Selling a home that is close to a new development can be challenging

There is a newly built home down the street - in a newly built subdivision and, you’ll admit, it is divine. It’s a house with everything… brand-new appliances, white marble countertops, wide plank flooring, pendant fixtures, and energy efficient heating, cooling, and electrical systems. Looking around, you find yourself entranced. The problem is…you’re not in the market to buy a home...you're trying to sell your not-so-new home.  

How do you market an older home? The good news is that older homes have buyers! Oftentimes, the buyers are looking for an older home because of its character, mature landscaping, and lower property taxes. If your potential buyer is looking for a newer home, you’ll have to make changes so that buyers are attracted to your older home.  

While there is nothing you can do about the fact that your house was built in 1985 (or thereabouts), you can research the trends in new homes, analyzing what to do to make your home appeal to buyers.

Investigate trends and review competition. Get ideas of the latest decorating trends in model homes as wells as ways to maximize the best features of your home, minimizing the least appealing features.

Small upgrades go a long way.  Adding a fresh coat of paint in new neutral tones of pale grey or beige rather than pure white can give your house a new look. Other upgrades, like switching out the old kitchen and door hardware are small aesthetic details that can give your listing new life.  

Big ticket items go even longer.  Big ticket items like energy-efficient appliances, new countertops, and bathroom remodels, may be the most important upgrades sellers can make because most buyers can’t afford them on top of a home purchase.

Be Realistic. Lower Your Price.  A house that has seen little movement for months is frustrating. Not an easy decision, but lowering your house by $20,000 (or more) will take months off the time it can potentially be on the market.

Three Rivers Association of REALTORS® is a professional trade association with over 1,000 REALTOR® and affiliate members in Will and Grundy counties and the surrounding areas who provide professional and ethical real estate and real estate related services.

Call us: 815-744-4520!

Sources:

https://www.realtor.com/advice/sell/sellers-game-compete-newly-built-homes/

https://magazine.realtor/home-and-design/feature/article/2018/05/how-older-homes-can-gain-an-edge

https://www.realtor.com/advice/buy/why-buy-old-home-instead-of-new-one/

https://www.washingtonpost.com/lifestyle/home/ten-home-design-trends-to-watch-out-for-in-2018-according-to-houzz/2017/12/15/b64a9b58-df6a-11e7-89e8-edec16379010_story.html?utm_term=.cadca86ae282

Negotiating Your Way Into Homeownership

When you go to buy a house, you’re certainly hoping to get the best price and terms. In order to do that, it’s important to know when to start negotiating and when to stop. That begins with being familiar with the market, down to the neighborhood and possibly even the street. Of course, when there are a limited number of homes for sale as is the case in our marketplace today, it is highly unlikely that a laundry list of demands can be successfully negotiated. The more operative word today would be flexibility. Here are some tactics every buyer should know before negotiations begin.

Be Prepared to Move Fast

When properties go on the market, they go very quickly, so if you’re in a competitive market, make your first offer your best offer. And if you take too many chances, you might strike out. Remember, there will always be people who want to make a lower offer, however, when they miss out on the first or second or third property, they learn their lessons.

Don’t Use Inspections for Renegotiation

If the inspection reveals major problems, it’s completely acceptable to ask for a credit. However, know you may not get it if the market is tight. These days, it’s unlikely that a seller will make significant repairs, and so it’s better to ask for a credit at closing in order to hire your own contractors. In some hot markets, in order to submit an offer with fewer contingencies, prospective buyers have an inspection done before making their offer.

Be Flexible with the Possession Date

As a homebuyer, a great tool for negotiation is to accommodate a seller's particular closing date. By catering to their needs, you're making them feel like they're in the driver's seat. You could have a “rent-back” agreement drawn up, where you rent the property back to the seller for a short period of time. This takes pressure off their move and may make your offer stand out against the competition. If possible, also make it clear that you can also be flexible with the dates of the Purchase and Sale signing.

