Tuesday, December 4, 2007
Real Estate in December
Oh yes, it is once again that time...the area between Thanksgiving and Christmas where everyone is thinking about the traveling they'll be doing, the groceries they need to buy for entertaining, the gifts, the mall, the kids programs, the new black dress they want....ok so not everyone will want a new black dress. But, this is the time where the last thing on MOST people's mind is buying a house. And while this is the 'slow season', people are still out there wanting to move. Alot of job transfers happen at this time, and they need a home. The end of the school's 2nd semester is coming up, a good time to move the kids at. Also, right now in our local area (Waukesha, Milwaukee) our interest rates are as low as 5.75% for a fixed 30 year loan! So when people ask me if now is a good time to buy, my response is inevitably YES!
Friday, October 26, 2007
Wisconsin Transfer Tax Fee Shot Down!
Recently, Gov. Jim Doyle tried to pass a bill to double the WI transfer tax fee. The transfer tax fee is the tax you pay on your home when you sell it, and stands at $3 per every $1,000 of the sale price.
I am very happy to say that this bill has been defeated and the tax will not raise!
The National Realtors Association and the Wisconsin Realtors Association have worked hard to protect home sellers and we have lobbied against this bill since day 1. Our local market remains strong with thanks to their combined efforts.
Friday, October 5, 2007
Milwaukee Housing Market
I recently was the guest speaker at a First Time Homebuyer Seminar. One thing I really wanted to do was ease their minds about the local housing market. I found an article in the Milwaukee Journal Sentinal (September 11, 2007) that pretty much summed it all up and read that to the class. It was a letter to the editor written by Mike Ruzicka, President of the Greater Milwaukee Association of Realtors, and it goes exactly like this:
HOUSING
News locally is not all doom and gloom
While national housing figures are newsworthy, running the Sept. 7 article with its fervent headline "Housing market in for worse?" on the front page was a disservice to readers. Implying that national housing statistics directly apply here is like checking the weather for the entire United States and assuming the temperature is the same in Boise, Idaho, Houston and Milwaukee.
Foreclosures have increased, but 96% of homeowners in the state are not in trouble and are making their payments. The small increase in foreclosures we have seen is largely a dynamic of the subprime market: greedy Wall Street firms backing loans with overly optimistic terms to people who were marginally able to get into the housing market.
Over the next year, about 10,000 adjustable rate mortgages will reset in our market, but very few will default. That is because homeowners will refinance, just as they had intended when they originally took out the loans.
Readers would have been much better informed with just the facts and less zealous innuendo. The market may get worse - in seven other states. Locally, homebuyers can expect an economy that is in good shape, a variety of homes to choose from and interest rates in the 6% range.
HOUSING
News locally is not all doom and gloom
While national housing figures are newsworthy, running the Sept. 7 article with its fervent headline "Housing market in for worse?" on the front page was a disservice to readers. Implying that national housing statistics directly apply here is like checking the weather for the entire United States and assuming the temperature is the same in Boise, Idaho, Houston and Milwaukee.
Foreclosures have increased, but 96% of homeowners in the state are not in trouble and are making their payments. The small increase in foreclosures we have seen is largely a dynamic of the subprime market: greedy Wall Street firms backing loans with overly optimistic terms to people who were marginally able to get into the housing market.
Over the next year, about 10,000 adjustable rate mortgages will reset in our market, but very few will default. That is because homeowners will refinance, just as they had intended when they originally took out the loans.
Readers would have been much better informed with just the facts and less zealous innuendo. The market may get worse - in seven other states. Locally, homebuyers can expect an economy that is in good shape, a variety of homes to choose from and interest rates in the 6% range.
Thursday, September 13, 2007
Closing On Your Home
The mortgage loan closing (or settlement) is the final step to official ownership of your new house. Even though you have a signed purchase contract and your loan request has been approved, you have no rights to the property, including access, until the legal title to the property is transferred to you and the loan is closed.
Every area of the country has its own unique closing customs. Your REALTOR® can guide you through this process and make sure everything flows together smoothly.
At closing, you will sign the mortgage loan documents and pay your closing costs, the seller will execute the deed to the property, and the closing agent will record the necessary instruments to give you legal ownership of the property.
Closing costs vary widely depending on your new home’s price tag, location and other factors. Overall, you can expect to pay between 1 and 3 percent of the sales price.
As soon as you receive your commitment letter from your lender, you should confirm the actual date of loan closing. Usually your real estate agent, lender and closing agent coordinate a date with you. You want to make sure that closing takes place before your loan commitment expires and before any rate lock agreement expires. The closing date also has to allow adequate time to assemble all of the required documentation.
