The Jason Theory
Jason Stratton of KlopasStratton Team, a top 20 team in the nation with over 1.5 billion sold , sits down with weekly guests to talk about becoming successful, the real estate market, and crazy stories/people we run into. Visit www.klopasstratton.com to see more!
The Jason Theory
S4 E7 - Why You Don't Have to Leave: A Conversation About Urban Family Life. Also, You want that home - dont make these mistakes in this Market
Chicago families are challenging the conventional wisdom that having children means moving to the suburbs, finding that city neighborhoods offer unique advantages for family life and child development.
• City children develop greater independence, street smarts, and social skills compared to their suburban counterparts
• Neighborhood parks function as community hubs, creating interconnected social networks across different areas of the city
• Chicago has more green space than any other American city, providing ample outdoor opportunities
• Multiple school options exist within city limits, both public and private
• The real estate market currently has approximately three offers per single-family home
• What matters most in winning offers isn't simply price but offering a seamless, stress-free transaction
• When shopping for a home, prioritize neighborhood trajectory and location over "shiny" new construction
• A property's future value depends more on its location and neighborhood dynamics than on its current amenities
• Working with experienced agents who understand neighborhood trends provides crucial market insights
• Chicago prices are appreciating at four times the national average due to limited inventory
Don't assume you need to leave the city when you have kids—give city living a chance and you might find you don't want to leave at all.
you know you get clients are like oh yeah, we're going to. They're, they're pregnant or they have their baby and they buy their first, let's say, cottage or, like you know, startup home. We're going to be here five, seven years and then when the kids get to eight, we're going to go to the bar burbs and I'm always like you're probably not. What's the five P's? Do you remember it?
Speaker 2:Proper preparation prevents poor performance.
Speaker 1:There you go. It doesn't matter how much money we get, if we don't close it's no money right? So no, close is no money. I'm everything that I am because of my dad's death, and I wouldn't be as successful without his death. All right, welcome to the Jason Theory. We are sitting here with one of our team members, marissa Marissa, why don't you give us a little bit like a one minute spiel about yourself, and then we're going to get right into it?
Speaker 2:My name is Marissa Lanzito. I've been in real estate for quite some time.
Speaker 1:You can speak louder, no one's going to. Oh, I can, yeah, speak like you. Speak to me upstairs.
Speaker 2:To simmer it down, I've been in real estate since, like the early 2000s. Okay, simmer it down. I've been in real estate since the early 2000s. Okay, in the city. I started out on the North Shore, actually as an assistant to one of the oh.
Speaker 1:I didn't know that.
Speaker 2:I did as one of the top agents up there, but I lived in the city and then so you were going up to?
Speaker 1:Well, that's a little unusual. It is unusual.
Speaker 2:Yeah, and then I came down to the city and came out on my own, and here we are.
Speaker 1:Here you are. When you went up to the North Shore and was an assistant there, what were the differences when you got back into the city in terms of like, forget about North Shore, just a suburban real estate environment versus city? Yeah, like what are a couple of main things. I mean, I have my ideas from doing it like the main things, but what do you think they are?
Speaker 2:I mean, I was so young at that time too, and real estate has taken on kind of a different trajectory from when I started. Because when I started it was like moms who, um, you know, wanted a second, like wanted to do something. It wasn't like a full-time all the time. Powerhouse people in real estate at that point. Um. So I went up there and, um, it was different in the sense that like things were always like moving and shaking in the city, you know, like things were always going around, um, like people don't meet people up there. We always meet our showings here. Their scheduling is different, so I was just learning my ropes when I first started up there. So I know it's a little bit different, but I don't feel I have the full capacity now.
Speaker 1:Do you think the suburban market is much more? It's tougher to get leads and clients. Like most of the people that are up there, it's friends based. It's basically a lot more tighter in terms of like. There's not as much transactions, right, so you're killing for transactions, but I think that's changed in the past.
Speaker 2:I mean certainly the pandemic. So I guess before the pandemic, I would say yes, I think that is a true statement, but since the pandemic, right. So I guess before the pandemic, I would say yes, I think that is a true statement, but since the pandemic, like the suburbs have blown up.
Speaker 1:That's true.
Speaker 2:You know. So it's different now. But yeah, I think you're right and it is like people come into the city when they're young and they're starting their careers, they have their first kid and then they hightail it back to where they grew up. That's what happens in Chicago, right?
Speaker 1:That didn't happen to us.
Speaker 2:It did not and I love it and I'm so grateful. But it did not, but most do, or a lot do.
Speaker 1:What do you think the number one? Like if you were just to just cut through the BS. My thought and I know this is kind of not nasty Nasty is the wrong word I always think, from what I've seen, most people leave the city that I know because they can't get in to a district and they can't afford a house in a district. They want to be in and they're like we don't want to leave but we have to because we can't afford to be an XYZ, which I now think I mean being in the suburbs. It's the same price.
Speaker 2:Totally, totally.
Speaker 1:But do you think that's like, like that's what I noticed the last like 10 years? It was always like hey, we can't be in Burley, blaine Coonley.
Speaker 2:It was usually for the schools. Yeah, before leaving because of the school, and then they'd be like oh, we're leaving because we want the yard. No, no, no, it's the schools.
Speaker 1:It's the price point where you want to be a hundred percent. Yeah, okay, I just that's always that's always my thought. And people tell me like oh, you know, like listen, your kid does. And I always tell people your kid doesn't need a yard because by the time they're 12, you're not going to see them.
