Monthly Archives: November 2016

A Silver Dollar for Coach Newton

LW Reedy’s long history of supporting the York Community High School cross country team started soon after Joe Newton’s inaugural season as head coach in 1960. A friend introduced Larry Reedy, Senior, an athlete and all-around sports fan and the founder of LW Reedy Real Estate, to Coach Joe Newton. Larry Senior’s friend, an Elmhurst police officer, had a son on Joe’s team. Knowing Larry Senior would appreciate Joe’s coaching style, he invited him to a cross country meet.

Joe and Larry Senior immediately hit it off, and Larry Senior looked for ways to support Joe’s team, including attending many practices and meets. Larry Reedy Senior become a loyal fan of the team and the coach. When the team won one of their first state championships, Larry Senior wanted to mark the occasion with a special treat. He took the runners and coaches to White Fence Farm to celebrate. Since then the coach and his teams have won state 28 times and come in 2nd place 12 times and 3rd place 6 times.

While the White Fence Farm visit did not become a tradition, another tradition soon took hold. Larry Senior was known for giving silver dollars to people who made an impression on him. He often gave them to people he met in retirement homes, children, and others he found interesting. When Joe’s team won state meets, Larry Senior gave each team member a silver dollar. Sadly, Larry Senior passed away in 1986, but the tradition of handing out silver dollars to the team members in Larry’s honor continues. Leo or Dick Reedy, Larry Senior’s sons, give silver dollars to the team members at the York fall sports awards.

The legacy continues. Fifty-six cross country seasons later, as Coach Newton passes the baton to Coach Charlie Kern, Larry Reedy, Senior’s grandson, also named Larry Reedy (in honor of his grandfather), prepares to celebrate L.W. Reedy’s 65th year in business. As Charlie Kern takes on the head coaching position and Joe Newton ends his last season as head coach, the LW Reedy family continues to support the team.

The entire LW Reedy family and agents wish Joe Newton a happy retirement on behalf of his old friend, Larry Reedy, Senior. Thank you for years of inspiring our local Elmhurst youth to work hard, believe in themselves and achieve their dreams. Coach Kern, we look forward to a future continuing the tradition of the long green line.

For more information about Coach Newton, please visit this article  in the Chicago Tribune, and this interview from GaryCohenRunning.com.

 

 

Advertisements

Four Common Misconceptions About Real Estate Transactions: Part One—Illinois Tax Proration

proptax-copy

Real estate transactions have many complicated components. In our more than 65 years of experience, four issues commonly come up for our clients:
  • The Illinois property tax prorating policy.
  • The difference between appraisals and inspections.
  • The difference between warranties and insurance.
  • How earnest money works.

Understanding these four concepts helps you make wise decisions whether as a buyer, seller or homeowner. This month, we cover the state of Illinois’ policy of prorating property taxes.

If you are a homeowner, you know only too well that property taxes are a major expense. However, they seem almost a hidden expense for many because they are frequently paid by escrow and folded into your monthly mortgage payment. Homeowners appreciate this convenience, but it can create confusion because of the state of Illinois’ rather unusual policy of charging property taxes in arrears. That is, property taxes for one year are not paid until the following year. Each year the tax bill for the previous year comes out in May, and the two payments are due in June and September. For example, as an Illinois homeowner, the property tax bill for the taxes incurred while you lived in your home in 2015 arrived in May of 2016. The first payment was due June 1, 2016, and the second payment was due September 1, 2016.

Typically, this does not cause issues for homeowners. You pay taxes personally or through your escrow every year, so which year they cover does not have a significant impact on you year to year. However, in a year that you buy or sell a home, the prorating of your property taxes creates a complicated adjustment to the real estate transaction, one that can be somewhat confusing for many homeowners.

Imagine if this were true: you purchase your first home in May of 2016. You receive a property tax bill that month for the property taxes incurred during 2015, and you are expected to make payments in June and September. Since you did not live in the home during 2015, it does not make sense for you to be responsible for those payments. The correction for this occurs during the closing, ensuring that the property taxes are covered by the people who lived in the home when the taxes were incurred. Because those taxes are the responsibility of the seller, the seller credits the buyer for those property taxes at the closing.

