Robert Darrow, @properties

Archive for the ‘Rant’ Category

Followers of Your Guide on the Facebook saw the Dark Side on Monday when my cell phone started ringing at 7:45 in the morning.  The Facebook rant started some fun discussions, and most of my friends knew I was letting off some steam.

I’m interested, however, in whether you think our instant access to information is fueling a change in the way business in transacted.

Just a moment ago, I received a telephone call from a Real Estate Appraiser who wanted information about my Home Owner’s Association.  He wanted to know the number of units, the number that are rented, and the number of parking spaces.  This is normal information that an Appraiser might ask during the course of business.  What struck me about the phone call was the Appraiser’s statement:

I left you a message an hour ago and I haven’t heard back.  I need this information quickly as I’m under a lot of pressure from the bank.”

I’m curious about when the timeframe for returning routine business calls of a non-urgent matter transformed from “Same Day” or “First Thing Next Day” to “59 Minutes Or Less?”

Mind you, I always want to be available to my clients whenever they need me.  Most of the time I have all my clients’ numbers programmed into my cell phone, so when they call, I know who’s calling, and if I can help them, I’ll answer.  About the only time I don’t answer is when my hands are full (this includes food, ice cream, beer or ropes on a sailboat) or I’m in a movie theater.

But the Appraiser who called isn’t working on something for one of my clients.  He’s working on a financing deal for someone who happens to be in the association where I’m on the Board.  Work done for the association is Voluntary.  No pay.  But there’s still an expectation that I’m available in “59 Minutes Or Less.” 

If you’re reading this on the blog, please leave your comments here and if you see this on The Facebook, comment over there.  I’d love to hear what you think?

My friend, colleague and Government Affairs guy at the Chicago Association of Realtors posted this on his Facebook wall today:

Tremendously challenging day representing REALTORS in Chicago. Transfer Taxes have reared their ugly head again. Banks need to watch the Maldonado proposal. $5.25 transfer tax per $500.00 for bank acquisitions of foreclosed properties with $1.50 going toward the CTA.

Seriously? 

This is double the normal transfer tax.  I wonder why they think that foreclosed houses should pay double tax?  Wouldn’t it make sense to actually forgive the tax completely on these houses to get people back in the market, and buy these empty, non-tax-paying, houses?

Please keep your eyes on the Chicago City Council this week, and be prepared to call and complain if this proposed ordinance makes it out of whatever fantasy committee it was conceived in?

Thank you.

Your Guide has been updating readers on his experience riding the CTA around the Lakeview neighborhood and back and forth between home, the office, and the Loop.  For a solid year, it seemed the CTA had gotten its act together.  From fixing all the slow zones that plagued the Blue Line to O’Hare, adding Cell Phone service to the Subways, and eliminating stoppages and slowdowns along the Red Line, I had grown comfortable depending on Public Transportation to get downtown. 

Because the State of Illinois can’t properly fund the CTA, I don’t blame the CTA for the latest round of Doomsday Service Cuts (read about them at the Trib here) but the fact remains:  I can’t depend on the darn thing to get me to my appointments on time. 

I could do as the CTA recommends: leave extra time.  But at its best, the train can get me to my destination in about the same time it takes me to drive, park and walk.  As service cuts add a half hour, or more, to the trip, the train starts to waste time.  Unfortunately, time is money.  Dang.  Because I have really liked the convenience of grabbing the Red and Brown lines and riding hassle free into the Loop.  It’s worked quite well as all the Title Companies are conveniently located near a Brown Line stop, or within 3 blocks of the State Street Red Line.

At least with the ridiculous parking meter rate hikes, there is a lot more street parking available.  My round trip costs on the CTA are $5.50 round trip.  I started riding the Red Line when parking rates at downtown parking garages hit $38 for a few hours in the middle of the day.  But street parking is still a bargain at around $10 per hour.  And the extra $4.50 on top of my $5.50 fixed cost for riding the train is a small price to pay to guarantee on-time arrival, or to have the extra hour to use as I need to rather than shivering outside waiting on the slow-lane.

