A few weeks ago, the Board of Education approved boundary changes for the upcoming 2012-2013 school year. They have named the changes “Phase I” and the main purpose is to alleviate student overcrowding at Mill Street and Beebe Elementary schools.

If you are like me, and have been following the turmoil and discussions regarding the proposed changes, you know that this has been a very emotional and stressful time, especially for many parents.

They announced that the remaining changes will be revealed in Phase II, so that the committee can have more time to make a decision on the remaining changes.

428 Elementary school students and 76 junior high school students will be affected during Phase I.

Here is the link of the map outlining the proposed changes:

http://www.naperville203.org/assets/D203%20Boundary%20Map%202012_2013.pdf

I attended the third annual Pink Tea this past Thursday, it was definitely a treat! Every year I learn something new, and this year I learned about all of the new technology that has recently come out regarding breast screening.

I also usually learn about just one or two things that all of us can add to our daily routine to decrease our chances of having breast cancer. This year, I learned that we should add daily servings of blueberries and spinach to our diet.

Additionally, there is also a speaker each year, and this year’s speaker was definitely inspiring. She was a two time cancer survivor, and reminded all of us that we are stronger than we realize.

Of course, the mini sandwiches and treats were delicious as well!

I just adore the fall season! There are so many fun activities unique to the Naperville area. Here are just a few to consider participating in:

Greater Chicago Soap Box Derby Association Race
October 15 & 16th, 2011 (Sunday)
9 a.m.-5 p.m.

Racing this year will take place at the corner of Diehl and Frontenac Road in Naperville. Spectators are welcome to watch the exciting race! Kids who are contestants can stop by for a free test run on either day. Contestants should be from age 8-17. If a child does not have a car to race, but would still like to compete in the race, they can call ahead to reserve a car at 630.841.8832.

Soup’s On!
October 16th, 2011 (Sunday)
11:30 a.m.- 5 p.m.

This yearly event is sponsored by Rotary Club of Naperville and will be held at 1415 W. Diehl Road in the Tellabs Atrium. It benefits three of the local food pantries/shelters. The event offers great entertainment and food. The cost for adults is $45, tickets for seniors (over age 65) and military are $35, tickets for children ages 6-15 are $10 and children under the age of 6 are admitted for free.

Naperville Farmer’s Market
October 15th, 22nd, 29th
7 a.m.- 12 noon

Remember, October is the last month for the Naperville Farmer’s Market! It is open every Saturday and runs through the last Saturday in October. It is held at the Fifth Avenue Station parking lot, at 200 E. 5th Avenue.

Trick or Treat in Downtown Naperville
October 30th, 2011
11 a.m.- 2 p.m.

Trick or Treat at various shops and restaurants in downtown Naperville! All participating businesses will have Halloween balloons displayed outside their shop/store. The Naperville Trolley will also be providing trolley rides during this time.

As many of you know, it is currently a very challenging market to sell your home in. There is a lot of competition listed on the market and many properties (including foreclosure and short sales) that are priced aggressively to sell. The main challenge that I discuss with many of my sellers is not whether or not we will be able to get a buyer to purchase their home, but more importantly, if the property will appraise out to the purchase price.

Oftentimes, as a listing agent, I am actually able to get slightly higher price for my seller, but then the appraisal comes back short. For example, I had a luxury townhome listing that I put on the market earlier this year. When I originally met with the seller, I had suggested that we list at $399k, based on other properties that had closed within the past 3-6 months. I also discussed with the seller that we would probably not receive an offer higher than $360k-$370k range. The seller wanted to list the home at $429k. We made a couple of price reductions, and had an offer within 90 days. However, when the appraisal was conducted, the value came back at $346k. Even though I was able to obtain a sales price of close to $400k, the appraisal came back over $50k short!

The appraiser had looked at all closed comparables in the subdivision, and the most recent closed comparable was below $300k. As a listing agent, I am always present at all appraisals. For this particular one, I had presented to the appraiser information regarding the difference in square footage between the two properties, the location difference (the property that closed at below $300k faced a laundry cleaner), and even provided the appraiser with information directly from the original builder to prove that the subject property was worth a lot more than $346k. However, even after all of this information, the appraiser would not budge on value.

Ultimately, my client had a difficult decision to make: to take the offer of $346k, or to cancel the contract and wait for the market to change (which according to economists, will take at least 3-4 years).

This example is the classic case of the parameters we must work within, in today’s real estate market. Appraisers will only include properties within a 2 mile radius of the home, and only look at closed comparables within the past 3-6 months. Therefore, even if you are a seller who is lucky enough to receive an attractive offer price for your home, it may not appraise out.

The lesson from all of this is very clear- if you are going to sell your home in this market, price it right and aggressively from the first day. Most importantly, whether we like it or not, we must price it based on other homes that have closed within your subdivision or sub-market area within the past 3-6 months.