In every real estate negotiation, buyers ask and sellers push back - because if you're the buyer and you don’t ask, you won’t get. While buyers want the best deal and sellers want the highest price, eventually the two will have to meet somewhere in the middle for the deal to close. Since a home is the largest asset most people will ever own and there’s usually a lot of cash at stake, negotiating is extremely important.

Working with a REALTOR® provides clients with peace-of-mind that they will be receiving both professional and ethical service during the home buying or selling process. Learn more about purchasing a home and find a REALTOR® to help by visiting Three Rivers Association of REALTORS® website, or calling 815-744-4520.

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Sources:

http://www.trarealtors.net/

https://www.houselogic.com/buy/how-to-buy-step-by-step/how-to-negotiate-an-offer/?sf187586507=1

https://www.realtor.com/advice/buy/buyer-negotiation-tactics-that-backfire/

Some Things to Do Before Moving In

You know how the famous lyrics go: “Don’t it always seem to go, that you don’t know what you’ve got ‘till it’s gone?” While these are very true sentiments, we’d like to recommend a slight alteration: “Don’t it always seem to go, that you don’t know what you got ‘till you start to pack it all up?”

The more closets you go through and the more cabinets you attempt to organize, you might ask yourself, “Where did all this stuff come from? What am I supposed to do with all of this? Is this stuff I even really need?” These questions require even more urgent answers when you are packing and organizing for an exact purpose; specifically, when you are planning on moving.

And packing up your home is just one of many things that need to be crossed off your checklist when you are preparing for moving day. The process of switching residences can be overwhelming to say the least. But by planning ahead, you can be as prepared as possible for your upcoming move:

Here are a few things to keep in mind before moving into a new home:

Gather the Appropriate Supplies

Make sure you have plenty of boxes, bins, tape, labels, bubble wrap, and newspaper on hand in plenty of time before the big move so you can stay on top of packing. And don’t be afraid to give things away—if you are going through old drawers and closets and find things you don’t need, there is no need to bring them to the new house.

Transfer Your Utilities

Don’t assume that the gas, water, and electric will be set up for you on moving day. It’s important to take care of this with your utility company before moving day rather than afterward.

Change the Locks

Changing the locks is the simplest and quickest way to guarantee your safety in your new space.

Clean Up

Scrubbing every possible surface of your new house is much easier when they’re not covered with furniture! Thoroughly clean your home before moving day; it will save you significant time and trouble in the future.

Other things you may consider before moving in if possible include getting to know where the circuit breaker box is and the main water shut-off valve, make minor and major repairs, childproof your home if applicable, forward your mail and update your billing address.  It's also not a bad idea to consider getting a home warranty which would cover the cost of the repair or replacement of things like your furnace, air conditioner, water heater, appliances, plumbing and electric for at least a year. Experts say that basic coverage starts at about $300.  Proper planning can help minimize the challenges and stresses of transitioning to a new home making the move much more enjoyable.

For more information on what you can do to make your upcoming move easier, work with a member of Three Rivers Association of REALTORS®.  You can find them at www.trarealtors.net or call 815-744-4520.

Having a financial game plan for your home will give you peace of mind

Creating a financial plan for your home can help you feel more secure in budgeting for the future. A financial plan will spell out how much you need to pay and when, so you know exactly how much money is going toward your home. Without a plan, you could find yourself overwhelmed by unforeseen expenses like emergency repairs that you didn’t budget for, or unable to make updates to your home because of a lack of savings.

Luckily, you can create your own financial planning checklist to get a better look at your expenses and savings in the years ahead.  

Where to start

First, write down recurring expenses like your mortgage payment, taxes, and homeowner’s insurance. Note when each of these payments is due, and how much it is.

• Follow that list up with more occasional expenses like seasonal lawn care and maintenance or replacement dates for major appliances, plumbing fixtures, and the roof. Note that these dates don’t need to be exact, but searching for the average lifespan of a water heater, for example, will help you identify future expenses you’ll need to save for.
• Lastly, write down any voluntary expenses like adding a pool or finishing the basement. By listing the things you want to add to your home and estimating their cost, you’ll be able to see what is financially possible and when. 

