Margaret Ludemann

Impact of new jobs report on Glen home buyers & sellers

by

The Labor Department reported last Friday that the economy created 271,000 new jobs in October which is much better than anticipated; and the unemployment rate dropped to 5%. That’s great news, of course.   In simple terms, people without jobs can’t purchase homes, so more jobs = a larger pool of prospective buyers.

Even entry level jobs can positively impact the market for higher priced homes in places like The Glen and greater Glenview where I focus my real estate practice. Why? Because the sale of an existing entry level home turns the home seller into a buyer of another home, presumably one with a higher price point.

There is a downside to today’s report, though my sense is that it will modest, at least in the short term. With the very positive news on job growth, the Fed is more likely to increase interest rates at its next meeting in December. If so, it will be the first increase since 2006. While the federal funds rate is not directly tied to mortgage interest rates, it increases the borrowing costs of lenders who will pass along their additional costs to their home buyer clients in the form of higher mortgage rates. I’m not an economist and I don’t play one on TV, but I suspect that the Fed’s December increase (if it occurs) and any further increases next year will be modest because the Fed does not want to throw a wrench into a still recovering economy.

So here’s the take away:  A healthier employment climate will increase housing demand, but expect modest increases in mortgage interest rates in 2016.

Margaret Ludemann

Realtor, @properties, Glenview Illinois

847-401-1802   margaretludemann@gmail.com

Porch Piracy

by

I hadn’t heard of the term “porch piracy” until recently when I read an article about it. Basically it involves the theft of packages delivered to a home and left at the front door. Thieves look for opportunities such as this, some even following Fed Ex and UPS trucks as they make their deliveries. This is a very real problem in much of the country, and it’s growing.

Crime in The Glen is not a common occurrence. In fact, there is little of it in this beautiful residential and retail development in Glenview Illinois, about 18 miles north of downtown Chicago. This is an upscale area with home prices ranging from around $400,000 to over $2,000,000. That’s not the community profile one thinks of as a high crime area. But what makes the community so lovely also can make it a target of porch piracy. In an area like ours packages left at the door are likely to be filled with expensive items such as electronics.

I decided to ask the Fed Ex delivery guy who regularly delivers in The Glen how he decides whether to leave a package if there’s no one home to receive it. He told me that the company provides some guidance based on historical data of porch piracy by location, and as a person familiar with the various streets in the The Glen development he uses his best judgment as to whether a theft may occur. I’ve never had a problem myself, and none of my immediate neighbors have ever mentioned it. But all of us in The Glen should be aware of the potential problem.

The most effective way to ensure that your packages won’t be stolen is to require signatures for items that you’ve ordered. Alternatively you can ask that packages only be delivered during hours that someone is likely to be home.

Margaret Ludemann

Glen homeowner and @properties Realtor

margaretludemann@gmail.com         847-401-1802

Homeowner associations’ role in a home sale

by

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

What you should know about home appraisals

by

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

Glenview. The Glen. And 97%. Read on…

by

97% is the number. I’ve never seen anything like it.

That’s the percentage of residents of Glenview Illinois who rate their community as “an excellent or good place to live and raise children.” I’ve lived in a lot of places before settling in The Glen, a residential and retail development in Glenview, including large sophisticated cities like Chicago and Boston. And mid-sized cities like Newton, Massachusetts and Omaha, Nebraska. I’ve even lived in a really, really small town (population 85…that’s not a typo). But of all the places that I have called home at various times in my life, I’ve never seen a number like that. 97%. Wow.

The Village of Glenview conducted a survey of residents last spring, and that’s where the number came from. Other survey results were equally impressive. For instance 90% of respondents feel safe in their neighborhoods, 92% have a positive view of Glenview’s reputation, and nearly 70% are satisfied with the value they receive for their tax dollars. I’m particularly impressed with this last finding. OK, 70% isn’t 97%…but we’re talking taxes here. Who the heck likes to pay taxes? But here in Glenview nearly 3 out of 4 believe that they’re getting a good deal. You’re not going to find a number that high in many other communities.

While I haven’t seen a similar survey for the Glen, I know that the feeling here is similar to greater Glenview. I’ve lived here for a dozen years, and life simply cannot be better. Homes in the Glen are beautiful, and there is great variety…from condos to townhomes…and row homes, duplexes, two-flats and single family homes. Home prices range from the $300,000s to over $2 million. The retail area resides in Glen Town Center where there are scores of shops, restaurants, a book store and a movie theater. And best of all, I can walk to all of it as can every resident in The Glen. As I said, I’ve lived in a lot of great places. But count me among the 97%…I love it here, and I don’t plan to move.

For anyone interested in living in the Glen please contact me. I am an award-winning realtor with @properties, and I would love to show you why so many people…97% of them…believe that this is a very special place.

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