There are standard documents and exhibits that are commonly required for a loan closing. Some of these will be your responsibility. Some of these will be the responsibility of other parties to the transaction, such as the seller and lender.
--Article taken from www.wra.org
Every area of the country has its own unique closing customs. Your REALTOR® can guide you through this process and make sure everything flows together smoothly.
At closing, you will sign the mortgage loan documents and pay your closing costs, the seller will execute the deed to the property, and the closing agent will record the necessary instruments to give you legal ownership of the property.
Closing costs vary widely depending on your new home’s price tag, location and other factors. Overall, you can expect to pay between 1 and 3 percent of the sales price.
As soon as you receive your commitment letter from your lender, you should confirm the actual date of loan closing. Usually your real estate agent, lender and closing agent coordinate a date with you. You want to make sure that closing takes place before your loan commitment expires and before any rate lock agreement expires. The closing date also has to allow adequate time to assemble all of the required documentation.
There are standard documents and exhibits that are commonly required for a loan closing. Some of these will be your responsibility. Some of these will be the responsibility of other parties to the transaction, such as the seller and lender.
--Article taken from www.wra.org
Thursday, September 6, 2007
Foreclosure Crisis
Foreclosure Crisis
September 6, 2007
I was watching the nightly news tonight, something I rarely do since my tv never changes from the Nickelodean/Cartoon Network, and a story was on named the 'Foreclosure Crisis'.
Granted the media usually makes the real estate market seem much worse than it is, this is actually a true crisis that is happening within our present day market.
The first thing to do to correct this is to find what caused it. The main reasons: loose lending requirements and adjustable rate mortgages. Combine these two together with a borrower who only lives for the moment and you've got trouble just waiting to happen.
An adjustable rate mortage will have a 'teaser' rate to begin with, typically for 1 or 3 years. This teaser rate, 3 years ago, was much, much lower than the normal 30 year fixed rate mortgage. And the lending requirements....bad credit, no credit, no downpayment....some of these lenders were just letting it all fly out. Recently, a lot of lenders have gone belly up. 3 years ago it was still a seller's market, and some people were paying over inflated prices for their homes. That is part of the reason why they can't just refinance now...the property isn't worth what they paid for it!
So what can a new borrower do to make sure they 
don't fall victim to the mortgage crisis? Have a nice amount saved up for a downpayment, that way you'll have wiggle room should the market decline. Also plan for the long run. Go with a fixed rate mortgage so you know your payments won't increase. You'll also need to keep your credit score up. Lenders are becoming much stricter in their lending practices.
Remember, right now it is a BUYER'S market. With historically low interest rates and alot of inventory to chose from, right now is a great time for a well qualified buyer to buy!
Tuesday, August 14, 2007
Noteworthy Housing Trends
What are buyer's dreaming of in their next home? Following are some housing trends that are definitely worth watching:
Going Green
Not a green house where you grow plants...but an energy efficient home. This ranges from high-performing appliance, heating and cooling systems, windows, to insulation. Also reducing water consumption. Some extreme forms of green would include capturing rain water and recycling it. The rising cost of energy (and in Waukesha - WATER) is 'fueling' this trend.
Square Footage
Bigger is better? Not exactly....the trend for more square footage seems to be leveling off, and buyers are looking for smaller, better designed homes. This trend is also gaining speed from the rising energy costs, and consumers aren't wanting to pay so much to heat, light, and cool their homes. Another reason for this trend is commute time and the cost of gas. If you work in the city, chances are the homes are smaller than in the outlining country areas. Also, lets not forget our babyboomers. A lot of them are now downsizing. Will this trend keep going?
Formal Living Rooms
This room is often being cut out to make way for a larger family room. Formal living rooms don't seem to be a big hit with gen x and gen y, mainly because it's an 'unused room' and they are looking for more comfortable living space. The formal dining room is still a desired room.
High Ceilings
Master Bedroom
Ready for this? In an article I read "Housing Trends Worth Watching" by Julie Collins, Today's Buyer Rep magazine predicts that by the year 2015, homes with be built with 2, yes 2, master bedrooms! One on the first floor, and one on the 2nd floor. Why? To accommodate aging owners or elderly parents.
So, which trend will stay and which trend will go? Only time will tell!
Going Green
Not a green house where you grow plants...but an energy efficient home. This ranges from high-performing appliance, heating and cooling systems, windows, to insulation. Also reducing water consumption. Some extreme forms of green would include capturing rain water and recycling it. The rising cost of energy (and in Waukesha - WATER) is 'fueling' this trend.
