This report covers transactions that closed in 2011.
It is based on data from the MRED MLS system.

Kenwood Real Estate Analysis - 2011 Chicago

As you can see, the real estate market has stabilized in Kenwood.
Sales are still strong, and the values are holding up pretty well.
Kenwood is a very unique neighborhood. It has a very rich history.
It’s housing stock includes majestic mansions that were built in
the late 1800s.

Asking prices for Kenwood real estate can range from $75,000 for a recent
foreclosure all the way up to 2 million dollars for
a Queen Anne mansion near President Obama’s home.

Rental demand is very high in the Kenwood neighborhood. AS you can see
from our report above, rental prices are relatively expensive.
So this would be a great area to purchase an investment property.

Here is a beautiful view of the downtown skyline from 39th and the Lake front.
If you lived in Kenwood, you could walk to the lake!

View of the skyline from Kenwood Chicago Lake Front

Hopefully you found this information useful. If you have any questions, please let me know.
Also, please feel free to leave me a comment. I read each comment I receive.

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

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This summer, Bronzeville residents are in for a real treat.
The Gospel Fest will be held right in their own backyard.
The Gospel Fest used to be downtown. Last year, the popular
festival was combined with the Taste of Chicago.

However, in 2012, there will be several changes with
the summer festivals. For one, the Taste of Chicago
has been cut down to only 5 days. The Taste will now be held
in late July. This means it will no longer include the 4th of July.

The Gospel Fest will be held in several locations, but
the main stage events will be in Bronzeville on the weekend
of June 23rd and June 24th. It will be near 37th and
South Martin Luther King Dr. This should be a great event.

It should bring thousands of visitors to the Bronzeville area.
This should be great for local stores and restaurants.
It may even stir up some curiousity about the local real estate
market in Bronzeville (fingers crossed).
Hope to see you there!

Until the next time,

Mark Killion
RE/MAX Premier Properties
1205 N Dearborn
Chicago, IL 60610

Send me a note!

Visit me online: www.773property.com

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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

Here is a summary of recent real estate activity in the
Kenwood and Oakland neighborhoods. Many people
refer to Oakland as “North Kenwood”.

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

It appears that the City Colleges of Chicago will soon buy the
Harold Washington Cultural Center on 47th and King Drive.
The cultural center has been on the brink of foreclosure for some
time now. The recession has not been kind to the cultural center
(or any other business for that matter).
The center failed to generate adequate income by renting out
the venue for concerts and private events.

It will soon be transformed into a performing arts center.
It may also include a restaurant and a museum. The goal is
to attract more college students and young professionals to the area.
This should be good for the Bronzeville area and Chicago in general.

Here are some pictures of the Harold Washington Cultural Center.

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

This report is based on sales data from the MLS for JAN-01-2010 through JUL-20-2010.
This is for zip code 60653 only. This zip code includes a few different neighborhoods.
It includes Bronzeville, Oakland, and the north half of Kenwood.

You will notice that there is a wide range of selling prices. This is because foreclosures
are still hitting the market at very low prices. But, at the same time, high end properties
are still selling. Sales prices are mostly determined by the condition of the property.
On the low end, you will have the foreclosures that require a total gut rehab.

On the high end, you will have the recently rehabbed properties and/or newer construction.
The average property will be somewhere in between. It will usually be in fair condition,
but it has not been updated or remodeled in several years.

So looking at the present market, and its wide range of prices, one may conclude that there
is a great opportunity to buy a bank owned property at a very low price, do a high-end
rehab, and put it back on the market a few months later for a much higher price.

Many investors have realized this opportunity and the demand for bank owned properties is high.
It is not uncommon for those properties to sell for 25% to 50% OVER asking price.

