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Jack Schlenk's Blog

By Jack Schlenk | Appraiser in Chicago, IL
  • Will My listing Sell if the price is right?

    Posted Under: Market Conditions in Cook County, Home Buying in Cook County, Home Selling in Cook County  |  November 13, 2013 10:58 AM  |  956 views  |  2 comments
    Cook County  11/12 -11/13: Listings

     Detached single = 27% sold, and 73% expired, Avg List price Sold $274 034
     Attached single =  29% sold, and 71% expired, Avg List price Sold $250,469
      2-4 units  = 15% sold, and 85% expired, Avg List price Sold $195,540

    City of Chicago 11/12 -11/13 Listings
    Detached single = 23% sold, and 77% expired, Avg List price Sold $274,740
    Attached single  = 30% sold, and 70% expired, Avg List price Sold $327,004
    2-4 units = 15% sold, and 85% expired, Avg List price Sold $203,682

    Lincoln Park 11/12 -11/13 Listings

    Detached single = 40% sold and 60% expired, Avg List price Sold $1,640,600
    Attached single  = 48% sold and 52% expired, Avg List price Sold $540,063
    2-4 units = 25% sold and 75% expired, Avg List price Sold  $903,870

    Irving Park 11/12 -11/13

    Detached Single = 35% sold and 65% expired, Avg List price Sold $367,396
    Attached Single  = 25% sold and 75% expired, Avg List price Sold $153,790
    2-4 units = 22% sold and 78% expired, Avg List price Sold $252,361

    Rogers Park 11/12 -11/13 Listngs

    Detached Single = 34% sold and 66% expired, Avg List price Sold $406,530
    Attached Single  = 23% sold and 73% expired, Avg List price Sold $114,996
    2-4 units = 21% sold and 79% expired, Avg List price Sold $361,875

    To sell your listing it must be price right.

    Contact Jack Schlenk for the right list price to sell your listing.
    773 685 8300, jack327@sbcglobal.net
  • Appraisal for Real Estate Tax Protest

    Posted Under: Market Conditions in Chicago, Home Buying in Chicago, Property Q&A in Chicago  |  May 3, 2012 7:28 AM  |  819 views  |  No comments
    Appraisal for Real Estate Tax Protest
    I just finished an Appraisal Report for a property in the Lincoln Park area of Chicago.

    The Appraisal Report " Table of Contents"

    Appraisal Report for the subject building; pages 1-4
    Additional Comparables; page 5

    General Text Addendum comments; pages 6-8
    Subject Photos; pages 9-18

    Comps 1-3 Photos; page 19
    Comps 4-6 Photos; page 20
    Rental 1-3  Photos; page 21

    Building Sketch; page 22
    Location Map  page 23

    MLS Listings Sheets for Comps 1-6 & 1-3 Rental listings; pages 24-32

    Market Stats; page 33
    Value Range Stats; page 34

    Subject Stats; pages 35-37
    Assessor data; page 38
    Estimate Tax bill data; page 39

    License(s) Certified RE Appraiser & RE Managing Broker; page 40

    All of my Real Estate Appraisal Reports will contain most of the above data.
    Question, does your Appraisal Reports contain any part of the above information/ data?

    Jack Schlenk
    7732 685 8300; jack327@sbcglobal.net
  • Cook County Assessor Market Value

    Posted Under: Market Conditions in Chicago, Home Buying in Chicago, Home Selling in Chicago  |  April 20, 2012 6:01 AM  |  834 views  |  No comments
    Commissioners Larry Rogers,Jr, Don Patiak, Michael M Cabonargi

    Thank you and the Cook County Board of Review for reviewing my Real Estate Appraisal, and the attached documentation for the market values in the County, the City, the Township, the Neighborhood, and the MLS.

    Based on the submitted data you were able to reduce my Assessor's market value by 25%.

    Thank You

    Jack Schlenk
    Illinois License(s) Certified RE Appraiser, & RE Managing Broker
    773 684 8300, jack327@sbcglobal.net
  • Appraisal Red Flags for Realtors

    Posted Under: Market Conditions in Chicago, Home Buying in Chicago, Home Selling in Chicago  |  April 16, 2012 1:24 PM  |  1,387 views  |  No comments
    Appraisal Review

    The Realtor's RED FLAGS for a quick Appraisal review to confirm and or not confirm that the Real Estate Appraisal is creditable.

