Proud to join Jameson

The last week and been interesting to say the least. To make a long story short, I am officially with Jameson Real Estate, which will become Jameson | Sotheby's International Realty on February 8th. I am excited to now be a part of, in my opinion, the best real estate brokerage in the Greater Chicago area.

The Shuffling Of the Agents

For those involved in the residential real estate industry. Taxes owed, the dropping of franchises, etcetera have caused many of Chicago’s top real estate agents to speak with other top brokerages in the city. This has been the same with my own company, formerly Sudler | Sotheby’s International Realy and now simply Sudler. As a result, you will soon begin seeing signs reading Jameson | Sotheby’s International Realty (that doesn’t sound right to me, yet). Sudler is about to undergo a transition similar to the Chicago Bulls in the late 90s when Michael Jordon, Scottie Pippen, Phil Jackson, and company left the windy city. The exodus has already begun, but it is far from finished. I personally will be making a decision either this weekend or sometime next week. I’m certainly ready to make a decision, because I’m so annoyed by the couple phone calls per day from other firm’s managing brokers who want to take you out to lunch to listen to what they can offer you and to consider their company.

For those of you not in the industry, you may be wondering what this means to your realtor? The answer is very little as long as they’re moving to another top company. A good agent is certainly not defined by his or her brokerage. However, the company will determine how good of tools the agent has. For me our affiliation with Sotheby’s has brought a great amount of international exposure to my luxury listings. This is something that no other company can offer, and is my primary factor for considering other companies.

Alright I’m off to meet a client. My clients don’t care if I move somewhere else as long as I keep serving them well.

Wicker Park Historic District

One of my favorite neighborhoods of the city is the Wicker Park Historic District. The spectacular mansions along Hoyne have the extravagance of those in Gold Coast, but with additional space. Furthermore, there is an eclectic edgy-ness to the area that is extremely uncommon of luxury neighborhoods.

Many of the spectacular mansions in the area had been converted to multiple units, but as gentrification has taken place many have or are being restored back into single-family homes. The only one of these mansions that is currently on the market is 1420 North Hoyne. Chaz Walters of Sudler

Sotheby’s has had the property listed for $4 million for the past two years.

Below is a list of the homes that have closed and the homes that are currently on the market in the Wicker Park Historic District:

65 East Goethe

Bill Wrigley's penthouse space, which is listed by Jim McKinney and Brian White of Baird & Warner, was recently placed on the MLS as separate units. The 8th floor penthouse (8WNE) has over 12,000 square feet of raw space and an additional 3000 square feet of private roof top. It has been on the market for $14 million since last October. While it is certianly one of the best spaces in the entire city, I don't see a buyer spending anywhere near that asking price for raw space. The potential buyer would most likely spend around $1000 / square foot to finsish the space, which puts them into the property for over $25 million. By comparison, the 61st floor penthouse in 800 North Michigan was listed for $10.95 million and closed for $8.25 million in 2006. While 800 North Michigan doesn't have the neighborhood feel of 65 East Goethe, it was a finished space and has spectacular uninterupted lake views.

This is why I wasn't too suprised to see 8N come on the market for $5 million and 8W come on the market for $6 million last week. 8N is a 5500 square foot unit, and 8W is a 3500 square foot unit and includes 1500 square feet of exterior roof space.

Short Sales In the Luxury Market

A couple weeks ago one of the vice presidents of Sotheby’s International Realty was in town. Most agents at Sudler | Sotheby’s (Chicago’s local Sotheby’s Realty branch) handle transactions ranging from south side foreclosures Gold Coast singles family homes (myself included). However, Sotheby’s International brand only really cares about properties over $1.5 million. Nonetheless, I heard him say somethng that I never thought I’d hear. He said, “All Sotheby’s agents should get familiar with and certified in short sales and foreclosures.”

The reason for this is a phenomenon being referred to as 'short sale tsunamis.' Thankfully, we are about through with short sales that are a result of too many sub-prime loans. These were caused by banks that were giving loans to anyone who simply said they had a job. Most of these were loans were giving for properties under $500,000.

However, the next ‘wave’ is just beginning to hit. This next wave is a result of option adjustable mortgages. These are mortgages where you can pay even less and have your mortgage balance grow. Most of these homeowners were certainly qualified to buy a home, but they were just qualified for an amount out of their price range. This is being enhanced further because of peoples unemployment running out and once things started getting bad many people refinanced out of sub-prime loans into option adjustable rate loans. This group of mortgages was for loans that were for many luxury properties. This wave is expected to continue over the next 24 months, and is why realtors in the luxury market better start learning how to work short sales and foreclosures.

Why is it important to have an agent who is familiar with the short-sale process?

The only thing most people (including agents) know about short sales is that they can be long and annoying. While this can be true, there is a reason why. The most important thing you need is a listing agent who knows how to present the offer to the bank. While banks are getting quicker they still want everything presented in a short sale package. This package includes everything from the proposed purchase price to a letter explaining the sellers’ hardship. If it is not presented in their way they simply reject the offer and it goes into foreclosure. When I’m working for a buyer who is interested in short sales I initially screen the listing agent to see if they know what they’re doing. More and more agents are familiar with the process, but I’ve had agents flat out tell me, “This is my first short sale, and I don’t really know what I’m doing.” This is why 40% of short sales eventually go into foreclosure. If it’s clear the listing agent doesn’t know what they’re doing then I’ll advise my buyer that it is probably not even worth their time viewing the property.

If you are in the Chicago area and you’re interested in purchasing a short sale or you are a homeowner who might possibly be in a short sale situation feel free to send me an email at Bradley.Riemann@SothebysRealty.com or give me a call at 888.471.9993.