Consider this example: The Jones lived in their home from 2012 to 2016. They sold their home this summer to the Smiths, closing in June of 2016. This means the Jones property tax responsibility for that home would cover all of 2015 and the first half of 2016, which is three installments. The Jones’ paid their first property tax installment on June 1, 2016, which means at closing they owe the Smiths for the second installment due in 2016 and the first installment due in 2017.

The calculation gets a bit more complicated when you consider that taxes increase each year, and you cannot accurately predict the property taxes for the following year. Using our example, while we know what the Jones’ tax bill is for the second installment due in 2016, we do not know what the tax bill will be for the first installment of 2017, the one that covers the first half of 2016. To account for the increase in property taxes, the seller typically credits the buyer for an amount over the previous year’s tax bill, usually around 105%.

Closing timing impacts the amount credited to the buyer. If closing occurs before the first installment has been paid, then the seller owes one year plus the time up to the day of closing. As you may remember, the seller needs to cover the amount of time that they incurred taxes while living in the home. For example, if the closing was in March of 2016, then the seller credits the buyer for the two installments that cover 2015 and are due in 2016 and a prorated and adjusted amount to cover January through March of 2016.

Assuming the seller is receiving sufficient proceeds from the sale, the seller does not need to bring cash to cover the property tax payments. Instead, the amount is covered in the form of a credit that comes out of the proceeds from the sale of the home. It then reduces the amount of cash the buyer needs to bring to closing. While this may seem like a burden for the seller it typically becomes almost a wash if the seller is then buying a new home in Illinois because then they will receive a credit from their seller for the property taxes that will come due on their new home.

Wrap-Up

Look for a continuation of our series on four common misconceptions about real estate transactions in upcoming issues. Next month: the difference between an appraisal and an inspection. To learn more, contact us today. We would love to help. To keep up with important housing market updates, follow us on Facebook.

The View from 101 York – November 2016

It seems like the trick-or-treaters were just here yesterday, yet it’s already time to start thinking about holiday fun. Here at our perch in the heart of downtown Elmhurst, we’ve been hearing about many fun events in the Chicagoland area, including theater performances, parades, runs, holiday markets and tree lightings.

Arts and Theater

screen-shot-2016-11-02-at-10-36-21-pmBLOW UP: Inflatable Contemporary Art
Sept. 10 to Nov. 27
Elmhurst Art Museum

I and You
Nov. 17 to Nov. 20
Elmhurst College Theater

A Christmas Carol
Nov. 25 to 27
College of DuPage Theater

 


Parades, Runs and Walks

screen-shot-2016-11-02-at-10-39-40-pm

Cantigny 5K Run/Walk 2016

Nov. 5
Wheaton

Dan Gibbons Turkey Trot: A 5K Fun Run
Nov. 24
Elmhurst

McDonald’s Thanksgiving Parade
Nov. 24
State Street, Chicago

 

 


Holiday Markets

holiday-marketWilder Mansion Holiday Market
Nov. 4 and 5
Wilder Mansion, Elmhurst

Lincoln Park Zoo Holiday Market
Nov. 29
Lincoln Park Zoo

 

 


Holiday Lights and Tree Trimming

screen-shot-2016-11-02-at-10-44-55-pmMagnificent Mile
Nov. 18 and 19
Michigan Avenue District, Chicago

Community Tree Trim
Nov. 19 and 20
Brookfield Zoo

Holiday Magic: Tree Lighting Ceremony
Nov. 20
Bensenville

Elmhurst City Center
Nov. 26
Elmhurst City Center

 

 

 


LW Reedy has been serving the Elmhurst community and surrounding areas since 1951. As the largest locally-owned real estate agency in Elmhurst, we have a passion for local news and events.

If you have questions about Elmhurst and the surrounding suburbs and real estate in these areas, we’re your go-to people. Contact us today!