CRChicago.com

According to Midwest Real Estate Data (MRED) statistics, Charles Rutenberg Realty ranks as the 16th highest producing real estate firm in the Chicagoland area. This after fewer than 6 years of operation in the Chicago market. Charles Rutenberg Realty’s philosophy is that it is the agent that generates the business and, as such, should be the one keeping the commission that is earned.

This philosophy matches that of a large number of agents in the area resulting in having over 1,360 agents bringing their business to CRR over the last 5 and a half years. We anticipate hundreds more will do the same thing in the coming months. We expect to be one of the top five firms in the marketplace in the next five years.

Will 2010 be a Better Year?
Have you been wondering what
is in store for your real estate
business in 2010?
Have you been wondering if the
story behind Charles Rutenberg
Realty is real?
Over 1300 Chicago area
REALTORS have discovered
the “secret” that’s changed their careers… nothing comes
close to being a Charles Rutenberg Realty agent. And as
Realtors in the Chicago area continue to learn how exactly
we work, hundreds more will continue to join.
While our current agents know they made the best business
decision of their real estate career, they also know there is more to Charles Rutenberg Realty than simply keeping all of their
commission. At Charles Rutenberg Realty, you also have:
• Expert advice whenever you need it
• Communication with all our agents through AgentsShare.com
• Technology that truly makes your computer your office
• A non-competing managing broker who isn’t in the market competing against you. The focus of the office is to help you get
your deals done and to see that you get paid quickly.
I’m Ray Zabielski, Managing Broker. Give me a call and let’s talk. Better yet, go to BestChoice.us for a complete overview
and then click on PickYourTime.com to schedule a personal meeting with me to discuss your questions.
Whether you’re a “Top Producer”, a new agent, or an experienced agent looking to improve your business, you’ll never be
happier, nor more profitable, than here, at Charles Rutenberg Realty! I look forward to hearing from you.

Matthew Ferrrara, has created a brief video for BrainChain highlighting the keys statistics Realtors should know about what buyers expect from and how they found their real estate agent. The video can be accessed via this link.

Home Sales Increase More Than 31 Percent in West, South Suburbs
October Marks Fifth Straight Month of Year-to-Year Improvements

DOWNERS GROVE, Ill. – Sales of single-family detached homes went up 31.8 percent in October compared with the same period a year ago, according to statistics released today by the Mainstreet Organization of REALTORS® (MORe), indicating the fifth consecutive monthly increase.

MORe measured activity on homes in about 120 southern and western suburban communities through information from Midwest Real Estate Data LLC.

“The significant growth in the market demonstrates that pent-up demand is disappearing thanks in part to the incentives available to first-time homebuyers,” said Mike Drews, President of MORe, and the Designated REALTOR® of Charles Doss, REALTORS®, in the Aurora and Oswego areas. “I believe move-up buyers also will continue to spur growth in the market and we’ll begin to see more movement related to condos and townhouses as a result of the federal government’s extension and expansion of the First-Time Homebuyer Tax Credit.”

There were notable home sales gains across the 120-community area, where the numbers of homes sold leaped by double- and triple-digit percentages.

Standouts in the south suburbs for number of homes sold were Burbank (140 percent increase from a year ago); Country Club Hills (240 percent); Orland Park (37 percent); and Tinley Park (150 percent).

In the DuPage County area, home sale activity was highest in Addison (80 percent increase from a year ago); Batavia (100 percent); Bensenville (400 percent); Geneva (27 percent); Hinsdale (122 percent); and Villa Park (80 percent).

Home sale activity also was up in the western Cook communities of Bellwood (120 percent increase from a year ago); Elmwood Park (125 percent); Franklin Park (180 percent); Maywood (186 percent); Melrose Park (200 percent); and Westchester (73 percent).

There were dramatic increases in the numbers of homes under contract in October 2009 compared with a year earlier – a 70 percent improvement for detached homes and an 81 percent increase for attached dwellings. The strongest increases were seen in detached homes in Addison (225 percent increase from a year ago); Aurora (118 percent); Bensenville (229 percent); Downers Grove (74 percent); Glen Ellyn (244 percent); Naperville (48 percent); Oak Lawn (92 percent); and West Chicago (127 percent).

A new agent just joined today. He came from a national franchise firm that had four successful offices. Now they are down to only one. It continues to be very hard for the traditional office to succeed in this market. It is even more difficult for them to justify to their agents their policy of paying the agent only a percentage of the toal commission rather than all of it like we do.