Square Footage
Bigger is better? Not exactly....the trend for more square footage seems to be leveling off, and buyers are looking for smaller, better designed homes. This trend is also gaining speed from the rising energy costs, and consumers aren't wanting to pay so much to heat, light, and cool their homes. Another reason for this trend is commute time and the cost of gas. If you work in the city, chances are the homes are smaller than in the outlining country areas. Also, lets not forget our babyboomers. A lot of them are now downsizing. Will this trend keep going?
Formal Living Rooms
This room is often being cut out to make way for a larger family room. Formal living rooms don't seem to be a big hit with gen x and gen y, mainly because it's an 'unused room' and they are looking for more comfortable living space. The formal dining room is still a desired room.
High Ceilings
Master Bedroom
Ready for this? In an article I read "Housing Trends Worth Watching" by Julie Collins, Today's Buyer Rep magazine predicts that by the year 2015, homes with be built with 2, yes 2, master bedrooms! One on the first floor, and one on the 2nd floor. Why? To accommodate aging owners or elderly parents.
So, which trend will stay and which trend will go? Only time will tell!
Saturday, July 28, 2007
Preparing A Home For Sale
In a buyer's market, having a well prepared home for sale will definitely improve your chances of having interested buyers. Preparing a home doesn't mean you need to hire professional stagers to prep up your house. Here are a couple ideas that you can do yourself and will increase the saleability of your home:
Curb appeal: you've got to get the buyer's out of their car first! Plant some fresh flowers, keep the bushes trimmed and the grass mowed. In winter, keep the driveway and sidewalks clear of all snow and ice. Any peeling paint around the house? Faded shutters or doors? A fresh coat of paint goes a long way.
Clutter: remove remove remove! Rent a storage unit if you must! Having things packed in does not represent how much room you have to store stuff (as one seller expressed to me) it only shows how much stuff you have. It's a turn off to buyers. So declutter the closets, the basement, and the counter tops.
Paint! Again, a fresh coat of paint goes a long way.
Dust: sounds simple enough, but really do a thorough cleaning in every nook and cranny.
These are just a few ideas to share on this blog. For a complete list of ideas that won't break the bank or your back, please contact me by either email or phone and I can send it over to you!
Curb appeal: you've got to get the buyer's out of their car first! Plant some fresh flowers, keep the bushes trimmed and the grass mowed. In winter, keep the driveway and sidewalks clear of all snow and ice. Any peeling paint around the house? Faded shutters or doors? A fresh coat of paint goes a long way.
Clutter: remove remove remove! Rent a storage unit if you must! Having things packed in does not represent how much room you have to store stuff (as one seller expressed to me) it only shows how much stuff you have. It's a turn off to buyers. So declutter the closets, the basement, and the counter tops.
Paint! Again, a fresh coat of paint goes a long way.
Dust: sounds simple enough, but really do a thorough cleaning in every nook and cranny.
These are just a few ideas to share on this blog. For a complete list of ideas that won't break the bank or your back, please contact me by either email or phone and I can send it over to you!
Friday, July 20, 2007
How To Catch A Home Buyer's Attention
What cracks me up most is when I'm searching thru the MLS for properties for my buyers and I see "broker bonus" or extra commission paid to the selling agent. Anything from a higher commission to a flat amount (I've seen thousands of $$) to be paid to the selling agent at close.
This is not a good incentive to get your house sold. The AGENT isn't the one buying the house, the BUYER is. Don't get me wrong, I'd LOVE to receive that extra amount for doing my job, but if I have a buyer and another agent has a house listed that match their criteria, I'm going to show it to them. The extra $2,000 in commission is not going to enable me to make their mind up to buy that house. And I'm certainly not going to push someone into buying a house that isn't perfect for them.
What incentives work? Practical ones that focus on the home price and monthly mortgage payments:
1. Reasonable asking price. Have the most bang for the buck. Be "below assessed value".
2. Offer downpayment assistance.
3. Offer to pay all or some of the closing costs.
4. Buy mortgage points for the buyer to make the transaction more affordable.
5. Include a home warranty.
You can advertise your incentive to bring buyers in if you are not having much action, or you can use them once you have an interested party to sweeten the deal.
This is not a good incentive to get your house sold. The AGENT isn't the one buying the house, the BUYER is. Don't get me wrong, I'd LOVE to receive that extra amount for doing my job, but if I have a buyer and another agent has a house listed that match their criteria, I'm going to show it to them. The extra $2,000 in commission is not going to enable me to make their mind up to buy that house. And I'm certainly not going to push someone into buying a house that isn't perfect for them.
