According to the data published by MRED LLC., there were 42 single family homes sold in Hinsdale during the month of June 2010,  that’s up 50% from the same month in 2009 when there were 28 single family home sales. Under 10% of these homes sales was a result of a short sale or foreclosure with only two of each.

For homes that sell, its taking about 200 days, which is pretty consistent to the average time its been taking to sell a home in Hinsdale in the year of 2010.  The selling price of the homes sold in June range from $162k  – $3.6mm.  In June, the sales were spread pretty evenly in all price ranges with 12 sales being over $1mm.  The majority of the homes sold in June were in Northeast Hinsdale.  Take a look at the distribution in the image below.

For more information on Hinsdale, including market conditions, visit our Hinsdale  page or you can find the details of all the homes sold on our Hinsdale Sales Data page.  And in keeping with my motto that laughter is the best medicine, take a look at the photo below that was used to market one of these homes.  Meow.

Home buyers in Chicago are almost always concerned about whether or not a particular neighborhood is safe or they may ask us for recommendations of a safe neighborhood. The only problem is that there is no simple way for us to provide advice on this subject so most realtors are going to avoid the entire subject – and I’m one of them. The reason for the difficulty is that there is limited objective data to begin with and opinions on relative safety are highly subjective anyway. In addition, if a realtor tells a buyer that a neighborhood is safe and that buyer later becomes a crime victim in that neighborhood then that realtor might have a problem. But let’s explore this topic a bit more.

There are Web sites like EveryBlock that provide lots of Chicago crime data, including maps of individual crimes. However, that interface leaves a lot to be desired and the different data views always seem to be either too granular or too aggregated. That’s why I turned to the Chicago Police Department Web site to provide me with an overview of crime by neighborhood. Their annual reports provide a great overview of crime in the city. 2008 is the most recent report available, with the 2009 report probably coming out in a few more months.

Reading through the report is rather educational because it highlights an important distinction between the different types of crimes. For instance, the only crimes reported by neighborhood are what the FBI refers to as index crimes. As the report says, “Index crimes are the combination of eight categories of crime, selected because of their seriousness and frequency of occurrence.” The eight categories, broken down into two groups, are as follows:

Violent Crime

• Murder
• Criminal Sexual Assault
• Robbery
• Aggravated Assault/Batter

Property Crime

• Burglary
• Theft
• Motor Vehicle Theft
• Arson

Noticeably absent from this list are prostitution, drug activity, graffiti, and disorderly conduct, which the FBI clearly does not see as being “serious” enough to qualify as index crimes. So this highlights perhaps the most subjective aspect of the concept of a “safe neighborhood” – what does “safe” mean exactly? I would guess that most people would not feel comfortable living in a neighborhood where there are lot of these non-index criminal activities going on, yet those crimes are not summarized at the neighborhood level by the Chicago Police department because they are not as serious. (They are available on the EveryBlock Web site, however.) In addition, many buyers look for other subjective clues as to whether or not a neighborhood is safe – e.g. are there a lot of adult males loitering on the street during normal work hours?

So, what do the index crime data tell us about relative neighborhood safety? You’d be surprised. I took the Chicago neighborhood index crime statistics from the annual report and normalized them for neighborhood population – i.e. what are the crimes as a percentage of neighborhood population, or what is the probability that you would become a crime victim in a particular neighborhood. The results are available in the two charts shown below.

Chicago Violent Crime By Neighborhood

Chicago Property Crime By Neighborhood

What you will notice is that some of this data runs counter to people’s intuition. For instance, I often hear people refer to Uptown or Hyde Park as being “dangerous” but according to this data you are more likely to become a victim of violent crime in the Loop than you are in either of these neighborhoods – and way more likely to become a victim of property crime. And you are more likely to become a victim of property crime in Lincoln Park than in either of these neighborhoods – because “that’s where the money is”. However, in all fairness, places like the Loop and the Near North Side have a huge influx of people every day that are not reflected in the population numbers and that invites more crime and thus skews the statistics.

By now you are getting a pretty good indication of just how complex this whole analysis is. That’s why if you ask me how safe a neighborhood is I’ll tell you to drive around at a few different times of day and visit a crime statistics Web site. But if you take that advice to heart you may just end up moving to Iowa.

122 Nuttall Rd, Riverside, IL 60546

Always on the lookout for opportunity, I spotted a beautiful home coming to the auction block on July 27, 2010.  Grand Estates is selling this home at an “ Absolute Auction”  with “No Minimum or Reserve – Regardless of Price”; that is,  free and clear of all liens.  Basically, you can name your own price to get this home.   If you think you are interested in bidding on this home, below are a few things you need to know/do.