==============================================================================
SINGLE FAMILY HOMES

Overall: 31 Single Family Homes were sold in zip code 60653.
Prices ranged from $30,000 to $445,000. The average
selling price was $192,000

3 Bedrooms: 11 sold ranging from 60,000 to 415,000
Average selling price: $193,000

4 Bedrooms: 12 sold ranging from 30,000 to 445,000
Average selling price: $190,000

5 Bedrooms: 5 sold ranging from 65,000 to 430,000
Average selling price: $225,800

6 Bedrooms: 6 sold ranging from $41,000 to $301,000
Average selling price: $138,000

CONDOS:

Overall: 96 condos were sold in zip code 60653. Prices ranged from $2,000 to $329,000.
The average selling price was $97,000.

Studio: 1 sold for $33,000

1 Bedroom: 1 sold for $170,000

2 Bedrooms: 30 sold for prices ranging from $5,000 to $250,000
Average selling price: $79,000

3 Bedrooms: 54 sold for prices ranging from $2,000 to $329,000
Average selling price: $104,000

4 Bedrooms: 8 sold for prices ranging from $16,000 to $255,000
Average selling price: $91,000

5 Bedrooms: 8 sold for prices ranging from $179,740 to $250,000
Average selling price: $214,870
=================================================================
MULTI-UNITS (Two to Four Units):

Overall: 27 multi-unit properties were sold in zip code 60653.
Prices ranged from $25,000 to $420,000.
The average selling price was $106,000.

Two Flats: 14 sold for prices ranging from $25,000 to $156,000.
Average selling price: $79,000

Three Flats: 13 sold for prices ranging from $29,000 to $420,000.
Average selling price: $105,000

Four Flats: 0 sold so far this year.

==================================================================
MULTI-FAMILY (5 or more units)

6 Flats: 4 sold for prices ranging from $120,000 to $750,000.
Average selling price: $409,000

Note: Financing for commercial properties is a lot harder to come by these days.
Many commercial lenders are asking for a 25% to 30% down payment.
And most lenders are not allowing sellers to “hold paper”
(finance part of the sale by holding a secondary mortgage).

As a result, sales for multi-family properties are currently depressed.
For this multi-family analysis, I had to look at a couple of nearby areas in
addition to zip code 60653 (i.e. Hyde Park, Washington Park).

However, there are still investors in the market looking for high yield opportunities.
If you have a multi-family property, and it is currently rented and generating
positive cash flow, you definitely have a chance to sale your property.

You just have to offer it at a price point that allows a high return on investment
for the next owner. This doesn’t mean you have to give your property away.
It just means that investors that can buy right now are looking for a high return
on their investment.
Here’s a rough estimate of where you need to be right now with pricing in 60653:

Multiply your annual rental income times 6.5

For example: let’s say you have a 6 Flat and you are getting $1,000 per month
for each unit. Your monthly gross income would be $6,000 and your annual
gross income would be $72,000
6.5 x $72,000 = $468,000

$468,000 would be your estimated marketing price when you put your building on
the market.

This would be for a property that is currently generating income. If your property is
vacant, you will have to sell it for much less. (probably around $320,000)

Many of the six flats that did NOT sell this year had an average price of about $550,000.

=========================================================================
LAND:
Similar to multi-family commercial properties, the demand for land is currently depressed.
This is because land sales and new construction go hand in hand. Since there aren’t many
construction loans available right now, there is no need for developers to purchase land.

However, you will always have a few investors looking for good deals on land in desirable locations.
Two lots were sold this year. One was a standard residential lot. It sold for about $65,000.
The other lot was a much larger commercial lot and it sold for about $390,000.
===========================================================================
RENTALS:

The rental market in Bronzeville and zip code 60653 is booming! Over 400 units have been rented
so far this year. Here’s a summary of average rental prices:

1 Bedroom: $900
2 Bedrooms: $1,200
3 Bedrooms: $1,600
4 Bedrooms: $1,900
5 Bedrooms: $2,600
============================================================================
If you would like a personalized market analysis for your property, please let me know.
I would be more than happy to prepare a FREE report for you. If you have
any questions about the Bronzeville Real Estate market, please call me at
773-469-4943. You may also send an e-mail to: mark@markkillion.com
And as always, if you know anyone that needs to buy, sell, or rent real
estate, please let me know. Your friends and family deserve exceptional
customer service. I am here to serve you!

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