What incentives work? Practical ones that focus on the home price and monthly mortgage payments:
1. Reasonable asking price. Have the most bang for the buck. Be "below assessed value".
2. Offer downpayment assistance.
3. Offer to pay all or some of the closing costs.
4. Buy mortgage points for the buyer to make the transaction more affordable.
5. Include a home warranty.
You can advertise your incentive to bring buyers in if you are not having much action, or you can use them once you have an interested party to sweeten the deal.
Wednesday, July 18, 2007
Buyer Representation
In the state of Wisconsin, a buyer can chose to work with an agent in one of 2 ways, as a 'sellers agent' or as a 'buyers agent'.
Buyer representation occures when a buyer enters into a contract with a real estate agent allowing that agent to represent them. A buyer may not enter into a contract with more than one real estate agent.
Seller agency occures at all other times. In Wisconsin, the default agency is "seller agency".
The Multiple Listing Service (MLS) is a service that real estate agents use to 'list' your property. It is also an agreement from that lister to pay the commission (which amount is stated in the MLS for all agents to see) to the agent who brings in the buyer. For this reason, unless there's a signed buyer agency agreement, all real estate agents work on behalf of the seller.
Now there is also a period called pre-agency. Perhaps you've just met an agent and don't know yet if they are a good match for you. The pre-agency period allows the agent to act in a neutral state. Once negotiations begin, you do need to decide how you wish to be represented.
Why chose buyer agency? In most cases, you get all the knowledge and negotiating power of a professional real estate agent at no cost you. Remember, if the house is listed, the seller pays the commision. What if it's not listed? The commission can be negotiated to be paid by the seller, the buyer, or a combination of both. The percentage amount varies, my particular amount is either 2% of the sale price or what is offered on the MLS, whichever is greater.
Also, with an agent working on behalf of you, they are able to negatively critique a property, make suggestions of a purchase price, compare similar properties that have sold, and overall work with your best interests in mind, getting you the best price and terms.
How do you know which agent would be good as a buyer representative? Look for one that has the ABR Designation (Accredited Buyer Representative). This agent has specific training and experience in working with buyers. I earned my ABR in my first year as a real estate agent.
To learn more about buyer representation, please email me and I will send you some information.
Buyer representation occures when a buyer enters into a contract with a real estate agent allowing that agent to represent them. A buyer may not enter into a contract with more than one real estate agent.
Seller agency occures at all other times. In Wisconsin, the default agency is "seller agency".
The Multiple Listing Service (MLS) is a service that real estate agents use to 'list' your property. It is also an agreement from that lister to pay the commission (which amount is stated in the MLS for all agents to see) to the agent who brings in the buyer. For this reason, unless there's a signed buyer agency agreement, all real estate agents work on behalf of the seller.
Now there is also a period called pre-agency. Perhaps you've just met an agent and don't know yet if they are a good match for you. The pre-agency period allows the agent to act in a neutral state. Once negotiations begin, you do need to decide how you wish to be represented.
Why chose buyer agency? In most cases, you get all the knowledge and negotiating power of a professional real estate agent at no cost you. Remember, if the house is listed, the seller pays the commision. What if it's not listed? The commission can be negotiated to be paid by the seller, the buyer, or a combination of both. The percentage amount varies, my particular amount is either 2% of the sale price or what is offered on the MLS, whichever is greater.
Also, with an agent working on behalf of you, they are able to negatively critique a property, make suggestions of a purchase price, compare similar properties that have sold, and overall work with your best interests in mind, getting you the best price and terms.
How do you know which agent would be good as a buyer representative? Look for one that has the ABR Designation (Accredited Buyer Representative). This agent has specific training and experience in working with buyers. I earned my ABR in my first year as a real estate agent.
To learn more about buyer representation, please email me and I will send you some information.
Monday, July 16, 2007
About me
This is the launch of my blogging! I have decided to blog about real estate to hopefully reach out and help people for all their real estate endeavors. The Internet is a great source of information, and today the majority of home buyers and sellers will search online first before contacting a real estate agent. My intent is to be your online source...your "online real estate agent" who's here to answer questions, give you valuable information, websites to visit, all without being that "harassing" real estate agent! No one wants to be bothered, and I understand that.
So, why me? Here's some information about myself...
I am a licensed real estate agent with Century 21 Reich & Roberts Associates. We are located at 161 West Sunset Drive in Waukesha WI. This office has been servicing Waukesha and surrounding counties for around 40 years.