Speaker 1:I know Right, they're going to be living in a gymnasium, a field, and they're not going to be at your house. So I always tell people if you want a yard, that's great, but make sure it's for you, because you're the one that's going to mow it, you're the one that's going to like it, you're the one that's going to be outside getting bit by mosquitoes. Your kids are going to be. Hopefully your kids are not sitting in your yard by themselves. Yeah, no.
Speaker 2:I mean there's kids come ring our doorbell, like my kids are always out and about on their bikes going to seven 11, going to the parks, going to the bike park. I mean they're, they're out like they're never in our backyard.
Speaker 1:So we're going to take a tangent then. So when you're at parties and let's say you're at a suburban party and you're there with your kids, and then there's suburban kids that are there, can you see the difference?
Speaker 2:Oh gosh, you know I don't really go to.
Speaker 1:You're never like. You never get invited to like, like a, like a cousin or an aunt or somebody, and you're like and you take your kids to that space. You never.
Speaker 2:I'm trying to think. Like you've never had a mesh of like where you see, like where there's suburban kids and city kids playing together, or there's like Um, I think when I go to my parents' house, maybe there's like kids in the neighborhood that'll come from different areas, and then there and then there are suburban from the city of Chicago, the Chicago suburbs. I mean, listen, I grew up in a bubble, okay.
Speaker 1:So next time, so next time you're, next time you're in that situation. Take a look around. The difference between the suburban kids and the city kids is night and day.
Speaker 2:I can say from my growing up experience to my children like my children are so much more assertive yes, they could get themselves around.
Speaker 1:And my husband the kids are going to the Cubs game today.
Speaker 2:The kids are going to the Cubs game today At 12 years old, at 12 years old by this old, but like my husband grew up in the city and I grew up in the suburb and he'll be like, oh, marissa.
Speaker 1:Okay, so you have that influence.
Speaker 2:I already know it. You know, I just like don't necessarily see my kids with it, but I compare them to myself because I'm like, oh my God, I don't think I'd be able to do that their age when I was growing up. And they're like okay, they know the street names and that's why I wanted to live in the city. It's because they can get themselves around, they know what streets they need to be on.
Speaker 1:They're street smart.
Speaker 2:Yes, and we will walk around neighborhoods. We did this when they were little and we'd be like, all right, we're going on a walk, and then we would just stop and we'd be like, can you get us home? And so they would just try to maneuver on and they'd make so many mistakes and it would be great, but we'd be like, stop, look at, look at what the street sign says and look at what the number says, and then you know.
Speaker 2:So, yeah, it's the grid, and the grid is so easy to understand once you understand it. Um, and so we would just do that. And now I mean, they're not perfect, but they can get themselves around.
Speaker 1:Yeah, I mean, that's it's, it's a, it's a. I see the difference a lot more. When my kids were like between seven and 10, maybe six and eight, like I was like, wow, I'm like what? Like the assertiveness you're saying, the outgoingness, like in the city, like you know you go to a park within five minutes. Every every kid at the park is your best friend and you guys are putting together some sort of battle or some sort of game.
Speaker 1:I, you know, like that, I mean it's nuts. Like when my kids come up to me like we want this, this, this, this, I'm like we see that guy over there, just go ask him. They're like I would never have done that. They'll just turn around. They turn around and they go right to that person.
Speaker 2:I'm like what? They turn around and they go right to that person. I'm like what? No, it's great. And like I don't know. We take our kids out to eat Like we always have. We never let our kids slow us down, even when they were babies, like we would take them everywhere. And so I love the assertiveness of the kids in the city and I love the sports factor for us too in the city, because my kids will go to any park, just like you're saying, or they'll be somewhere and they'll be like I know that kid from baseball, I know that kid from basketball. The proximity of the parks is so much closer, like when you're.
Speaker 1:if you're in Hinsdale, the odds of you knowing a kid in Joliet or Lamont or the North Shore or wherever is a lot less. But when you're at Wells listen, we're driving down the street and James, you know James would be like we're walking. We're driving down the street and James, you know James, would be like we're walking. He goes oh, I know that kid, that kid, that kid. I'm like. Well, I met him at LPBA. He plays for Wells. This kid plays at Oz, this, this, this. I'm like how do you know? And, first off, how do you remember everybody's name?
Speaker 2:I know.
Speaker 1:And how do you know all these kids? I mean, you know, they're all at the parks and they're all one place at Lane, one place at Payton, one place at Amundsen, one place here at Lincoln Park, and they're all together and they've all known each other for so long. So like it's interesting, because a lot of people are like we want to go to a school system where they know the same people the whole time and I always look at them, I go, you know that's not life.
Speaker 2:Right.
Speaker 1:That's like you know they're. They're going to have to get up and move and go to college and not know anybody and walk around and say, hey, my name is Jason.
Speaker 2:Stratton.
Speaker 1:Who are you? Totally, and it's like, why not start that now?
Speaker 2:But I also think there's like a false sense of no community in the city and I don't think that's true, like the neighborhood, the neighborhood that I live in is so community driven.
Speaker 1:Yeah, that's North Center, that's like that.
Speaker 2:Yes, it is like that, but like so is. I mean, there are parts of Lincoln Square that are like that too, and there are parts of Lakeview that are like that too. So I you know, I just think it's nice that there's there's always people around. The kids are always yeah.