• Schedule an appointment to look at the home during the preview period which starts July 23rd. 
• Review the extensive Property Purchase Package™ (PPP™) booklet that has been prepared to assist the buyers in evaluating and bidding on this property. The PPP™ is available for $75. 
• Register for the auction.  To register to bid, one must submit a $50k certified check made payable to the bidder or personal check along with bank letter of guarantee.
• 10% down payment will be due immediately after being declared the buyer.  (The registration fee is applied against the ten percent down payment)
• The balance is due in cash at closing within 30 days 
• A “Buyer’s Premium” is added to your bid.  How much?  7.5% will be added to the winning bid price. So basically, in this case, the BUYER and not the seller is paying the real estate commission, marketing costs, etc.  in this transaction.  The auction house is kind enough to offer a  cooperating commission of 3%.  Of course, if you work with us on the purchase we would rebate you over $25K from our commission!

More about the house…..

Built in 2003 and originally listed on the MLS in 2007 at $3.85mm, this Orren Pickell designed and built home offers a breathtaking mixture of imported stone,wrought-iron works and  one-of-a kind architectural detailing.  Six bedroom suites, great room, media room, family workshop, dual utility rooms and wine cellar are coupled with state-of-the-art media and electrical components. Despite all that it brags, the home sat on the market for over four years.   

Property Features

• 6 Bedrooms
• 7  full and 2 half Bathrooms
• Heated Freeform Pool with Waterfall Spa
• Gourmet Kitchen with Viking & Sub-Zero Appliances
• SmartHome System w/8 Programmable LCD - Displays Control: Lighting, HVAC, Security, Audio/Video, Pool/Spa
• Home Theater
• Library
• Wine Cellar w/ Tasting Area
• Gameroom w/ Kitchenette
• Home Gym
• Oversized, Heated 3.5 Car Garage

The most expensive listing on the MLS in the town of Riverside is a $1.35mm - 13 room home with 5 bedrooms and 4.5 baths.  The most expensive sale in Riverside is 1.725mm in September of 2006 and that home has 11 rooms  with 5 bedrooms and 4.5 baths. 

It will be interesting to see how much this home fetches.  My guess is that someone will be happy to snap it up at $1.5mm.  Before jumping in to purchase, be aware that the current tax bill is $56k per year.

I asked John Reim, from Bee Sure Home Inspection Services, to write a guest post this week on how to choose a home inspector. As with real estate attorneys, your realtor may have recommendations but you need to be armed with a bit more information so that you are not at the mercy of your realtor. After all, your realtor may have a fairly obvious agenda.

A home inspection is a comprehensive visual examination of the physical structure and systems of a home, from the foundation to the roof.  A home inspector is trained to be a detective in regard to the construction and working parts of homes.

Buying a home can be stressful and requires countless important decisions.  When you find a house you should hire a thorough home inspector to inspect the condition of the home and give you a detailed home inspection report.  Hiring a home inspector is a wise decision, even when buying a newly constructed home.  Having a detailed inspection report before you move in will prepare you for any potential problems and set your mind at ease.

Why hire a home inspector?

A home purchase may be the largest investment of your life.  Before you purchase the property you should learn as much as you can about the home and its systems, including what may need to be repaired and what kind of lifespan is remaining on the major systems.

A home inspection will also point out the positive aspects of a home, as well as required ongoing maintenance that will be needed to keep the property in good shape.  By having a professional home inspection you will have a clearer understanding of the home you are purchasing so you can make a confident decision.

What if the home inspection reveals problems?

If a home inspection reveals problems it does not necessarily mean you should not purchase the home.  The home inspection is meant to educate you in advance of the purchase of the condition of the property.  Quite often, a home inspection and its findings become a vital tool in the negotiation process between the buyer and seller of the property.  A home inspector is barred by law from providing an opinion to the question “should I buy this house?” or “if it were you, would you buy this house?”  Ultimately it is up to the buyer, their agent, and the attorney to decide which inspection items you wish to pursue for repairs or credits.  It is suggested that you try to avoid minor items and pursue the larger items in order to avoid unnecessary conflicts.  Keep in mind that there is no such thing as a “perfect house” and all homes have some type(s) of deficiencies.  It is your responsibility to be an informed buyer.  You should always be sure the house you purchase is satisfactory.  A careful examination of your potential new home is crucial in this process and could save you a great deal of money in the long run.  Potential problems that are identified in the inspection will often require further evaluation by specific specialists (i.e. HVAC professionals, Electrical Contractors, Roofing Specialists) to determine courses of action for repair/replacement or cost estimates.  The inspector is not a specialist, but is rather a generalist, with training and education which can help them identify potential problems with the major systems of your home.

