Karp Residential

Sold in 6 Days!

It’s always exciting when a home sells in just a few days.  When that happens, there is usually a lot that went on before the home was listed, to show the home in the best light possible.  Preparing the home can be daunting, but Nancy Karp expertly guides home sellers through the process.

When the owner of a charming vintage 3-story house on a lovely tree-lined street in east Highland Park contacted us about selling her home, the owner thought it was all ready to go on the market.  The home featured hardwood floors throughout, the dining room was huge, with gorgeous crown moldings and beautiful built-in cabinets, the third-floor attic had been converted to a “bonus” room with skylight windows, and the yard featured perennial gardens and a gazebo.  Over the previous 5 years, the owner had been gradually doing some big projects to prepare the home for sale.  It was truly a wonderful house.  But when Nancy toured for the first time, she could see that there was still work to do to present the property in the best light possible. 

The home had so many wonderful qualities that were getting lost.  The living room looked smaller than it really was because there was just too much furniture, and the beautiful fireplace just got lost.  The walls in the living room were a lovely shade of pink  – not a color scheme that would appeal to today’s buyers.  And, Nancy noticed a couple of other locations in the house that needed some touch-up painting done. 

The sunroom also looked cluttered with too much furniture. 

And the owner had turned the 2nd and 3rd bedrooms and the bonus room into offices for her home-based business.  We wanted to help potential buyers envision how the space could be used, so Nancy explained to the owner that we would need to make some changes before the house was ready to sell.

The process of preparing to move out of a home you’ve lived in for years can be overwhelming.  This owner had been there for 38 years; she was now living alone and her family was all out of town.  She was faced with going through everything, giving away or selling what she didn’t want anymore, getting the home ready for sale, and packing up and moving – Nancy knew she just couldn’t do it alone. 

At Karp Residential, we pride ourselves in providing our clients with connections to other professionals we know and trust who can help them prepare for buying or selling a home – from attorneys to mortgage lenders to contractors and more.  The owner hired her own painter to freshen things up and change the color of the living room.  And, Nancy introduced this owner to Two More Sisters, which specializes in helping clients through home transitions.

Stacy Bloom of Two More Sisters streamlined the entire process for the owner, making it as easy as possible:

• Decluttering – an overwhelming task when you’ve been living in a home for decades
• Donating items and selling valuables.  This was especially challenging during COVID19, when many places that used to take donations were no longer doing so.
• Staging the home – setting the bedrooms up as bedrooms (not offices) and clearing out some of the furniture to really showcase this beautiful home. 
• Organizing everything for the movers.
• After the seller moved out, overseeing the final clean up – donating and selling any final pieces and preparing the home for the closing.     

While the owner was working with Two More Sisters to get the home ready, Nancy did extensive market analysis to help the owner price the home appropriately. 

So what was the end result of all this preparation?  The owner had a signed contract in just 6 days, for 97% of the asking price.  And, the owner is organized and ready for her move out of town.

If you are thinking about moving ... now, in 6 months, or anytime within the next couple of years ... please contact Nancy to help you get started in preparing your home for the best possible selling experience.

Wilmette Market Update: COVID19 Impact vs. 2019

In this uncertain and unprecedented time, I want to share some important information with you.  My goal is to address any questions or concerns you may have about the value of your home, and buying or selling in the current environment.  

 

How is COVID19 impacting the home values in Wilmette? 

I have been actively tracking local real estate markets on the North Shore, and reading/listening to everything available about the market. 

The Chicago area market, including the North Shore, was looking very strong in January and February, before we headed into the dramatically new and different normal that we are facing today.  As you can see on this chart for Wilmette, in January and February, the number of new homes for sale (listings) and homes going under contract, and closings were similar to 2019.  Then in March you can see the dramatic drop in the number of new homes for sale and homes going under contract.  Closings, didn’t drop until April – this is because the closings in March were from deals that were probably put together in January and February, before the Shelter-in-Place order from Governor Pritzker.

Starting in June, we began seeing a recovery in activity.  More new properties came on the market, and more homes went under contract compared to the same time in 2019.  In the next couple of months we will see an increase in closings as well.

Wilmette Detached Single Family Homes
2020 vs. 2019:  January 1 - July 31

	New Listings			Under Contract			Closed
	2019	2020	Change	2019	2020	Change	2019	2020	Change
January	79	77	-3%	24	32	33%	13	18	38%
February	90	86	-4%	36	36	0%	15	17	13%
March	92	58	-37%	53	23	-57%	24	29	21%
April	105	28	-73%	44	19	-57%	47	26	-45%
May	94	59	-37%	43	32	-26%	52	25	-52%
June	78	79	1%	45	56	24%	47	33	-30%
July	57	77	35%	26	60	131%	40	44	10%
Year to Date	595	464	-22.0%	271	258	-4.8%	238	192	-19.3%

Note:  The numbers in red show a clear trend now, with a big jump in number of contracts in July.  Wilmette is a small market, and we have to be careful when making conclusions based on limited data.  However, with the July data, it is very clear that the market has been steadily improving. 

