Busby Group Gives Back 2022
At Busby Group, helping to create a better community for all Chicagoans is a foundational piece of our business, and our partnership with the Greater Chicago Food Depository (GCFD) is just one way we contribute.
Since November 2020, a portion of the proceeds from every Busby Group deal goes directly to GCFD via our year-long food drive (you can donate anytime!). To date we have raised over $25K and nearly 80,000 meals, making Busby Group the #7 overall fundraising team for GCFD.
And the team has also been busy with their own charitable efforts too!
Julie
Julie has been on the board of Neighborhood Parents Network for several years. Julie is also actively involved in her daughter’s school, and adopted a family for the holidays.
Barb
Served as the Chairman of the Veteran’s Committee for the Rush Women’s Board on this Road Home Project, which addresses the invisible wounds of war. One interesting event they hosted was mask making for vets. Each vet makes one and they are all very telling and therapeutic as it relates to their experiences.
Susan
Put together a Polar Plunge team that raised $10,405 to benefit Special Olympics.
Asked for donations to Noah’s Ark Animal Sanctuary in lieu of birthday gifts raising $1387.
Jane
Makes donations and write in requests for NARAL and Planned Parenthood.
Volunteer work for Vote Forward, writing letters to registered voters to encourage them to go and vote.
Pamela
Supports the Anti-Cruelty Society in the name of dog, Rubie, who was rescued from them.
Mara
Chicago Children’s Advocacy Center Board Member, working on the Luminary Award Dinner planning committee and the Night of Heroes planning committee.
Supported the Pancreatic Cancer Awareness Walk and the World’s Most Beautiful Ride in Tahoe for blood cancers.
Maggie
Continues to volunteer with Special Olympics Chicago/Special Children’s Charities.
Amanda
Volunteers with Wick Park Bucktown Mutual Aid.
From the city to the suburbs
By: Jane Lintelmann
I love working in real estate. One of the reasons why I love it so much is because it gives me the opportunity to guide clients through major life changes. As a pragmatist to the core, breaking down an emotional and complex time into manageable steps and parts feels like a calling. And because of where I am in life, those big changes usually involve one of two things: an upsize (friends with growing families), or a downsize (my parent’s empty nester friends).
My pragmatism was put to the ultimate test just a few weeks ago as I helped my own parents through their major transition. About 11 years ago, once my brother and I officially left our childhood home in Morton Grove, my mom and dad bought an amazing townhouse in Old Town. They wanted to be closer to the Cubs, city restaurants and theater and me and my brother (in that order!). All of us loved living close to one another in the city so the arrangement worked perfectly.
But as with all good things, this one came to an end. My husband and I had our second daughter and city living didn’t feel like the right fit any longer. We sold our condo and headed to Skokie – back to the northern suburbs where I grew up, and where we knew we wanted to raise our girls.
After our move, my parents realized they too were done with city living and wanted to live close to their grandchildren. Since they weren’t in a hurry to move, we began with a broad search. I also researched options on Top Agent Network (TAN), as well as the Private Listing Network (PLN) to make sure not to miss any prospective new homes.
As time passed, my parents started to get a little antsy. I decided to refine the search a bit and switch up some of the details. I made personal calls to other Skokie brokers to see if they had anything coming on the market of interest. I even spoke to neighbors on our weekend walks with the girls to see if they were interested in selling. And then suddenly it seemed like I might have found it: their unicorn! Before getting their hopes up, I went to the property by myself to check it out. I sent them some photos and videos, and they were intrigued.
We went to see the prospective house together the next day, and the second Mom and Dad walked inside they knew they were home. This place checked off literally every item on their list! After some intense negotiating, they were under contract and then closed within just a few weeks.
Of course, we also had to tackle packing up and selling their Old Town townhouse. I was so glad I had Busby Group’s concierge team to tap into! Emily, our director of concierge helped us create a seamless process, and get my parent’s home ready for professional photos.
We encouraged my parents to take it a day at a time and to focus on organizing one room per day. To minimize the pain of moving furniture, but make sure the photos looked amazing, we used a combination of virtual staging and editing. We also created a timeline that allowed them to move to their new home before we started showings. The townhouse was under contract just a few weeks after listing!
