The Wall Street recently reported that condo boards are having a difficult time collecting unpaid association dues when tenants default on their home loans. Some associations have even resorted to “foreclosures on units already seized by banks” because they have a lien on the property. And others are temporarily renting out condos until the foreclosure goes through so they can collect the dues, which are needed for utility and maintenance costs.

Condo boards say banks have been stalling on foreclosures to keep from paying dues. However, banks say they are getting pressure from both sides: associations who want speedy foreclosures and politicians who want slow foreclosures so firms can work to modify loans.

Whatever the reason, these situations should be a reminder that it’s important to look beyond price when looking for a Chicago condo. Before the contract is finalized, due diligence is required. It’s not a good idea to buy a Chicago condo just because it’s cheap, particularly in this unusual economic climate. Below are some guidelines to keep in mind as you are looking for Chicago real estate. It may seem time consuming, but you don’t want to end up in a building with utilities that cannot be maintained due to a lack of funding.

1) Check to see if the building has a five-year plan.
2) Personally review the board meeting’s minutes from the last 6 months to a year.
3) Identify at least three similar buildings, and create a spreadsheet to determine if you are overpaying for the real estate. Your spreadsheet should contain criteria such as square footage, the building’s age and condition, views, and floor location.
4) Does the building have an outstanding loan or line of credit?
5) What is the volume of foreclosures in the building, if any?
6) Are there any residents who have not paid their condo association dues? And what is the total outstanding amount?
7) Are there any new government regulations that may impact the building’s capital resources in the next 5 to 10 years?

If you need help answering some of these questions, or want to understand more about Chicago homes for sale, please contact Chicago real estate agent Sheldon Salnick at (312) 264-5853 or ssalnick@rubloff.com.

It’s no wonder that this most recent recession has sparked some new ideas, even in the troubled real estate market. If you’re having difficulties selling your Chicago condo or Chicago home, consider this new real estate trend that’s popping up all over the country, and was recently featured by Chicago Magazine and The Wall Street Journal.

Rather than show your vacant Chicago home, hire someone to temporarily live in your Chicago home. This person, known as a “home manager,” provides the furniture, decor, groceries, and that lived-in look sellers love. The managers keep the house tidy during certain hours, bring their own insurance, and maintain the  garden or lawn. They must also be willing to move at a moment’s notice, but for their troubles, they are generally compensated with discounted rent and a bonus if the home sells within 90 days.

Companies like the one featured in both articles, can help you find and place your temporary guest, but so far the payoff seems worth it.

So how is this idea affecting Chicago real estate? According to Chicago Magazine:

about half of the 35 Chicago-area homeowners approached by the company about a year and a half ago signed up for the service; their homes have sold for an average of 93 percent of their asking prices. The homes belonging to the sellers who declined the service are all still on the market, and their asking prices have dropped on average by 15 percent.

The Wall Street Journal article also points out that homes “staged” with humans tend to sell faster than a completely vacant house. Additionally, this new form of staging has proven to work better than the traditional form, sans humans. “Unoccupied staged houses aren’t selling as well as those with people in them… ‘because people can still tell they’re vacant.’”

It seems odd to think that a few homemade touches can make all the difference in a seller’s mind. Here are the reasons why :

• Buyers automatically deduct $15,000 to $50,000 in their minds if they view a luxury Chicago home without furniture.
• Sellers looks desperate to sell if the home is vacant.
• Buying a luxury home can be an emotional process. The more you excite a seller’s senses, the better response they are likely to have.

Some house managers even bake chocolate chip cookies (courtesy of The Great Depression) prior to a showing so the house is filled with the aroma. Talk about exciting the senses.

While this innovative technique has shown progress, it is generally recommended for high-end luxury Chicago homes or Chicago condos from $2 million and up.