Speaker 1:And your school. Even though you're private, your school draws primarily from the neighborhood.
Speaker 2:Yeah, well, it's great too because, like, there's two schools in the neighborhood. And so no matter if the kids are going to the public school or the private school, they're seeing each other.
Speaker 1:They're seeing each other. Everybody goes to ball and plays in the park Like yeah it's just everybody's you know, I think that I think, like, like you know, I mean this wasn't my idea to to go down this road. I think it's a great one, because people don't know, like when you have kids, these first off, we have the most parks in America in.
Speaker 1:America. There's more green space in Chicago than anywhere else, so suck it Everyone else. But these neighborhood parks are basically what everything revolves around. You know, like, like? I was at wells filming video yesterday and there had to be 5 000 kids out there doing stuff pickleball they have ring toss I know and I was like everybody that plays ring toss is dead I know, I mean, can they just change that?
Speaker 2:I know it was bocce ball coming back I hope so, but these communities is what you just said is like what's so amazing, you know, and it's like they just changed that.
Speaker 1:I know it was bocce ball coming back. I hope so. But these communities is what you just said is like what's so amazing, you know, and it's like you know it's walking down. You think the city's big, it's not. You're walking down South Port Court with my kids and they're waving at other eight year olds and 12 year olds and 14 year olds across the street. That they know, right, like the city is small.
Speaker 2:but I also think the city is small because our kids are in sports. This is true, I agree.
Speaker 1:Because the sports, like I would tell people, even if your kid is not sporty, get them involved in sport because it'll really connect them to the community. And the kids are like, listen, there's asshole kids, but most of the kids are very accepting of whatever talent level you are and that gets you wrapped up into that space.
Speaker 2:I mean, I can't tell you how many hours I have logged at Wells Park, but what I also love about it too, is that so we spend a lot of time because our kids are playing. But there are also like we'll be walking and or we'll be sitting there and I'll see some of my neighbors that come to the park and their kids are all grown now and they're like we miss it so much and they come and watch like our kids, or they just come and watch a game because they're like we miss it so much and we were just out for a walk and like here we are sitting at the park and I think it's great, I'm really good friends with a, with an ex Hamlin coach who, who also played professional baseball, and we lost in the championship game.
Speaker 1:And I'm sitting in my bed at, like you know, monday night at nine trying to simmer down and he just starts texting me. I miss it, I'm ready to coach again. All this he doesn't have. He doesn't have and I was like dude, you do another, go adopt a child, go job. And he's like. He's like when does fall ball start? He's like no-transcript Cause. My eight year old's now going up and it's like man, I'll never be yelling defensive sets again. So but it. I think people really misinterpret how amazing the city is for kids.
Speaker 2:Oh, I totally agree.
Speaker 1:And how close knit it is and how there's always something to do and man to have like to have to go down Monroe and be able to watch a Bulls game from 15 minutes in any neighborhood in the city or go to Wrigley.
Speaker 2:I know.
Speaker 1:Every other day. You know tickets because they're good. Tickets are getting expensive, but you know you can still buy a ticket day of an hour beforehand for 20 bucks and for two hours sit in one of the most glorious places in the world.
Speaker 2:It's great, like one of my biggest values is spontaneity, like I, I love it for that fact. Like opening day came my came. I'm married to South Sider, so my kids and my husband are Sox fans and I grew up on the North side, so I'm a Cubs fan, but they're Chicago fans, right. And so like opening day came and Mike calls me and he's like do you want to pull the kids out of school today? And I'm like, all right.
Speaker 1:Every year I do.
Speaker 2:And so we just pulled them out. We Every year I do and so we just pulled them out. We went, we didn't tell them, they didn't know I'm like they're getting pulled out.
Speaker 1:They were like so nervous when I picked them up and it wasn't freezing this year.
Speaker 2:No because they thought they had to go to the doctor and get shot. And they were like where?
Speaker 1:are we going? You should have like pulled up to the dentist and just.
Speaker 2:And I'm like it's opening day, love that. And I love like we don't have anything going on which is a rarity on a weekend like we'll just be like let's go have dinner downtown and then we love going to like a hotel and sitting in the lobby and having cocktails and playing cards with our kids, like there's so much to do, um, even the lakefront, like it's so fun just to go jump in and then go on about your day like yeah you know, I, I don't know, I, I just think it's great, like where are you going to walk a half a mile and be in Wrigley field and then where are you going to walk?
Speaker 1:We're going to walk three miles and hit three different neighborhoods with three different like feelings, like everyone's like oh, I can go to this place and sub this, this, this. I'm like, yeah, you can drive 30 minutes and go to different neighborhoods. Here, we walk five minutes and we're at different neighborhoods. I just think that I just think that people like especially I'm sure you know you get clients are like oh, yeah, we're going to they're, they're pregnant or they have their baby and they buy their first, let's say, cottage or, like you know, startup home. We're going to be here five, seven years and then, when the kids get to eight, we're going to go to the burbs. And I'm always like you're probably not.
Speaker 2:You're probably not Right. I mean you don't have to.
Speaker 1:You don't have to, but like you know what is your, what is your attrition rate Like? How many families do you lose to the suburbs?
Speaker 2:I don't lose a lot, I mean well, now I feel like it's different because I'm ingrained in my neighborhood and in schools and in sports, and if you're in the sports, you're not leaving, so, so I'm not losing that money.
Speaker 1:Maybe that's what my vision is too. Maybe that's why I don't lose anybody either, but it's one out of 10 at most.
