It Ain't All Big Hair and Cadillacs

Illinois 2006 Profile of Home Buyers and Sellers

Even as the housing market retreats from the frenzied pace of the last several years, home buying and selling remains an important segment of the national and local economies. Buyers and sellers continue to have opportunities to trade up, trade down, relocate or purchase a second home. As importantly, first-time buyers, accounting for over 40 percent of the market, are discovering and capturing the benefits of homeownership.

The 2006 Illinois Profile of Home Buyers and Sellers, conducted by the National Association of REALTORS and funded by the Illinois Association of REALTORS, allows real estate professionals to better understand their clients and how their needs are evolving over time. Figures reported in this article are drawn from the national survey (July 2005 through June 2006) and provide information on demographics, housing characteristics and the experience of buyers and sellers in the housing market.

Highlights - Characteristics of Home Buyers

• The median age of home buyers was 37 years old. Among first-time buyers, the median age was 31.
• The median household income of home buyers was $73,300 compared to $71,800 in the U.S.
• 59 percent of home buyers reported that there were no children under age 18 residing in the home.
• 57 percent of home buyers were married couples, 26 percent single females, 8 percent single males, and 9 percent were unmarried couples.
• First-time home buyers accounted for 44 percent of homes purchased in 2006.
  62 percent of first-time home buyers were between 25 and 34 years old.
• The median income of first-time home buyers was $59,500 compared to $58,300 among all first-time buyers nationally.

Highlights - Characteristics of Homes Purchased

• 62 percent of homes purchased were detached single-family homes.
• The typical home buyer purchased a home 12 miles from their previous residence.
• The median price of homes purchased was $225,000 (in the survey period) compared to $214,000 in the U.S. (See IAR Market Stats for the most recent monthly and quarterly housing stats information for Illinois.)
• The typical buyer purchased a home that was 1,849 square feet in size.
• Recent home buyers plan to live in their home a median of 6 years.

Highlights - The Home Search Process

• Recent home buyers searched for a home for a median 8 weeks and saw a median 11 homes.
• 87 percent of home buyers used a real estate professional during their home search.
• 59 percent of home buyers used the Internet frequently to search for homes.
• Among home buyers, the typical Internet searcher was 36 years old and visited a median 12 homes. The typical home buyer that did not use the Internet to search for homes was 46 years old and saw a mediain of 7 homes.
• 40 percent of home buyers first learned about the home they purchased from a real estate professional; 22 percent first learned about the home they purchased through the Internet.
• 70 percent of buyers viewed the Internet as a very useful tool in their home search.
• 76 percent of buyers rated real estate agents as a very useful information source with an additional 13 percent rating them somewhat useful.

Highlights - Home Buying and Real Estate Professionals

• 76 percent of home buyers purchased their home through a real estate agent.
  Buyers searched for a median of 2 weeks on their own before contacting an agent.
• 48 percent of first-time buyers were referred to their agent by a friend, neighbor or relative.
• 98 percent of buyers ranked honesty and integrity as a "very important" factor when choosing a real estate professional to assist with a home purchase.
• 87 percent reported they were "very satisfied" with the honesty and integrity of their agent.
• 67 percent of recent buyers will definitely use their agent again, and an additional 21 percent will probably use the agent again or recommend to others.

Highlights - Home Sellers and their Selling Experience

• 
  The median age of home sellers was 41 years old; they had a median household income of $93,800.
• 74 percent of home sellers were married and 45 percent had no children under 18 years old living at home.
• The typical home seller owned their home for 5 years.
• The typical home was on the market for 4 weeks; 49 percent of home sellers did not reduce their asking price before their home sold.
• 77 percent of sellers used an agent or broker to sell their home.
  56 percent of all sellers were very satisfied with the selling process.

Highlights - Home Sellers and the Real Estate Professional

• 63 percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.
• When selecting a real estate professional, 50 percent of sellers received a recommendation from a friend, neighbor or relative.
• 62 percent of sellers used the same agent for their home purchase.
• 88 percent of sellers used the Internet to market their home.
• 78 percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction.
• 66 percent of sellers reported they would definitely use the same real estate agent again.

About the Survey: In August 2006, the National Association of REALTORS® mailed an 8-page questionnaire to 129,500 consumers who bought a home between July 2005 and June 2006. The survey yielded 7,548 usable responses. This report is based on the 347 responses from the state of Illinois for the 12-month period ending June 2006. At the 90 percent level of confidence, estimates that appear in this report are general accurate within 5.3 percentage points. Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent homebuyers derived from county records.

Home prices remain stable in Illinois with the median sale price up slightly in December , while home sales activity dropped in what is traditionally the slowest month for the Illinois housing sector.