Ways to save

With an idea of how much you need to spend in the short and long-term of your home, you’ll be able to turn your attention to places you might save money in order to be prepared for the future.

If you’re planning on staying in your current home forever, pay more than the minimum monthly mortgage payment. Paying more upfront means saving thousands in interest later down the line. Plus, it just feels better to pay down your home sooner.

Another oftentimes overlooked area to save is by checking with your insurance agent to make sure you are covered enough, but not too much. Over-insuring your home means you’re paying more than you need to on a policy that you’ll never see the full benefit from. Likewise, under-insuring your home will leave you paying out-of-pocket should you need to make a claim. Everyone has to pay property taxes.  However, you may be able to reduce your tax burden by getting a reassessment. Do your homework first: Are comparable homes taxed less than yours? If so, you can contact the local assessor, challenge the assessed value of your home and possibly reduce your taxes..

With a little planning, you’ll have peace-of-mind knowing that you’re in good financial shape, and the fear of surprise expenses will be greatly reduced.  If you’re looking for a new home, contact the Three Rivers Association of Realtors at 815-744-4520 to start your search today.

These 5 Tips Will Help Your Home Stand Out In A Crowded Market

The housing market is hot right now with lots of inventory and very motivated buyers. So if you’re putting your house up for sale, you have to make your home as attractive to buyers as possible, or they’ll simply move on to another house. Following these five tips will help you be more competitive in the market - moving your house more quickly and getting you the highest sale price possible.

Boost Curb Appeal

Pressure wash the siding and driveway to revitalize these surfaces. A clean exterior will signal to prospective buyers that your home was well-kept and that the interior is likely to be in great shape too.

If washing the siding isn’t doing enough to bring back the color, consider painting your home. While you’re at it, freshen up the trim, shudders, and entry door to make your home look like new again.

During the growing season, don’t forget to keep an eye out for overgrown trees and bushes as well. If you have sidewalks or paths that are partially blocked by any branches, think about trimming those back before house viewings.

Clear Out Clutter

Buyers will be turned off by excessive clutter and personal items. Removing larger furniture, decor, and family photos will make rooms look larger and it will be easier for those touring your home to envision their own items in that space.

Clean Everything Inside

Hiring a cleaning service is the fastest and easiest way to get your house sparkling. Simply call a local cleaner and ask for a move out cleaning. They’ll take care of the rest.

If you don’t have the budget to hire cleaners, then you’ll need to clean each room (including the garage and basement) yourself. Vacuum floors, wash light fixtures, polish woodwork, and clean out all appliances to brighten and deodorize your house.

Make Needed Improvements

Whether you want to add a fresh coat of paint to the bedrooms, update the bathroom, or make repairs in the kitchen, now is the time to do it. Renovating before you sell will be a big draw to buyers who are looking for a turnkey home.

Get Your Home Inspected

A home inspector can point out any issues that need to be addressed before potential buyers visit. You can then make the repairs, or let buyers know exactly what needs work. Though a home inspector can run anywhere from $300 - $500, it’s a great way to show buyers that your house won’t give them any surprises.

Putting a little time and money into your house before you sell can make it more attractive to buyers. Showing your house in its best light will get it more attention and maybe even a higher selling price.

When you’re ready to sell your house, contact a realtor from the Three Rivers Association of REALTORS® at 815-744-4520 or http://www.trarealtors.net.

Think about getting a home inspection before putting your home on the market

In a typical real estate transaction, it is the buyer who arranges and pays for the home inspection. However, it can be to a seller’s advantage to pay to have an inspection done prior to placing their home on the market. A pre-listing inspection can provide them with valuable information about the condition of their property and an idea of repairs that they may (or may not) wish to have done. This information can help in negotiating the sales price of the home as well as avoid having these repair issues surface down the road at a less opportune time.  

Is there any difference between a pre-listing inspection and a buyer’s inspection?

The only difference is who (seller or buyer) is having the inspection done and the point in time when the inspection occurs. The scope of the inspection, whether done pre-listing or after the sales price and terms have been agreed upon, will essentially be the same focusing primarily on proper functionality of all major systems and components of the house: heating and cooling, electrical, plumbing, roof and structure, siding, doors, and windows.