    Review the Appraisal Report Section "Neighborhood".

    Reference the local MLS Market Statistics. Did the MLS statistics data support the Neighborhood sections?

    A Realtor friend ask me to look an Appraisal Report. Based on the Appraisal Report Neighbor Section the Red Flags; 

    81
    % of the housing sales, were below the Appraisal Report predominant dollar amount. The report high dollar amount was 25% below the market high dollar amount.

    67% of the housing sales, the average days exposed to the market were below 6 months.
    The Neighborhood Report section over 6 month's box was checked.

    The market had 5 months of inventory. The over supply box was checked.

    The present median values was 1,0722% higher than the prior year
    The present average values was 1.0577% higher than the prior year

    Decrease in sales 23.83% present year to prior year.

    All of the above correct data is available from the MLS data base. It appears the Report Appraiser made a guess at the Neighborhood sections numbers.

    In the addenda pages of the Appraisal Report there should be data to support the report statements and conclusions. There was no addenda support data for the neighborhood
    sections in this report.

    How would you, the reader, advise my friend?

    Jack Schlenk
    RE Value Consultant
    773 685 8300
  • Appraisal Reports for Real Estate listings

    Posted Under: Market Conditions in Chicago, Home Buying in Chicago, Home Selling in Chicago  |  March 30, 2012 12:09 PM  |  785 views  |  1 comment

    Irving Park area, MLS 8016, Real Estate Market 03/2012

     

    168 single family sales 03/2012,

    Average sales price $297,175, final sold list price $316,181, the original list $434,632.

    The avg. market time was 171 days = 5.7 months

     

    The single family sales price was 6% below the final sold list price and 31.63% below the original list price.

     

    The 3 bedroom sales price was 5.55% below the sold final list price and 33.81% below the original list price.

     

    There were 51 Active 3 bedrooms listings, the avg. price $350,000; the average market time was 291 days = 9.7 months.  The avg. list price was $89,532, or 25.58% above the avg. sales price of $260,486.

     

    The 3 bedroom avg. final list price was $252,632, this was $13,422 or 5.31% above the avg. sales price of $239,210.

     

    A recent property sale was on the market for 7.56 months. The final sales price was 13.76% less then the original price.

     

    The prior sale had a 5% Mortgage, the mortgage interest payments for 7.56 months were approx $7,400 or $978.84 per month.

     

    For your listing clients who are sure they have the best property in the area therefore it should sell at the top dollar. You the RE Agent should recommend to these clients and

    You’re other clients and customers that they order a pre listing RE Appraisal report.

     

    The pre list RE Appraisal report has many uses, three are;

    1. The report could convince the seller to set a reasonable list price. The reasonable list price should draw a buyer(s) that may purchase the property; therefore a quicker sale will save the seller’s mortgage interest fee dollars.

     

    2. The RE Appraisal report could be used for negotiation the purchase price.

     

    3. Compare the pre list RE Appraisal report data to the Lenders appraisal report data to confirm or not confirm the creditable of the lenders appraisal report. You the RE agent could at the property appraisal inspection present the listing RE appraisal report to the Lender’s appraiser who may and may not know the subject area market values.

     

    The property owner must engage and pay the RE Appraiser report fee. At closing the property owner is reimbursed the appraisal fee by the listings office and the buyer’s office.

     

    The four way split is the two Managing Brokers and the two Broker agents.

    Assume a $400 appraisal fee for a $300,000 sale. At 5%, ($15,000) commission equals $3,750 for each party. Each party would pay $100 dollars to the seller. Would you spend $100 for $3,750?

     

    In the 03/11 – 03/12 time period only 25% of single family listings in the Irving Park (MLS 8016) Market sold.  Simple math 100 listings, 25 sold (got a commission), and 75 did not sell (no commission).  WHY? Contact me for the answer(s).

     

    How many Expired listing did your office have this year?

    FYI review section 1450.900 of the Illinois’ RE License Act

    Please review the many other articles on my blog.