Speaker 2:Yeah, yeah, I would agree with that People make it work.
Speaker 1:They're like listen, this is our price point, we're not leaving the city. Let's figure it out, let's make it work.
Speaker 2:I mean, there's so many neighborhoods to choose from neighborhoods that are closer in get more expensive.
Speaker 1:People are pushing out, and so then you know, the neighborhoods get better and better and better. Yeah, you go to that. You go right by the split.
Speaker 2:You're at jefferson park, norwood park all these places are exploding, I mean saginash.
Speaker 1:Saginash has always been nice it's always been nice yeah, yeah so, but you have these neighborhoods on that north side that are just the blue line or the metro or you can avoid you know the split and take Elson and a little come and come down. What neighborhoods have you been active? I mean, I know you are North Center and you walk the streets there and you love that area I do, but where are people that you see and new neighborhoods that you've gone to and have?
Speaker 2:been like wow, this is really nice, you know, I really so. Portage Park, I think, is really nice.
Speaker 1:Very nice, I love it there I love their park.
Speaker 2:They have the cutest coffee shop across the street from their park, um and I and I discovered it a little bit more because um Wells park had grubs- yeah, the grubs thing was crazy, so we were all over. I mean so, but we were in Portage park a lot that year and so I was like this is the cutest neighborhood. I think Mayfair is really cute. Old Irving is great, Like there are so many places just West that are really nice. Sauganash has always been you know, I mean a great neighborhood.
Speaker 2:So I also love Lincoln square. I moved from Lincoln park. Mike and I moved from Lincoln Park. Mike and I moved from Lincoln Park to Lincoln Square. When we first had James and we stayed in Lincoln Square for a while. I mean we were on a huge lot there and it was. I love Lincoln Square, it's wonderful. And then we moved a little bit south into North Center and so I really love it there. I love Ravenswood Manor.
Speaker 1:Yeah, these little like.
Speaker 1:There's little pockets, yeah, the little, they're all around the L? Like. Yeah, these little like there's little pockets, yeah, the little, they're all around the l? Like. Wherever the little l stop is like you're just like you have these little communities that are growing from it. It's really cool there's there's so many neighborhoods you're like. You're like, oh, my god, like I never like been there. But portage I was in portage park last week because I have a couple clients up and I was visiting them and it's, I mean, you know, the the six corners now has like a massive target with apartments. There's another apartments on the other side. There's an all the. There's Chipotle. Uh, northwestern opened up a huge like hospital spot there. That neighborhood is really popping.
Speaker 2:I think it's great and there's good value there too.
Speaker 1:My clients bought their house there like a year and a half ago for like it's nice.
Speaker 2:On 30 wide it was like 330 grand and they're like those great bungalows there.
Speaker 1:Yeah, they're great and if you're willing just to put a little bit of work into it, and there's a lot of equity you can get I agree and, and if you do our work in the suburbs you're kind of halfway between both. I mean, it's a little bit, you kind of avoid a little bit of the traffic.
Speaker 2:Yes, absolutely.
Speaker 1:So switch gears a little bit. So that's the kids, parents, you don't have to leave. That's the underlying thing. Yeah, don't have to leave. What since? So we're almost at the year mark for the change in the NAR settlement, any changes that you've seen, that like any pushback on people signing, like any is anything really changed? It's. I think it's made our job easier.
Speaker 2:I kind of like it.
Speaker 1:I love it.
Speaker 2:I think I was a little nervous at first, just because it was something new. Um, I think it's more. It's another piece of paper.
Speaker 1:Yeah.
Speaker 2:Um, but it has made me sit down and think, like, what value am I bringing and how I'm going to express to my client the value that I'm bringing? And that has only made me better.
Speaker 1:Yeah. And on top of it, it's like you're getting someone right off the bat, like if someone doesn't want to sign, or someone doesn't want to do this, it's like, okay, that's fine, I'm going to dedicate my time to someone else. So it sets that precedent that, hey, I'm your agent and I love the fact that you're saying, hey, listen, this is what I get paid. So now you know what I'm getting paid. Here's the contract, just so you see it. I showed them the contract. Here's it on the line. Nothing's really changed. I'm just letting you know upfront, versus it being on the backend. So I think it's been great.
Speaker 2:It's fine, I agree.
Speaker 1:Like everything up front is always better, just in the transparency.
Speaker 2:Transparency like when you never have, like, a weird conversation, no, and like, and if it is going to be weird for you, at least you're getting it out of the way in the beginning. You know, and just nobody has really had to push back on it, everybody just kind of thinks of it the same way. It's just I have one extra step and it's one.
Speaker 1:How are you dealing with it? On the listing agreement where it says this is what my fee is. This is how it is if someone comes basically from an open house, I've never says this is what my fee is. This is how it is If someone comes basically from an open house. I've never met, and this is if it's mine. Do go through all that with you. Are you getting any pushback on that?
Speaker 2:I do go through all of it because it's spelled out literally on the contract which. I like Um, I am not getting pushed back on it, it just, they're just no one. I don't want to say that nobody cares.
Speaker 1:Everybody knows.
Speaker 2:But they're all like okay, that's fine.
Speaker 1:They're always like. Everyone says to me. It was like well, isn't that how I've always been? I'm like yeah, I just need to.
Speaker 2:Yes, and they're like oh, that's so silly. And I'm like okay, and one of my clients she was so funny, it was just when it changed and I'm like okay, nice.