Typically, how much does it cost for a pre-listing inspection?

The fee is usually the same as the buyer’s inspection, generally ranging from $350 to $500 for a qualified inspector who carries errors and omissions insurance. The price can vary based on location, square footage, age of the home, and any special conditions.

Why should a seller consider doing pre-listing inspection?

Keep in mind that whether a seller has a pre-listing inspection or not, the buyer may still choose to have their own inspection done. What a pre-listing inspection does is give the seller a chance to resolve any repair issues up front that are likely to surface in the buyer’s inspection or have them accounted for in the asking price. This not only places the seller in a better negotiating position but helps minimize the chance of having to deal with circumstances that may come up in the buyer’s inspection that is done after the sales price and terms have been negotiated.

What should the seller do if a pre-listing inspection uncovers major problems?

Generally, it is better to know about inspection issues early rather than to be blindsided at a later date. Once identified, they can be assessed for proper resolution. A seller shouldn’t automatically assume that everything needs to be fixed prior to placing the home on the market. A REALTOR® can advise them as to which repairs are likely to negatively affect the sale of their home.

If you’re looking for more information about buying or selling your home, Three Rivers Association of REALTORS® can help. Visit our website today to learn more and to find one of our members who can help you!

How a Credit Freeze Affects Home Loans

For very little money, you can prevent identity thieves from opening accounts in your name by freezing your credit report. It’s understandable if you have questions and concerns regarding a security freeze. So let’s take a look at how you may be affected.

What Is a Credit Freeze?

A credit freeze limits who can see your credit report information. The goal is to prevent anyone from opening any new accounts. It doesn't damage your credit or stop your credit report from evolving by your own actions.

Your credit information will still be released to your existing creditors and any debt collectors who may come calling.

But, if you want to open new lines of credit, you'll need to lift the freeze first. This can be done temporarily, either for a set time or for a particular party, like a landlord or lender.

The costs to freeze and lift the freeze on your credit vary based on where you live and for each credit reporting agency, but commonly run about $10 per agency.

How Can It Affect Home Loans?

A credit freeze aims to block anyone from opening new accounts in your name. The catch is that the block applies to legit inquires, too. So it's not a great idea if you're shopping for a home or an auto loan. But when you're not looking to take out any loans or open any lines of credit, it can be a financial lifesaver.

One of the biggest problems with a credit freeze is it takes a lot longer to thaw credit than it does to freeze it. That could be a problem if you need credit in a hurry, such as a store credit card for an unexpected appliance purchase. 

Working with a REALTOR® provides clients with peace-of-mind that they will be receiving both professional and ethical service during the home buying or selling process. All of the members of Three Rivers Association of REALTORS® are REALTORS® as well as members of the Illinois REALTORS®and National Association of REALTORS®. Learn more about purchasing a home and find a REALTOR® to help by visiting Three Rivers Association of REALTORS® website, or calling 815-744-4520. 

Sources:

http://www.trarealtors.net/

https://business.facebook.com/ThreeRiversAssociationofREALTORS/?business_id=799349030146064

http://realtormag.realtor.org/sales-and-marketing/feature/article/2017/11/keep-frozen-credit-from-putting-transactions-thin-ice#!#sf175632085%23sf175638474

https://www.consumer.ftc.gov/articles/0497-credit-freeze-faqs

https://www.creditcards.com/credit-card-news/credit-report-freeze-1282.php

https://pixabay.com/en/credit-card-bank-card-theft-1591492/

Study Finds Majority of Today's Home Buyers are Millennials

A report entitled “2017 National Association of REALTORS® Home Buyer and Seller Generational Trends” states that, over the past four years, one consistent finding has been that Millenials/Gen Y-ers or those age 36 and younger make up the largest share of home buyers at 34 percent. Half of them were first time buyers. The report showed that this group has been quite traditional in their buying habits opting for suburban detached single family homes.

