Posts in category "Transaction Process"

Writing A Home Offer Letter To Win In Multiple Bid Situations

Writing A Home Offer Letter To Win In Multiple Bid Situations
In hot markets throughout the country, where home buyers are running into multiple bid situations, buyers often write home offer letters in an attempt to persuade the sellers to give them the edge – even over buyers offering more money. Frankly, it doesn’t even have to be a multiple bid situation since you could use... Read more »

What Happens To Earnest Money When A Real Estate Contract Falls Apart?

What Happens To Earnest Money When A Real Estate Contract Falls Apart?
In all the years we’ve been in business we’ve done hundreds of real estate transactions so we’ve seen our share of deals fall apart. In the Chicago market I estimate that 15 – 20% of all contracts written die on the vine and I believe our own experience is relatively consistent with that. Out of... Read more »

Hundreds Of Millions Pouring Into New Real Estate Business Models

Hundreds Of Millions Pouring Into New Real Estate Business Models
The smart money knows that the traditional real estate model is broken and dying. It was designed for a time when information about homes was hard to come by and everyone depended upon their local realtor who relied upon voluminous binders of listings. A dramatic change is long overdue. That’s why new real estate business... Read more »
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Real Estate Negotiation Myths And Reality - When Selling A Home

Real Estate Negotiation Myths And Reality - When Selling A Home
It turns out that you can understand a lot about what happens in the real estate industry by just trying to answer one simple question: Why are real estate commissions so high? And the mythology around the real estate negotiation process is a perfect example because one of realtors’ chief value propositions is that with... Read more »

What The Chicago Property Tax Increase Means For Your Real Estate Deal

What The Chicago Property Tax Increase Means For Your Real Estate Deal
2015 is a double witching year for Chicago property taxes. First you have the triennial (once every 3 years) property reassessment going on, which can have a significant impact on individual property taxes. Then you also have this whole $543 MM property tax increase that just got approved and that will possibly impact everyone’s property... Read more »

Too Much Time Shopping For A Mortgage Can Cost You That Home You Want To Buy

Too Much Time Shopping For A Mortgage Can Cost You That Home You Want To Buy
Let’s say you’ve been shopping for a home for a few months and you finally found one you like. You’ve negotiated the purchase price and you are now under contract. You probably think it’s all downhill from here and you have nothing to worry about. All  you need to do now is finish shopping for... Read more »
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An Appraiser Responds To My Post On Bad Real Estate Appraisals

An Appraiser Responds To My Post On Bad Real Estate Appraisals
My post last week on Bad Real Estate Appraisals And The Appraisers Who Create Them got a lot of interest among appraisers and generated a ton of comments from them (go figure!). However, I received one particularly long and well articulated comment from one appraiser who ran into technical difficulties trying to post his comment.... Read more »

Bad Real Estate Appraisals And The Appraisers Who Create Them

Bad Real Estate Appraisals And The Appraisers Who Create Them
Every so often a real estate transaction can be a bit like Alice In Wonderland – especially when it comes to real estate appraisals. You see, in order for a buyer to get a mortgage his/ her lender has to appraise the property to ensure that it will provide adequate collateral for the mortgage. The... Read more »

Your First Offer Is Your Best Offer - Fact Or Fiction?

Your First Offer Is Your Best Offer - Fact Or Fiction?
When home sellers get their first offer* they are very likely to be told by their real estate agent that the first offer is the best offer – and real estate agents state this as though it’s a statistically validated fact. It’s part of the real estate mythology that is repeated like a mantra. But... Read more »
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For Sale By Owner: The Alternatives You May Not Have Considered

For Sale By Owner: The Alternatives You May Not Have Considered
As I’ve recently posted there can be good reasons for going the for sale by owner route but there can also be plenty of legitimate reasons for not doing it (as opposed to the many bogus reasons often given by real estate agents). However, you’re not limited to just two alternatives at opposite ends of... Read more »