home sales

Why a home sale falls through

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Home sales are complicated. There’s a lot more to it than putting a buyer and seller together. Things can go wrong. Deals do not always close. And here are the top reasons why some home purchases fall through:

Inspection surprises. Each transaction involves an inspection by a licensed home inspector. Some are very good. Some, not so much. Among the “not so much” group you’ll find inspectors who identify numerous very small issues which, while not material, scare the heck out of the buyers, causing them to back out of the purchase.

Buyer financing. Even if the buyer is “pre-approved” by a lender, it does not guarantee financing. Sometimes when the lender looks more deeply into the buyer’s financial condition, they find issues that cause them to reject the mortgage application.

Low appraisal. During periods when homes are appreciating in value, appraisals are typically not a problem. In soft markets, though, it is not uncommon for a home appraisal to come in lower than the agreed-upon purchase price. In this case, lenders either choose to not make the loan or demand a higher down payment. The buyer can back out or seek a lower price from the seller.

Buyer remorse. Occasionally a buyer simply gets cold feet, and, unfortunately, he usually gets his earnest money back. Bad news for the homeowner and for the Realtor.

An experienced Realtor can help to minimize these risks, though failed transactions can happen to any seller and any Realtor. I even see this occasionally in The Glen (in Glenview, Illinois) where I live and work. The Glen is an upscale residential community with luxury homes…single family homes, condos, townhomes, two-flats, and duplexes. The price points are substantial, so we typically see qualified buyers who are serious about their home search. But, as I say, it can happen.

If you may be interested in The Glen or greater Glenview, please call or email me.

Margaret Ludemann, @properties Realtor, margaretludemann@gmail.com 847-401-1802

Interest in buying homes starting early

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There are definite signs that buyers interested in purchasing homes are starting early this year. In a typical year, new contracts for home sales decline significantly after Thanksgiving, and the real estate market is dead through year end. Within a week or two after the New Year, we begin seeing a few buyers poke their heads up from the ice and snow. But any significant buyer interest is typically not noticeable until sometime in mid-February to early March.

This year is different. Not sure why, but it is. Here are two indications of early interest that I’ve seen just in the last week:

First, I listed a home a few days ago, and I had an offer that very day. And it was a good offer. In fact, the offer was made without the buyer seeing the home!

Second, my proprietary website, www.homesintheglen.com, had a near record number of first time visitors (556) last week! I haven’t seen that number of first time visitors since the top of the market last July; and it’s the second highest number ever on my site.

I should say that my Glen website, which shows homes for sale in The Glen in Glenview Illinois, is a very real barometer of buyer interest. It is the only Glen-specific, Glen-only website in existence, and it produces real home buyers. I have been able to track visitors to sales rather easily. So, let’s look at a comparison of that 556 visitor number to previous years. In the same week a year ago, the site had 336 first time visitors. And the year before that? 368.

This time of year there are fewer homes for sale, so sellers have an advantage of less competition. It looks like this year they’ll have more than the usual number of buyers looking at their homes.

If you are interested in selling your home or in buying, please give me a call. I am an award-winning Realtor affiliated with @properties in Glenview, Illinois.

Margaret Ludemann

847-401-1802   margaretludemann@gmail.com

Homeowner associations’ role in a home sale

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Home sale transactions in The Glen generally involve homeowner associations after an agreement has been reached between buyers and sellers. When the Village of Glenview Illinois took ownership of the former Naval Air Station Glenview in the late 1990’s it developed a master plan for its use. The result is what we now know as The Glen with large areas of luxury homes, a retail area known as Glen Town Center, commercial space for corporate and professional offices, and open space as well.

The residential areas were divided into several large parcels, and home builders were allowed to submit bids for development. This resulted in the following neighborhoods being built: Cambridge, Chapel Crossing, Glen Shore, Landings, Southgate, and Tower Crossing. Three additional developments have since been built: Regency, Patriot Commons, and Westgate. The latter two are still under construction. Homeowner associations, generally referred to as HOAs, were created; and they are governed by boards of directors composed of residents.