 

But what about prices and home values?       

The average price for a single family detached home in Wilmette in January – June 2020 is up slightly versus 2019, per MRED LLC.  And the median price for the same time period is down slightly.  So, at this point in time, home values appear to be stable.  The limited number of new homes on the market and the incredibly low interest rates are two key factors that are helping to keep prices firm.

What are expectations going forward? 

Based on history, many experts believe that real estate values will not be dramatically affected by the recession that we are in right now.  This is because real estate is not the REASON for the recession, as it was in 2007/2008.  Experts have said that this is going to be more like the prior recessions which were not related to real estate.  In those recessions, real estate values did not decline.

This is good news for everyone currently selling, or those planning to put their homes on the market later this year.  Additionally, I believe that buyers can purchase with confidence and not be concerned that the value of their home will decline dramatically after their purchase.

Advice for Sellers.

Several of my clients that have homes on the market now have asked if they should temporarily take the home off the market. And I said, “Absolutely not!”  Here is why:

While it’s not “business as usual,” the real estate industry is still operating.  Lenders, lawyers, title companies, appraisers, inspectors are all working, albeit with different procedures and rules in place to keep everyone safe.   Closings are being done (curbside), mortgages are being done (virtually), and new homes are coming on the market.  Yes, the number of transactions declined for a bit and number of new homes coming on the market also declined.   But now we are ‘back” – there are new contracts being written every day.  If you aren’t on the market, you can’t sell your home.

For years I’ve been telling my clients that the first showing is online.  That is still true, now more than ever.  Think about this, right now there are a lot of people at home with extra time on their hands – guess what, they are looking at real estate!!!  We have seen a major increase in online home searches.  If you take your home off the market, none of these people will see it!

This is what I am doing to safely market the homes I have for sale:

• Floor plans required for all properties
• 3D tour or video tour/walk through for all properties
• Social media – I am regularly posting all of the properties on social media with videos or the 3D tours.
• If someone wants to see an occupied property in person, after they’ve seen the video, 3D tour and floor plans, then the sellers and I work together to make it happen in an environment that is safe for everyone (gloves, hand sanitizer, minimal touching of any surfaces, etc.).
• If a prospective buyer would like a live virtual tour of the property, we can accommodate that too.
• @properties provides a CORONA VIRUS SHOWING DISCLAIMER form that each prospective buyer and their brokers must sign in order to see any property that is occupied. The disclaimer basically states that the signer is aware of the risks and that they are currently symptom free and haven’t knowingly had contact with anyone that is ill.
• Of course if a property is vacant, then it can easily be shown.

I collaborate with clients and colleagues to discuss real-time solutions for specific situations.  We are all making adjustments to the ever-changing environment that we face.  The real estate industry has quickly pivoted to provide as many services as possible electronically to keep all participants safe.  This includes document signing, appraisals, mortgage applications, closings and much more.

Please reach out to me if you have any questions about the market.

This blog is based on an article that originally appeared in the August issue of Winnetka Neighbors.  The chart in the original article was updated here to include data through July 31st.

Save Energy Costs with a Community Solar Project

Go Green Highland Park (GGHP) is a grassroots organization partnering with the city and neighbors to create a clean and healthy place to live, now and for future generations.  I’m really excited about their latest project:  Community Solar.  They are teaming up with Trajectory Energy Partners and Clearway Community Solar to bring renewable energy to everyone in the ComEd service area.   I just learned about this initiative and encourage everyone in Highland Park and Highwood to consider subscribing.

Community Solar offers a meaningful way for all Highland Park residents to support clean energy and help reduce dependence on fossil fuels in Illinois.  This is a great option for people who can’t put solar on their own homes or don’t want an upfront investment, live in a condo or are renters.  By subscribing to a community solar project, you’ll help support the development of new solar energy generation in Illinois.

How Does Community Solar Work?  You’ll be connected to a Community Solar Project in your service territory.  The solar energy produced by the project will go to the local power grid.  When you subscribe, you’ll offset a portion of your own electricity use with electricity generated by the community solar project.  Your subscription to your community solar project will allow you to receive credit on your electric bill for the energy produced by that project.  You pay for those credits separately, at a 20% discount, with no upfront investment.  Here are the highlights: 

• There is no upfront cost
• With local renewable power, you’ll save money on electricity every month.
• Community Solar is open to any ComEd customer: homeowners, condo owners and renters
• You’ll be helping to create jobs in Illinois
• Your subscription will help reduce Illinois’ dependence on fossil fuels 

Trajectory Energy Partners was founded by Highland Park resident Jon Carson.  The company has generously committed to making a $75 donation to Go Green Highland Park for every subscriber who signs up through GGHP, and then GGHP will donate 10% of that to the Community Foundation of Highland Park.isare scheduled for Thursday, August 20^th at 7:00 p.m.  Learn more and register here.  If those dates don’t work for you, the webinars are recorded and you can watch on the Go Green HP website.