Speaker 1:And so I was, like you know, went through this whole rigmarole and she's like yeah, I don't care and I'm like, okay, I was like I was really nervous the first couple of times and then all of a sudden it's like, oh, this is.
Speaker 2:And I'm like man, I should have different parts. I have my Wisconsin license and they always sign the buyer agreements up front, always. They always have.
Speaker 1:So I have a buyer from Florida that we got on Instagram and she flew up and I was like hey, this is. You know, I'm sitting down. And I'm like all right, I go, this is what the buyer agreements. Like you know, I'm like I'm all ready. And she's like yeah, this is what we've been doing in Florida for years for years she goes I would this is this is you guys, you guys. And then she goes you guys never did this. I'm like well, we had buyer's agreements, but we didn't list out the fee.
Speaker 2:She's like no, we've been like this forever oh, like my sister sold up there and so, and I sold here, and, and so we'd always compare notes and she'd be like what are you doing? Going and doing that? I'm like we don't do that here, you know. I mean, we didn't yeah and she's like I would never do that. And I was like well, we just work differently here. I just like it's not customary for us to do that here.
Speaker 1:I had one person and he was a little bit of a stickler and I was just like. I was just like, listen, man, I'm like you know, I can't help you. Then yeah. If you don't want the sun to stay, I can help you. And then we're in the car and he's like. He's like what happens if you just disappear. And I said, what do you mean? Like you know, you just stopped working and I'm like first off. You know, I have a family.
Speaker 1:I have kids, your family's all using me. I'm like, do you think I'm just going to get up and leave?
Speaker 2:Right.
Speaker 1:I'm like that's not how this works. I go and, anyways, you can fire me at any time. It's just the places I've shown you, but that's the only person and the the um, the apprehension was like these crazy one-offs.
Speaker 2:Yeah.
Speaker 1:Like it's like what happens if you get sick, what happens if you get hurt? And I'm like dude, you could just it's not for life, I know. Um, yeah, it was nuts, all right, yeah, so both of us had the kind of the same experience. What this year? What changes have you seen from buyers and sellers? You know, is it? You know? We've talked about funny stories. Have you seen? I see less, I will tell you. I see less unrepresented people.
Speaker 1:Yes, Ton which is fantastic. It makes our job easier. No one actually wants to be dual agent for people out there. It's not worth the money's not worth the aggravation or the lawsuits, right? Um, what stuff have you seen? Have you seen? Because it's such a seller side, have you seen buyers get agitated more? Have sell like what are the things that you sing on the buy side?
Speaker 2:The buy side has been tough.
Speaker 1:Yeah.
Speaker 2:Um, I mean, we've written lots of contracts for lots of people and they haven't gotten them. I think there's a certain amount of frustration out there, but I also think it's been really educational for, like, I have this one client right now where we've gotten outbid a bunch of times and she's just like I'm not going to go up. I know, like she, you know what you're going to do, you know where your thresholds are, and I think that's really important, because sometimes it's easy to get lost in the competition of the multiple offer. And so I think it's been great, because the buyers that I've been working with are like no, I'll be fine if I don't get it. I know this is my threshold, this is my ending point and I can walk away and we can move on to the next one.
Speaker 2:You have a game plan yeah, there has to be yeah you cannot go into these situations.
Speaker 1:Without a game plan and a strategy, you cannot so what do you if you have somebody that has multiple areas they're interested in? Are you trying to get them down into one area versus spreading out because everything sells so quick. If you're looking, oh I don't know if I want to be in wicker park or north center or roscoe village I'm like you're not going to get anything no, I know, and I'm like you.
Speaker 2:Go out, go have dinner, go walk around yeah go walk through open houses.
Speaker 1:Where do you see yourself?
Speaker 2:where are you comfortable? You have to have like a top two yeah or something like that, because otherwise we're going to be crisscrossing the city, not like and everything's just going to sell.
Speaker 1:Yeah, what?
Speaker 2:are you going to do so? Um and. But most of them are pretty narrowed in on where they want to be. I really haven't encountered a client recently that's been like I want these 10 neighborhoods and you're like, okay, I have but you're mostly dealing.
Speaker 1:are you mostly dealing with people right now that are in like there's their third home, like close to not the forever home?
Speaker 2:I don't think there's one, but like you're like, so they're like.
Speaker 1:I've already done the city. This is where I want to hone in. Are most of your clients, do most of your clients have children, or or?
Speaker 2:many many.
Speaker 1:So they kind of know they're not like willy nilly. They don't have that ability to be. Hey, I'm going to check this city out in this part, in this part, in this part.
Speaker 2:No no.
Speaker 1:On the sell side. I know you've just got multiple offers on a place on Waveland. People think multiple offers are great, but multiple offers are almost worse than just getting one offer. It's tough and what are the conversations when you're sitting down with people, with sellers, and saying, hey, here's all the offers we have and we have to pick the. You don't want to mess up?
Speaker 2:Right. Well, I think you have to also know that, like it's not, like it's not your decision, like I am not deciding for my clients, right, it is a collaboration and you are here to advise and your clients are here to make the decisions, right. So you have to put all of the facts in front of them. And I think there's like a misconception out there sometimes maybe not so much any longer where it's like the highest price is always going to win and that's not the case. It is not the case. Like if you have not so strong financing or you have financing in this market, you know it's just. There are other terms of the contract that are just as important and maybe sometimes more important than the price. Or like if the moving date is really important to your sellers, you know, and somebody can't provide that, then you know.