Generally speaking if a home is being sold in an area governed by a homeowners association – whether it is The Glen or elsewhere – that association will likely be asked to provide governing documents such as articles of incorporation, bylaws, covenants, rules, and regulations. They also are asked for financial information and the status of legal actions. Attorneys representing the buyer, seller, and lender review these documents. It is important for the buyer and the lender to understand the financial and legal health of the association. Among other things they want to know whether there are outstanding obligations that could impact the new owner. If there are lawsuits or excessive debt a buyer may not wish to complete the purchase and/or the prospective lender may choose to deny the home mortgage application.

The HOAs that I am aware of in The Glen are sound, and seldom do I hear of problems that result in a failure of a housing purchase. I am a Glen resident, and I am an active Realtor in the local real estate market. If you may be interested in buying or renting a home in The Glen, please contact me at 847-401-1802 or margaretludemann@gmail.com.

Margaret Ludemann, @properties Realtor

Conditions are favorable for home sales

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Stepping back from my usual Glen-specific blog content, I thought I would share with you some thoughts about the state of the housing market generally.

The environment for home sales remains strong as it has been for the last couple of years. Jobs are critical to a strong housing market, so I was heartened to see that the nationwide unemployment rate recently dropped to 5.1% which is the lowest rate in many years. Consumer confidence, which of course is influenced by low unemployment, is strong; and that means that people feel good about spending money…and in the context of housing, to purchase their first homes or to purchase higher priced homes.

The other hugely positive factor that is impacting housing is available credit. Sure, it’s not like the wild, wild west days that fueled the build-up to the bubble, and that’s good. But slowly and surely lenders are becoming more reasonable about lending standards, making mortgages more readily available to prospective home buyers. Specifically as it relates to The Glen – which has an abundance of high price point homes – many of the largest banks have loosened credit standards for jumbo mortgage loans which exceed conventional loan limits.

So all of this is good news for home sellers and home buyers. If you have any questions or comments, please get in touch with me. I am an award-winning Realtor with @properties who lives in the Glen (in Glenview Illinois), and I would be delighted to discuss the benefits of living here.

Margaret Ludemann            847-4-1-1802   margaretludemann@gmail.com

The real estate market is strong this year…nationally and in the Glen

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As a realtor I’m asked about the real estate market every day.  And since I live in The Glen, a luxury home development in Glenview Illinois, everyone wants to know how homes are selling here.  Well, the market is strong, thank you very much.

Home sales are up nationally and in in the Glen. New construction is leading the way; and in the Glen that means in the Westgate and Patriot Commons neighborhoods.  It’s anticipated that new home sales will be up over 20% across the country. Existing home sales nationwide will likely increase 5% to 7% this year which is also strong.

The strength of home sales is primarily due to three factors:

  1. First time home buyers. Rents have increased substantially this year, encouraging many renters to purchase homes.
  2. Lending standards have eased up which is increasing the buyer pool.
  3. Continued low interest rates. Mortgage interest rates have trended up modestly in the last few months (about a quarter point), but they remain low by historical standards. Thirty year fixed rate loans are currently at about 4.1%, and jumbos are at this same level. Many home sales in the Glen – particularly in the Southgate, Tower Crossing, Chapel Crossing, Landings, and Cambridge neighborhoods – involve jumbo loans. Jumbos typically carry a somewhat higher rate, though that is not the case currently. Interest rates may increase a bit more in 2016 and 2017 making now a good time for buyers (and therefore for sellers, too).

The Glen is a wonderful place to live. In addition to all of the beautiful homes, the community lifestyle is hard to beat. There are two great golf courses, both within walking distance of any home in the Glen. The central marketplace is called Glen Town Center which has numerous restaurants (casual and upscale), many shops and boutiques, a movie theater, and a book store. If you are interested in living in the Glen, please contact me. I am a long time Glen homeowner and an award winning realtor affiliated with @properties.

Margaret Ludemann   margaretludemann@gmail.com   847-401-1802