Community Solar is a way we can all be part of sharing in the benefits of solar energy while lowering our energy costs.  We’ll be doing something positive right now to help tackle climate change and drive renewable energy in Illinois.   

This article was originally published in the August issue of Highland Park Neighbors.

Highland Park Market Update: COVID19 Impact vs. 2019

How has COVID 19 affected the real estate market in Highland Park?  Is it a good time to buy or sell?  Back in May, low inventory levels were keeping prices strong and sales were starting to pick up after a slump in February and March.  So what’s happening two months later?

I am very happy to report that the trends that were starting to emerge two months ago have continued!  As you can see on this chart, the number of homes coming on the market still trails behind the same time period in 2019.  At the same time, the number of homes under contract and closed exceeds the sales volume we saw in 2019, including a clear slump in April and May.

 

Highland Park – Detached Single Family Homes
Number of New Homes on the Market, Under Contract and Closed
2020 vs 2019:   January 1 – July 31

	New Listings			Under Contract			Closed
	2019	2020	Change	2019	2020	Change	2019	2020	Change
January	56	71	27%	21	25	19%	13	26	100%
March	108	72	-33%	30	41	37%	27	35	30%
April	125	33	-74%	39	25	-36%	40	42	5%
May	104	71	-32%	44	43	-2%	33	28	-15%
June	106	87	-18%	38	88	132%	36	43	19%
July	107	108	1%	40	77	93%	46	60	30%
Year to Date	698	539	-22.8%	252	347	37.7%	212	255	20.3%

 

But what about prices and home values?       

Many of my colleagues have a feeling that prices are on an upswing, but on this point, I am not quite as optimistic.  The average and median home prices in Highland Park 2019 versus 2020 are relatively flat so far.  I will continue to monitor this.  Keep in mind that in 2019 prices dropped in Highland Park from 2018, by at least 10%.  This may be another factor driving the hot Highland Park market, in addition to incredibly low interest rates.

The number of showings each week within Highland Park was rather dismal in from the middle of March to the middle of May.  Since then, showings have skyrocketed well above the weekly numbers we had in 2019, in spite of the pandemic and recent protests.

Staying Safe While Buying or Selling a Home

Realtors are now allowed to do open houses with new rules and limitations. 

For buyers, be prepared to wear mask, and possibly gloves. You may be asked to sign a COVID disclaimer prior to a showing or before entering an open house.  In some situations, sellers will request that you have a virtual showing (broker walks through the house while you are watching on your phone or computer) or watch a 3D tour before you can schedule an in-person appointment.

Other than actually looking at homes, all other aspects of home buying can be done virtually without any in person contact.

For sellers, I can’t emphasize enough that your first showing is online. We have seen a major increase in online home searches.  This is what I have been doing to market the properties I have for sale to help keep everyone safe.  These procedures and tools allow buyers to see “more” of the property before making an in-person appointment, and thus eliminate trips to homes up front that don’t meet their needs:

• Floor plans required for all properties
• 3D tour for most properties
• If a prospective buyer would like a live virtual tour of the property, we can accommodate that too. This allows them to ask questions live while I am walking through the property.
• Social media – I am regularly posting all of the properties on social media with videos or the 3D tours.
• If someone wants to see an occupied property in person, after they’ve seen the video, 3D tour and floor plans, then the sellers and I work together to make it happen in an environment that is safe for everyone (masks, gloves, hand sanitizer). The seller or I will turn on lights and open doors and cabinets to minimize touching any surfaces. 
• @properties provided all of their brokers with a CORONA VIRUS SHOWING DISCLAIMER form that each prospective buyer and their brokers must sign in order to see any property that is occupied. The disclaimer basically states that the signer is aware of the risks and that they are currently symptom free and haven’t knowingly had contact with anyone that is ill
• Of course if a property is vacant, then it can easily be shown.

I am collaborating and brain-storming with clients and colleagues to discuss real-time solutions for specific situations.  That enables all of us to adjust to the changing environment that we are working in right now with new best practices for marketing and showing properties.   The real estate industry has quickly pivoted to provide as many services as possible electronically to keep all participants safe.  This includes document signing, appraisals, mortgage applications, closings and much more.

Please reach out to me if you have any questions about the market.