The Illinois median sale price in December was $202,500, up 0.7 percent from $201,000 a year earlier. Total home sales were down 19.1 percent to 10,811 homes sold, compared to 13,361 sales in December 2005. “The Illinois housing market weathered a year of contraction in sales—experienced across the nation—with continued modest but positive price appreciation, which shows the relative market stability of our region. Coming off the housing boom’s peak year of 2005, 2006 was the fourth best year for total home sales in Illinois,” said IAR President Robert Zoretich. Read the IAR release .

Nationally, sales were down 8.4 percent in 2006, according to the NAR release .


Illinois Housing Statistics

Statewide Median Home Price Gains in December; Total Home Sales in 2006 Off 8.9 Percent from the 2005 Peak

January 25, 2007 news release -- Home prices remain stable in Illinois with the statewide median home sale price up slightly in December while home sales activity dropped in what is traditionally the slowest month for the Illinois housing sector. The Illinois median sale price in December was $202,500, up 0.7 percent from $201,000 a year earlier. For the month of December 2006, total home sales (which include single-family and condominiums) were down 19.1 percent to 10,811 homes sold, compared to 13,361 sales in December 2005.
For the year, a total of 167,860 home sales were reported in 2006, down 8.9 percent from the record annual high of 184,199 total sales in 2005. The year-end Illinois median sale price was $203,900 in 2006, up 1.5 percent from $200,900 in 2005.

“The Illinois housing market weathered a year of contraction in sales—experienced across the nation—with continued modest but positive price appreciation, which shows the relative market stability of our region. Coming off the housing boom’s peak year of 2005, 2006 was the fourth best year for total home sales in Illinois,” said Robert Zoretich, president of the Illinois Association of REALTORS. “Illinois REALTORS are optimistic about the year ahead given the underlying strength of the market, which is supported by affordable mortgage interest rates at 45-year lows, gains in the Illinois economy including jobs, and demand for homeownership.” Read the full release.

Illinois Home Sales Ease in Third Quarter; Statewide Median Price at $209,000
The Illinois housing sector continued to adjust to a more sustainable pace of sales in the third quarter while mortgage interest rates remain near 45-year historic lows. Total home sales were down 14.7 percent in the third quarter of 2006 to 46,759 homes sold. Year-to-date home sales for January through September total 131,826, off 7.4 percent from 142,316 home sales in 2005. The Illinois median home sale price in the third quarter was $209,000.

“It’s clear the housing market is stabilizing and is shaping up to be the third best year for Illinois home sales. Conditions are ideal for buyers as we head into the home stretch for 2006 with more choices and room to negotiate with current inventory levels,” said Robert Zoretich, president of the Illinois Association of REALTORS. “Sellers are offering competitive pricing in line with current market conditions. We do expect a more balanced market between buyers and sellers by early spring which will support future price gains.”

3Q06 News Release
3Q06 All Sales Report (pdf file)

Tax Tips for Income Producing Properties

The year is coming to a close and it won’t be long before you begin preparing your 2006 tax return. As an owner of income producing investment property, I wanted to provide to you some food for thought.

As you begin the process of completing your Schedule E, are you and/or your accountant depreciating just the value of your building, or do you bifurcate the value of the land, land improvements and personal property in your building(s)?

If you are simply depreciating the value of your building, you may be losing enormous tax advantages.

IRS tax laws allow owners of residential income producing investment properties to depreciate the value of your building, land improvements (i.e. value of curbs, sidewalks, parking lots etc.) as well as the value of the personal property in the building (i.e. carpet, window treatments, lighting fixtures, appliances etc.). The cost recovery for personal property percentage in year one alone is 20% and can be depreciated over 5 years. The cost recovery percentage for land improvement is 5% in year one and can be depreciated over 15 years. You may even be able to file an amended tax return and perhaps get money back. Your potential refund can be reinvested in additional real estate. Consult a financial professional or call me, I can point you in the right direction.

Some addition thoughts as we close out the year: Do you and/or your accountant calculate the return on your equity in the property(s) you own on a year-to-year basis? If not, you may want to calculate your return in order to best understand whether or not your investment is providing the best return possible. As you begin to lose the tax advantages over time, your money may be better used in purchasing additional investment properties with better returns. You may not even need to sell your current investment. Perhaps borrowing against your equity may be a better solution. Either way, it’s important to understand how your money is working for you.

Please contact me if you are interested in discussing the possibility of selling your property or purchasing additional property.

To reach me directly, call 773 791-2154 or thall@rubloff.com.

Thomas J. Hall
Broker Associate


Depreciation Illustration:


You purchase a building for $600,000 of which the land value is $100,000.

