Why is Buffalo Grove so affordable? (Evanston, Northbrook: short sale, real estate, foreclosure)

[hopehome]

We are searching for a 4 bedroom, finished basement, fenced yard home in the 415k or under price range. We need great schools and commutable to Evanston. The only place I'm finding inventory like that is Buffalo Grove (Stevenson feeder portion). With Stevenson's great ranking, why is that area so much more affordable than say Northbrook, Deerfield, Highland Park? I have yet to actually talk to anyone who lives in BG but is there something I'm missing about it that makes it less desirable and thus more affordable? Thank you!

[nana053]

Originally Posted by hopehome

We are searching for a 4 bedroom, finished basement, fenced yard home in the 415k or under price range. We need great schools and commutable to Evanston. The only place I'm finding inventory like that is Buffalo Grove (Stevenson feeder portion). With Stevenson's great ranking, why is that area so much more affordable than say Northbrook, Deerfield, Highland Park? I have yet to actually talk to anyone who lives in BG but is there something I'm missing about it that makes it less desirable and thus more affordable? Thank you!

the Lake perhaps?

[4122]

It's further from the city and also the lake. Buffalo Grove is expensive compared to most suburbs, but cheaper compared to surrounding towns with the exception of Vernon Hills being cheaper than BG and Long Grove being around the same affordability.

However, Long Grove has bigger house so the cheapest house that fits your requirements would be more expensive than the cheapest home you could you could get that fits your requirements in BG. The value of your purchase would be around the same though.

[wjj]

Originally Posted by hopehome

We are searching for a 4 bedroom, finished basement, fenced yard home in the 415k or under price range. We need great schools and commutable to Evanston. The only place I'm finding inventory like that is Buffalo Grove (Stevenson feeder portion). With Stevenson's great ranking, why is that area so much more affordable than say Northbrook, Deerfield, Highland Park? I have yet to actually talk to anyone who lives in BG but is there something I'm missing about it that makes it less desirable and thus more affordable? Thank you!

I have lived in the Lake County side of BG for the last 25 years.

First, the homes you are seeing in that price range are either distressed sales or are homes built in the 1970s that have not been updated. But if you are willing to spend the money to update and put in some sweat equity, there are bargains to be had.

BG did not initially suffer much in the real estate meltdown, but ended up getting hammered later in the crisis and has not even close to recovered. Prices are now about where they were in 2003-2004. And there are still a fair amount of distressed sales that are pulling everything down. It is as if the whole real estate crisis affected BG 3 years later than everywhere else. Late to decline and late to recover. Homes are still down about 20 to 25% from where they were before the crisis hit and the recovery is just beginning now.

I personally think (my opinion only - no proof of this) that the sky high real estate taxes on the Lake County side of BG are hindering the recovery. Even as property values were dropping by a third or more, real estate taxes kept increasing. My RE taxes never declined even though the value of my house got pounded. So RE taxes are now pushing 3% of value in many places. So when buyers are comparison shopping on line and see that real estate tax rates are pushing 3% on the Lake County side of BG, they look elsewhere where the tax rates are cheaper.

However, despite all of this, BG itself has not changed. It is still incredibly safe, has a lot of open space and has a park district that is the envy of many communities. And of course, the Lake County side boasts highly rated Kildeer District 96 K-8 schools and Stevenson High School. The residents here fiercely defend all of the green space and any project that is proposed to decrease that green space is met quickly and loudly by residents. And there being many business executives and professionals living in BG, the residents organize effectively (the recent proposal to build a new town center on one of the golf courses not only met with strong opposition, but opponents formed a PAC to challenge any board member who supported the proposal). The town center proposal was abandoned, but the village manager is being opposed in the upcoming election just for considering the proposal in the first place. There are still "Keep BG Green" signs all over the village months after the proposal was abandoned.

Lake County BG is a bargain right now and there is money to be made once it makes up the 3 year lag in going into and recovering from the real estate meltdown. BG is a traditional quiet suburb that will turn off many people. No walkable urban core or anything like that. More of an open space kind of place. You do have to pretty much drive everywhere. Most people work in the suburbs. There is a Metra Station, but the schedule is pretty limited reflecting that there is just not the ridership going downtown along the North Central Line (though there is a lot of suburb to suburb traffic). If you want to live in a very quiet very safe place with top tier schools and a lot of open space, you will love Lake County BG. If instead, you prefer a walkable urban-like core built around a Metra Station to whisk you downtown, you will hate BG. To each their own.

[chet everett]

The taxes are a almost certainly a factor -- people don't want to "get a bargain" at purchase and then get hammered year after year on taxes...

The trends that were prevalent when most of BG was developed have shifted -- buyers prefer towns with a traditional grid layout over subdividision, a rail centric core with locally owned shops / restaurants, walkable streets with sidewalks...

No argument on safety and agree that with updating there are some well priced homes that have plenty of room that could be fine for familes. Decisions about taxes are going to hurt more and more towns...

[4122]

Originally Posted by wjj

I have lived in the Lake County side of BG for the last 25 years.

First, the homes you are seeing in that price range are either distressed sales or are homes built in the 1970s that have not been updated. But if you are willing to spend the money to update and put in some sweat equity, there are bargains to be had.

BG did not initially suffer much in the real estate meltdown, but ended up getting hammered later in the crisis and has not even close to recovered. Prices are now about where they were in 2003-2004. And there are still a fair amount of distressed sales that are pulling everything down. It is as if the whole real estate crisis affected BG 3 years later than everywhere else. Late to decline and late to recover. Homes are still down about 20 to 25% from where they were before the crisis hit and the recovery is just beginning now.

