Vranas Properties - Chicago Real Estate Blog

Chicago Growth and Trends in Development

Last Thursday on August 2, 2007, I was privileged to attend a Commercial Forum seminar associated with the Chicago Association of Realtors.  This seminar, entitled “Trends in Development,” focused on the changing landscape of the Chicago skyline, as well as the many advances occurring in Chicago business as a whole.  There were very insightful presentations regarding Mayor Daley’s Green Development Initiative, the exciting growth and development of West Loop commercial and residential space, and forecasts for the industrial real estate market for Chicago and its suburbs. 

Of particular interest, was a presentation by Meredith O’Connor, Director of Business Development for World Business Chicago.  Created and chaired by Mayor Richard M. Daley, the World Business Chicago (WBC) is a public-private business organization formed with the deliberate intention of monitoring and stimulating Chicago economic activity.  Meredith O’Connor specializes in the retention, attraction, and expansion of businesses for the Chicago region.  Throughout her presentation, Meredith provided some very intriguing insight regarding the positive growth and economic health of the Chicago economy.

Chicago continues to cultivate its brand as an international business leader, serving as home to the headquarters of 29 Fortune 500 companies, 12 Fortune Global 500 companies, and 11 Financial Times Global 500 companies.  Furthermore, a majority of these companies (i.e. United Airlines, The Boeing Company, PepsiCo Foods, etc.) take residence in the heart of the downtown Loop, ensuring employment and population in the core of the City.  By strengthening the corporate/commercial health in the Downtown area, the City benefits from increased tax base, as well as an overall re-invigoration of activity.  Such subsequent stability encourages residential, retail, and tourism dollars.  In short, Chicago has positioned itself, through its strategic use of attracting business headquarters, in an upward spiral of economic growth that has lasting impact on residential housing and retail development in the downtown area. 

It was exciting to learn more about how Chicago is growing and solidifying its image as America’s premier city for business, and also how such growth ensures that Chicago will continue to remain a great place to live, work, and play!

Pictures Of The Event From The Commercial Forum
Pictures of The Event From Crains

Mark Raymo
Chicago Real Estate

 

December Condo Sales...

The National Association of Realtors recently reported

• Existing Chicago sales rose 1/8% in December 2005 from December 2004
• National sales of existing homes climbed to 7.072 million, a new record
• National sales fell by 5.7% last month

Today the Tribune gauged the reaction:
"U.S. housing market conditions are detriorating rapidly" -Goldman Sachs
"It just feels completely flat" -Pamela Ball Baird & Warner
"Overpricing by overzealous sellers" -Thad Wong, @ Properties

Since real estate is a local market, and the only asset that most readers care about is the value of their own home.....much of the national statistics are insignificant unless you are a headline writer for Fortune Magazine or the Wall Street Journal.

So what are you to do? My best advice is to:

Prepare prepare prepare- 
If you are a Buyer, start looking early..there are many sellers out there with unreasonable expectations as to what they should be getting for their property and it takes time for them to finaly realize that. 

If you are a Seller give yourself ample time for your unit to sell but be realistic about your price expectations...

If you are a Realtor, do your homework and pull up far reaching comparables not only looking at only  2 or 3 properties that have sold, but also those that couldn't sell or are still on the market...That will help you best understand the market and advise your client..

Paul Vranas

Buyer Broker

Realty Times reported that the National Association of Realtors surveyed homebuyers to see how well their expectations are being met when it comes to the service of their Buyer's Agent.  As reported:

"Buyers wanted their agents to have the following qualities:

• Knowledge of the purchase process (94 percent of buyers considered this "very important")
• Responsiveness (93 percent)
• Knowledge of the real estate market (92 percent)
• Communication skills (82 percent)
• Negotiation skills (82 percent)
• People skills (80 percent)
• Knowledge of local area (79 percent)
• Skills with technology (40 percent)"

Buyers rated their agents according to satisfaction levels:

• Knowledge of purchase process -- 83 percent were very satisfied
• Knowledge of the real estate market -- 81 percent, very satisfied
• Knowledge of local area -- 78 percent, very satisfied
• Communication skills -- 76 percent, very satisfied
• Responsiveness -- 78 percent, very satisfied
• People skills -- 79 percent, very satisfied
• Skills with technology -- 68 percent, very satisfied
• Negotiation skills -- 68 percent, very satisfied"

That said, there is a major disconnect in Realtors' negotiation skills from what consumers are expecting (82%) versus what they are getting (68%).  Negotiations is a complicated art.. its not about getting into a war with the other party..."Strong-arm" negotiation tactics are almost certain to lead to failure, anger and frustration for both parties.

If you haven't been trained in negotiations and are interested in learning more, at a minimum I would recommend checking out "You Can Negotiate Anything" by Herb Cohen. Its a bestseller and will help get you in the mindset of a successful negotiator.

Paul Vranas
paul@brilliantrealty.com