Speaker 1:I think what you just said is the biggest thing, because I think so many people got into the market, so many agents got into the market in 21 and 22, when the market was crazy in 21 and 22 when the market was crazy. And now 24, 25 agents buying agents that don't have experience, don't know how to write an offer that will win, they don't like it just they just don't.
Speaker 2:And listen. Things change every year too, and that's why I think it's so important to have friends and colleagues that you trust, that you can speak with, because, like Sophia called me the other day and she was like, or the other week and was like, oh my God, the smartest thing just came across in an offer.
Speaker 1:Yeah, she called me.
Speaker 2:And I was like that was really smart. And I used it, you know, and so I think it's great, because things are constantly moving and what was important before in the marketplace is not going to always win in this marketplace, so like to have more ideas. To know how to be better at what you're doing is huge.
Speaker 1:Yeah, I had a person that was a person I follow and he was like and, and the suburbs are different than the city. But his comment was I don't understand why earnest money is so important and he was upset that he lost out on a place. He was on my podcast too before that. He lost out on a place and have earnest money the back of my head. Man, I was just like dude. That's like the one of the first things I look at how committed are you?
Speaker 1:right you know you're you're putting 20 down or you're putting 30 down or your cash, but your earnest money is one percent. What are?
Speaker 2:you doing? What are you doing?
Speaker 1:you have no skin in the game.
Speaker 2:You got to go. Yeah, yeah, I'm sorry, I have to go to my appraisal.
Speaker 1:All right. So what I kind of really want to get into is kind of where we just left off with Marissa because she had to run to an appraisal, because she's rocking and rolling is the issues that buying agents are having right now and sellers are having in terms of the marketplace being so quick and, on top of it, having a lack of inventory. And I think the biggest issue that a lot of agents are having on the buy side is not really knowing what is important to the seller and that is post-possession. In other words, are you offering the ability for the seller to stay in the house after they close it, take their money and then go ahead and buy something, because that's very difficult now to have any type of contingency, sale contingency and the earnest money and the ability, the as-is that people are committed to the product. I think right now there are so many multiple offers that are coming in. Right now the city of Chicago has three offers per single family home that sold. Does your offer provide the most seamless transaction for the seller? And I think that is something that right now is the most important thing when we're talking about buying and selling single family homes. It's not the price that Marissa brought up. It's the ability to be seamless, it's the ability to not have stress. That's what sellers are looking for, because the pricing is plus or minus a couple points at the most, everyone's going over asking, or they're at asking or they're at a great price. So it's not the fact that, oh my God, this offers $40,000 or $50,000 more than this offer. It's this offers five more, this offers seven more, this offers six less, but the stress that it's putting on the seller and the family is worth that lower price, and I think that is a massive part of what's going on in this marketplace and will continue to go on. So another thing that I would tell that we're seeing a lot of is, obviously, when there are multiple showings, agents are this is a huge thing too agents, especially on the sell side, they're taking mental notes of all the buyers, right. So not only do we have three or four offers, as is cash is over asking.
Speaker 1:An agent is very much looking at not only the buying agent, and the reputation that buying agent has is massive. Does this person cancel a lot? Do they have relationships with their sellers? Can they their buyers? Do they know their buyers? Are they able to get through a transaction and hold their buyer accountable to the, to the contract. What I mean by that is is do I know that this agent's as is is really an as is is? Do I know that this agent's as-is is really an as-is? Do I know that this cash buyer is really cash or is he hiding some sort of loan? The reputation of that buying agent is a massive part. We break that down right. So when you're with somebody who doesn't have a reputation or doesn't have a lot of reps, I'm not taking anything away from that newer agent. But when a newer agent is up against veteran agents that we've done deals with that we know are going to get to the closing table, that is a huge thing.
Speaker 1:On the buying end, when you're at a house and you're a buyer, trashing the house or being extremely lack of a better word odd could cost you the house. Because when we sit down and talk about it, the first thing the seller's going to do is like, hey, tell me about. Did they like the house? Did they not like the house? What was their thing? So have you done deals with this agent? Have you not done deals with this agent? The seller's going to want all that data so that they can make the right decision.
Speaker 1:Reason being is, in this market, if you don't make the right decision and you do fall out of contract, three weeks is an eternity now. So I know the average days right now is like 33, 35. It bounces in the mid 30s. But that also includes condos and that does sometimes include some time that you're contingent. But if you're not off the market within seven days, right away buyers like what's wrong. And that's the most important thing that sellers need to know is that if you're going on the market that first week you get multiple offers. You got to make sure that that purchase, that thing that you picked, that buyer you picked that they're going to make it. Because the minute you go off the market it's what's wrong with the building, what's wrong with the inspection, everyone's going to go different ways. And then you start losing that urgency on the property and in sales. Urgency is what creates that price action right. So you've got to have that urgency on the property and in sales. Urgency is what creates that price action right. So you've got to have that urgency to create that upper price point and create people battling for that space. So I think that's a really huge thing in the marketplace right now.