The next largest group was Gen Xers or those age 37 to 51 who make up 28 percent of home buyers. They are the most ethnically and racially diverse group as 21 percent identified their race as something other than White/Caucasian. And, because generally they are in their peak earning years, they purchased larger homes in terms of median square footage and number of bedrooms.

Baby Boomers were split into two groups due to differing demographics and buying behaviors. Younger baby boomers identified as those age 52 to 61 make up 16 percent of buyers and older baby boomers age 62 to 70 make up 14 percent. Younger baby boomers are most likely to buy a multi-generation home to take care of aging parents, for cost savings and because children over the age of 18 are moving back. The report also indicates that this group projects that they will remain in their home the longest at 20 years. Buyers 71 to 91, referred to in the report as the Silent Generation, represent the smallest share of home buyers at 8 percent. Nearly one quarter of these buyers purchased senior-related housing.

The study also revealed that 88 percent of all home buyers financed their home purchase… a share that decreases as the age of the buyer increases. Home ownership remains among life’s priorities for most Americans. For all three groups under the age of 61, the main reason given for purchasing was the desire to own a home of their own. The household composition for buyers in all age groups was primarily married couples followed by single females, single males, and unmarried couples.

The report also pointed out that it is a continued trend among all generations of buyers to consult a real estate agent or broker to help them buy or sell their home. Buyers need the help of a real estate professional to help them find the right home, negotiate terms of sale, and help with price negotiations. Sellers, as well, turn to professionals to help market their home to potential buyers, sell within a specific timeframe, and price their home competitively. To learn more, Three Rivers Association of Realtors is here to help. Visit our website or call us at 815-744-4520

Sources:

https://www.nar.realtor/sites/default/files/reports/2017/2017-home-buyer-and-seller-generational-trends-03-07-2017.pdf

REAL ESTATE MARKET SNAPSHOT: Housing Supply Continues to Drop; Prices are on the Rise

According to key indicators in a report provided by Midwest Real Estate Data LLC for Three Rivers Association of REALTORS®, it is predominantly a seller’s market in Will and Grundy Counties. Inventory levels fell 17.9 percent from 2,995 units to 2,459 units or a 3.1 month’s supply. Also on the downward slide is market time which is at 64 days compared to 70 days a year ago. The median sales price is now at $210,000 - up from $200,000 at this time a year ago. Multiple-offer situations over asking price are not uncommon in many communities. The report cites a favorable economy and the low unemployment rate as contributing factors toward these developments. Another reflection of the strong employment growth is the decreasing percentage of homes closed that are either foreclosures or short sales. Through July of this year, 9.5 percent or 87 out of 911 closed home sales fell into one of those categories. In 2016, it was 12.3 percent.

The effect of the shortage of new construction particularly in the median to upper median price range is being felt primarily among first-time buyers as the number of entry-level homes available is at a premium. Normally, new home development provides an important link in the chain that enables many home owners to move on, freeing up the supply of homes at every level. However, despite these circumstances, Three Rivers Association of REALTORS® leadership believes that it is still advantageous for buyers to pursue their dream of home ownership. Association President-elect Ken Pytlewski noted that lenders are also loosening up on mortgage qualification requirements as well as offering new loan Programs, giving buyers the ability to purchase with a minimal down payment.

The City of Joliet is having a Housing Expo on September 9th during which buyers can meet with

lenders and REALTORS® who can assist them in the home buying process. There will also be

information about money that is available to help you with your down payment.

You can get more information about the Expo by calling 815-722-0722, or visit the Three Rivers Association of Realtors website.

Why Should I work with a REALTOR®?

In the world of real estate, the words “REALTOR®” and “agent” are often used interchangeably. To some it might seem as though they are one in the same. However, choosing to work with an agent as opposed to a REALTOR® has several shortcomings that should not be overlooked in making this decision.

What is the difference?

Often these terms are used synonymously simply because people shorten phrase “real estate agent” and use REALTOR®, which they assume is a generic term. While both of these titles require the individual to be licensed with the Department of Professional Regulation, this is where the similarities end.

