homeowner

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

Home buyers…by the numbers

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I’m a data freak. I love to sift through all kinds of numbers about the real estate market. And I think it makes me a better Realtor.

The Illinois Association of Realtors recently crunched it’s wealth of data to determine who buys homes in our state, and I thought you might be interested in the information it uncovered about home buyers. So here goes…

  • 69% of home buyers in Illinois are married, 17% are single women, 5% are single men, and 8% are unmarried.
  • The median income of a buyer (or married buyers) is just over $90,000.
  • 13% of buyers are veterans.
  • First time home buyers make up a little more than a third of the total (37% to be precise).
  • 92% choose a previously owned home; 8% buy new.
  • 14% of buyers are purchasing senior-oriented homes.
  • Home buyers expect to live in their homes for, on average, 15 years.
  • Particularly important to a Realtor like me, 86% use the internet during their home search; and they found photos to be extremely important to them. (No surprise there!)

It is important to understand, however, that there is no single real estate market in Illinois. These numbers include buyers in small towns, suburbs, and the city of Chicago.   Some buyers buy multi-million dollar single family homes while others purchase starter homes or condos. There are even multiple markets in The Glen (in Glenview Illinois), where I live and work. They are defined by home type and price point. To find a home in a market that is right for you (whether a community, a development, a neighborhood, or even a street), an experienced Realtor can inform and guide you.

Margaret Ludemann

@properties Realtor and Glen homeowner

847-401-1802   margaretludemann@gmail.com

Glenbrook South High School #1 in USA for extracurricular activities

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I’m turning over this week’s Glen blog to an article about Glenbrook South’s ranking as the best public high school in the country for extracurricular activities.  That’s #1 out of 26,407.  Imagine that!!! GBS is the high school serving The Glen and much of greater Glenview, Illinois. The Glen is an upscale residential and retail development in Glenview with over 1,000 luxury homes. I am a long time homeowner in The Glen, and an award winning Realtor. Plus, I am a proud parent of a GBS freshman! So, here is part of the article and a link to the full piece.

Margaret Ludemann, @properties, margaret.ludemann@gmail.com   847-401-1802

Niche, an organization that reviews K-12 public schools, recently ranked GBS number one of all public high schools in the nation when it comes to extracurricular activities, which includes clubs, organizations and athletic teams.

Niche.com publishes results for a variety of rankings of schools periodically throughout the year. Information is gathered to determine rankings by compiling data, which is collected and monitored by the U.S. Department of Education.

According to Jessica Hair, Niche’s marketing outreach coordinator, the data for ranking the best extracurricular activities come from reviews from students and parents in addition to school reports about items such as expenses per student, the number of sports and the percentage of female and male athletes.

“Right now [GBS has] the best extracurriculars in the nation; however, [GBS] also stands out across the board,” Hair said. “[GBS is] the number six [all-around] public school in Illinois, [and GBS is] the number 32 public school in America.”

This was written by Karina Benson, Yoon Kim, and Chaerim Park, and here is the link to the full article.  You may have to copy/paste to get the article. 

GBS named number one: Niche placed South as top school in nation for extracurricular activities

Glen Town Center to get a nice facelift in 2016

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The Glen is about to receive a very nice upgrade in 2016. The Glen is an upscale residential and retail development in Glenview Illinois on property that was once a naval airbase. It was developed beginning in 2010, and it continues today with new homes still being constructed.

I live a half block from The Glen’s main shopping and eating area called Glen Town Center. It’s filled with scores of boutiques and eateries as well as a theater, coffee house, and book store. Over time some parts of the sidewalks have shown their wear as freezing and thawing have done minor damage. And some of the trees along Tower Drive, the main street through the area, have suffered, too. Don’t get me wrong, the place still sparkles…I mean it looks TERRIFIC…but it’s going to look even better!

The updating planned for next year will feature new sidewalks, trees, other landscaping, and signage. My neighbors join me in my excitement for this project which will add to the already strong appeal for shoppers, diners, current residents, and yes to those who are considering living in The Glen. Plans have been created, vetted and approved by the Village Trustees. Work will being in March, and completion is forecast for September.

If you haven’t been to The Glen I urge you to stop by for a meal and shopping. If you’ve been here before I suggest you think about making it your home. We have single family homes, townhomes, row homes, two flats, duplexes, and condos. Home prices range from the high $300s to over $2 million. For more information about homes in The Glen, please contact me. In addition to being a Glen homeowner, I am an award winning Realtor focused on Glen properties.

Margaret Ludemann   @properties Real Estate

847-401-1802   margaretludemann@gmail.com

What you should know about home appraisals

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A neighbor of mine here in The Glen is considering selling his home, and knowing this will require an appraisal of his home, he asked me how they work. So I thought I would write to you about it in today’s blog.

Home appraisals are performed by independent, certified professionals (not realtors) to establish the current fair market value of a home, information that lenders use to determine if and how much they will lend. They will examine the most recent selling prices of comparable homes to yours (known as “comps”). They will consider other factors such as your home’s condition (which they will personally inspect) and whether the residential real estate market in The Glen is appreciating or depreciating. In a housing market where prices are steadily rising (which is the case in The Glen currently) appraisals are typically not a problem unless the seller and buyer have agreed on a price that is much higher than similar homes have sold for recently. In markets where prices are falling appraisals many times come in below agreed-upon sales prices.

When a home is appraised at less than the agreed upon sale price lenders either reject the buyer’s application for a mortgage or require that they put more money down. Some buyers may not have the ability to come up with additional down payment money or they may not wish to do so. In this case buyers might choose to simply walk away from the deal or they may ask you to renegotiate the purchase price downward so that they can qualify for the mortgage loan. At this point it is your choice whether to renegotiate or walk away.

Even if a home purchase transaction is for cash (not requiring a loan) some buyers still require an appraisal as a condition of the sale. This is to protect them from purchasing a home above fair market value.

So that’s how it works. If you have any questions please call or email me. I am a long time homeowner in The Glen and an award winning Realtor affiliated with @properties.

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