I personally have been involved in real estate for almost 4 years. I started off reading and learning about investing in real estate. The book that got me going is none other than Rich Dad, Poor Dad by Robert Kiyosaki. I chose this broker (Dick Roberts) at this Century 21 office to be my agent because of his vast knowledge in the local housing and rental area. One of his first questions he asked me was "Are you interested in becoming an agent?", to which I quickly replied "No!". I didn't think I could do those 'crazy realtor hours'! Well, after a few years of searching, and searching, and researching, and running numbers, viewing hundreds of duplexes, triplexes, single family homes, making offers, counter offers, and accumulating 3 rental properties, I decided that yes, I am interested in becoming an agent! I was previously a stay at home mom with no idea of what I would do once the kids got older. I wanted to contribute financially to the household, which is why I decided to get into real estate investing. And after doing those 'crazy realtor hours' inadvertently for a few years, I was able to realize that this was my calling. This was my passion. I loved the research, the hunt, the crunching the numbers, the negotiating, and finally the accepted offers.
In March of 2006 I obtained my real estate license. Since then I have also acquired my ABR Designation. The Accredited Buyer Representative Designation is a nationally recognized designation awarded by the Real Estate Buyer's Agent Council, Inc. (REBAC) to REALTORS who meet the specified educational and practical experience criteria.
I am also a REALTOR (registered trademark, sorry I haven't learned how to make this symbol yet, any help would be appreciated!) Only real estate agents who have chosen to join the National Association and abide by its strict Code of Ethics can call themselves
REALTORS(registered trademark).
All of my affiliations are:
National Association of REALTORS (NAR)
REALTOR(registered trademark) (someone help me please!)
Wisconsin REALTORS(R) Association (WRA)
Women's Council of REALTORS(R)
Real Estate Buyer's Agent Council Inc. (REBAC)
Wisconsin Apartment Association (WAA)
Waukesha Area Apartment Association (WAAA)
Metro Milwaukee Multiple Listing Service
I hope this sets a good background of myself and why I do what I do. Any questions or comments are welcome!
Be sure to visit my website at http://www.sarah-steelman.com/ !
So, why me? Here's some information about myself...
I am a licensed real estate agent with Century 21 Reich & Roberts Associates. We are located at 161 West Sunset Drive in Waukesha WI. This office has been servicing Waukesha and surrounding counties for around 40 years.
I personally have been involved in real estate for almost 4 years. I started off reading and learning about investing in real estate. The book that got me going is none other than Rich Dad, Poor Dad by Robert Kiyosaki. I chose this broker (Dick Roberts) at this Century 21 office to be my agent because of his vast knowledge in the local housing and rental area. One of his first questions he asked me was "Are you interested in becoming an agent?", to which I quickly replied "No!". I didn't think I could do those 'crazy realtor hours'! Well, after a few years of searching, and searching, and researching, and running numbers, viewing hundreds of duplexes, triplexes, single family homes, making offers, counter offers, and accumulating 3 rental properties, I decided that yes, I am interested in becoming an agent! I was previously a stay at home mom with no idea of what I would do once the kids got older. I wanted to contribute financially to the household, which is why I decided to get into real estate investing. And after doing those 'crazy realtor hours' inadvertently for a few years, I was able to realize that this was my calling. This was my passion. I loved the research, the hunt, the crunching the numbers, the negotiating, and finally the accepted offers.
In March of 2006 I obtained my real estate license. Since then I have also acquired my ABR Designation. The Accredited Buyer Representative Designation is a nationally recognized designation awarded by the Real Estate Buyer's Agent Council, Inc. (REBAC) to REALTORS who meet the specified educational and practical experience criteria.
I am also a REALTOR (registered trademark, sorry I haven't learned how to make this symbol yet, any help would be appreciated!) Only real estate agents who have chosen to join the National Association and abide by its strict Code of Ethics can call themselves
REALTORS(registered trademark).
All of my affiliations are:
National Association of REALTORS (NAR)
REALTOR(registered trademark) (someone help me please!)
Wisconsin REALTORS(R) Association (WRA)
Women's Council of REALTORS(R)
Real Estate Buyer's Agent Council Inc. (REBAC)
Wisconsin Apartment Association (WAA)
Waukesha Area Apartment Association (WAAA)
Metro Milwaukee Multiple Listing Service
I hope this sets a good background of myself and why I do what I do. Any questions or comments are welcome!
Be sure to visit my website at http://www.sarah-steelman.com/ !
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