Your net income for the year is $24,800.

For purposes of a simplied illustration, the cost of debt service is not included in the
calculations.


Building:

Recovery Period for Residential Property = 27.5 years
Recovery Percentage for Residential Property for Year 1 = 3.48%

Land Improvements:

Recovery Period for Land Improvements = 15 Years
Recovery Percentage for Land Improvements for Year 1 = 5.00%

Personal Property:

Recovery Period for Personal Property = 5 Years
Recovery Percentage for Personal Property for Year 1 = 20.00%


Without bifurcation:

Purchase Price: $600,000
Building Value: $500,000
Land Value: $100,000

Total Depreciation: $500,000 x 0.0348 = $17,400

Net Income: $24,800 - Depreciation: $17,400

Cash flow before tax = $7,400

With bifurcation:

Purchase Price: $600,000
Building Value: $400,000
Land Value: $100,000
Land Improvement: $50,000
Personal Property: $50,000

Total Depreciation: = $13,920($400,000 x 0.0348) + $2,500($50,000 x .05) + $10,000($50,000 x 0.2) = $26,420

Net Income: $24,800 - Depreciation: $26,420

Cash flow before tax = -$1,620

Edgewater Developments

Spotlight on Granville - Much Good News!

Greetings!

Many years of community effort are bearing concrete signs of success for the Granville District. In fact, concrete will soon begin flowing as the long awaited development, The Granville, rises at the northeast corner of Granville & Broadway. EDC has been happy to be a part of the efforts to bring a positive development to this corner. Read below for more info.
In addition, a coalition of community advocates spent years working to Vote Dry a precinct at the heart of Granville. There will be a party by the local block club, NEBA, to celebrate. See more details below.

Much more work remains for Granville, and EDC is focusing it's attention on other important issues, including improving the CTA station at Granville, as well as those at Thorndale, Bryn Mawr, and Berwyn; Read on for more details.
The Granville Rises......come and celebrate!

by Adam Burck

Come and celebrate the ground breaking of The Granville on Wednesday, January 31, at 4:30 p.m. at the corner of Granville/Broadway, with a reception afterwards in The Granville sales center across the street from the construction site. Site preparation work began on January 2.....what a great way to kick off the New Year! Keep your eyes on this corner as the building rises over the next year.

EDC has spent much time and effort to ensure that the community gets a high-quality new building at this site to stimulate more positive developments on Granville. EDC began focusing on this site many, many years ago when we put together a marketing package for the site that Loyola Univ. (previous owners) used to market the property to prospective buyers. Their brokers complimented EDC's product, noting that it provided all they needed to find a good buyer. In addition, EDC has spent many meetings with the developer, Loyola, and Joe Moore - the 49th Ward Alderman, to help hone the development. When a glitch with relocating the public alley threatened to derail the project, EDC worked with City departments to assist the developer in moving through the alley relocation process. EDC also helps businesses find appropriate commercial space in Edgewater, so we found Access Group a location for the sales office right across the street from the site.

We worked so hard on this project because we feel it is the right development at the right location. The 160 new living units adjacent to the Red Line and other public transit sources provides an alternative transit bonanza to the new residents and helps direct transportation to options other than the auto. In addition, we have appreciated the cooperation of Bill Platt and his team at Access Group Realty in responding to community input on the design and retail tenant mix.

We hope you are able to make the Ground Breaking on Wednesday and celebrate with EDC and all of your neighbors!

Join NEBA and EDC to Celebrate Vote Dry Success

Norm Cratty, NEBA

The North Edgewater Beach Association (NEBA) block club invites you to an informal gathering celebrating the recent court decision for the vote dry of the two liquor stores at the corner of Winthrop and Granville avenues. For the hard work and dedication of Pat Sharkey, the Granville Task Force, the countless volunteers whom walked door to door collecting signatures, and to our community, we invite you to participate in a heart-felt THANK YOU!!!!!
When: Tuesday, January 30, 5:30 p.m. - 7 p.m.

Where: Fig Media, 1120 West Granville Avenue (north side of Granville under the "El")
NEBA Block Club Web Site

Save the Date for Meetings on Red Line Stations

by Adam Burck

EDC and State Rep Harry Osterman host Red Line Design Charrettes
EDC and State Representative Harry Osterman have engaged the City Design Center and the Voorhees Center for Neighborhood Development to hold Design Charrettes regarding the future of the Red Line Stations in Edgewater. The Red Line is a significant asset in the community which will be revamped in the coming years, and we want the community to have input into shaping this future.