From my conversations with buyers and sellers these past few months, it has become apparent to me that most of my clients are not aware of the Dodd-Frank Act that became law in July of 2010. Even more important, I have realized that most of them are also not aware of the current proposal to increase the required mortgage down payment to 20%.

Under the Dodd-Frank Act, financial institutions that securitize mortgage loans are required to keep at least 5% of the loans that they approve. However, if the mortgage is a qualified residential mortgage (QRM), then it is exempt from this requirement.

Due to the Dodd-Frank Act, federal banking regulators have released a proposal that will define and create QRMs. The proposal would include a requirement of all mortgages to be at a 80% loan to value, which would require a 20% down payment. The proposal would also limit the total mortgage payment to 28% of the borrower’s income and limit all debt to 36%.

From the perspective of financial institutions, they will want to minimize the percentage of loans that they retain. Therefore, if the act is passed, they will definitely increase down payment requirements across the board. Currently, borrowers have many other options for mortgage loans, including FHA loans (with a 3.5% down payment requirement), and 5-15% down payment conventional loans. If this act is passed, it will restrict the qualified borrower pool even further, and this will certainly be a detriment to the already fragile real estate market.

Since it was becoming more evident to me that most of my clients were not aware of this proposal, I wanted to shed some light on this topic. Voting on this act is currently set for August 1st, 2011. I strongly urge you to contact your local legislator as soon as possible, to let them know how this act will negatively impact the real estate market. A 20% down payment requirement on mortgages will price a large group of buyers out of the buyer pool. This will directly impact the number of homes being sold, and increase the already high level of inventory of homes currently on the market.

If you are a seller who has their home currently on the market, you should be aware of this proposed act, because it will directly impact your chances of selling your home quickly. If you are a buyer who is currently actively looking to purchase a home, you should be aware of this proposed act, as it will directly impact your buying power.

Feel free to contact me with any questions regarding the proposed act.

With the current winter weather in full gear, I think that everyone is looking forward to warmer days ahead.  Here are some of the local events happening in Naperville for the upcoming few months:

February 20th, 27th & March 13th, 20th
9 AM- 12 PM
2010 Tax Return Assistance Program
It is that time of the year again!  This event is being sponsored by Benedictine University, North Central College, and the Notre Dame Club of Greater DuPage.  Free tax counseling and tax return preparation will be offered to all households that earn under $49,000.  It will be held at the Nichols Library, the downtown Naperville location.

March 6th
6 PM-9 PM
Bid for Kids Auction

The 34th Bids for Kids Auction, hosted by Little Friends, Inc., will be held at the Hilton Lisle- Naperville.  This year’s auction theme will be the glamorous Academy Awards.  The auction raises funds for children and adults with autism and other developmental disabilities.

http://www.littlefriendsinc.org

March 13th
10 AM- 4 PM
Maple Sugaring Days

Have you ever wanted to see how sap is collected to make maple sugar and the syrup that we love on pancakes?  You will be able to at the Maple Sugaring Days, being held at Naper Settlement on March 13th and also from 1-4 p.m. on Sunday, March 14th.  Admission is $9 for adults, $8 for seniors and $6.50 for children ages 4-17.
http://www.napersettlement.museum

March 20th
6 AM- 1PM
55th Naperville Evening Kiwanis Annual Pancake Festival and Raffle
This annual festival will include an “all you can eat” breakfast of pancakes, sausages, and beverages.  There sill also be musical entertainment and an exciting raffle of over 200 prizes.  Tickets are $6 at the door.  It will be held at Naperville Central High School.

April 17th
10 AM-2 PM
Fry Family YMCA Healthy Kids Day
Healthy Kids Day is to promote a healthy lifestyle and also to introduce everyone to the variety of services in Naperville that promote and enforce healthy behavior.  There will be roughly 20-30 exhibitors with information, prizes, and more.  The Fry Family YMCA is located at 2120 W. 95th Street.

April 24th
11 AM- 4 PM
Festival of Colors

The Vedic Cultural Society invites everyone to celebrate the Festival of Colors (Holi).  It announces the passing of winter and welcomes the arrival of spring.  Participants will be able to throw brightly colored power at their friends, family, and neighbors.  This event promotes friendship and throwing “worries in the wind.”  Donations of $2 per participant are recommended.
http://www.thefestivalofcolors.org

The first-time home buyer tax credit was extended today, following the U.S. Senate approval yesterday and the House of Representatives today.  Not only will the current tax credit of $8,000 be extended, but a new credit of $6,500 for qualified existing homeowners as well.

To qualify for the $6,500 new credit, existing homeowners must have owned their current residence for a consecutive 5 year period.