You nearly had a committed customer, but you’ve broken my heart for the last time.  (Until next year, perhaps.)

Residents in Chicago and Cook County should be on the lookout for their Property Tax Bills this week.  Your Guide’s arrived yesterday.

Normally your first installment tax bill is half of last year’s bill.  Not so, this year.  Check out a friend’s Facebook status update:

Sneaky State of Illinois. First installment property taxes are out and the State decided that the first installment should be 55% of last years total and not the 50% it has been for decades. I’m sure they just accidentally forgot to publicize that. Spineless, sneaky bums – throw them all out this election!

From the Sun Times article:

Get ready to dig a little deeper, Cook County homeowners.

Under a new state law, you’ll be forced to pay slightly more of your property tax bill up front so county agencies, municipalities, school districts and other local governments can improve their bottom lines.

Sweet.  Illinois Tax Payers have to send along more money up-front so taxing bodies can have more money sooner, all while the State of Illinois is more than six-months behind in paying it’s bills. 

Homeowners that have their taxes paid from escrows should check the status of their tax bills.  You can do so at the Cook County Treasurer’s website at www.cookcountytreasurer.com. 

Regular reader and commenter Mike Wasserman (www.wasserlaw.net) read my post on Monday and commented:

I definitely feel your pain all the way around on this post. sadly, there is probably a 120 way tie for “worst mortgage broker in the world” and that is a problem for all of us. we used to keep a list in the office, but it got too long. we work VERY hard now to make sure that our clients understand that chasing the last 1/4 point discount on a mortgage loan by directing business to unreliable lenders is a very risky proposition. when properly counseled, most (but sadly not all) rethink their positions.

Ordering zoning certs the week of closing? really? they are good for 12 months anyway. why would anyone leave that sort of thing to the last minute? we get ‘em early on in the process to avoid these very sorts of problems. again, just not worth it.

If only it were that easy…

When the City of Chicago started the Zoning Certification program, the City allowed offices to stop by City Hall and grab a box full of the forms required to request your certificate of zoning.

And you were allowed to mail in your form with the required fees.

So it was customary for an agent such as myself to request a certificate of zoning at the time I took a listing.  But the City – in its infinite wisdom – has enacted every bureaucratic hurdle possible to ensure that the process is more difficult now.  Oh, and costs more.

But in the subsequent years, the City has totally screwed up the process by:

1. Raising the fee to $75 from $50.
2. Making the form a 5 part carbon form and requiring all 5 carbons be submitted.  Photocopies are not permitted anymore.
3. Not allowing offices to come and grab stacks of the forms.
4. Not accepting applications via US Mail.  In person only.

So now it’s not possible for agents to take care of this seemingly minor paperwork, and we often depend on our attorneys to send a messenger to City Hall to fetch the certificate of zoning.

This means that the certificates won’t be ordered until a property goes under contract.  And worse, since lots of attorneys work on a “Just in time” basis, Zoning Certs aren’t ordered until the week of – and sometimes the day of – closing.

One of my clients had a suburban real estate attorney who didn’t know a zoning certificate was required, and had to physically go to City Hall during the closing to get the zoning cert.  Always a barrel of fun when sitting in a Title Company.

Woke up this morning to see all my colleagues’ Facebook status updates looking forward to a great week.  Bah Humbug in August.  Here’s how my week is shaping up…

Tech Support

Spend some time on the phone with Tech Support with Top Producer because my Blackberry crashed over the weekend, and I can’t figure out how to re-install my Top Producer database.  That should take less than an hour – don’t you think?

Zoning Certs

I have a closing this week that will require a Zoning Certificate.  But I know that my attorney did not order a Certificate of Zoning early.  And a co-worker writes to me to say:

The City of Chicago Zoning Department has initiated a work slowdown to protest Mayor Daley’s recent layoffs. This means NO zoning certificates until they return to a full working schedule. So if you plan on closing next week or maybe even in the weeks to come I am sorry to say that won’t be happening. Without the zoning certificate the deed cannot be recorded and a buyer utilizing a mortgage will not be fulfilling their obligations outlined in their agreement.