We will follow-up with more details in the next couple of weeks, but for now we want you to save the dates so you can participate. We will hold the first Design Charrette focusing on the Granville and the Thorndale Stations on Monday, March 5th at 7 p.m. at Loyola University. We will hold the first Design Charrette focusing on the Bryn Mawr and Berwyn Stations on Monday, March 12th at 7 p.m. at St. Andrew's Church, 5649 N Sheridan Rd. Watch your e-mail in the next couple of weeks for more details on how to participate.

We thank Rep. Osterman for his instrumental role in helping secure the State funding for this project.

EDC Web Site

Contact Information
email: info@edgewaterdev.org
phone: 773-506-4016
web: http://www.edgewaterdev.org
Join our mailing list!

This publication was funded in part by the City of Chicago Department of Planning and Development TABG Program and does not necessarily represent in whole or in part the viewpoints of the Department of Planning and Development.

Economic Forecast 2007
Presented by the Chicago Association of REALTORS
January 19, 2007

Close to 200 REALTORS gathered on January 19 for the "Economist Forecast 2007" sponsored by the Chicago Association of REALTORS at the Hyatt Regency in Chicago.

Speakers included Dr. Lawrence Yun, Managing Director and Senior Economist for the National Association of REALTORS, who reported that America is consumed by what is happening with the housing market currently with much sentiment driven by media reports. In evaluating the current status of the housing market, Yun reminded the audience of some of the activity that was occurring in 2003--with a booming real estate market and an increased share of speculative purchasing occurring in the market. He said that the market has returned to normalcy with reduction in speculative activity currently.

"All real estate is local. Illinois is a solid state and there should be nothing to worry about," Yun said. He added that new home sales are beginning to pop up with home builders cutting back on construction in order to boost sales of current inventory. He reported a net gain of 50,000 in new jobs in last year for the Chicago metro region and expects a similar such gain this year with overall economic growth increasing at a respectable pace and with consumer spending remaining very healthy.

He noted only modest declines in activity in Illinois as compared to other states who are witnessing sharp decreases including Virginia, Nevada, California, Florida and Arizona.
"Those markets that took off faster than others are struggling now more than others," Yun said.

"The Midwest is stable and mortgage debt ratio is healthy. The decreases the state is seeing may be more related to the psychological impact as a result of the media reports noting declines in activity in Illinois."

He reported that no correction is expected in the stock market and business spending is rebounding at a double digit rate of inflation. The only negative sign in the market is the growing level of core inflation which is still at a slightly uncomfortable level he noted. Yun does expect a change in interest rates late this year. The national housing outlook for 2007: 6.4 million existing home sales; 1.0 million new home sales; 1.5 million housing starts, 6.6 percent 30-year fixed rate mortgage.

Gail Lissner, Vice President of Appraisal Research Counselors in Chicago reported on the expansive growth of the downtown Chicago housing market mentioning specific developments underway. She reported approximately 4,200 new condo units will be delivered in the downtown Chicago real estate market in 2007 with an estimated 6,700 units in 2008.
"One quarter of the sales of new construction condos in 2006 occurred in the South Loop," Lissner stated, adding that they are seeing less speculator activity in the market today and expects an up-tick in activity after the first quarter of the year.

Sara Walker, Senior Vice President and Investment Officer for Associated Bank in Chicago, discussed the expanding investment activity on behalf of consumers and its relation to the housing market.

"We are starting to see growth in terms of existing home sales and are seeing continued investment in business construction that affects all aspects of the economy. The business sector is healthy and that bodes well for construction and employment," Walker reported. "We have witnessed 18 quarters of double digit earning growth by corporations creating some of the best balanced sheet growth ever seen."

- Report submitted by IAR Communications Director Mary Schaefer. Read "Housing + Psychology: Economists predict the Illinois housing market will find its footing in early 2007" from Illinois REALTOR Magazine's January 2007 edition.

Please see the link below to find the places and times when tax appeal workshops are sponsored by CIC that provides 12 hr property management training county wide:

http://taxestoohigh.com/News___Events/news___events.shtml

Information courtesy of Andrea A. Ralia 676 North LaSalle Street, Suite 520 Chicago, IL 60610
E-Mail: ARaila@aol.com
Web Site: http://www.taxestoohigh.com

Sun-Times columnist Monroe Anderson’s commentary January 7, Disappoint a lawyer: Cap property tax hikes was a justifiable anguished and sagacious retort about the property tax mess we all face.

As a principal of a property tax company, a mother of three children under age 10 in private elementary schools, and a Chicago homeowner facing a 95% tax increase, I too have concerns about solicitations and representations made for property tax appeals that appear disingenuous or misleading.

A reputable firm refrains from enticing taxpayers with promises to reduce their property taxes by specific amounts and should not require any up-front fees.

