ANCHOR: IF YOU’RE A HOMEOWNER, YOU’RE PROBABLY AWARE THAT HOME PRICES HAVE SOARED IN THE CHICAGO METRO AREA DURING THE PAST DECADE.
ANCHOR: WGN’S MONEY SAVING EXPERT ILYCE GLINK TELLS YOU HOW TO MAKE THE MOST OF YOUR LARGEST INVESTMENT.
ILYCE: GOOD EVENING. FOR MOST PEOPLE, BUYING A HOME IS THE SINGLE MOST IMPORTANT INVESTMENT THEY WILL EVER MAKE — BUT IF YOU DON’T BUY SMART, LIVE SMART, AND SELL SMART, YOU COULD BE LEAVING MONEY ON THE TABLE. IN TONIGHT’S COVER STORY, WE OPEN THE DOOR TO A NEW WAY OF THINKING ABOUT HOW YOUR HOME WILL MAKE YOU RICH.
STOCK MARKET BELL AT THE CLOSE
STOCK MARKET INVESTORS HAVE REALLY BEEN HAMMERED OVER THE PAST THREE YEARS. BUT EVEN IF YOUR STOCKS AND BONDS HAVEN’T FARED WELL, IT’S LIKELY YOUR SWEET HOME IN CHICAGO HAS SUBSTANTIALLY INCREASED IN VALUE.
MICHELLE BROWNE, MAC BROWNE & ASSOC: I would say anybody from us who’s bought in the last 4 to 5 years, no question that they made money. Most have probably doubled their money.
RICK DRUKER, MANAGING BROKER BAIRD & WARNER: “People have doubled, tripled the purchase prices . . . If you take into effect your initial investment might be 10 percent of the purchase price, it could be 1,000 percent that people have earned in the last five years on their investments.”
SO WHAT CAN YOU DO TO MAKE SURE YOUR HOME MAXES OUT IN VALUE? EASY. YOU’VE GOT TO BUY SMART, LIVE SMART AND, FINALLY, SELL SMART.
RICK DRUKER, MANAGING BROKER, BAIRD & WARNER: “It’s sort of the old maxim, location, location, location.”
JUST ABOUT EVERY NEIGHBORHOOD HAS THE POTENTIAL TO BE YOUR HOUSING POT OF GOLD. URBAN PIONEERS, LISTEN UP.
MICHELLE BROWNE, MAC BROWNE & ASSOC: “Buy near transportation. Buy near the lake in Chicago. Buy near another neighborhood that has been hot. Buy a home that has good bones, good features, good lines.”
THE FOLKS SELLING THIS CONDO ON WEST ALBION MADE A LOT OF SMART MOVES. THEIR PLACE HAS HIGH CEILINGS, WOOD FLOORS, AND LOADS OF LIGHT. FOR A FEW THOUSAND DOLLARS THEY ADDED FANCY APPLIANCES AND A SMOOTH, CLEAN LOOK THAT APPEALED TO FUTURE BUYERS.
ILYCE: WHAT DID THEY PAY FOR THIS PLACE?
STEVE: THEY PAID AROUND $140,000 IN THE LOW $140s AND THAT WAS FOUR YEARS AGO
ILYCE: AND THEY’RE SELLING IT?
STEVE: AND THEY’RE SELLING IT RIGHT AROUND $230, A LITTLE OVER $230,000.
THAT’S ALMOST $90,000 IN TAX-FREE PROFIT, AND THEY HAD A BEAUTIFUL PLACE TO CALL HOME. BUT MAKING A SMART BUY ISN’T ENOUGH TO INSURE YOUR HOME WILL RISE IN VALUE. YOU ALSO HAVE TO KEEP YOUR HOME IN GREAT SHAPE. THAT MEANS MAINTAINING YOUR MECHANICAL SYSTEMS, INCLUDING THE AIR CONDITIONER AND THE FURNACE, CLEANING YOUR CARPET AND FLOORS, AND REPAINTING IF NEEDED.
STEVE BREINLING, MAC BROWNE & ASSOC: “Being the owner, you’re the one who’s going to profit financially from the sale of your property down the road. more so, if you’ve maintained it well.”
ONE WAY TO MAKE MONEY IN REAL ESTATE IS TO BUY A HOME THAT NEEDS SOME T-L-C. BUT YOU’VE GOT TO FIND THE RIGHT FIXER-UPPER.
MICHELLE BROWNE, MAC BROWNE & ASSOC: “Will it be a beautiful home? Will it shine on the street? Will it have curb appeal once you’ve fixed it up? “If you can build in value initially, you’ll get it back later.”
IT’S DEFINITELY POSSIBLE TO LOSE MONEY ON YOUR INVESTMENT IF ANY FACTORS SUCH AS LOCATION, EXPOSURE, AND FLOOR PLAN ARE WRONG.
STEVE BREINLING: “WHAT YOU WOULD NOT WANT WOULD BE A RED COUNTERTOP….”
THE UPGRADES AND IMPROVEMENTS YOU MAKE TO YOUR HOME WILL DETERMINE WHETHER YOU’RE A HAPPY SELLER SOMEDAY. REMEMBER, KITCHENS AND BATHS ALWAYS SELL, AND FINISHES LIKE GRANITE AND MARBLE CAN REALLY PUMP UP YOUR PROFIT
LISA SMITH, HOMEOWNER: “It needed a little character added to it, so we put casings around all of the windows, we put trim down (BUTT TO) … doing that didn’t cost a lot of money, but it made a big difference in the house.
ILYCE: 13 YEARS AGO, I THOUGHT ABOUT BUYING ONE OF THESE HOUSES. THE PRICE WAS AROUND $200,000. TODAY, THEY’RE SELLING FOR THREE TIMES THAT MUCH. THESE HOMEOWNERS MADE A VERY WISE INVESTMENT.
BUT YOU DON’T GET THE CASH UNTIL YOU SELL, SO TAKE THE TIME TO MAKE SURE YOUR HOME IS READY BEFORE YOU CALL IN THE LISTING BROKER. THAT MEANS NO CLUTTER, CLEAN CLOSETS, AND EVERYTHING IN GOOD CONDITION.
RICK DRUKER: “No major repairs that scream out at you that there are problems.”
BECAUSE THAT’S THE BUYER’S FIRST IMPRESSION OF YOUR HOME. AND YOU WON’T GET A SECOND CHANCE TO IMPRESS.
What’s your home worth? Check it out here at www.domania.com.