     

    Jack Schlenk, Real Estate Value Consultant

    IL.Licenses; Certified RE Appraiser and, Managing RE Broker

    773 685 8300, email- jack327@sbcglobal.net

     

     

     

     

     

  • Lost Real Estate Commisions, 01/01/11 -12/31/11

    Posted Under: General Area in Chicago, Home Buying in Chicago, Home Selling in Chicago  |  February 28, 2012 11:20 AM  |  1,035 views  |  1 comment

    Lost Real Estate Commisions

    MLS 8001
    Single Family, 34% sold, unsold 66%, avg. sale $270,169, @5% $13,408
    Attached,     20% sold, unsold 80%, avg. sale $  89,689, @5% $ 4,484 
    2-4 units, 21% sold, unsold 79%, avg.sale $296,936. @5% $14,847
    Total $32,739 Simple math 300 listings = 75 sales, 225 not sold

    MLS 8002
    Single Family, 30% sold, unsold 70%, avg. sale $284,121, @5% $14,206
    Attached,     23% sold, unsold 77%, avg. sale $284,121, @5% $  3,290
     2-4 units,    19% sold, unsold 81%, avg. sale $300,476, @5% $15,024
    Total $32,520    Simple math 300 listings = 72 sales, 228 not sold

    MLS 8003
    Single Family, 34% sold, unsold 66%, avg. sale $761,219, @5% $38,061
    Attached,     23% sold, unsold 77%, avg. sale $183,145, @5% $  9,147
    2-4 units, 19% sold, unsold 81%, avg. sale $396.334, @5% $19,817
    Total $67,035 Simple math 300 listings = 76 sales, 224 not sold

    MLS 8004
    Single Family, 32% sold, unsold 68%, avg. sale $545,403, @5% $27,270
    Attached 31% sold, unsold 69%, avg. sale $193,825, @5% $ 9.691
    2-4 units 23% sold, unsold 77%, avg. sale $384,182. @5% $19,259
    Total $64,166   Simple math 300 listing = 86 sales, 214 not sold

    MLS 8005
    Single Family, 43% sold, unsold 57%, avg. sale $818,046, @5% $40,902
    Attached 40% sold, unsold 60%, avg. sale $352,740, @5% $17,637
    2-4 units 25% sold, unsold 75%, avg. sale $442,268, @5% $22,113
    Total $80,642    Simple math 300 listings = 108 sales, 192 not sold

    MLS 8006
    Single Family, 33% sold, unsold 67%, avg. sale $1,121,125, @5% $56,056
    Attached 36% sold, unsold 64%, avg. sale $   337,849, @5% $16,892
    2-4 units 27% sold, unsold 73%, avg. sale $   579,040, @5% $28,952
    Total $101,900    Simple math 300 listings = 96 sales, 204 not sold

    MLS 8007    
    Single Family, 35% sold, unsold 65%, avg. sale $1,980,037, @5% $99,002
    Attached 37% sold, unsold 63%, avg. sale $   413,428, @5% $20,671
    2-4 units 21% sold, unsold 79%, avg. sale $   656,885, @5% $32,844
    Total $152,517 Simple math 300 listing = 93 sales, 207 not sold

    Based on a 5% commission, if a Real Estate office sold one sale in each catgegory. (21 sales)
    the revenue would be: $498,790. Assume a 50-50 split, the listing and sales offices, $249,395
    each, 2 agents $124,698 each.

    Based on the simple math data there were 2,100 listing units, of these listings 606 units sold 
    and 1,494 units not sold.(28.86% of the listing sold, and 71.14% did not sell.)

    If the listing agents were playing baseball, they had 2100 appearances at home plate and struck out 1,494 times. Contact me if you want to improve your batting average.

    The number one reason why a listing unit is not a sale is the "PRICE".

    There is not a 100% formula to price a property. The best way to price a property is to use the Appraisal Principle of Substitution; The value of an article does not exceed the value of an acceptable substitute.

    I recently did an purchase appraisal for a property. The appraisal value was 9,5% less than the contract price. The main reason the appraisal value was less than the contract price was the
    Principle of Substitution.