Moreover, I have not found one tax or law firm involved in any pro-taxpayer reform legislation. None is involved in advocating for across-the-board professional and ethical standards applied to lawyers, consultants and elected assessment officials. All property tax appeal practioners should be certified, as in other states, and legislation should put an end to all contributions made by tax lawyers and practitioners to elected officials who preside over tax appeal cases.

Too often, the real estate tax appeal system is steeped in politics and clout, as
recently profiled by the Chicago Sun-Times about an alderman’s questionably low property taxes.

The encouraging news is that more taxpayers are filing tax appeals independent of tax services and overcoming the perception that tax appeal services are the exclusive domain of lawyers.
Still, in Cook County attorneys often have managed to transform real estate appraisal and accounting practices, fundamental skills used in evaluating and developing property values into high-priced “legal” practice.

The property tax appeal and reassessment systems must be structured fairly with well-defined rules. If not the public confidence in the tax system breaks down. Appeals expertise should not be shrouded in legalistic jargon or shaded by politics. Tax appeal rules should be standard, accessible, and politically impregnable so taxpayers can have the confidence to fight for themselves.

Unfortunately, while property tax appeal services are routine big-ticket cost to large property owners, the same services for seniors or smaller homeowners are frequently not affordable. In the end lawyers and tax practitioners benefit from ----what Anderson aptly describes as a “contorted and capricious tax system” ---at a high cost to taxpayers and assessment administrators.

As a tax Lobbyist, I have worked for reform legislation in Springfield and Cook County that would require professional certification standards. A volley of tax lawyers protested the passage of this bill. I assisted in the defeat of legislation that would restrain jurisdictional powers of the Illinois Property Tax Appeal Board, an agency that does not take contributions from those practicing before them, and which has proven to be the most effective and fair appeal agency in the state. Cook County elected assessment officials rallied unsuccessful for the bill’s defeat.
Unethical profiteering from property tax appeals should be exposed, but we should not be distracted from the most important issue---reforming the biggest, most complex, error prone and politically permeated tax assessment and appeal systems in the country.

As a co-drafter of the study Taxation Without Representation—the Illinois Property Tax System, sponsored by the Illinois Taxpayers Federation, and as a former case decision maker of the Cook County Board of Review, I know that triennial property tax reassessments have never been effectively capped as they are level restricted in a majority of states.

Is it any wonder that taxpayers who have not been able to pay their tax bills increased 35% this year? According the county treasurer over 112,000 struggling taxpayers in Cook County owe over $275 million dollars in unpaid property taxes in 2006.

The Illinois revenue system, especially the property tax system, has become a gigantic beast without a master. I encourage taxpayers to vote yes for an Illinois Constitutional Convention placed on the ballot in 2008 automatically every 20 years.

A statewide con con of citizen delegates, unbowed to political contributions, will address these serious state issues head on since we have not gotten meaningful property tax or education reform from our lawmakers in decades.

I would also urge any taxpayer fed up and serious about accomplishable tax reform to visit the Citizens for Fair Assessments & Taxes (CFAT) website at www.FairTaxes.Net to obtain a petition that calls for caps on all property assessments at 7% annually or at 21% in triennial reassessment years.

Andrea A. Raila & Associates 312-587-9494676 North LaSalle Street, Suite 520 Chicago, IL 60610E-Mail: ARaila@aol.com Web Site: http://www.taxestoohigh.com

Are your property taxes killing you?

Please visit TRAC - Tax Reform Action Coalition. www.trac-il.org 312 458 9202

Appeals for individual condominiums or "joint appeals" for entire associations are more difficult tha for single family home and less information is publicly available to support the effort. However, for those who do their own research, represent themselves to the extent possible and presistently appeal their taxes, they are more likely to achieve relief from ever escalating property taxes.

Appeals can be made to three different government agencies: The Cook County Assessor's Office, the County Board of Review and the State Property Tax Appeal Board (PTAB). The board of Review oversees Assessor decisions, while the PTAB oversees decisions made by the Board of Review.

Attempts to reduce taxes should ideally start with the Assessor's Office when the triennial reassessment notices are sent out. You cannot file an appeal with PTAB unless you have filed before with the second local county agency - the Board of Review. Successful PTAB decisions render tax refunds. Successful reductions made at the local county level reduce your second installment tax bill.

You may file a condo appeal as an individual or jointly using one or all of the following 4 methods.