Careful and thoughtful timing was the key to success with my parents, and so many empty nesters. I always consider how two transactions will impact my client’s day-to-day life. I’m so glad it worked out so well for my parents. They are now totally settled in their new home, close to us and the grandkids. All of us couldn’t be happier!
Finding a home, finding a college
By: Mara Walsh
This is the year! The year of the all-important college search for my stepson. Friends told me this process was difficult, and they were right! Even after only a few short weeks, I get it! I also quickly realized that the whole process felt familiar: high stakes, all the emotions and a significant financial investment…it’s just like buying a home!
The initial narrowing down can be overwhelming
What do you want your major to be? What type of weather do you love? Rural or urban setting? Older or newer campus? The questions to answer are never ending.
The same goes for honing in on a home search. Do you want to live in a big city, small city, suburb or in the country? Are you looking for a specific neighborhood feel or vibe? Are you looking for newer construction or a home you can make your own over time? Are schools important?
And there is always that element you can’t put your finger on: a gut feeling, where it feels ‘right’. Listening to this voice is a crucial part of the process too.
I gave my stepson the same advice I give my real estate clients: asking and answering these questions upfront can feel long and a little painful, but clarifying what is most important to you will save you time in the long run. It isn’t financially or logistically feasible to fly all over the country looking at colleges, and narrowing things down also applies to buying a home.
Professional guidance is key
The process of finding the right college has changed drastically since I went through it! While it is our first time, college counselors and consultants do this all the time and have up-to-date insights on the ever-changing college landscape, and what it takes to get in. They understand how to create a focused search based on interests, grades and financial constraints and can help create impactful applications. (If you need recommendations for college consultants let me know!)
Now I see myself as a real estate counselor/consultant because this is exactly what I do for my clients! Knowing the right questions to ask, market a home for mass appeal or position a buyer’s offer is how I spend my time day in and day out.
It is a process
With a solid understanding of what you are looking for, the research phase begins. When searching for colleges this means tours, tours and more tours! But also, try to get a peak under the tent, so to speak. Find a family member or friend that lives by the college so your child can walk around campus, maybe attend a class, and get a true feel before finalizing your decision.
The same goes for real estate. Showings are great, but walking around the neighborhood, talking to neighbors, checking out local shops and restaurants will give you a real taste of everyday life.
Move in day!
Even after ten trips to Bed, Bath & Beyond, move in day is going to be emotional and will likely throw in a few surprises – either at school, or with a new home – it won’t go exactly to plan. The best way to prepare is to expect the unexpected, and be excited about the future. And, know that you have family and/or your amazing real estate broker to help!
Our bags are packed, and we are excited to hit the road again soon on our latest round of college visits. In the meantime, I will be running around Chicago working with my buyers and sellers – and I wouldn’t have it any other way!
Everything you need to know about mortgages in Q3 2022
If you are anything like me, the constant market fluctuations leave you frustrated and confused, and for good reason. The market in recent months has been ALL over the place! Lucky for both of us, anytime I have questions about the market, I turn to my good friend Chad Lubben of CrossCountry Mortgage. Chad has been a lender for 20 years, and we have worked together for over 10 years. Chad is SMART. He is one of those people that can naturally break down a complex concept in simple and easy to understand terms.
We recently got together to talk about all the current hot topics when it comes to lending, mortgages and the market. Specifically, we covered:
The annual return on average Chicago home (this number shocked me)
Net gain of owning a home in Chicago for 5 years
What it means and how to buy down your interest rate (if you are thinking of buying, you need to know about this option!)
Chad's recession predictions and what that mean for real estate values (so comforting)
It’s a quick listen, and so informative! As always, please reach out with any specific questions!
A 2022 market update
It has been a historic year for real estate and the statistics just keep coming! Most recently, on June 15 the Federal Reserve lifted interest rates .75 percentage points for the third time this year – the largest increase since 1994. Chances are you have talked to friends, read some sensationalist headlines and maybe even checked on your investment portfolio. But, like many, you are still left wondering: what does all of this mean for me when it comes to real estate?