The last several hours have been quite informative regarding the issues at the zoning office. At this point things are still not 100% clear but we are getting some better information.

The “slowdown” may not be a planned/purposeful “slowdown” but rather a slowed down process due to understaffing in the zoning department or an increased demand on the services offered by the zoning department.

Bottom Line: if you are working on a real estate transaction that will require a zoning certificate make sure it has been ordered 10+ business days in advance of closing for multi units and 3 business days in advance for single family homes. If the mortgage commitment date is extended make sure there is ample time to obtain the zoning certificate before the closing date.

Worst Mortgage Broker in the World

I set up one of my faithful and loyal buyers with a top performing Mortgage Broker.  He turned in his application and package dutifully.  But one day the buyer saw an ad in the paper for a fly-by-night Mortgage Broker with a slightly lower interest rate, and went with him at the last minute.

That mortgage broker has blown the closing date.  Twice.  And each time requires a week to re-schedule.  And I think he’s changed the interest rate anyways – which is why we blew the closing today.  He didn’t comply with Federal Regulations notifying the buyer of an interest rate change.

Oh, and because I’m in the mood for sharing:  Your Guide’s Opinion for The Worst Mortgage Broker In The World…

Mike White  -  Market Mortgage Corporation
Professional Mortgage Services
1211 West 22nd Street Suite 802
Oak Brook, IL. 60523

On Tuesday, the Sun Times profiled a homeowner who is suing the local Historical Society over lost income from their interference with a sale of her property to a local developer.

6018 N. Kenmore is a large Victorian on an oversized lot near Loyola University.  The neighborhood has evolved into an area with more condominium development, rather than the stately elegant mansion that this home once was.  Renovation costs would probably have run into the hundreds-of-thousands. 

When the owner put the home up for sale, the most lucrative offer was from a developer who wanted to demolish the house and build new construction condominiums.

The Edgewater Historical Society intervened, maintaining that the house on North Kenmore was unique in the neighborhood and was listed on the city landmark map as “orange-rated” – eligible for city landmark status.  Reportedly, they pushed Alderman Mary Ann Smith to oppose demolishing the house and delay zoning changes “if the developer does not drop his plans for demolition.”

After some long delays in the approval process for the condominium development, the developer cancelled his contract to buy the property.

Property owner Brigitta Riedel says she lost out on more than $1 million when the sale went south and is suing to the historical society and four of its board members, accusing them of carrying off a "calculated, sophisticated attack" to kill the sale.

The board members say the suit could hurt community activism — and, if they’re ordered to pay damages, perhaps cost them their own homes.

"It could happen, and it certainly impacts how you plan the rest of your life," said LeRoy Blommaert, who’s being sued along with fellow historical society board members Elizabeth Mayian, Thom Greene and Kathy Gemperle. "You worry what that life would be like if you had to sell your condo or give up a number of your assets."

In the “Letters to the Editor” section of the paper today, a reader from Edgewater commented:

Owners continue to feel that they can do anything they like with their property, at whatever cost to the community.  While many houses or older apartments may not be architectural masterpieces, the community and the city have a clear interest in maintaining properties on a block at similar scale or of a certain historical quality.

So often, we see rampant development obliterating neighborhoods and disrupting social patterns, all for the sake of profit.  That Riedel, who made $550,000 on the property, should think of suing members of a small nonprofit board for the remaining $600,000 that she “lost” is outrageous.

Developers serve profit, not public good.  For this reason, we need citizens, organizations and politicians to help balance the equation so that the public good is also served.

Are you kidding me?

• How many times do I have to say this?  Hey – Preservationists!  If you want to save a piece of property, BUY IT!  When you impose your standards on someone else forcing them to lose value because they can’t sell or have to preserve an antiquated property, you are stealing from them.
• Just because a property looks beautiful, doesn’t mean it’s not a piece of junk.  Sure, it’s gorgeous.  But who wants to live in it?  The house has small bedrooms, no closet space, no air conditioning, a kitchen far removed from the living space,   Great if you want to re-create a Victorian diorama, but pretty awful if you’re a modern family that wants a nice place to live.