1. Analysis of Common Element Ownership: The research required for this kind of appeal is intended to determine if these is an equitable distribution of taxes within the condominium association. If the Assessor's information on the percentage of common element ownership is inaccurate, adjustments will be made which increases some owners' taxes and reduces others. For this reason, getting consensus from the condo association for a "joint appeal" may be difficult. However, an individual appeal that identifies the error will result in changes for the entire building and will be more fair. Reductions last for 3 years at the beginning of the triennial.

2. Analysis of Sales Ratios: For condo properties that have sold within the last three years, tax relief based on Sale(s) Ratio(s) is possible IF the Proposed Assessed Value divided by the Actual Sales Price is greater than 10% then an argument based on Sale(s) Ratio(s) is in order. In successful joint appeals, all condo units in one association can benefit, even those units which were not recent purchases. Reductions last for 3 years at the beginning of the triennial.

3. Temporary Property Conditions: If your property is in serious disrepair and/or has suffered damage from flooding or fire (especially for structural or foundation problems), or, if the property has a unit that is unlivable and has had prolonged vacancy, there may be grounds for an appeal based on property conditions. Attach to your assessment complaint form photos, repair receipts or estimates for repairs needed. A reduction is granted for 1 year only.

4. Lack of Uniformity: This appeal approach is a relatively easy and effective method for single-family homeowners. If an appellant demonstrates that comparable properties or units nearby are being taxed at a lower rate, significant savings are possible. The appeal bodies for condo associations do not encourage this method, but is should be used when the other methods do not help make a strong case. Not that "property characteristics" are not listed on reassessment notices for condo owners. Reductions last for 3 years at the beginning of the triennial.

Information courtesy of Andrea A. Ralia and Associates 676 N. LaSalle, Suite 250 Chicago, IL 60610 312 587 9494

Steps to Appeal Your Property Tax Assessment on a Single Family Home and 2 to 6 Unit Multi Family In Cook County, IL

An change in your assessment at any time will be reflected on you second installment tax bill in August or September. If you are successful, in removing the entire reassessment increase, your property taxes will remain relatively the same. If you can only remove some of the reassessment increase, you can expect about a $180 tax increase for each 1,000 of new assessment.

Estimated tax increase assumes a Chicago taxpayer who receives a homeowner's exemption.

STEP I: Process your first property tax appeal with the Cook County Assessor's Office 312 443-7550

You may mail in your complaint form with the appropriate evidence. You will get a decision within in 1 to 3 months. If dissatisfied with the outcome of your appeal you may contact the Assessor's Office for a review of its decision or you may go to the next appeal state (SEE STEP II). Follow these guidelines for gathering your evidence.

1.) Examine the property characteristics listed on your reassessment notice.

Tips: Not all errors warrant an appeal. Correct these errors on your assessment complaint form: if the square footage of living area is inaccurate by 10% or more; if the total number of bedrooms or total rooms in inaccurate. Basement, unfinished attics and attached garages should not be included in living space.

2.) Examine the fairness of the property's assessment.

Tips: The size of your increase does not necessarily indicate whether or not you were fairly assessed. Your assessment level compared to other similar properties' assessment levels will help determine whether or not you are fairly assessed. Your total assessment is composed of an assessment on the land and an assessment of the "improvements" or building/structure. The best evidence of "non-uniformity" in assessments is when you find 4 or 5 comparable properties on your block, within your property classification (such as a PCL 2-03 or 2-11) that have "improvement" or building assessments lower than your own. You can still put together a good "lack of uniform assessments" argument if you select similar homes off your block or outside your property class if those homes appear similar in size and type to yours. Your assessment notice identifies the newspaper in which you can obtain your neighbors' assessments. (or visit: http://www.cookcountyassessor.com/ ) For assessment breakdowns showing your property's land and building values you may request a free copy of your property's printout from the Assessor's Office or check the website at: http://www.cookcountyassessor.com/. Comparable property printouts are available for you as well at the Assessor's Office.

3.) Examine the property Conditions

Tips: Attach to you assessment complaint form photos, repair receipts or estimates for repairs needed to your property suffered from flooding or fire that caused structural or foundation problems, or if the property has a unit that is unlivable and has had prolonged vacancy problems. Tax relief is granted for one year.

STEP II: Process your second property tax appeal with the Cook County Board of Review 312 603-5542

You should call this office no later than October and pre-register your complaint. As with the Assessor's Office you may mail in your evidence. The Board of Appeals, unlike the Assessor's Office, provides you with a "hearing date". If you or anyone else can not attend your hearing, be sure to mail in your evidence in advance or by the hearing date and your case will NOT be dismissed. A decision is rendered in 10 weeks. If you are dissatisfied with your results you may request a review of the Board's decision.