Lucky for you, we at Busby Group love facts, figures and data, and we live and breathe the Chicago real estate market. Here is what you need to know.
The main question on everyone’s mind is where the market currently stands. There are two answers to this question. First, yes, the market is slowing down after one of the best spring markets we have ever seen and over a decade of an intensely strong market all around. Second, it is also very normal for the market to slow down this time of year. Every summer we see a slow down, regardless of the nation’s economic standing. The current slowdown is not cause for alarm or unique in this regard.
The second question and concern is around interest rates. For a little bit of historical perspective, in 1981 the average interest rate was 16%, and in 1990 it was 10%. In 2003, they were right where we are now. Relatively speaking, our current interest rates are actually not high. For the past 20 years we have hovered around an average of about 5.5%. There are also important reasons for increasing interest rates including neutralizing the current seller’s market, and lowering inflation.
Tips for buyers
Summer has always been a good time to look for and buy property in Chicago because inventory increases and demand decreases. If you are thinking about buying, continue your search! Some buyers worry about buying at the “height of the market” and paying too much. If the latest potential recession is similar to any of the past several, sales prices will remain strong or even increase, which is what happened in all the past recessions since 1960 barring the financial crisis of 2008.
Also, renting may not be a great alternative because monthly rents are currently through the roof. Plus, with the volatility of the stock market, many Americans prefer to invest in real estate versus the stock market for more stable returns.
For buyers concerned about rates, there are several options you discuss with your lender. First, for those planning on moving after about five years, consider a 7- or 10-year adjustable rate mortgage since the initial interest rate is usually lower than a 30-year fixed rate. Next, look into buying down your rate. Usually paying about 3% of the purchase price to the bank upfront will have a substantial impact on a monthly payment amount. Depending on a property’s demand, you could also think about asking the seller to contribute part. Another option is Lock and Shop, which we discussed in detail here. With this program, you can shop for a home with a locked in interest rate, whereas normally an address is required to lock in a rate. Lastly, it is worth looking into creative financing options such as borrowing against a 401K or investment account since the interest rates associated with this sort of borrowing are typically lower than market.
Tips for sellers
While we are not in the busy spring anymore, it is important to remember that inventory is still at an all-time low, with strong buyer demand, particularly for single family homes and larger attached housing in many neighborhoods. The trend of increasing values that started in 2019 has not yet diminished, and chances are you can still get a very good price for your home. Successfully selling right now is all about timing, and understanding the micro-market dynamics of your neighborhood.
Chicago buyers for the past several years have strongly trended toward move-in ready, so any fixes or updates you can do to your home will go far. For an extra competitive edge, also consider an offer to buy down your buyer’s interest rate.
An invitation
In real estate, knowledge is always power, especially when the market is moving quickly and the headlines sometimes get it wrong. For those who want more information, or have individual questions, click here for an invitation to a live online discussion we will be hosting with one of our favorite creative lenders in the coming weeks!
Is staging worth it?
One of real estate's age old questions is if staging is worth it? And I get it! Staging can be a significant investment. The answer to the question is that it truly varies: varies by marketplace and also the type of home.
In a seller’s market
In a strong seller’s market there is so much demand for a property that full-service staging is usually not necessary. But, because Chicagoland buyers have trended toward move-in ready homes for the past several years, we many times like to use a little virtual staging in the professional photographs of a property. This way buyers can quickly and easily see the potential of a particular room or two. When we do virtual staging, we always print out the photos and bring with us to showings (we attend every showing!), so that buyers can see the potential while in the home.
The good news for Busby Group clients is that virtual staging is not only complimentary, but we also use our own in-house stager for fast turnarounds and highly custom layouts. To help complete a room, Busby Group also owns a curated repertoire of small staging items that we know look great and appeal to buyers.
In a buyer’s market
A slower market may call for full staging depending on the property. We look at potential buyer objections, and decide if staging may help. For example, if we think buyers will have trouble visualizing a dining area, we may stage a dining table and chairs. We also have other tools at our fingertips including floor plan drawing and our professional organizer partnerships.
