SINGLE FAMILY SALES ANALYSIS

In 2012, the median selling price in Beverly was $233,750.
In 2011, the median selling price in Beverly was $225,000.
So, Beverly home values appreciated by 3.89% in 2012.
The number of homes that were sold also increased by 7.59% in 2012.

In 2011, 158 homes were sold in Beverly Chicago.
This number increased to 170 homes in 2012.
So, things are definitely headed in the right direction.

The average home in Beverly Chicago took about 5 months to sell. The rate of sales in Beverly is about 14 homes per month.
As of Jan 8, 2013 there are 90 homes available for sale.
So, there is about 6.5 months of inventory on the market in Beverly.

A 6 month supply signals a healthy and balanced market.
To put this in perspective, in 2009, many Chicago areas had
over 18 months of inventory.

DISTRESSED SALES

Distressed sales accounted for nearly 25% of Beverly’s real estate transactions in 2012.

Here is the breakdown by sales type:

Court Approval 2%
Foreclosure 16%
Short Sale 6%
Traditional 76%

AVERAGE PRICE PER SQUARE FOOT

The average price per square foot was $137.50 in 2012.
So if you were thinking about putting a 2,000 square foot home on the market in Beverly,
its estimated selling price would be about $275,000.

If you have any questions regarding the Beverly Chicago
Real Estate market, please send an e-mail to mark@markkillion.com

Beverly Homeowners: I am offering a free property analysis!

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

A short-sale is a type of distressed property sale.
It is not a traditional re-sale of a property.
In a short-sale, a lender agrees to accept a payoff
that is less than what they are owed.
In this type of transaction, the lender comes up short
(hence the term short-sale).

Ironically, short-sales usually take a lot longer than
a traditional sale. Some real estate professionals
joke that they should have been named “long-sales”.
It is not unusual for a short-sale to take up to
3 months AFTER an offer has been accepted by the seller.

The reason that it takes so long is because the sale
requires 3rd party approval from the lender(s). If a
property only has one lien on it, it makes the short-sale
process much easier. This is because you only have to deal
with one lien holder.

Often times, there are multiple liens on the property.
So, you have to get written approval from each lien holder involved.
These types of short-sales are more difficult (but not impossible).
All short-sale properties have a 1st lien, which is usually the
primary mortgage. Some properties also have a 2nd lien that was
a home equity line of credit (HELOC). In these types of scenarios,
you have to negotiate with the 2nd lien holder as well.
On the bright side, many 2nd lien holders will settle for as
little as 6% of the debt.

If you are considering purchasing a short-sale property, I would
recommend researching how many liens are currently on the property.
Your real estate agent will be able to do this research for you.

If a property has multiple liens on it, the short-sale process will
probably take longer. So the name of the game is patience.
There are pros and cons with pursuing a short-sale property as a buyer.
The main downside is that the process takes a long time and it can be
frustrating. The main benefit to purchasing a short-sale is that your
patience will usually be rewarded with a great deal.
Short-sales typically sell for 10% to 20% below market value!

Benefits for a Seller:

A successful short-sale is really a win-win situation for all parties
involved. The seller gets to avoid having a foreclosure on their
credit report for the next 7 to 10 years. In many cases, the lender
may also forgive the deficiency debt. There was actually a law that
passed that made sure that the forgiven debt was not counted as
income for tax purposes. But this law is set to expire at the end of 2012.

FYI: The Mortgage Forgiveness Debt Relief Act Expires in 2012

If you are thinking about selling your primary residence,
and you are upside-down in your mortgage, do it in 2012
or forever hold your peace?after this act expires, the
forgiven debt will be viewed as taxable income (doh!)

Benefits for a Buyer:

If a buyer is patient, they can pick up a great home at a
nice discount. Generally speaking, short-sale homes are
in better condition than your average foreclosure.

Foreclosures have usually sat vacant for many months.
They may have been vandalized too. However, the short-sale
process can be frustrating. The bank can take a long time
to make a decision. And many times, the bank will ask for
more money from the buyer, seller, or both to make the deal
work. However, it will all be worth it in the end when
you get a home at 10% to 20% below market value.

Benefits for a Lender:

Although a lender would rather not accept less than what
they are owed, a short-sale beats a foreclosure any day.
Today’s unsold short-sales are tomorrow’s foreclosures.

The lender knows that if the property goes to foreclosure,
they will have to sell the property at a steeper discount
when they put it back on the market. Also, the time value
of money is important. Every month that a lender holds
a property in its portfolio, they are losing money.

2011 Sales Analysis for Short-sales in Bronzeville Chicago

We can gain a better understanding of short-sales by analyzing
transactions that successfully closed. I did a custom data analysis
of the Bronzeville neighborhood in Chicago, Illinois for 2011.

According to the MRED MLS system, there were 59 short-sale transactions
for the 12 month period ending 12/25/2011. That is an average of five
closed short-sale transactions per month! This number will probably increase in 2012.

Here are a few things that jump out at me:

* Most of the short-sales are happening with Bronzeville condos.
I expect this trend to continue.

* The biggest discounts are being realized with Single Family Homes.

* The amount of time it takes to get the short-sale approved is pretty
consistent across all property types. It takes about 3 months for
the bank to approve the average short sale. And this is AFTER a
written offer has been submitted by a qualified buyer.

If you would like a FREE evaluation of your specific situation,
please contact me. I have experience with short-sales,
and I have helped distressed homeowners avoid foreclosure.

———————————————————————–

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

Let’s take a look at the popular Beverly neighborhood in Chicago, IL.
This report is based on sales transactions that closed during the
3 month period ending OCT 31st 2010.
This information is based on data from the MRED MLS system.

If you are thinking about buying or selling in Beverly,
this should give you a good idea of the current market values.
Hopefully, it might also encourage you to contact me for assistance

SINGLE FAMILY HOMES

29 Homes were sold. The average selling price was about $268,000.
The average market time was 136 days.
The properties were sold for about 95% of their asking price.

CONDOS

2 Condos were sold. The average selling price was about $102,000.
The average market time was 58 days.

Two to Four Units

One multi-unit property was sold for $440,000.
It took 53 days to sell.

Multi-Family (5+ Units)

No multi-family properties were sold.

Rentals

There wasn’t much rental activity in these 3 months.
There were a total of four properties rented during this time.
3 of those properties were single family homes.
The median rent was $1,975.

Here’s a map of the Beverly neighborhood in Chicago:

ZIP Codes Parts of 60620, 60643, 60655
Median income $66,823

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY