Michael Jordan’s Suburban Chicago Lake Forest Mansion Fails at Auction

This Monday Former Chicago Bulls superstar Michael Jordan attempted to auction off his home in MJ 23Lake Forest Illinois located at 2700 Point Ln with a minimum bid of $13 Million and there were no takers. The home is Michael_Jordan_23_Bulls_Jersey_HD_Wallpaper56,000 square feet on three floors with 9 bedrooms, 5 fire places and sits on 7 acres. A guest house to rival most homes you and I would live in is included.
He lived in the home with his former wife and children who are now grown and have moved on. The home has a full size regulation basketball court and huge workout room that is like his own health club. Randy Brown was part of a group of former players who would go to his weight room and work out and play ball before they would even go to the official practice. They called the get together “The Breakfast Club” because his private chef would prepare meals for his cronies who have talked about the sessions they had enjoyed.
With a tennis court, wet bar, dry bar in ground pool and fire places indoors and out what more could you want? There are not many who could afford such a house and maybe that is why it did not sell? One problem is that it is located 3 miles from Lake Michigan and most homes getting anywhere near that price tag include beach access.
The home was once listed in the MLS at $29,000,000, dropped to $16,000,000 but still did not attract any offers. Do you think MJ is hurting for the money? I don’t think so. He is still one of the highest paid former professional sports figures with a fairly untarnished image unlike Lance Armstrong and Tiger Woods.
Imagine getting the commission on selling that house.
MJ’s House Video

Mistakes you can make with a lowball offer

Yes, yes, I know.  It’s a buyers’ market.  So much inventory, low housing prices, so the buyer gets their pick at the price they want.  But not so fast.  Yes, lots of inventory, lower housing prices.  However, there is still power to negotiating.  And you don’t want to insult the seller with a lowball offer and lose your dream home because of it.  Here are some mistakes that can be made with a lowball offer:

1. Not knowing the market.  And each one is different.  What may be a more acceptable offer in one market won’t be the same in another.  There could be an area where sellers are pricing homes more aggressively; therefore, they’re sticking close to their asking price.  Another neighborhood might be mostly made up of foreclosures and short sales, so the bank wants to get rid of the home ASAP and are willing to accept less.  So you’ll need to do your research with the help of a qualified Realtor (see #2)

2. Not picking the right Realtor.  They have the experience and the background and know the area you’re looking to purchase, so they’re your best asset going into a negotiation.  But you have to make sure they’re solid negotiators, since they are working on your behalf.  They’re not going to tell you not to present a really low offer, but they might say the sellers will reject it offhand so you might want to consider raising it by X amount or offering to waive one of your contingencies.  Trust their advice.  You’re working as a team and you want to make sure your agent also has your best interests at heart.

3. Not knowing what you’re willing to pay.  A lot of people these days in this market are focused on getting the best price.  But you have to be careful.  You have to know what your limit is so you don’t overpay.  And sellers will know what they need to walk away from the closing table or they won’t be able to make the sale.  No matter how wonderful the home is and how perfect your furniture will look in it and that you can see yourself having your morning coffee on the deck overlooking the pond, there comes a point where no deal is worth it at a certain price. Know that before you start negotiating or you’ll let your emotions get the better of you.  

You can also lose your positioning power by being too hard a negotiator at the beginning.  Don’t make your first offer your final offer and then start negotiating.  The seller will know that you aren’t serious and has the ball back in their court.  Make your offer one that you’re willing to negotiate and have your Realtor tell the seller you want to work with them and make the deal happen.

This MSN article has a few more mistakes that can be made and how to avoid them.  My Web site has some other great articles and tips for buyers.  Have a great week!

Paint your home to sell

First things first.  You all know how important it is to keep your home in showing condition when you have your home on the market to sell.  No clutter, messes, dirty laundry, etc.  But it’s also important to make your home look the best it can in order to move quicker and to get you a good return on investment.  Paint color is key.  

Let’s start with what not to do.  No wallpaper.  I know it’s hard to remove.  I know it matches the bath towels that you special ordered along with the custom faucets.  But it just doesn’t work for most people.  And the buyers that want move-in ready homes don’t want to deal with it, either.  So if you have wallpaper, you’re probably going to benefit the most from this blog post.  I suggest removing it and painting.

No white paint.  This might sound surprising given that it’s neutral.  But having all white walls can make your house look very sterile and not lived in.  It also can appear too bright.  You do want to keep the colors neutral.  So if you’re going to be painting, I suggest light beige or light yellow.  