With floor plans, sometimes we will have specific furniture drawn in to scale so that buyers can see that a queen bed and night stands would fit for example. Or, we may call our professional organizer partner to stop by for a few hours of organizing and editing. Many times they use furniture from around the home, but set up in a way that emphasizes features like size, functionality and utility.
Property dependent
There are also specific types of properties that call for some sort of staging, regardless of the market. If a property is vacant, we may want to stage it in some way for example. Or sometimes we may want to virtually stage the kitchen cabinet color, or show another way to use a room.
The good and bad part of staging is that there is no “one size fits all” answer. We look at each property through the lens of the current marketplace and decide what makes sense. Please contact us with any questions regarding staging!
4 hot topics in Chicago real estate right now
One of the most amazing and equally frustrating parts of real estate is that the market changes constantly. What is true today, may be obsolete tomorrow! Today I am sharing four hot topics for the Chicagoland real estate market, and what they could potentially mean for you.
Downtown high rise interest is returning
Before the pandemic neighborhoods like West Loop and Gold Coast were some of the most competitive. When the pandemic struck, interest in downtown high rises quickly and drastically tapered off. And while the rest of the real estate market rebounded quickly, high rises have been one of the last parts of the market to come back – but recently we’ve started to see some uptick in interest!
In addition to much of life returning back to normal, I believe this trend is also due in part to buyers frustrated with the competition in Chicagoland suburbs and other popular cities (Nashville, Denver, Austin, etc), and picking downtown Chicago as their next best option.
“The Bring Chicago Home Campaign” or “Mansion Tax”
Currently, Chicagoland buyers pay a one-time $7500 transfer tax per million in purchase price. This new proposal would more than triple that tax to $26,500 per million. The amounts sellers pay in transfer tax ($3,000) would not change under the proposal. In the past 12 months, approximately 5.4% of homes sold in Chicagoland were more than $1 million. Funds from the tax would go toward funding efforts around combatting homelessness. Both sides of this proposal are strongly convicted one way or the other, so it will be interesting to see how this plays out.
Airbnb crack downs
Are you thinking about a second home or investment property? Wherever you are considering, it pays to do your research around the local/county-level feelings around Airbnb. For example, in New Buffalo, MI, a popular vacation destination for Chicagoans, short-term rentals have been banned since May 2020. Traverse City and Mackinaw City limit short-term rentals to specific areas. Other popular destinations like Union Pier remain friendly to the short-term rental scene. If you are considering a home in Michigan, keep in mind that Busby Group team member, Mara Walsh, is licensed there! Also a note that at this point most condo buildings in downtown Chicago do not allow short-term rentals either.
Increasing interest rates
By this point we’ve all heard rumblings about the uncertainty of the nation’s economic future, at least in the short-term. Some experts are saying rates may reach 7% in the not so distant future. I recently wrote a whole blog post on this issue that you can read here. The overall takeaway is that, yes, interest rates have buyers and sellers talking, but there are also strategies you can use that can make a real difference.
5 strategies for combatting increasing interest rates
If there is one thing I know about real estate for sure, it is that interest rates keep us all on our toes! And this reality is again proving true right now: interest rates are unpredictably increasing, and buyers are panicking. I totally get it! Without the full story, and all of the available options, it sounds like a bad situation. But fear not! Today I am sharing five strategies for how to stay calm and competitive amidst this uncertain situation.
Consider buying down your interest rate: Definitely talk to your lender about this one in detail (or we can make an introduction), but here is a quick overview: to lower/buy down an interest rate, the borrower pays discount points/mortgage points at closing. As a result, the overall interest rate of the loan decreases. The cost of one point is dependent on the borrower and the amount they are borrowing, and it is also important to figure out your break even point, which is essentially the cost of points / monthly savings. Further information is available here.
Lock and Shop: Read a full overview of this product that we outlined here. Buyers lock in the current interest rate without an address, then shop for 30 days with their locked in rate. This is a great option for our current market.
Consider an Adjustable Rate Mortgage: On average, Chicagoans stay in their home 3-5 years. An Adjustable Rate Mortgage can be a great option because typically the initial interest rate (which holds constant for 5, 10, 15 years) is lower than a fixed rate.
