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 $195,540City 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 $203,682Lincoln 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 $903,870Irving 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 $252,361Rogers 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, firstname.lastname@example.org
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.Â 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
Youâ€™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 sellerâ€™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 Lenderâ€™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 buyerâ€™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 â€“ 03/12 time period only 25% of single family listings in the Irving Park (MLS 8016) Market sold.Â Simple math 100 listings, 25 sold (got a commission), and 75 did not sell (no commission).Â WHY? Contact me for the answer(s).
How many Expired listing did your office have this year?
FYI review section 1450.900 of the Illinoisâ€™ 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- email@example.com
Lost Real Estate Commisions
Single Family, 34% sold, unsold 66%, avg. sale $270,169, @5% $13,408
Attached, Â Â Â 20% sold, unsold 80%, avg. sale $Â 89,689, @5% $Â 4,484Â
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
Single Family, 30% sold, unsold 70%, avg. sale $284,121, @5% $14,206
Attached, Â Â Â 23% sold, unsold 77%, avg. sale $284,121, @5% $Â 3,290
Â 2-4 units, Â Â 19% sold, unsold 81%, avg. sale $300,476, @5% $15,024
Total $32,520Â Â Â Simple math 300 listings = 72 sales, 228 not sold
Single Family, 34% sold, unsold 66%, avg. sale $761,219, @5% $38,061
Attached, Â Â Â 23% sold, unsold 77%, avg. sale $183,145, @5% $Â 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
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 $64,166Â Â Simple math 300 listing = 86 sales, 214 not sold
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 $80,642Â Â Â Simple math 300 listings = 108 sales, 192 not sold
Single Family, 33% sold, unsold 67%, avg. sale $1,121,125, @5% $56,056
Attached 36% sold, unsold 64%, avg. sale $Â Â 337,849, @5% $16,892
2-4 units 27% sold, unsold 73%, avg. sale $Â Â 579,040, @5% $28,952
Total $101,900Â Â Â Simple math 300 listings = 96 sales, 204 not sold
MLS 8007 Â Â Â
Single Family,Â 35% sold, unsold 65%, avg. sale $1,980,037, @5% $99,002
Attached 37% sold, unsold 63%, avg. sale $Â Â 413,428, @5% $20,671
2-4 units 21% sold, unsold 79%, avg. sale $Â Â 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.
BasedÂ on the simple math data there were 2,100 listing units, of these listings 606 units soldÂ
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 struckÂ out 1,494 times. Contact me if you want to improve yourÂ batting average.
The number one reason why a listing unitÂ is not aÂ 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, ConsultantÂ
Illinois's licenses, Certified RE Appraisal & RE Managing Broker
773 685 8300Â
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:
Record Keeping 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.
"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."
"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