real estate

1 Glen home. 2 offers. Jump ball.

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A couple of weeks ago I presented two purchase offers to one of my Glen seller clients. By “Glen seller” I mean a homeowner in the upscale development known as The Glen in Glenview Illinois. I only had this home on the market for a few days, but a strong marketing campaign produced immediate showings, resulting in two qualified buyers vying for the home at exactly the same time. What to do?

Obviously this was a nice problem for my sellers. Typically in this situation sellers will choose one of two paths.

They can select the best offer, and authorize their realtor to negotiate exclusively with that buyer for a higher price and better terms. If the negotiation process produces an agreement, the sellers have succeeded in selling their home, assuming of course that no inspection or financing problems pop up. If negotiations bog down the sellers may choose to go back to the other buyer and begin negotiations.

Alternatively sellers can call for a jump ball. That’s basketball terminology of course, but it’s apropos in this case. The sellers’ realtor asks both potential buyers to provide their “best and final offer” by a certain time, usually within 24 to 36 hours. While home buyers are generally not thrilled with this approach, they usually comply; and it generally produces a great result, particularly in situations where there are two highly motivated buyers whose initial offers were similar in price and terms.

So how did it work out for my Glen sellers? Well they chose the “best and final” route. But this one had a twist. They didn’t select the higher priced offer. It turns out that the lower priced bid had far more favorable terms and no conditions of material concern. Interesting, huh?

If you would like more information about real estate in the Glen, please contact me. I’m a Glen resident and an award winning realtor affiliated with @properties.

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

Impact of new jobs report on Glen home buyers & sellers

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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

New construction homes in The Glen

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There are two neighborhoods in The Glen available to buyers seeking new construction.  One is available now, and the other will be available soon.

First, a little background:  The Glen is an upscale residential and retail development on Chicago’s North Shore in the community of Glenview, Illinois.  There are several distinct neighborhoods with two things in common:  They have stunning, luxury homes; and homeowners enjoy the “urban living in the suburbs” lifestyle that the Glen is known for.  The various neighborhoods are anchored by our retail hub, Glen Town Center.  OK, now I’ll tell you about the new construction real estate opportunities in The Glen.

Regency:  While nearly sold out, the new Pulte development called Regency still has 5 beautiful townhomes available for purchase.  The development, when completed, will have 149 homes.  Among the available 5 homes are the two models, fully decorated.  These are likely to sell soon, so if you’re interested I suggest you move quickly.

Westgate has cleared the final administrative hurdles, and it should get under way soon.  I walked over to the site this morning, and I see that the sales center is being developed.  This E. R. James Partners development will have 173 homes including 71 row homes, 68 Mews townhomes, and 34 single family homes.  The row homes and single family homes will have first floor master bedrooms making them particularly attractive to downsizing empty-nesters.  This development will be extremely popular.  Not only will this be the last new Glen development featuring single family homes, but E. R. James is known as a high quality builder.

If you are interested in Regency you should contact me now so that I can get you into the models and explain your options.  If Westgate strikes your fancy please let me know so that I can contact you at the appropriate time.  I can be reached at 847-401-1802 or margaretludemann@gmail.com.  Meanwhile you can learn more about these developments at www.homesintheglen.com.

Margaret Ludemann, Glen homeowner and @properties Realtor