YoChicago.com shot a video with a homeowner selling a “surprisingly affordable lifestyle” in the package of a home in Kenilworth. The video prompted comments from ever day “Joes” like me eyeing a move from Chicago. Check out the video of the house below and read the comments on contemplating city alternatives like Kenilworth and Wilmette.

Is this house for you?

“If you’re still linked through the house, than you’re not really divorced,” says Kelly Lise Murray, a Harvard-trained lawyer and Nashville real estate agent…

But Murray, who describes herself as a “divorce real estate advocate,” says people tend to underestimate the “ghosts” that go along with keeping the house. The place is often so filled with memories, both good and bad, she says, that “it’s not the family home anymore. It’s a huge lodestone…”

Then there’s the even bigger issue of hidden debt. Ideally there will have been no secrets between the husband and wife. But money is a major cause of divorce, and in many cases, one spouse has no clue that the other one has rung up big bills that have become undisclosed liens against the property…

I think the premise above contains two particular advantages.

First, the divorce case is quickened and potentially “cleaner.” I can’t tell ya how many cases I have now that are just sort of lagging because of an inability to sell real estate…nothing too much happening but no final closure either. Of course no one can control market conditions.

Second, there’s way too much guesswork in setting some value on a marital residence at some time fairly arbitrarily plus there’s a lot of unknown and moving factors that have to happen for the typical refinance with buyout or sell in the future and distribute proceeds in some pre-set manner…now that’s messy!

I might disagree with your “waiting game”. There is no guarantee the right deal will be there for you later. I personally have offered on a foreclosure (lost in a multiple offer) and have won a multiple offer short sale for my clients on another place this month.
Meaning, many preceived the prices as agood deal and jumped. This is still very rare, even in our worst months here after Red October.

You did acknowledge people could jump if it’s a steal. But finding the combo of good location, good building, good price is still tough… especially if you don’t write and offer.

I know of sales happening now that are $50K less (give or take) than previous sales on units for sale simply because the buyer wrote an offer (did not have to wait and compete when the price finally would be lowered).

Anyway, I’m biased here, but also put my own money where my mouth is. Making an arbitray decison when it’s better to buy based on the current market is like trying to time any market. I think if a home is what you want and you have a good understanding of the location… and you can afford it… take a shot.

If you were in the market today (say renting and needed a place for your growing family) you’d wait another 6 months even though a great house becomes availble?

Notably, the new up to $7,500 tax credit for new homes brought from April 9, 2008, through June 30, 2009 and the Private Mortgage Insurance deduction for homes bought since 1/1/07.

“We had the greatest asset bubble in history and now that bubble is bursting. The single biggest piece of the bubble is the U.S. mortgage market and we’re probably about halfway through the unwinding and bursting of the bubble,” Tilson explains. “It may seem like all the carnage out there, we must be almost finished. But there’s still a lot of pain to come in terms of write-downs and losses that have yet to be recognized.”

Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.

But when is the right time? At least around Chicagoland, unless you can get a steal, I’d wait 6 months before buying anything. My view is that surely until the new administration comes into office things will remain dour. Then, I’m expecting Obama to make a big economic push right away but it will still take 2-4 months from legislative passage until that stimulus gets into the real economy. With greater confidence, I don’t think you lose much by waiting until spring 2010.

As is always the case with real estate, much depends on location. One study, “The Changing Prospects for Building Home Equity,” tries to predict where today’s first-time buyers in the 100 biggest metropolitan areas may actually have less home equity by 2012 as a result of continued price declines.

How should you proceed if you’re planning to buy a home in the next 1-2 years?

Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.

You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates.

John Ulzheimer, president of consumer education for credit.com, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it’s free) at annualcreditreport.com and dispute errors.

While no one can easily predict the likelihood of losing a job, Friday’s startling unemployment figures suggest the need for caution if you think you might be vulnerable.

Remember the tax credit and it’s expiration date.

Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.

So I took a little field trip today down to the Treasurer’s Office in the County Administration building at 118 N. Clark Street to get my client’s duplicate tax bill copy (client is out-of-state). And I would honestly give the office high marks for customer service! They have several people ready to assist you even before you enter the office so that you’re not having to waste time up at the counters filling out paperwork. There are also several service personnel circulating around the office…two cheers for Maria Pappas!! I’d be hard pressed to think of the last time I’ve experienced good customer service in Cook County or Illinois government (except my dad who used to be a great TV spokesman for IDOT during the 90s).

That being said, what’s up with the power trip over getting a copy of a tax bill?? Anyone, anywhere can view Cook County property tax bills and general property information over the Internet, yet they guard the release of duplicate tax bills copies like Fort Knox. Only the homeowner can get it unless you have a power of attorney (I have to pay them $1 for a duplicate due to their failure to send one to my client). I was fortunate to get a copy, I didn’t have a POA but did have an Order appointing my client executor of the home owner’s estate with me listed as the attorney of record.

And then there’s the Cook County Treasurer’s Office…

We represent the Estate of a gentleman who died within the last 6 months or so who owned a home in Cook County. There’s upwards of $800,000 in this Estate working it’s way through probate court and no surprise the home has yet to sell. And we need to pay the 2007 Second Installment tax bill. But for whatever reason my client, the executor of the Estate, who has had the decedent’s mail forwarded to his house hasn’t gotten the tax bill.

Well, the Treasurer will not let us pay the bill unless we have an original tax bill coupon included with the check. They don’t want our money! A check with a PIN and address and for the specific amount listed as due on the Website isn’t enough…they want their coupons!

So I’ll be stopping by the Treasurer’s Office tomorrow as part of my Daley Center morning and ordering a duplicate tax bill copy at the County Administration Building.

Why is the coupon so important? Isn’t it the tax revenue they’re after?

Unfortunatly our real estate market reality is pretty dull. More of the same market trends we’ve seen over the last many months: high inventory,lower sales and falling prices. Inventory has roared to 21,002 listings(+72% YOY) and sales continue to be well off from last year but an improvment MOM at 1619( -45% YOY). The MOI (months of inventory)has also stayed very high at 13 months compared with 4.4 months last Sept.

INVENTORY

SALES

MOI

Do you think that the stock market bloodbath will have any affect on our local real estate? Will investors sell in fear of a global recession? Or perhaps put money back into tangible assets like real estate?

All sub area inventory charts here: INVENTORY