A big thank you

Mike Greco, Michelle Walker, Millie Rosenbloom, Lauren Painter, and Jenny Anderson

Mike Greco, Michelle Walker, Millie Rosenbloom, Lauren Painter, and Jenny Anderson

I am only as successful as my team. This is my mantra, and I live it every single day. What does this mean? It means that the Millie Rosenbloom Company functions like a very hard working, yet very supportive family. Winning a Platinum CARLY Award for our 2016 sales numbers provides a great opportunity to reflect on my team.

Jenny Anderson has been with me for over ten years, and is the source of my day-to-day organization. She knows how we run our business like the back of her hand, and is responsible for ensuring our clients receive the best possible service during the buying and selling processes. She is able to take a mountain of overwhelming paperwork and distill it down into meaningful steps for clients--a real talent to be sure!

Michelle Walker is my right hand, and one of the smartest people I know. When I am unable to conjure a floor plan or address in my mind, Michelle is there to fill in the gap every single time. She remembers everything, and has a contagious passion for the market. Our clients are constantly amazed at her market knowledge, which definitely comes into play during showings and negotiations.

And last but not least, our Mike Greco. After meeting Mike, everyone say the same thing, “What a nice guy!” Mike is always smiling, which is just one reflection of his positive, helpful and service-oriented attitude toward all our clients. Mike is our buyer client’s go-to resource for guidance, support and logistics, and I can’t think of a more compassionate, resourceful, or knowledgeable person for the job.

So, a huge shout out and thank you to the rest of the Millie Rosenbloom Company! The three of you are truly the best in the business.

For sellers: Three tips for navigating multiple offers

Multiple offers on your home?! A dream for many, to be sure. And, as a result of our low level of inventory, for many Chicagoland sellers, this dream is also becoming a reality. But, without a full understanding of the implications of a bidding war, that dream can quickly become a nightmare. The stakes are high, emotions are hot, and time is short. Knowing your next move is crucial, so I've put together my top three tips for sellers. 

1. Understand what an escalation clause is and how they work.

An escalation clause is an addendum to an offer that says a buyer is willing to pay $X for the property, but if the seller receives another offer that is higher, that the buyer will increase their offer by $Y.

Let me make this is a bit clearer with an example: Say you found the home of your dreams listed for $800,000, and the listing broker has indicated that final and best offers are due. If you and your broker agree an escalation clause makes sense, you would include an addendum that says your offer is for $800,000, but that if the sellers receive a higher offer, that you will offer $1,000 more up to a cap of $815,000. 

An escalation clause may make sense for a buyer who is confident in their original offer, but willing to pay only a little bit more than they originally offered. Because these are highly competitive situations, I always recommend that my buyer's original offers be as strong as possible so as not to depend on the escalation clause to win the deal. Escalation clauses don't make sense in all situations so it's always important to lean on your broker to guide you.

2. Know when it makes sense to disclose or not.

As the seller, you have the power to choose whether or not your broker discloses that you have received multiple offers. And with everything in real estate, there are pros and cons to both answers: if you do disclose, you risk alienating the less assured buyer. There are buyers out there that just don't want anything to do with a bidding war. On the other hand, if you don't disclose, you may be leaving money on the table. Talk to you broker, and try to glean an understanding of you particular buyers and where they stand. 

3. Remember that price isn't everything. 

It's easy to get caught up in the bottom line, but remember that there are many additional aspects of offers to consider: financing terms, contingencies and close date to name just a few. If you are lucky enough to receive a cash offer, keep in mind that cash deals tend to be simpler and faster than financed. 

And lastly a few more thoughts. Remember that there is a threshold for the value of your home, and that is the appraisal. An appraisal is required by the bank financing the buyer's loan to ensure that the property's market value and the buyer's offer match. Buying or selling a home is always emotional, and multiple offers just ups the ante. Feeling confident and educated will help keep emotions in check. 

New baby, new home

Having recently relocated back to Chicago, Alex and his wife started their home search with a large “online” type of agency. They’d gone on countless home tours over the course of a year, and were no closer to owning a home. 

“We felt we were not getting enough feedback from our agent, and had lost out on a number of offers as a result. Quite frankly, I felt that they were somewhat disengaged in the process,” shared Alex. 

While in the lobby of his condo, Alex and I met. Looking back, Alex says he saw the rapport I had built with my buyers, which was exactly what he was looking for. He saw me pointing out ‘must see’ features of the building and offering personalized advice. 