Additionally, the home purchase price cannot exceed $800,000.  A homebuyer must also have a purchase contract signed by April 30th and close by June 30th, 2010.

According to the National Association of Realtors, as many as 400,000 resale transactions (1.2 million resale and new construction homes total) have been completed due to the first-time homebuyer tax credit.

This is wonderful news for our local housing market.  As most of you know, I truly believe that the tax credit has helped our local real estate market this past year.  With the extension and expansion of this new tax credit program, hopefully our local market will improve into next spring and summer.

Every spring, Coldwell Banker Residential Brokerage hosts a series of Twilight Open Houses that runs through the fall season.  Our Naperville office usually hosts at least 30+ open houses on the 3rd Thursday of every month from March to September/October.

Next Thursday, September 24th, will be the last Twilight Open House for this year.  For all of the active buyers who are still looking to purchase a home this year, it will be the perfect opportunity to find the perfect one.

For a complete list of the homes that will be open to the public for viewing, please contact me and I will be happy to forward you a copy.  All of the homes will be open from 5-7 p.m.

I will be hosting a Twilight Open House at 1019 Amberwood Circle in Naperville.  For more information on this property, please visit www.1019Amberwood.com.  Feel free to stop by and visit me next Thursday!

As a top listing agent in my office, I typically have the opportunity to meet with 5-12 prospective sellers a month.  When meeting with these sellers, I am often asked a series of questions regarding local market conditions, current home values, and also my marketing strategies.

During our conversation, many sellers will also discuss with me their beliefs regarding the current real estate market and ask me to shed some light on information they may have heard on the news or from friends and/or family.  Unfortunately, some of the information sellers believe to be true, are in fact myths.  Here are the top 5 seller real estate myths and the real truths.

Myth #1: The fall and winter market is the worst time to sell.  I’m going to take my home off of the market and/or wait until the spring season to list my house.
This is not necessarily true.  Especially in the Naperville area, the fall/winter market is sometimes the best time to sell.  A large number of relocation transferees come to Naperville to look for a home between the months of September to December.  Additionally, since they are relocation buyers, they are serious about finding a home and they have a specific timeline.  Additionally, your home may not receive as many showings during the fall/winter market, but the showings you will receive will be more serious.  There will also be a lot less competition compared to the spring and summer months.  Lastly, the fall/winter season is usually when your home looks the best, with holiday and seasonal decorations.

Myth #2: I can always reduce my listing price later.
Some sellers price their home high for the first 3-4 weeks to “test” the market.  However, this is not a good idea.  Buyers will know if a home is overpriced, because they are viewing all of the competition that is also currently on the market.  Instead of pricing your home right from the first day and capturing the active buyer interest, you will instead be promoting how other properties are priced right and in turn helping those homes to sell instead of yours.  Sure, it is true that you can reduce the price later, but the active buyers in the market now won’t wait around for “later.”

Reducing your price in small increments and/or also waiting to reduce your price is also not a good idea either.  This will cause you to be chasing the market downwards instead or pricing it ahead of the market curve.

Myth #3: The first offer is not the best offer.  I will get more offers.
Many sellers believe that it is wise decision to wait for additional and/or better offers.  Unfortunately, that is a very risk proposition at best.  Many times, there will not be a second offer.  If a seller is lucky enough to receive a second offer, it will most likely not be as strong as the first offer.  Additionally, more time would have passed and the property will be more market worn.  This is the number one reason why subsequent offers will not be as strong, because the buyer will see how long the property has been on the market and believe that they will be able to purchase it at a lower price.  If you were a homebuyer, would you pay more for a home that has only been on the market for 5 days, or a home that has been on the market for 125 days?

Myth #4: If I hold onto my current asking price, a buyer who is interested will eventually come along and make an offer.
This myth ties in with myth #2.  Buyers who are actively looking for a home will often be the most educated about the current local marketplace.  This is because they will most likely see your home and every other home that is directly in competition with it and priced within the same price range.  If your home is priced higher than its true market value, the buyer will most likely not give it serious consideration and it will be automatically eliminated from their final list.  Most sellers also make the mistake of treating real estate as a product.  Real estate is a commodity, and homes will only sell for what buyers value it at, and not a dollar above that amount.  As a seller, if you want to wait for a buyer to come along and pay more than the market commands, you will be waiting a very long time.

Myth #5: As long as I am listed on the MLS, it doesn’t matter which company I am listed with.
As a seller in the current real estate marketplace, the most important decision will be who you hire to market and get your home sold.  The MLS is a great tool, but that is all that it is- just a tool.  It takes a solid company with the right resources and also a knowledgeable agent who can use the tool properly and get the job done.  Additionally, the MLS is only one way to market your home.  It is vital to make sure that your home is listed on multiple top websites, exposed to all of the active buyers in the marketplace, and also to all of the active Realtors® who may have buyers in the area.