How do I choose a Home Inspector?

What will it cost?

First, always take the time to research any home inspectors you consider hiring.  The most common question a home inspector receives during the hiring process is “how much does the inspection cost?”  This is often the first question asked as most homebuyers are unaware of what else to ask.  Keep in mind that home inspections are similar to other purchases that you make on an everyday basis, in that you often get what you pay for.  Since a home is without a doubt the single largest investment you will ever make it does not make sense to skimp on the inspection in order to save a few dollars.  Beware that like in any other business there are inspectors out there that will do your job on the cheap in order to make a quick dime.  The risk with this is of course having an inspection that is not overly thorough and might just do what is required to meet the minimum standards.  Though cost is certainly a relevant question, there are many other more important factors to consider when choosing an inspector.

How long have you been inspecting houses?

Ask your potential inspector how long they have been in business.  Many “newbie” inspectors will charge lower fees but may have very little experience when it comes to performing residential inspections.  These inspectors may or may not be around a year or two down the road to answer questions or address potential problems should they arise.  Ask how long they have been inspecting homes and how many inspections they have performed.

Is the inspector licensed?

Do not hire an inspector that is not fully licensed.  Though the state does a fairly good job of regulating the inspection industry, there are still incidences where inspectors are performing inspections without proper state licensing.  This is illegal and should you find an inspector who is not licensed you are encouraged to report them to the Illinois Department of Professional Regulation.  State licensed inspectors are required to follow a strict guide of ethics and inspect to state standards.

Is the inspector fully insured?

It is a good idea to make sure your inspector is fully insured to protect your investment.  A reputable inspector should carry both general liability and errors and omissions insurance.  This protects the buyer should the inspector accidentally miss something critical during the inspection process.

What is the inspector’s background and history?

Get some background on your potential inspector.  For instance, find out what they did prior to becoming a home inspector.  Though not required, an inspector with past experience in the building trades would be a better candidate than one who was previously a circus clown.  Some inspectors may have previously been tradesman in certain areas such as plumbing, electrical, or HVAC.  Though they may have extensive knowledge of these particular systems, keep in mind that a good inspector is knowledgeable in all areas of the home.  If you know of particular areas of concern with the home you are considering, it might be wise to find an inspector who may have extensive experience in that area.  For example, if the home has a history of water infiltration you may want to consider an inspector who has knowledge of water intrusion or mold assessment.

What type of report does the inspector provide and what is in it?

Some inspectors provide low quality hand written checklist style reports.  Though this was standard in the industry ten to fifteen years ago, times have changed.  Quality inspectors now provide clear streamlined computerized reports which can be delivered quickly via electronic means.  Reports should not be limited to basic checklists, but should contain written comments and summaries on the home and its systems.  Reports should contain detailed information on each system including the condition, the age, and possibly the life expectancy of particular systems.  It also is a good idea to have an inspector that provides digital photographs of the inspection, as this provides further documentation of potential deficiencies of certain systems and can help clarify exactly where and what the potential problem may be.  This is useful especially for attorney review of the report, and to help the seller identify what may need to be repaired prior to closing.

Is the inspector affiliated with any professional organizations?

It is a good idea to choose an inspector who is affiliated with a reputable national or local inspection organization.  Associations such as NACHI (The National Association of Certified Home Inspectors), ASHI (American Society of Home Inspectors), and NAHI (National Association of Home Inspectors) all have very high qualifications for membership.  These inspectors will often inspect to a level above and beyond what the minimum state requirements may be.  Typically they also require their members to fulfill continuing education requirements that are also well above state minimums.  Member inspectors have to follow strict codes of ethics and pass routine examinations in order to maintain membership status.

Referrals

The best way to choose an inspector often is to ask friends, relatives, or co-workers who may have recently had an inspection performed who they used and how their experience was.  Would they recommend that inspector or suggest you look elsewhere?  Sometimes a realtor or real estate attorney may have suggestions on who to use.  This is a fine source of information, but you are encouraged to do your own research on the inspector.  Find out why they recommend the inspector as opposed to someone else.  Quite often you will find there may have been an instance or instances where these inspectors may have done a stand up job or went above and beyond the call of duty in order to protect the interests of their clients.  It is also perfectly acceptable to ask your potential inspector for a list of references or client testimonials.  This may help in your decision making process.

John Reim
Bee Sure Home Inspection Services, LLC
389 Rock Hall Circle
Grayslake, IL 60030
(773)425-8275
jrinspect1@gmail.com