Don’t go crazy.  I am completely serious when I say that I’ve shown homes where one room is orange, another turquoise, another dark purple, etc.  It looks hideous.  If you have this in your home now and you are planning on selling, you’ll want to paint all the walls neutral to match.  And remember that dark colors make a room look a lot smaller.  So for those of you with navy blue bathrooms, now is the time to go neutral.

Here’s what does work.  Make sure that there are no noticeable scratches or marks on walls.  Touching up paint is very simple to do and can make a huge difference.  It shows buyers that your home is well maintained and cared for.  According to this AOL blog, “Karen Dembsky, president of Peachtree Home Staging LLC and Georgia’s Real Estate Staging Association, as well as a Pro Stager of the Year nominee, has the first and most important piece of advice before even tackling the issue of color.

‘A seller should always make sure that their paint has a fresh appeal, no dings, no marks. If there are any, it should be repainted or touched up because it gives the feeling of a well-maintained home,” she said. “The color has to be livable and appealing, you want a color where the buyer will come in and say that it’s not their first choice but they can live with it.'”

Dembsky suggests food-related colors for the kitchen, such as yellow, red, or orange.  But this is not permission to go out and paint your kitchen bright orange.  You still want to keep it soft and light.  She doesn’t recommend bright colors for the bedrooms because people view bedrooms as a place to sleep and relax, so light and neutral is best.  Dembsky recommends beige and light tan for bathroom walls.  If you’re dying for a bit of color, play it up with colored hand towels, bath mats, and fun soaps.  She does say that you can go for darker and richer colors in a home office, especially to play against a dark wood desk.

I’d love to hear your thoughts on this.  Please leave me a comment or visit my Web site.

Create luxury looks on a budget

I found this very interesting and timely article on MSN today.  It talks about adding budget-friendly luxury items to your home.  I think this is great for those of you who need to sell your home but also want to update some things without spending a lot of money.  And instead of remodeling an entire room, you can add bits and pieces to give the look of luxury.  And even if you’re not selling but want to update here and there, there’s some great tips.

1. Create dedicated spaces.  This basically means to create space in your home to do a certain activity, such as exercising, craft space, or having an office.  And you can do this without turning an entire room over.  For example, you can create a nook in your family room with a desk, computer, filing cabinet, etc. to create an office.  A great way to do this without completely separating the room is investing in one of those decorative or wooden screens, one that looks like a trifold.

 2. Add quality features.  I love this idea.  You can easily transform a room to make it look updated by investing a little money and lots of creativity.  Take the kitchen, for example.  You can completely update it without breaking the bank by repainting cabinets (not replacing), updating drawer and cabinet pulls, and buying a luxury faucet.  So instead of spending the money on granite countertops and new stainless steel appliances, choose little items that can use an upgrade.  And as I’ve said before, keeping countertops clean and clear gives the illusion of a larger space.

3. Create an outdoor room.  Increase the size of your living space by focusing on an area in your backyard.  If you already have an enclosed porch or four-season room, you’re one step ahead.  For those of you who don’t, create a space with nice patio furniture and an outdoor fireplace on your deck or in your yard.  

4. Focus on furniture.  And I’m not even saying you have to go out and buy all brand-new furniture.  It’s simple to update your furniture by choosing a new fabric and getting it reupholstered.  You can also make the room pop by choosing new accent pillows to complement an existing colored sofa.  Even consider rearranging the furniture in the room for a change of pace or to create a new focal point, the fireplace, for instance.  

If you have any more tips on creating a luxury look on a budget, I’d love to hear them.  Please leave me a comment or visit me online.

Summer selling tips

A couple weeks back I wrote about how to save money by cooling your home.  I’m sure those of you choosing to sell right now would appreciate some tips on selling in the summer months.  While it seems like the housing market is at a standstill, there are plenty of buyers out there now who need to purchase a home.  I just read an article that lots of buyers now are cash buyers, which is good for people selling rentable units, as a lot of these buyers are investors.

1. Keep it cool.  Make sure the air conditioning is on in your home, even if you’re gone – actually, especially if you’re gone.  If the outside air is 75 degrees or higher, I recommending turning on the air.  You don’t have to make it feel like a meat cooler, but make sure it’s cool enough in there so your potential buyers aren’t sweating the second they walk through the door.  If there’s no air conditioning, make sure to put fans in there to circulate the air and open windows.

2. Stage your balcony if you have one.  Make sure you have some colorful flowers and a comfortable place to sit.  A balcony is extremely inviting and not only does it make the balcony look spacious by adding furniture, but it adds to the living space, making the entire unit seem more spacious.