Speaker 1:That I think buyers and sellers need to know is, first off, as a buyer, go into the place, don't trash the place. If you think you're trash the place because it's going to help you negotiate, it's not because there's five other offers, right? So be cordial. As a buyer's broker, you know you always want to let people know the relationship you have with that buyer, how good that buyer is. A lot of times now you know you go to contract or you don't go to contract. You send in your contract. Have the mortgage broker make a phone call. The mortgage broker for your buyer should make a phone call to the listing agent and say hey, listen, let me tell you about this buyer. They're well qualified. I ran them through underwriting, everything's set, you're not going to have issues. All that stuff matters because all that data points are going to come back to the seller.
Speaker 1:The seller, on the same token, needs to look at everything and say, hey, what's more important? First and foremost, always whenever you have a non-contingent offer, as is, without inspection, that's the number one thing, right, because that means the attorney review period is going to be solely based on title work. Make sure everything is clean. If there's leases on a multi-unit, the leases are done, right, right, but it's as is. That means what there's going to be no ask for credits and there's no outs. That's a huge thing. There's, as is, without request, which means they want to do an inspection. They still have the ability to cancel, but they're telling you hey, we're as is. To me, this is lack of a better word. This is a gentleman's agreement. And as is without requests, with inspection, means they're still going to go to the place If they don't like something. They could still cancel. So you still have that barrier. And then, obviously, you have cash. And then you have mortgages.
Speaker 1:Most people now know that they can get a loan, so they'll say that they're cash with the ability to get a mortgage. I would tell sellers and agents hey, if you do get this, the thing I would tell you to do is do not let the appraiser in until you're out of your attorney view. A lot of agents will say, hey, we're going to be cash with ability to get a mortgage. I would tell you to do is do not let the appraiser in until you're out of your attorney review. A lot of agents will say, hey, we're going to be cash with ability to get a mortgage, so we don't need a mortgage contingency, and they'll try to sneak in the appraisal during their attorney review period so that then they can turn around and they can cancel on you. So wait, someone just tried to do this to me last week. I said listen, I have no problem getting the appraiser in as soon as I have balance of earnest money. We've closed out the review, you can go ahead and do the appraisal, because that's protecting your client to the nth degree, and all we want to do on the buy side and the sell side is protect the client. I will tell someone that is looking and starting their search and you're searching online and you have not reached out to an agent yet.
Speaker 1:First and foremost, you definitely should reach out to an agent. I myself think that you know if it's going to be the biggest purchase in your life, it is good to have somebody next to you that, even if they're not the greatest agent everywhere, they're not partial, they're not going to be emotional. Our job is to not be emotional. You're the one that loves the property. You're the one that would get emotional to the property. We can step back and be rational, right? So there's always two parts to everything you do in life it's your brain and your heart. Unfortunately, when your heart overtakes your brain, you make irrational decisions. You want the brain to always overpower the heart. Let the heart take you to the house you love, but then click on that brain. That agent should be your brain. Your agent should be the non-emotional part of it, keeping you together on. Hey listen, this is what's good and this is what's bad with the property. The agent's job is not to tell you what you love. I think that's a big misconception. When I meet with a new client, the first thing I say is my job isn't to tell you what you love. My job is to tell you what's wrong with the property when I sell it to the next person. Right? Every property should have an exit philosophy.
Speaker 1:So anything you get into at some point you're going to sell. Is this property sellable? Is what's happening in this neighborhood, the demographics in this neighborhood when I mean demographics, how it's changing. Is it going this way? Is it going that way? Is it getting to an older? Is it going younger? Like, how is your piece of property going to appreciate with the changes that are going to occur in that area over the next 10 years. This is the main point that agents should be making with their buyers Where's the direction of the neighborhood and how's that going to affect your largest investment?
Speaker 1:So you may love a space and I may say to you, hey, I love this space too, but these are the downfalls of this space. That doesn't mean the agent's telling you not to buy it, and I tell that to my client. I'm not telling you not to buy the space, I'm just telling you these are going to be the pitfalls when we go to sell it. Now, are these pitfalls small? Are they big? Can they be changed? Can we make changes to the house or the condo that fixes? That Are the pitfalls. That are pitfalls now, are now not going to be pitfalls in five or six years? So are you buying something that maybe is at a discount now but will be at a premium later? I mean, that's the golden standard. That's what you want to do. You want to buy low and sell high. Like our job as agents is to say, hey, listen, I love, you, know this street, you're at like right. So we moved to Sophia and I moved to Bucktown in 97, 98. What Bucktown was then was not what it was now, but we knew, hey, in 10 years, this is where it's going to be, let's go ahead and buy a house. Even though everyone was buying lofts and condos, we want to do this because this is where we think that space is going to. That's what an agent's main thing is is to keep the brain engaged in where things are going and do have the ability to sell this house.
Speaker 1:I think a huge mistake and this is an example, is a huge mistake people make is a lot of people want stuff that's bright and shiny. Everybody wants the shiny toy. However, a lot of people will forego neighborhood for a shiny toy. My advice to everyone is something is shiny only in the beginning. In three or four years it's going to be old and and I don't mean incredibly old, but it's not going to be new construction. And when it's not shiny and new, are you in a neighborhood, are you in an area that, now that it's not shiny and new, it still holds its value right? Or do you want to be in a neighborhood where it's not shiny and new, but it's a great neighborhood and you can take it to shiny and you can take it to new, you can renovate and all of a sudden you're in an amazing area with a house that's now relevant.