I personally think (my opinion only - no proof of this) that the sky high real estate taxes on the Lake County side of BG are hindering the recovery. Even as property values were dropping by a third or more, real estate taxes kept increasing. My RE taxes never declined even though the value of my house got pounded. So RE taxes are now pushing 3% of value in many places. So when buyers are comparison shopping on line and see that real estate tax rates are pushing 3% on the Lake County side of BG, they look elsewhere where the tax rates are cheaper.

However, despite all of this, BG itself has not changed. It is still incredibly safe, has a lot of open space and has a park district that is the envy of many communities. And of course, the Lake County side boasts highly rated Kildeer District 96 K-8 schools and Stevenson High School. The residents here fiercely defend all of the green space and any project that is proposed to decrease that green space is met quickly and loudly by residents. And there being many business executives and professionals living in BG, the residents organize effectively (the recent proposal to build a new town center on one of the golf courses not only met with strong opposition, but opponents formed a PAC to challenge any board member who supported the proposal). The town center proposal was abandoned, but the village manager is being opposed in the upcoming election just for considering the proposal in the first place. There are still "Keep BG Green" signs all over the village months after the proposal was abandoned.

Lake County BG is a bargain right now and there is money to be made once it makes up the 3 year lag in going into and recovering from the real estate meltdown. BG is a traditional quiet suburb that will turn off many people. No walkable urban core or anything like that. More of an open space kind of place. You do have to pretty much drive everywhere. Most people work in the suburbs. There is a Metra Station, but the schedule is pretty limited reflecting that there is just not the ridership going downtown along the North Central Line (though there is a lot of suburb to suburb traffic). If you want to live in a very quiet very safe place with top tier schools and a lot of open space, you will love Lake County BG. If instead, you prefer a walkable urban-like core built around a Metra Station to whisk you downtown, you will hate BG. To each their own.

Very true. These are definitley contributing factors to BG home prices. However, BG is not far from Vernon Hills where you would do most of your shopping which is not far at all. The only thing BG itself has is Mariano's on 22 and the Jewel by Culver's. What I like about BG is that it's very family oriented. There's a lot of great parks, and I see kids and families walking around whenever I drive through BG. They also have Buffalo Days at St. Mary's school and at Emmerich Park which is a great festival. I went there for a few years in a row, but then we couldn't go because we were out of town.

[hopehome]

Wjj, thanks for the detailed reply. I'm seeing things that would be perfect for us, (a bit dated but totally find for us) like this one: http://www.redfin.com/IL/Buffalo-Gro.../home/17636646 or http://www.redfin.com/IL/Buffalo-Gro.../home/17636899 or even this one http://www.redfin.com/IL/Buffalo-Gro.../home/17297808. Is that what you mean by distressed?

Are the real estate taxes in this area higher than in Wilmette?

Thanks for the info, much to think about.

[4122]

No, real estate taxes are cheaper in BG than in Wilmette. Even on the Lake County side.

[wjj]

Originally Posted by hopehome

Wjj, thanks for the detailed reply. I'm seeing things that would be perfect for us, (a bit dated but totally find for us) like this one: http://www.redfin.com/IL/Buffalo-Gro.../home/17636646 or http://www.redfin.com/IL/Buffalo-Gro.../home/17636899 or even this one http://www.redfin.com/IL/Buffalo-Gro.../home/17297808. Is that what you mean by distressed?

Are the real estate taxes in this area higher than in Wilmette?

Thanks for the info, much to think about.

By distressed property I mean a short sale or a foreclosure sale. Both of these look like traditional sales and not distressed sales.

As I stated up-thread, RE taxes are approaching 3% on the Lake County side of BG and are reflected on both of these properties. These are typical taxes for the area. I am not sure what they are in Wilmette, but this is what they are in BG - even for a 45 year old house.

Both of these homes are in Strathmore and were built in the very early 1970s. The first big sub division built on the Lake County side of BG, and so now is the oldest sub division on the Lake County side. The Woodhollow property looks pretty well updated and is a couple blocks from both Willow Stream Park and Rylko Park, which are 2 huge parks with many athletic fields, health club, outdoor and indoor pool, golf dome, children's water park, hockey rink, skateboarding park, protected preserve area with trails, etc. $415K is a pretty good price for that house (though I think the stated square footage includes the below grade bedroom and family room which really should not be in there - that model is usually around 2150 sq/ft above grade). As you can see on the Twisted Oak house, prices today are below where they were in 2004, in this case, well below (but the house is not very updated and is only 2000 sq/ft). But still, 12 to 15 years of lost appreciation since the crisis.

This neighborhood is very well maintained and is spectacular in the spring since the builder planted flowering fruit tress on most of the front yards. A lot of young families have moved in here as older owners have retired and moved out since the prices are attractive and the schools are outstanding. The ranches are being gobbled up by singles looking for a nice starter home that can be upgraded in a great neighborhood.

[4122]

Here's a distressed property in Swarthmore:

310 Thompson Boulevard, Buffalo Grove, IL 60089 | MLS 08767421 | Listing Information | KoenigRubloff

Here's a short sale by Tartan Park:

http://m.koenigrubloff.com/Mobile/Listing/ListingDetail.aspx?listing=131233163&search=97dae0 cb-eca3-478f-bdeb-d573f2ea667d&first=11

Here's one in Swarthmore that's not a foreclosure or a short sale:

1210 Larraway Drive, Buffalo Grove, IL 60089 | MLS 08770175 | Listing Information | KoenigRubloff

And here's one by Willow Grove Elementary, not far from Swarthmore:

961 Checker Drive, Buffalo Grove, IL 60089 | MLS 08806352 | Listing Information | KoenigRubloff