STEP III: Process your third property tax appeal with the State Property Tax Appeal Board (PTAB) 847 294-4360

At this final appeal stage you will not be able to reduce your second installment (August or September) tax bill. Any assessment increase will show on the second installment tax bill. If successful at this agency you will receive a tax refund for the tax year for which you successfully appealed. You should file your case with PTAB within 30 days of the Board of Appeal's final decision on your case. A "hearing date" will be scheduled for you, but you are allowed to mail in your evidence if you are unable to attend the hearing. The State will render a decision within 6 to 12 months. Refunds may take an additional 12+ months to be issued.

Information is courtesy of Andrea A. Raila and Associates, Inc. 676 N. LaSalle, Suite 250 Chicago, IL 60610 312 587 9494

Governor’s Acts Decisively; suspends HB4050

Calls for a “system that effectively fights predatory lending and protects homebuyers”
CHICAGO, IL -- (January 20, 2007) –

The Chicago Association of REALTORS® (CAR) has been notified that Governor Rod R. Blagojevich has directed the Illinois Department of Financial and Professional Regulation (IDFPR) to “immediately suspend” the Illinois Predatory Lending Database Pilot Program, also known as HB 4050 effective immediately. A full text of his statement can be found at www.idfpr.com.

The Illinois Department of Financial and Professional Regulation has acted accordingly and the full text of the re-designation of the zip codes as no zip codes or areas whatsoever can be found at http://wwwidfpr.com/forms/memo/011907PubAct94280.PDF

"On behalf of our Board and our 17,500 members, including the over 1000 real estate professionals and their clients and families who were impacted by this statute,” began Alex Chaparro, President of CAR, “I am encouraged by the Governors actions to suspend HB4050 a statute REALTORS®, community leaders, and other advocates across Illinois have opposed since its inception.”

Chaparro continued; “I will encourage our members and those who worked so hard to rescind the bill to work just as hard to assist the Illinois General Assembly and the Governors office as well as the advocates for HB4050 to develop an open process to find a better solution in tackling the states foreclosure and mortgage fraud problems and to preserve buyers’ rights and their options towards buying a home. "

The Illinois Association of REALTORS® as well as the Chicago Association of REALTORS® is closely monitoring the actions of the Governor, as well as those of the Illinois General Assembly in the wake of this directive. For more information, the Association urges you to monitor www.chicagorealtor.com and www.idfpr.com regularly.

The Chicago Association of REALTORS® (C.A.R.), the "Voice for Real Estate™" in Chicago since 1883, represents more than 17,500 members from all real estate specialties including commercial sales, development, property management, appraisal, auctions, and residential sales.

Please make the phones...there are only two of them! Thanks

Urgent call to action. Please pass this around and make the two phone calls. Thank you.

SB2300 passed the House today and was sent over to the Senate for concurrence.
We at TRAC had hoped for the passage of SB2691 which raised the "cap on the cap" from $20,000 to $60,000.

But the handwriting is on the wall and we have decided to call for the passage of SB2300. We will take the safety net now and start the process for real reform immediately. But it is up to you...You need to call today, Tuesday, January 9, 2007 or first thing tomorrow morning...or send a fax! There is a time limit - if President Jones doesn't call it for a vote tomorrow - we have to start all over again!

YOU MUST MAKE THE CALL!

PRESIDENT OF THE SENATE
EMIL JONES
217-782-2728
217-782-3242 (FAX)
773-995-7748
773-995-9061 (FAX)

CALL YOUR STATE SENATOR
http://www.elections.state.il.us/DistrictLocator/AddressSearch.aspx

President Jones, thank you for your hard work on my behalf. Please call SB2300 and vote to concur. Thank you.

(Your state Senator) Please ask President Jones to call SB2300 and vote to concur. Thank you.

Aldermanic Forum – Thursday, Jan. 11, 2007

43rd Ward – 8:00 PM

Your Alderman is probably the most important elected official there is when dealing with neighborhood problems. Wrightwood Neighbors, Sheffield Neighbors, Ranch Triangle, and the League of Women Voters are therefore co-sponsoring an Aldermanic Forum for the 32nd and 43rd ward candidates!

All Lincoln Central members are welcome and encouraged to attend. (Lincoln Central is located entirely within the 43rd Ward).

Place: DePaul’s Corteylou Commons (2324 N. Fremont Ave )
Date: Thursday, January 11, 2006
Time: 6:30 p.m. – 32nd Ward / 8:00 p.m. – 43rd Ward

This is an opportunity to ask each candidate directly their positions on specific issues that concern you. Questions on anything from property taxes, zoning issues, redevelopment of the Children’s Memorial Hospital site, the future of Finkl Steel and Guttman properties, and other Aldermanic services are fair game!