    The comparable sales were within .5 mile of the subject property. The said properties had similar amenties, room and bath count. The comparable properties were give minus adjustments for dollar concessions to the buyer, superior parking and a time adjustment.

    Also consideration was the market data 5% difference between the final list price and the the sale price.

    Please review my articles on Jack Schlenk blog and web site WcuAppraisals.com

    Jack Schlenk, Consultant 
    Illinois's licenses, Certified RE Appraisal & RE Managing Broker
    773 685 8300 

     
  • USPAP 2012 - 2013 Standards of Professional Appraisal Practice

    Posted Under: Home Buying in Chicago, Home Selling in Chicago, Foreclosure in Chicago  |  January 18, 2012 10:51 AM  |  3,216 views  |  No comments
    USPAP - Uniform Standards of Professional Appraisal Practice
    Did your Real Estate Appraisal meet the Standards?

    The Financial Institution Reform, Recovery & Enforcement Act of 1989 requires USPAP
    compliance for appraisers in federally related transactions.

    Real Estate Appraisers are required to attend a 7 hour USPAP update course every two years.

    The 2012 -2013 USPAP Edition has: 6 Revisions, Appraisers should know what they are.
    Table of Contents:
    Definitions
    Preamble
    Ethics Rule
    Record Keeping Rule
    Competency Rule
    Scope of Work Rule
    Jurisdictional Exception Rule

    Standards and Standards Rules
    Standard 1 - Real Property Appraisal Development, 6 rules
    Standard 2 - Real Property Appraisal Reporting, 4 rules
    Standard 3 - Appraisal Review, Development and Reporting, 6 rules
    Standard 4 - Appraisal Consulting, Development, 2 rules
    Standard 5 - Appraisal Consulting. Reporting, 4 rules
    Standard 6 - Mass Appraisal, Development and Reporting, 9 rules

    Standards 7 & 8, Personal Property Appraisal Development & Reporting
    Standards 9 & 10, Business Appraisal Development & Reporting

    Plus - Guidance from the Appraisal Standards Board
      USPAP- Advisory Opinions
      USPAP- Frequently Asked Questions

    APPRAISAL REVIEW; The act or process of developing and communicating an opinion about
    the quality of another appraiser's work that was performed as part of an appraisal, an appraisal  review, and or an appraisal consulting assignment.

    COMMENT; The subject of an appraisal review assignment may be all or part of a report, work file, or a combination of these.

    STANDARD 3
    "In developing an appraisal review assignment, an appraiser acting as a reviewer must identify
    the problem to be solved, determine the scope of work necessary to solve the problem and correctly complete research and analyzes necessary to produce a credible appraisal review. In reporting the results of an appraisal review assignment, an appraiser acting as a reviewer must communicate each analysis, opinion, and conclusion in a manner that is not misleading."

    Standards 3-3
    "In developing an appraisal review, a reviewer must apply the review methods and techniques that are necessary for credible assignments results"

    1. The reviewer develops opinions and conclusion about the quality of the work.
    2. The reviewer develops an opinion of value for the subject property,
    3. The reviewer then communicates the opinions and conclusions developed in the first two steps in the report.

    There are section(s) in an appraisal report that will reveal if the appraisal report is credible and or not credible. An appraisal report that is not credible and/or misleading would require a full appraiser review. Did the subject's appraisal report explain the subject's market area and the values in that market area?.

    All of the appraisal report data should be supported and explained with the information sources
    and market data sources in the addenda pages of the report. All opinions and conclusions in the appraisal report(s) must be explained and supported by the listed reference sources in the appraisal report(s). Was this data in your appraisal report?
     
    Reports with boiler plate,and generic remarks may not support the the opinions and values in the appraisal report. If your appraisal report has generic remarks and lacks hard data to support the appraisal report opinions and conclusions the report may not be credible.

    Question; if the appraisal report is not credible (worthy of belief) can that appraisal report be used in a Federal Transactions 

    FYI. I Completed the USPAP 7 hour update course 01/01/2012 -12/31/2013 in November 2011

    Jack Schlenk, Consulant and Review Appraiser
    Illinois License(s) Real Estate Certified Appraiser & Managing Real Estate Broker
    773 685 8300
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