3. Stage the inside.  It’s really hard these days to show a vacant unit.  They seem a lot smaller and lifeless.  You can stage it without spending a fortune by picking up furniture at garage sales or on Craigslist.  You don’t need to furnish it to the nines.  Just enough to put a bed in a bedroom to see how that fits, a dining room table in a dining room, etc.  It really will make the place look bigger.  It’ll be worth the investment.

4. If you live in attached housing, get FHA certified.  This is something that your condo association will need to do, not you individually.  It makes it much more attractive to buyers who use FHA financing, and that represents about 30% or more of buyers these days.  

5. Spread the word.  And this isn’t just for summer.  Yes, it’s your Realtor’s job to market the listing.  But you never know who you might run in to that is looking to move or knows someone looking.  Post ads on your social networking sites, let your colleagues at work know, tell people at church.  

A few more great tips can be found in this article.

Any more tips you can offer those trying to sell in the summer?  I’d love to hear your suggestions.  Please leave me a comment or visit me online.

New program to benefit commuters

With the influx in gas prices, it’s getting more costly to drive your car to work, especially those living in the suburbs commuting to the city and vice versa.  And higher gas prices mean higher-priced tickets for the bus and train, too.  The Chicago Tribune has a new article about a great new program to benefit commuters. I am highlighting some of the main points below.

 There’s a Chicago organization called the Metropolitan Planning Council that is piloting a program called Commute Options.  What they’re hoping to do is recruit 10 to 15 employer this year that would offer their employees incentives to reduce the cost of commuting to work.  Right now a lot of affordable homes are in areas where there doesn’t happen to be a lot of job openings.

According to a council spokesperson, “A lot of communities where people can afford to live in our region are not the places where there’s a thriving job market.  In order to bridge that gap, we’re working with employers to give employees some options.”

So this is important information that can also benefit home sellers.  If you live within 2 minutes to a highway or are a 2-minute walk to the Metra station, you definitely want to highlight that in your home listing.  More and more people find commuting information as important as the number of bedrooms in a home or what type of flooring there is.  

The article also mentions a recent survey of Coldwell Banker agents.  75% said the increase in fuel prices has led their buyers to adjust their thinking on where they want to live.  More and more want to be closer to work or in a location that work is easily accessible and affordable.  

So sellers need to make sure their Realtor knows all the information about public transportation that’s close as well as proximity to highways and major roads.  It’s important to highlight.  

I hope everyone had a nice holiday weekend.  I can be reached via my Web site.

What not to do when selling

It’s hard enough when you’re stuck selling your home in a buyer’s market.  You have so much competition as it is.  But this MSN article also talks about what’s important when selling your home and what not to do.  I wanted to go over the main points because this is so important.

1. No photos.  So you want to get your home listed Friday to make sure it’s available on the weekend but the photographer can’t come out until Monday.  So you’ll list it and just add the photos early in the week.  That’s a bad idea.  Every buyer who sees your home with no photos will not go back once the photos are in to look at your listing again.  They’ll pass over it the first time and won’t remember they wanted to see pictures.  Another bad idea is only listing photos of the exterior of your home.  Buyers will automatically assume something is wrong in the interior that you didn’t want to show.  It will prevent showings.  As always, make sure your home is in showing condition prior to scheduling photos so that it shows in great shape.

2. Not giving all the details.  It’s very common these days to be viewing short sales and foreclosures, just because of the sheer number of them.  But what buyers want to know when something says “third-party approval” is who that third party is.  What’s the estimate on when they’ll hear back if they’re interested?  It’s as easy as saying a home needs the bank’s approval and you’ll get it in 2 weeks.  Even better, if the bank has already approved a price reduction, be sure to mention that it’s at a bank-approved price.

3. Lies or exaggeration.  Do not say your home is “freshly painted” if that paint job happened 4 years ago.  I just had clients visit a so-called “freshly painted” and “meticulously kept” rental that had marks over the walls and cabinets falling off the hinges.  Be honest.  Do talk about the great features of your home, as long as they’re truthful.  While your carpet may not be new, if it’s neutral in color, that’s a great selling feature so people don’t have to worry about their furniture not matching.

4. Selling as is.  While it’s not always the wrong thing to do, if you’re worried about cosmetic repairs or replacing an out-of-date furnace, just be up front about it.  It’s likely that it will come up during negotiations anyway.  I’ve seen plenty of sellers offering a $2,000 carpet allowance or $1500 for the buyer to choose new appliances.  This is better than having the buyer think everything has been removed from the house to the studs.  

I’d love to know what other tips you have for sellers looking to sell their homes at the moment.  What would you suggest they not do?  Please be sure to leave me a comment or visit me online.