Within days, Alex says the experience felt different now that they working working with me. Instead of being blindly led through properties, they were now the ones getting the insight regarding location, potential property faults, and competitive pricing. A month into the process, I presented them with a new listing that I knew they would like. 

Forty-five minutes after making the offer, Alex’s wife went into labor. While driving to the hospital in his crazed new-dad mode, I called Alex with a counter-offer from the seller. 

“I would have accepted it,” Alex shared, “but I told Millie that I was in no place to make a decision. I asked her to take the lead; she decided again to counter, but considerably lower, and the contract was accepted. Over the next 48 hours, while we were in the hospital, I relied on Millie’s advice and extensive network of contacts. I followed her step-by-step instructions to setup attorney review, inspection, etc. and she helped coordinate everything with our mortgage broker as well. We ultimately closed on the house within 45 days, and moved into our dream home.” 

After the fact, Alex revealed that sharing two firsts in the same day, that of father and home-buyer, would not have been possible without my team: “Millie and her team are top-notch; I would wholeheartedly recommend them to anyone looking for a home. We will be using them for all our real estate needs going forward.”

How to navigate the mid-winter market

How to Navigate the Mid-Winter Market

The New Year has just begun and already headlines are sending you mixed messages as to whether homes sales are up or down, or if it's a seller's or buyer's market. How do you cut through the noise? First, talk to your broker. Second, keep the following tips in mind as we head into the mid-winter market.

Keep Your Perspective

Whether you're a buyer or seller, remember that real estate is hyperlocal. So ignore the national headlines and focus on your market. And by that, I mean, what's happening in your neighborhood and even more to the point, what's the price point in the area. In the Chicago area, real estate can change block to block.

Why Wait Until February?

Forget that old advice about waiting until after February to enter the market. January is a great time to catch the wave of people who want a new home by the end of spring. Chances are – whether you're a buyer or seller – you'll have less competition if you're active in January, so both a listing and offer will stand out. If you wait until February, you might find yourself sitting on the sidelines.

Pricing 101

My number one goal is to help you have a successful sale, which starts with listing your home at the correct price. During this time I'll be your advocate, counselor and truth teller. We'll work together to determine the listing price, but there are some basic rules to keep in mind to ensure the process goes easier than you expected:

  • Someone could have the most beautiful home, but if the property has challenges (like it abuts power lines) while a neighbor's home doesn't, then it's comparing apples to oranges.

  • If a home doesn't have any showings in a few weeks, it's time to consider a price change.

  • There's an old adage that remains true – 14 days 14 showings – whichever comes first. Then, if you don't have a contract, lower the price.

The First Offer Really is the Best

Generally, people have been looking for some time before they see your home. So, when your property comes on market and they make an offer, those people are serious. Of course you can, and should, counsel with me in navigating negotiations to make sure it's a strong offer and all parties are satisfied. Everyone wants to come out feeling like there's been a fair deal.

2016 year in review

2016 was an incredible year for real estate. Much has happened that will have very positive effects on the 2017 market. Rental apartments in Chicago and surrounding neighborhoods set a record last year for overall number of rentals, with over 3,830 apartments completed and 4,500 planned for 2017. Decreasing rental values are likely, due to this major increase in rental inventory. 

McDonald's announced their corporate headquarter move to our own downtown which will cause an influx of buyers in the Chicago housing market. Sterling Bay will be developing their office at the old Harpo Studios site in Fulton River District. The residential side of the Fulton River District has seen major growth this year, focused mostly on mid-size condominium buildings.

The old Main Post Office sold this year for $130 million to New York-based developer 601W, who has yet to release plans for the enormous space. Vista Tower, a 93-story condominium and hotel building in Lake Shore East, s underway and will become an impressive new addition to our skyline. The Ritz-Carlton Residences at 118 E. Erie underwent new ownership along with a new marketing plan with lower prices. For the buyer looking for Magnificent Mile luxury + immediate occupancy, this condominium building is the place to go. 

Despite the lack of land in the Gold Coast we saw some very impressive developments last year. 9 W Walton is still under construction with only seven of their 66 units still available and only five of the 35 recently-completed units remain on the market at 4 E. Elm.

In Lincoln Park, you’ll find sporadic new-construction single family homes and 3-6 flat condominiums popping up and selling quickly. 2016 also boasted A. Finkl and Sons Steel Plant selling for $140 million in Lincoln Park. The 30-acre site is still being designed with the intent of office, retail and residential use. 

While we could see an interest rate increase in the new year, financing will be readily available. Given all the positive changes to the city, I am optimistic we will see a very strong real estate market in 2017.