Below is a list of candidates as of the close of filing. All have been invited to attend.

32nd Ward 43rd Ward

Ted Matlak Vi Daley
John Lag Tim Egan
Paul Millar Rachel Goodstein
Scott Waguespack Michele Smith
Catherine Zaryczny Peter Zelchenko

Unlike many past Aldermanic elections, each race has a number of candidates. This is a great opportunity to find out the candidates stand on important issues before we vote on February 27, 2007.

Regards,

Your LCA Board

Visit our website at www.lincolncentral.org for more up to date news about your community.

Based on statistics pulled from the Multiple Listing Service of Northern Illinois (MLSNI), sales of condo units in Chicago were down 11% in 2006.

Appreciation, based on citywide median sales price, was up, but by only 0.3%, compared to 12% in 2005. The 2006 median sales price was $277,900, or $265 per square foot.

The least expensive condo sold for $10,000; the most expensive for $8.3 million. Condos continue to account for 58% of residential sales in the city.

For details: see our updated Market Overview.

Source: Ric Cox, President & CEO www.chicagocondosonline.com

In 2006, the Illinois General Assembly passed a new law which requires the placement of Carbon Monoxide Detectors in residences.

Public Act 94-741 mandates that every dwelling in Illinois must be equipped with at least one carbon monoxide alarm within 15 feet of every room used for sleeping purposes.

A dwelling unit is defined as a room or suite of rooms used for human habitation, which would include a single-family residence as well as each living unit of a mulit-family residence and each living unit in a mixed use building.

The law exempts residential units that are in buildings that:

1. do not rely on conbustion of fossil fuel for heat, ventilation or hot water
2. are not connected in any way to a garage
3. are not sufficiently clos to any ventilated source of carbon monoxide.

Buildings with electric heat are exempt.

The law allows three different types of alarms to be used to meet the requirement. The alarm can be battery powered, a plug-in style (with battery back-up) or it can be wired into the AC power line with secondary battery back-up.

The carbon monoxide alarm must bear the label of a nationally recognized testing laboratory and must comply with the most recent standards of the Underwriters Laboratories (UL).

The carbon monoxide alarm may be combined with the smoke detector provided that the combined unit emits an alarm in a manner that clearly differentiates the hazard.

Willful failure to install a detector is a Class B misdemeanor . Tampering with, or removing, destroying, disconnecting an alarm (except in maintenance or inspection) is a Class A misdemeanor.

This law is effective January 1, 2007.

For more information or resources on this topic, visit www.illinoisrealtor.org

Information provided by the Illinois Association of Realtors.

NAR's 2006 Profile of Home Buyers and Sellers:

The top five things that buyers say they want most from real estate professionals, according to NAR’s 2006 Profile of Home Buyers and Sellers:

1. Help finding the right home,
2. Help with price negotiations
3. Help with paperwork
3. Help determining what comparable homes are selling for
5. Help determining how much they can afford

A LAST TRAC CALL TO ACTION:

Tired of all the games that are being played with YOUR home?

Opponents to the 7% property assessment cap are suggesting that you go into DEBT* to pay your escalating taxes!!

What happens next triennial year, when the assessments go up again and the loan is not paid off? Borrow more? Go further into debt? Rob from your children's education, or your own retirement funds?

Tell your elected officials that you have HAD ENOUGH with property politics. PASS the 7% Property Assessment Cap with the $60,000 expanded homeowners exemption (Senate Bill 2691).

The FINAL THREE DAYS of the 94th General Assembly in Springfield are:
Sunday, January 7; Monday, January 8; and Tuesday, January 9, 2007.

CALL NOW:

Join Mayor Daley in his efforts to pass this needed legislation - call his office at 312-744-3300 and say:

I understand that Mayor Daley supports the 7% Assessment Cap with the $60,000 exemption, and I encourage him to bring that message to Springfield THIS WEEK.
(or fax to: 312-744-8045)

Call your State Representative - find their number here:
http://www.elections.state.il.us/DistrictLocator/SelectSearchType.aspx
and relay this message:

We need you to go all the way on the 7% Assessment Cap, and fight for the $60,000 expanded homeowners exemption.

Call House Speaker Michael Madigan's office at 773-581-8000 with this message:
Continue tax reform by calling SB2691 - the 7% with a $60,000 expanded homeowners exemption - for a vote.
(or fax to: 773-581-9414)

It's your property - demand taxation WITH representation.

Your Friends at TRAC
Tax Reform Action Coalition
www.trac-il.org


*One idea by the authors of the institute's report is a tax-loan program, in which homeowners could borrow money to pay higher taxes by using the increased value in their property as collateral." (Chicago Tribune, 1/2/2007)