffle is USA Home Raffle, which brings homeowners into contact with non-profit organizations in their area. Another web site raffling Illinois homes is House of Dreams.

What do you think? Would you consider raffling your home if it has been on the market for several months and has not found a buyer? It does seem to have that “you may already be a winner”-feel to it, but who wouldn’t put up $50-$100 for the chance at a home worth $200,000?

Do “Cozy:” Highland Park for Under $500k

There is a hot mess of open houses this weekend, and so-so-so many homes are under $500k in Highland Park. The mantra is “cozy,” but these days, “cozy” might get you through a mess of a recession much more…cozily. Kindly quoting Michael Walsh:

“With low-interest mortgage, you can get “more house for the money.” But you also get higher insurance premiums, higher property taxes; higher utility bills and higher maintenance costs, ongoing expenses that are bound to escalate in the future.

The simple fact is, a less-than-large home is more energy efficient, cheaper to furnish, easier to keep clean, and less expensive to operate, insure and maintain—even if it costs the same to buy or build as a big house. The difference is, if you spend less on extraneous space, you’ll have more to spend on architectural details, beautiful materials, high-quality furnishings and comforting extras –elements that make life easier and richer.”

Sun, Oct 12 1 – 3 PM:

835 COUNTY LINE Rd
HIGHLAND PARK, IL 60035
Price: $350,000
Beds: 3 On Redfin: 210 days
Baths: 1.1 Year Built: 1933

247 ASHLAND Ave
HIGHWOOD, IL 60040
Price: $216,000
Beds: 1
Baths: 2

2711 ARLINGTON Ave
HIGHLAND PARK, IL 60035
Price: $440,100
Beds: 4 On Redfin: 122 days
Baths: 2.1 Year Built: 1962

839 BURTON Ave
HIGHLAND PARK, IL 60035
Price: $270,000
Beds: 3 On Redfin: 66 days
Baths: 1 Year Built: 1956

Open House 101

While I realize staging an Open House has been discussed here in the last few weeks, I feel the need to put my own .02 in for a couple reasons:

1) It’s fall
2) It’s a down market and
3) Some of you must be selling, right?

I’m a bit of a house whore.  To say I’ve been around the real estate block would indeed be an understatement.  I’ve probably seen the insides of more houses (and Open Houses) than most first year realtors.  As such, I can tell you within an easy 2 minutes of entering an Open House whether that owner has staged their house or not.  And often that means I can tell if the seller is serious about moving the house or not. And here it is: FALL.  That dreaded time of year when, if you don’t get a serious bid and soon, your house is gonna sit on the market like a rotting fish from Thanksgiving to well into February ‘tax refund season’ begins.  If this is you, it might be time to think about how you have staged your home.

Staging is not brain surgery. I have often had to be harsh with my selling friends who were not getting offers.  And  sometimes they didn’t like what I told them but when they went back to the basics, they started getting bites.

So without further ado, here are my top staging DO’s and DON’Ts for you sellers out there:

1) DO, for the love of God, remove every single photo of your family.  This is painful – I know it is.  You feel you are somehow shamed if you have to hide the wedding photos of the two of you and all those great vacation photos on the beach with the kids.  Guess what?  Nobody gives a crap.  Nobody wants to see YOUR life in THEIR home, period.   Buyers want to imagine this as their next home and they want to imagine their photos, kids, dogs, and friends surrounding them.  No matter how important the occassion was, a framed photo of Dwyane in his mullet and graduation cap, looking both serious and like the ‘before’ photo on a ProActiv ad, is really gonna kill the mood.  Trust me on this one.  You’re selling the house - so focus on selling it.  Make it your mission.  When you get a buyer on the hook, you can then re-hang your amazing photo colllage in your incredible new house.  But in the meantime, quit being a big sissy and pull down those photos! 

2) DO make the place smell incredible.  I really think people buy with their nose more than any other sense.  Some people bake pies or cookies for their Open House but let’s face it, that’s a HUGE mess and who needs that to deal with when you’re already going insane getting your place ready to be seen by the world?  Get yourself some Glade plug-in air fresheners (all the same type!) and plug them in around your home at least a couple hours beforehand.  If it’s cold and getting colder (September – February), no other smell says “you’re home” like Apple Cinnamon.  If it’s warm or trending toward warmness (for example March – August) stick with something fresh and summery like Fresh Linen or even a good basic Vanilla.  Please don’t choose a different scent for every room.  That’s just distracting.  And don’t choose an overpowering ‘flowery’ fragrance that makes it smell like a teenage girl’s dorm.  Remember guys will be at this Open House too and so will people who will be turned off by ‘strong’ fragrances.  So save that Hawaiian Fantasy and Midnight Embrace for when the Open House is over.  And don’t turn them all on ‘high’ – you don’t want to knock people over when they walk in or make them wonder what strange odors the house normally exudes that cinammon pie is coming out of every available outlet. Please – no overkill. 

3) DO turn on all the lights and open all the window blinds.  This should go without saying but I’ve been in so many houses where you are literally stumbling in the dark, trying to find a light switch, that it’s not even funny anymore.  If you end up selling at your Open House, you will cover the slight increase in the electric bill.  Sheesh!  Let people see what you’re trying to sell – it makes it so much easier on everyone.

4) DO make it look ‘lived in’ yet immaculately clean (just like it never would if you were really living there).  This is harder to grasp but think more Pottery Barn catalog, less an actual Friday movie night with your spouse’s stinky socks on the couch and a bowlful of greasy popcorn kernels  There’s “lived in” (stinky socks) and then there’s how people WANT their house to look lived in (Pottery Barn).   Put lots of nice fluffy textures around: big NEW white towels in the bathroom and big cozy NEW sofa pillows and throws.  Your old ones are threadbare and smell like dog.  You don’t think they do but THEY DO.  Your house is worth the price of a few pillows and towels, isn’t it?   These invite people to come sit, relax, and imagine this gorgeous retreat as their very own.  I have more than once stumbled over some people’s actual dirty laundry and yes I have stumbled over PEOPLE in houses I was looking at – these are both definite no no’s. Which brings me to…

5) DO let your house sell itself.   If you have a Realtor, let the Realtor and the house do the selling.   Seriously.  You can sit outside in your car and watch, if you must, but you absolutely must not be present.   You do not know surprise as a Buyer, until you’ve been happily wandering around a house you want to buy, lusting over the antique heartwood Pine floors, idyllically imaging your life in room after perfect room, only to stumble over a cranky Uncle Joe down in the family room, drinking a beer in his shorts, trying to “watch the game”.  And yes I have run into this scene too.  Don’t let this happen to your Open House.

And while I’m on the theme, here are some great Open Houses to check out this weekend:

313-15 WISCONSIN Ave #1N OAK PARK, IL 60302
Price: $250,000
Beds:  3   
Baths:  1   
Sq. Ft.:  1,500    
$/Sq. Ft.: $167 

106 S RIDGELAND Blvd #303 OAK PARK, IL 60302
Price: $329,000
Beds:  2   
Baths:  2   
Sq. Ft.:  1,296    
$/Sq. Ft.: $254 

255 SOUTH Blvd #21 OAK PARK, IL 60302
Price: $389,000
Beds:  3   
Baths:  2.1   
Sq. Ft.:  2,182    
$/Sq. Ft.: $178