Can I answer the letter-writing response line-by-line?

“Owners continue to feel that they can do anything they want with their property…”  HELLO?!  Where do we live?  This is a capitalist society, last time I checked.  The whole IDEA of owning property is so that you can do whatever you want with it!

“…the community and the city have a clear interest in maintaining properties on a block at  similar scale…”  Buddy, they already do.  It’s called ZONING.  There are laws in place to maintain the character of a neighborhood.  This is why you don’t see truck loading facilities next door to schools.  But building new condo’s where old houses used to stand is perfectly reasonable.  And your notion of “Community” really reads to me like a bunch of meddling neighbors.

“So often, we see rampant development obliterating…”  Obliterating?  That’s what we’re going to call an entrepreneur who is willing to take a risk on the market, shell out over a million dollars on acquisition and construction, and then wait to sell a product that there is no guarantee will sell? 

What about these “rampant developments”: 

• Sandburg Village that bridged the gap between the Gold Coast and Cabrini Green to the west; thereby making Old Town a viable neighborhood where people actually want to live.
• Dearborn Park in the near south loop that practically created a new desirable neighborhood from scratch in a desolate wasteland of railroad yards and abandoned printing factories.
• And more recently the development along the Chicago River encompassing the old Montgomery Ward headquarters and warehouses. 

“Developers serve profit…”  Just because developers are in it for the money, doesn’t make it BAD.  In fact, it’s the America Way.  I would suggest that allowing community groups to hold properties hostage and begging local government to take over property that is rightfully owned by private citizens is the start of the slippery slope to “Socialism.” 

And as far as the neighborhood is concerned, here is a street view of the properties directly south and north of the house in question.  Oh yes, condominiums would really be out of place on this block…

I wish Ms. Riedel all the best in her efforts to recoup her losses.  And I hope that the lawsuit causes other “Community” groups to pause before meddling with the rights of property owners.

From an email distribution received by a regular reader from Alderman (Alderwoman) Vi Daley’s office:

As many of you already know, the City passed an ordinance requiring that private refuse containers be permitted.  I have been working with several aldermen and CDOT to limit the permit fee attached to this proposal.  The fee is intended to cover the city cost of inspection, rodent control and other oversight issues. 

I am happy to tell you that the fee will be reduced by approximately 35% from the original proposal.  The actual fee schedule will be brought to City Council for approval next week.  If your private hauler has already billed you for the original permit fee, be sure to contact them to determine how your account will be corrected.

Alderman – with all due respect – that is a crock of #(^%$&!.

The City of Chicago has actually skated on trash collection issues because in any building with more than 4 units, the owner of the property was required to get commercial trash hauling service, while at the same time – collecting for City Trash Removal on the property owners’ tax bill.

Then, the city required property owners to go through an onerous process to get their trash rebate.  Mind you, most owners never even bother with applying for their trash rebate because the process is so rigged.  And if by some miracle, you did get your trash rebate, it was several years in arrears.

Yes, the city taxed you for a service that they required you to buy separately.  And then, maybe, gave you your money back, in two years or so.

And the fee structure where every resident has their own private trash cart – at $80 or even the 35% off figure of $52 – times 110 units for my community is $5,720 to $8,800.  For what? 

The cost of inspection and oversight issues?

You mean so some fat-ass city inspector MIGHT swing his City of Chicago Crown Vic down the alley once a year to make sure our alley isn’t overflowing with garbage?  Yeah – like I will believe that’s gonna happen when that doesn’t even happen in alleys that the City is responsible for.

This is a money grab, and you know it.

This is a copy of an email from our Property Manager this morning regarding the City of Chicago’s new commercial trash bin fee. 

We wanted to make you aware of an upcoming budget issue for your association.

Over the winter, the City of Chicago enacted a new Ordinance that adds a fee to every commercial trash container in the City.  We all have Alderman Ed Burke and Mayor Daley to thank for this and we hope that every voter lets them, and any Alderman who voted for the new “tax”, know of their displeasure.

