As a property owner, it’s common to field questions about the legality of apartment units like those in a basement, attic, or coach house. Often, owners are unsure and default to “it was there when I bought the property.” But why does it matter if it’s a legal unit? Value The distinction between a legal apartment and an accessory unit influences the property’s value.  Legal apartments can be openly advertised and rented out, contributing to the property’s income potential.  Accessory units not recognized as legal dwellings may limit the owner’s ability to generate rental income ..read more

When it comes to home appraisals, the question of whether or not to ask the appraiser to remove their shoes can be a common concern for homeowners. While some may feel hesitant about requesting this, it’s important to remember that your comfort in your home matters. Asking the appraiser to take off their shoes is entirely reasonable and understandable. Many homeowners prefer this out of respect for their homes, especially if it’s a cultural norm or personal preference. However, if you have hesitations about making this request, rest assured that appraisers are trained professionals who encoun ..read more

Reading a home appraisal might feel overwhelming at first, but worry not! This guide is here to simplify the process. While each appraisal may have slight variations, the following structure offers a general roadmap to help you smoothly navigate through it. The key is to approach it in a linear manner, starting from the first page and following the logical flow. Whenever you come across “see addendum,” simply refer to the relevant addendum then return to the main appraisal document to continue. Before you know it you’ve carefully read and understood the appraisal. Say goodbye to confusion and ..read more

Clients often ask, “How long is an appraisal good for?” The short answer is that every real estate appraisal value opinion has an effective date. The appraisal’s value estimate is only good for as long as the effective date. The effective date might just be a defined full day (past, present, or future) or just the moment that the appraiser was viewing the property. If a natural disaster hit the property immediately after the appraiser left, the actual value would instantly change, so an appraiser’s opinion must be specific. Markets fluctuate with time (think of the stock market). If the real e ..read more

In March, I had the pleasure to join Attorney Peter Olson to talk about family law, divorces and home appraisals. We share insights and learning from our careers on family law and home appraisals during divorces.   TRANSCRIPTION: If you’re buying, selling, divorcing, filing bankruptcy, fighting your property tax bill, etc…it’s super important to value your real estate correctly. The monies at issue are way too important to just ‘trust Zillow’. You need an expert, real estate appraiser and this month that’s what we have…a discussion with John Tsiaousis, Chicagoland Appraisals.   ..read more

2 months ago I wrote an article comparing Zillow’s Zestimate program to a regular appraisal process. It’s a common question that comes up and with the real estate market skyrocketing, thought I’d answer the question once and for all.  To my dismay, I didn’t expect the large disparity which recently led to the end of Zillows flipping scheme. The article describes “Zillow Group’s AI-power house flipping operation as a dismal failure”. It’s difficult to disagree with this characterization based on the data in this blog post.  The irony is, it seems Zillow did not take their own a ..read more

It is pretty common knowledge that appraisers should select the most recent home sales as comparables. The question then becomes why would an appraiser use old comps?  Fannie Mae Guidelines on Age Comparable Sale First, let’s take a look at what Fannie Mae guidelines say about the age of comparable sales. “Comparable sales that have closed within the last 12 months should be used in the appraisal; however, the best and most appropriate comparable sales may not always be the most recent sales. For example, it may be appropriate for the appraiser to use a nine-month-old sale with a time adj ..read more

Your home may be your favorite place to be, but it’s also an investment. Like any other investment, you want to know its value with some reliable degree of accuracy. A home appraisal is an unbiased opinion of a home or property’s value. Real estate professionals or other appraisal experts can help you determine the market value of your home. This is helpful whether you intend to stay in your home or wish to sell it. Naturally, even if you choose not to sell your house, you certainly want to maintain your investment and ensure that your home value doesn’t drop. Here, we’ll explore everything ..read more

Last week we saw some optimism as homes under contract in Chicago experienced stable increases for the 3rd week in a row. This week the optimism continues as new listings jumped up from 78 to 125.  Closed sales experienced an uptick for the 3rd week in a row as well as listing under contract experienced an uptick for the 4th week in a row.   It seems that home market activity in Chicago is starting to get in the groove and I expect we’ll see more activity in the month of May.     The post After Covid-19, Home Market Activity in Chicago is Starting to ..read more