Marty Phelan

Hey Ryan! Seems like there's people chiming in from around the country - so I'll point out that I am in Chicago, which seems to be your primary interest. As you no doubt know, real estate is truly a local business, and that can be highlighted by the fact that there are areas of the country that are experiencing a seller's market right now! Chicago, however, is not a very strong seller's market - but have certainly not "tanked" as some might have you believe. Remembering the local nature, however, your choice in neighborhoods will have a lot to do with how low of a price you can get. For example, downtown neighborhoods such as the West Loop, Lakeview, etc, are seeing gains in the median sales price compared to last year (focusing on the organic "re-sale" market, meaning not including new construction). New construction is still typically more expensive in these neighborhoods, too. Certain suburbs may not be able to claim the same success. But to directly answer your question about why someone should buy... With interest rates being where they are, this should be an attractive opportunity for you - even if prices drop a little bit. Consider that if the prices fall, and interest rates rise - your monthly payment may in fact increase! It's always a strange paradox that when properties are selling like hot cakes and smashing sales records most people can't wait to buy a home or upgrade- even if it means paying top-dollar. Then when prices level off or correct themselves there is terrible trepidation and fear. In othger words - it's not called a waiter's market...nor is it called a looker's market...it's called a buyer's market. Good luck, and if you are interested in seeing my first-quarter report on the downtown Chicago areas, let me know and I'll be happy to send it. Take care! - Sat May 17 2008, 14:25

Hi, Trish! The listing agent of the home you are interested in likely has a commission schedule (it's reasonable to assume it's between 5-6% of the sale price) in place with the seller. If that agent is going to act as a fully authorized "dual agent" then they will simply receive the fee without having to "share" with a co-operating buyer's agent. Ultimately, what should be at the forefront of your mind is that you are getting the best representation possible to ensure that you will be paying no more than a fair market value for the home - in other words, that you are actually getting the best possible price for that home. When you ask what you have "to negotiate with" my advice would be to make sure your negotiations are based primarily on the market data surrounding the value of the home itself - and include the commission question as secondary. After all, what good would it be to get a little knocked off the commission if you wind up overpaying for the home? You could be setting yourself up for that type of scenario by not using an agent on your side - so "caveat emptor" (let the buyer beware!). Equally so for using that agent for selling your home. I say that only because as a seller in this market, it would be advantageous to do some homework and interview a few different agents to really determine who's going to be the best person to help you reach your goals. In closing, a good buyer's agent will MORE than validate their commission received by ensuring that you have gotten the best possible price for that home, quite possibly a better price than you may be able to negotiate on your own - which would mean that you're still coming out ahead! Good luck to you! - Sat May 17 2008, 14:10

Dan, anytime you're hearing data on the real estate market being presented it's important to remember 2 things; 1) Real estate is a local market - always will be. Believe it or not there are some parts of the country experiencing a seller's market right now! 2) Be sure you know exactly what stats are being presented. For example, is that 10% a decrease in median sales price or average sales price? There is a difference. To more directly answer your question however, the West Loop and West Town markets are doing nicely. Although the number of units sold in the first quarter of 2008 is down in both areas, the median sales price has gone up 7% in both areas. I've also seen a decrease in market times. NOTE: This is not including new construction - only "re-sale" transactions as compared to 1Q07. So there is data out there to refute the claim that prices are even falling at all, much less will they continue to fall. Are there people losing money? Sure, if they significantly overpaid or took out all of their equity. All in all, despite the media's representation, the Chicago market is holding up nicely. I have a detailed report coming out shortly outlining the 1Q08 performance, and if you'd like one just let me know! Good luck with everything! - Marty - Tue May 6 2008, 20:43

I've heard good things about On Target, and as an additional resource I'd suggest you check out the resources made available at millionairesystems.com. That site is run by the authors of The Millionaire Real Estate Investor, which in itself is a phenomenal resource. - Fri Feb 29 2008, 16:06