Speaker 1:So you just really have to make sure that the age old saying location, location, location. You just got to make sure that the decisions that you make are made intelligently and that you understand in five or six years what your piece of property is going to be, because that is the main thing that that investment is moving to the upside. Now, there's always going to be downturns in the market. That's just how it is. But does that downturn? Are you going further down than the average? Or are you in a neighborhood and in a house that quote unquote nothing's recession proof, but are you taking a 2% or 3% or 5% hit? But those people that wanted a shiny home in the outskirts are now taking a 15% hit. So those are the things that you really have to look at, and I think that is when you really have to feel about hey, this is your price point, this is where you can afford to live, where you are not the best house on the block, but you're making a wise decision, and not everybody wants to make that decision.
Speaker 1:I don't talk everybody out of being on that shiny house in that outskirt area. The thing is is that you have to communicate to that client and say, hey, listen. And as a buyer, you have to know I'm taking that risk by going to that area knowing that I have a high return and a high loss probability. Right, because without a lack of word, the delta, the up and down in that area is greater than other areas. Right? So you really want to think about that. As a selling agent, so you can give advice. As a buying agent, so you can give advice. And as a buyer, so you can give advice. So every buyer should really be thinking about their exit strategy before they buy their house, right? And that exit strategy is where your agent comes in and overruns your heart and comes in with the mind.
Speaker 1:I can tell you for positive, the biggest problems I ever have is when I get hired by a person and I go to their house and I see what they paid and the neighborhood they're in and the type of inventory they're in, and the hardest things I have selling to keep them afloat are always the people that went and bought by their own. I'm not saying it can't be done, but statistically speaking you're probably going to have a high failure rate versus hiring somebody that puts you in a position that separates the heart from the mind and keeps you focused on the investment side of it and where the neighborhood's going, versus when you walk into a house and just love the house. Those are the main things that I'm seeing, especially in this market, where people are paying a lot of money for homes and there's a lot of multiple offers. Yeah, a house is worth what they're willing to pay. That is the supply and demand of it. But when it settles down and the dust settles, are you in a place that can hold that comp that you set? If you're buying something at a new high, can that comp be held, or is there a bottom to it because you're the nicest place in that area? That is going to be the most important thing moving forward over the next couple years is are you making a smart investment or are you making a heart investment just because something speaks to you which it should, but you have to make sure that, at the same time, you keep your brain focused on it.
Speaker 1:I could also say the other thing I'll leave you with, too, in this marketplace is stay to relevant data. What I mean about that is I'll give you an example what somebody paid in 2018 for a house has no bearing whatsoever than what it's worth in 2005. Having that data in your head is I think people just want to know that because they think they should know that but absolutely irrelevant. You want to stay on the relevant facts. I really don't care what they paid for something in 2018 and 2025. The relevant data is what is somebody going to pay for this house in 2030 when I leave? That's what's relevant. And does this have the ability to get to where I think it's going to be in five or six or seven years? The past is trailing, it's behind us. It really doesn't matter at that wide of a spread. It's too long of a time. Now. What they pay last year, that could be somewhat relevant, but something five, six, seven years down the line is completely irrelevant.
Speaker 1:And when you are doing research and you are collecting data before you reach an agent, make sure that data collection is, like I said, is relevant to where it's at. You know where's the at? Where's the highways? Where's the schools? Where's the high road? Is there coffee shops? Are there restaurants? Are you walking the neighborhood? Do you know the type of demographic that's in the neighborhood and do you think that type of demographic would love to buy your house in five years or six years or seven?
Speaker 1:Whenever you're leaving, be a 10. That is relative data. That stuff that is relative to you and what you want to do, the lifestyle that you want to leave excuse me, the lifestyle that you want to live in that area, is the relevant data versus what something traded for 10 years ago. Now you can sit there and look at historical stuff and say, man, how Bucktown has done great. Roscoe Village has done great. All these areas have done great. Yeah, that's awesome. But it's also irrelevant to what the price of that house is from where it was seven years ago. You just know you're in an upward swing. We all know. Since the mortgage meltdown in 08 to 11, we've been in an upward swing and over the last four years it's been a rocket ship. To 11, we've been in an upward swing and over the last four years it's been a rocket ship. I mean Chicago itself is appreciated four times the national average just this year alone.
Speaker 1:Chicago has a lack of inventory. When you have a lack of inventory and you have a major city that is relatively inexpensive to the coasts. You're always going to have demand and when you have that demand you don't have supply. Pricing is always going to go up. It's a scarce resource. It's always going to go up. So those are the things I can leave you with.
Speaker 1:But I've noticed in 2025, in terms of picking out an agent what that agent should be doing to you and keeping yourself relevant on what is relevant and what's not relevant when you shop and Marissa getting into you know, the city is an unbelievable place to raise a family of three boys myself. Everybody, most people know that. I have one that's almost 18. I have one that's 14. I have one that's almost nine. I couldn't be happier being here. I couldn't be happier with the relationships that they have. I couldn't be happier It'd be crazy. I couldn't be happy with the teachers that they have in the CPS.
Speaker 1:We've had great experiences in that realm too, and I would just tell you you don't have to leave. It's just a different lifestyle that I think people really will like once you have that one or two or three years with a child in the city. So right when you decide to have kids, give it a chance, let that incubate, feel how amazing the city is and the energy is and how your kids really wrap into that energy, and then I think you'll be surprised that you're not going to want to leave and that you're going to enjoy what the city has to offer you and your family if you decide to go that route. Thanks so much for listening to us. You can find us on all the platforms YouTube too. Make sure you subscribe so you get our new videos when they come out and our new podcast. And thanks again, and let's finish off summer strong.