Real estate agent

A real estate agent is anyone who has a license to assist clients in the buying or selling of either commercial or residential property. This individual may perform this job as a sales representative, an associate real estate broker or a broker. To obtain a license, the agent must complete the required classroom training (typically between 30 and 90 hours) from an accredited real estate school and pass a state real estate examination that covers national, state and local real estate laws, standards and practices. In addition, an agent (as well as a REALTOR®) must pay a licensing fee as well as complete the required continuing education courses in order to renew his or her license every other year.

REALTOR®

REALTORS® aren’t just agents. They are professional members of the National Association of REALTORS® (NAR). In addition to completing all of the necessary requirements in order to sell real estate, a REALTOR® subscribes to a strict code of ethics which spells out specific practices and duties they must adhere to for the protection of their clients, customers and fellow REALTORS®. Real estate agents are not required to follow NAR’s Code of Ethics.

Working with a REALTOR® provides clients with peace-of-mind that they will be receiving both professional and ethical service during the home buying or selling process. All of the members of Three Rivers Association of REALTORS® are REALTORS® as well as members of the Illinois REALTORS® and National Association of REALTORS®.

2016 Award Recipients

The Three Rivers Association of REALTORS® has chosen the 2016 recipients of four awards that are given out.  Three awards are given annually and the fourth “Lifetime Achievement” award is given occasionally, when a member is recognized by peers for a lifelong effort in Real Estate, community involvement and volunteering.

This year’s recipient of the Lifetime Achievement Award is Rosalie D’Andrea, a lifelong resident of Joliet.  Rosalie began her working career at the J.F. Messenger Company working for Neil Houbolt in 1961 at the age of 16.  This career led her to Service Cartage in Lemont and D’Andrea Construction Company in Joliet 1968-1978.  Rosalie received her Real Estate license in 1972, and broker’s license in 1974, first with Key Realty and later with  Bell Realty.  In 1991 she became manager at the Honig Realty office in Joliet.  To this date, Rosalie manages the Coldwell Banker Honig-Bell office in Joliet.

Rosalie’s community involvement spans 30 years.  Elected to the Joliet City Council in 1987, she served on the Will County Expedition Authority, which oversees the Rialto Theater, for 12 years.  She also served on the Will County Center of Economic Development Board’s City Center Committee 1991-2007, committed to volunteering at the Forest Park Community Center and the Warren Sharp Community Center, and served on the Three Rivers Association Board of Director’s.

Debbie Prodehl received the REALTOR® of the Year Award for 2016.  Debbie is a manager and Regional Vice-President for Coldwell Banker Honig-Bell.  She is currently the chair of Business Issues & License Laws, a committee of the Illinois REALTORS.  Debbie was the President of Three Rivers Association in 2015.  Prior to serving as President, she was a Board Member officer for four years and also served as Secretary/Treasurer and President-Elect.

Debbie graduated from Lockport High School in 1982 and began her career into the real estate business in 1991, receiving her managers broker’s license in 2005.  She resides in Homer Glen with her husband Leo, and has two children Stephanie and Jonathan.

Mike Montgomery received the 2016 Affiliate of the Year award.  Mike is currently a mortgage loan originator with Stearns Lending in Naperville.  Mike began his career in the mortgage industry in 1985 and held positions ranging from underwriting to packaging and selling loans, and administrator to loan officers.  Mike has been active at Three Rivers Association for the past four years, volunteering in many committees, and is currently the Chair of the Affiliates Committee.   Outside of real estate, he is involved in the Chamber of Commerce in Plainfield, Naperville and Romeoville.

Gibby Kirby received the 2016 Rising Star award.  Gibby grew up in Central Illinois and attended Illinois State University, moving to Joliet 5 years ago.  He began working at Realty Executives Success as the office accountant and administrator.  Gibby received his real estate license 2 years ago, and stepped right in to participate with the associations committees and activity.  He is currently Chair for the Communications Committee and Vice-Chair of YPN Committee.  Outside of his career in real estate, Gibby volunteers at multiple animal rescue groups, and is involved in community theater and dance.

Three Rivers Association is very proud to present these awards and is grateful for the participation of these individuals chosen.