Look for “deals”: Most Chicagoland buyers are still looking for move in-ready properties. Consider going against the grain and looking for something that needs work since these properties are typically not seeing as much attention for buyers. By spending less your principle will also be lower.
Remember a historical perspective: If you talk to anyone who bought a home in the 90s, they will tell you their rate was right around 15%! If you plan to stay in your home for more than a few years, I wouldn’t worry too much about where the rates are now.
Are increasing interest rates ideal for a buyer? Probably not, you do have a lot of really solid options for ways forward. The most important piece of the puzzle is clearly working with a creative lender! Especially this year, I have seen such a difference between transactions with strong vendors and not. If you would like a referral, we have a short list of Chicagoland’s best, so please reach out!
Buyers: The best way to avoid creeping interest rates!
With interest rates creeping on a weekly basis, I went in search of solutions for our buyer clients – and found an amazing option from my friend, Mark Johnson with Citizens Bank. We chatted about a new program he is offering called “Lock and Shop,” and I was blown away! Historically, buyers are only able to lock in a rate once they have found a property, which is difficult to do in this current crazy market! With Lock and Shop, buyers are able to lock in their rate before finding a home, and then shopping with a locked rate for the next month!
Lock and Shop overview
Lock and Shop basically takes a 90 day rate lock and breaks it up into two parts. The first part, which lasts 30 days, is initiated by what looks and feels like the pre-approval process – just a W2 and paystub required. From there, buyers now have a locked in rate and up to 30 days to find a home. Within the 30 day window, an address is tied to the loan and it then proceeds normally into underwriting and closes within 60 days.
There are no fees or payments required upfront, so if by chance someone doesn’t find a home in the 30 day window, they don’t lose anything. Plus, Lock and Shop works with any loan product, so there are endless options.
What are the advantages?
According to Mark, the real estate market hasn’t seen this level of volatility in 8-9 years, so Lock and Shop provides buyers the peace of mind that they are getting the best possible rate right away versus waiting until they are under contract. With home buying being especially competitive right now, Lock and Shop takes one big stressor off the table.
Another big advantage is that when buyers go through the upfront pre-approval process for Lock and Shop, instead of receiving a pre-approval letter, they actually get a Loan Commitment Letter. This is advantageous because a Loan Commitment letter will make an offer to a seller that much stronger and help a buyer win in a multiple offer situation – one of the hardest/most common obstacles in today’s market.
And lastly, though we are in a rising rate environment according to Mark, if rates do end up decreasing, there is an option to relock at the lower rate.
For more information, please reach out and we are happy to introduce you to Mark and his team!
How about a staycation while we sell your home?
The pandemic has impacted our lives in innumerable ways, and one of the biggest is that we spend so much more time at home – which is great, except when you are trying to sell your home!
Let me know if you fall into this category: you and your family have spent the better part of the past few years at home, you are still working from home, and you have kids at home on a regular basis too. You want a change, but you have no idea how you are going to work/school/function while your house is in “showing ready” shape, and people are traipsing through your home at all hours!
I totally understand! We have dealt with this very situation with many, many clients, and I am happy to say we have solutions in hand, ready to go.
Prepping your home for market, pain-free
One of the results of us all spending so much time in our homes the past few years is that “lived in” feeling. Stuff has multiplied, and the space to put it away has somehow disappeared. The dining room has become a homeschool classroom, and the family room is the school gym. This is where our partnership with top Chicago organization firms comes in! Let our professional organization partners go work clearing, editing and staging your home so that it shines in photos and showings. They will address closets, cabinets, and entire rooms to make them look their very best…and you don’t have to lift a finger!
Go on vacation while we sell!
The next big concern is where to go when we are showing and selling your home. Our answer? Go on a staycation! As Busby Group clients, you receive exclusive access to Compass Capitol, which provides you a debit card to pay upfront for a hotel stay wherever you wish! The house stays neat and clean, you can work in peace, and you don’t have to worry about scheduling showings around naps, meetings, meals, etc. It’s truly a win, win. Funds are repaid at the closing table, or 12 months – whichever comes first. We have had so many happy clients set up their sale this way recently, and it works out so well!
Please reach out if you have any questions, we are so thrilled to offer these exclusive services to our clients!