Not delving too much further into the political side of this new “tax”, the ordinance does affect the bottom line of every condominium association.   As this Ordinance was not enacted until the winter, long after our budgets were set and approved, the fees are not included in anyone’s budget.

Effective with April 1^st your trash hauler will be adding the full payment of the annual permit fee to your association’s bill.  For some associations, this fee will come as huge shock and potentially a significant cash flow issue, especially those who use trash-totes for individual units.  The minimum fee is $80.00 per trash container up to $780 per trash container.

The ordinance is written in such a way that EACH AND EVERY ONE OF OUR TRASH BINS IS SUBJECT TO THE MINIMUM PERMIT FEE.

Refuse haulers have been lobbying the City to repeal the new fee or at least allow customers to pay the fee over several months rather than 100% up front.  Unfortunately, the City has not acted upon these requests.

For Wellington Park Homeowners Association that will fee will be approximately $7,520.00 of new tax due in April.  That amount will be due every April 1^st until the Ordinance is repealed or changed.

Here is an article I wrote on the blog regarding the same topic:

http://www.yourwindycityguide.com/?p=821

Please call your alderman, the Mayor’s office, and Alderman Burke’s office and let all of them know that you are outraged by the imposition of these fees.

1.      Alderman Scott Waguespack (32^nd Ward):  Ward Office:  773-248-1330; City Office: 312-744-6567; 32ndward@gmail.com or ward32@cityofchicago.org

2.      Mayor Richard Daley:  312-744-3300

3.      Alderman Ed Burke (14^th Ward):  Ward Office:  773-471-1414; City Office:  312-744-3380; eburke@cityofchicago.org

I stopped at the Post Office on Tuesday afternoon.

I wish I would learn.  No good can come from trying to accomplish any useful task at this throwback to a bygone era in bureaucratic inefficiency.

Only at the post office could they run out of Christmas stamps.  Hmmm.  I wonder who is in charge of the supply chain?  And if they anticipate that demand might spike at some point during the year?  Like, say, around Christmas?

It wasn’t a complete loss.

After waiting 20 minutes in line, I got to the counter and asked about Christmas stamps.  Which they were out of.  But the attendant informed me that the automated machine in the lobby DOES have some Christmas stamps. 

This machine was cleverly out of order when I arrived.  But I spent enough time in line that an attendant was able to dis-assemble, and fix, and re-assemble the machine.

But for reasons only known to the post office, customers are limited to purchases of $50 or less.  I needed hundreds of stamps.  It’s so blatantly obvious that limiting customers who actually WANT to buy your product is counter productive.

So I could stop off at the Post Office each day for the rest of the week and see if after four more visits, I have enough Christmas stamps to send out all my cards.

This caused me to wonder what it would be like if I ran my business like the Post Office runs theirs?

I could just think of whatever is necessary to help a buyer locate a home, or whatever it takes to market a home successfully and make up silly sentences that are the exact opposite, but where’s the creativity in that?  Nonetheless, here are my:

Top five stupid things I could do to run my business more like the Post Office

5.  Waste tons of money advertising about how much stress and hassle you could alleviate by using my service, but when you visit me, I would make you wait in line interminably.  You’d see me only when I yelled NEXT!  I would never look you in the face.  I would move with the deliberation of a death row inmate.

4.  When you finally got to see me after waiting in the long line, you would ask to see some houses.  At that time I would tell you that I currently don’t have any houses and offer you the opportunity to wait in another long line to buy clothes.  You’re going to need extra warm clothes because you’re going to be cold while you’re homeless.

3.  You would come back to my office again because you heard there were more houses for sale at my office.  But I would tell you that the houses weren’t available because they were all lost.

2.  I would arrange to deliver you some properties, but it would be too burdensome to deliver them all to everyone that paid for them, so I would keep them in my car.  I’d add a few more to my collection every week as I delivered fewer and fewer of them each week until finally…

1.  I would set them all on fire under a railroad bridge.  You’d know it was me because I wouldn’t be smart enough to take my sign off the houses before setting them all ablaze.

(Sadly, all the above have happened to mail or mail carriers in Chicago in the past couple years.)

Good luck at the Post Office this week!