Even our agents have a hard time believing this business model is really possible. One day an agent came in to the office to get paid. She picked up her check for $15,000 and she came in my office to say thanks. She also said, “I know this is going to sound foolish but I almost feel guilty taking all of this money. Don’t you feel bad about giving the agent all of the commission?” My thought was I had not really thought about that. Then I answered her by saying, no because it’s not my money. You’re the one that had the buyer. You found the property. You saved the deal when it fell apart three times. You earned the full commission. We created the structure so you can do that. We know that if we our job right will have a lot of agents. For us, a little bit times a lot is a good thing. For the agents, keeping all of the commission less a small fee is a good thing for them too. She walked out happy with her $15,000 check.

It’s been over a month since my last post, primarily due to the fact we have been very busy! In August we held our 5th anniversary party. We opened our office in June of 2004 and since then have had over 1300 Chicago area agents make what they determined to be the Best Choice for them by joining Charles Rutenberg Realty.

As a company, August 2009 has been our busiest month ever. We completed nearly 200 transactions. Our sales volume for the month was76% higher than August 2008! While year to date 2009 sales were 6% less than 2008 year to date, the last three months show an overall increase of 13%. Our average sales price is lower in 2009, $213,029 versus $240,439 for 2008.

It was reported on Friday, July 24th, that the residential real estate market has started to recover.

Sales of previously occupied homes have increased for 3 straight months. That
hasn’t happened since early 2004. Median home prices for June in the
Chicago area are up 5% over May, $210,000 vs $200,000 though June is
still below last years number of $256,000 by 18%.

Another encouraging sign is that the share of foreclosures in the market is
shrinking. Only one of three sales in June were foreclosures compared
to nearly half earlier this year.

FInally, supply is now down to 9.4 months. It is commonly agreed that a balanced market would have
a supply of 6-7 months. All in all, we are moving in the right direction and as more people become more confident this is the case, the market will improve even more. As they say, success breeds success!

Charles Rutenberg Realty is a firm built on the premise that it is the agent who brings in the business so it is the agent who should keep the commission earned. We can do that because we keep our expenses low so as to keep the commission paid to the agents high. One key way we keep our expenses low is by not providing a physical office for our agents to work out of on a daily basis. In our firm the agents computer is their office. We do this because the public no longer looks for their potential real estate agent in a physical office, they look for them online.

Well, we are not the only ones who know this is now the norm. A local Naperville real estate firm, one that had a very high profile physical office location, has elected to close that office. The reason? They acknowledge the consumer now does their search online and not in a physical office! This is what they said in their recent announcement:

“In years past, an office on the local street corner was the best way to reach our clients. Today, the “local street corner is on the Web” and it’s there that we are investing heavily in to promote our sellers to more buyers and our buyers to all the listings in the most advanced format possible.”

We have been saying the traditional firms would be coming to that realization for the last five years. We are pleased to see it is now becoming a reality.

Are you aware of this financial incentive available to new buyers?

Here is a brief overview prepared by DIGIOVINE HNILO JORDAN + JOHNSON LTD.
Solutions for Success.
www.dhjj.com:

■ For qualifying purchases of a “principal residence” within the U.S. made from January 1, 2009 and before
December 1, 2009.
■ The credit is the lesser of 10% of the purchase price or $8,000.
■ “First-time homebuyer” is any individual (if married, and their spouse) who is a US resident if they had no
ownership interest in a home during the three years previous to the day of the purchase.
■ Purchases from a relative do not qualify for the credit (sibling, parent, grandparent, aunt or uncle).
■ “Purchase date” for homes under construction is the date of occupancy.
■ There is no repayment of the $8,000 credit as long as the home continues to be the taxpayer’s principal
residence for 36 months from the date of purchase. Exceptions to this are death, divorce settlement or
involuntary conversion.
■ The credit also does not apply if the taxpayer’s financing is from
proceeds of tax-exempt mortgage revenue bonds or if the District of
Columbia homebuyer credit is taken for the tax year the residence is
purchased.
■ The credit phases out for taxpayers with modified adjusted gross
incomes between $75,000 and $95,000 ($150,000 – $170,000 for joint
filers).
■ This is a “refundable” tax credit (which means it can be used to
offset your tax liability with any remaining credit refunded).

How to obtain the credit:

• The credit can be claimed on either the 2008 or 2009 tax return.
• Note: If the 2008 tax credit is limited because of income
  limitations, taxpayers will need to consider both years to determine
  which year to take the credit for the greatest benefit.
• Any first-time homebuyers who believe they are eligible for all or
  part of the credit can modify their income tax withholding (through
  their employers) or adjust their quarterly estimated tax payments in
  order to reap the benefits prior to the filing of their tax return.
• Note: On May 29, 2009, HUD announced that individuals will be able
  to secure short-term bridge loans to apply the first-time homebuyer
  credit to their down payment. The home buyer must be using an FHA
  approved loan. The tax credit can generally not be used to meet the
  3.5% minimum down payment required by the FHA.

For more information, please visit www.dhjj.com or call Kara Bourbon at 630-420-1360.