Following is a list of services that Sellers consider important.
Marketing your property
Providing you with monthly marketing reports.
Present all Offers to Purchase made on your home.
Counsel you on all of the offers and negotiate the best possible price for you.
Negotiate and follow through with all the major contingencies that your Offer may contain.
Follow-up on closing procedures and title processing.
Represent you up through the closing.
Assist you in finding a new home.
Contact a cooperating Broker, if you are moving to a new area.
Coordinate the sale of your property with the purchase of your new home.
Thursday, March 29, 2007
Tuesday, March 27, 2007
Gap Insurance
Gap Insurance
Do you know what Gap Insurance is? Too often I hear the statement, "I never knew that", after explaining to a customer the options available for Gap Insurance.
Simply put, Gap Insurance is an extension of Title Insurance that covers the "gap" between the date the county is contacted to check the condition of the title of a property and the closing date when the title is actually transferred to the new owner. This gap of time usually covers only a few days and until recently has rarely been a problem. With the increased use of the Internet, particularly in the use of obtaining second mortgages on a home, there has been an increase in mortgage fraud over recent years. To combat this growing problem and help protect buyers, the GMAR (Greater Milwaukee Association of Realtors) has introduced a revised Greater Milwaukee Addendum A in January of 2005. This revised version now has standard language that offers GAP ENDORSEMENT added on lines 207 to 209. It is strongly recommended to carefully consider the options associated with the GAP ENDORSEMENT.
Do you know what Gap Insurance is? Too often I hear the statement, "I never knew that", after explaining to a customer the options available for Gap Insurance.
Simply put, Gap Insurance is an extension of Title Insurance that covers the "gap" between the date the county is contacted to check the condition of the title of a property and the closing date when the title is actually transferred to the new owner. This gap of time usually covers only a few days and until recently has rarely been a problem. With the increased use of the Internet, particularly in the use of obtaining second mortgages on a home, there has been an increase in mortgage fraud over recent years. To combat this growing problem and help protect buyers, the GMAR (Greater Milwaukee Association of Realtors) has introduced a revised Greater Milwaukee Addendum A in January of 2005. This revised version now has standard language that offers GAP ENDORSEMENT added on lines 207 to 209. It is strongly recommended to carefully consider the options associated with the GAP ENDORSEMENT.
How hard has the Real Estate Market recession hit the Milwaukee Area? This can vary from neighborhood to neighborhood. The fact is, Milwaukee has not seen the double digit increases in the past years that the East Coast and West Coast have experienced. As these sales figures from the local MLS show, Milwaukee is still going strong.
City of Milwaukee 2006 Sales Figures :
Average price for the 6987 sold properties is $155,608.
The average Market Time is 93.
City of Milwaukee 2005 Sales Figures:
Average price for the 7556 sold properties is $146,754. The average Market Time is 57.
City of Milwaukee 2004 Sales Figures:
Average price for the 7369 sold properties is $127,685. The average Market Time is 54.
City of Milwaukee 2003 Sales Figures:
Average price for the 6847 sold properties is $116,814. The average Market Time is 71.
City of Milwaukee 2006 Sales Figures :
Average price for the 6987 sold properties is $155,608.
The average Market Time is 93.
City of Milwaukee 2005 Sales Figures:
Average price for the 7556 sold properties is $146,754. The average Market Time is 57.
City of Milwaukee 2004 Sales Figures:
Average price for the 7369 sold properties is $127,685. The average Market Time is 54.
City of Milwaukee 2003 Sales Figures:
Average price for the 6847 sold properties is $116,814. The average Market Time is 71.
Thursday, March 15, 2007
Top 10 Mistakes Sellers Make
Top 10 Mistakes Sellers Make
Not preparing the house properly for a showing.
First impressions are lasting. Cleanliness sells! It takes a minimum of 20 minutes for a woman to make a decision on a house. It takes the average man 2 minutes to go through a house. If the house is not clean, the woman will go through it as quickly as the man.
Not having the house available for all showings.
It takes a degree of planning to arrange a time that both agent, husband and wife can make a showing. Often a number of homes are seen on the same day. How many customers can you simply turn away?
Taking advice from friends and family members
These are the people that look out for your best interests and in most cases you need to heed their advise. One of the first things you need to ask yourself is, "when was the last time this person has purchased a home"? Market conditions change from month to month, even from day to day. First hand information is so much more reliable than hear say.
Setting expectations too high
Two major points here; price and how long will it take to sell the property. Having an open mind to the current market conditions will set your expectations at realistic levels.
Expecting too much from the Agent
You should expect a lot from your Agent in terms of Real Estate matters. But these do not include shoveling snow, cutting grass, cleaning the house, dealing with pets or any of the other errands that come up in everyday life. Your Agent needs to be dedicating the time and effort it takes to sell your property in matters that relate to finding that one qualified buyer.
Taking the sale of the property on a personal level
You need to take your personal feelings out of the sale of your property. This includes the memories of all the good times you have spent and the personal attachments that you do have. You need to set your frame mind on the fact that this is a business transaction and weigh your options accordingly. You should not be insulted by an offer that is obviously too low. There are other matters to consider and you need to have your mind open to all of the options and not dwelling on one aspect of the sale. Agents are trained to handle these matters.
Not being fully committed to the sale
You need to be fully committed to the sale of your property before you sign a contract. If you have any reservations you need to discuss these before entering into a legally binding contract.
Not being aware of all of the costs involved
All of these details need to be discussed before making the decision to sell your property. How much do you owe on the mortgage? Is there a second mortgage. Get an estimate on the proceeds of the sale before committing yourself.
Not having enough knowledge of current market conditions
These are facts that should be discussed before deciding on a list price and marketing plan.
Not asking enough questions
Make sure that you understand everything you need to do and everything your Agent is going to do for you. If there are any questions make sure you ask them.
Not preparing the house properly for a showing.
First impressions are lasting. Cleanliness sells! It takes a minimum of 20 minutes for a woman to make a decision on a house. It takes the average man 2 minutes to go through a house. If the house is not clean, the woman will go through it as quickly as the man.
Not having the house available for all showings.
It takes a degree of planning to arrange a time that both agent, husband and wife can make a showing. Often a number of homes are seen on the same day. How many customers can you simply turn away?
Taking advice from friends and family members
These are the people that look out for your best interests and in most cases you need to heed their advise. One of the first things you need to ask yourself is, "when was the last time this person has purchased a home"? Market conditions change from month to month, even from day to day. First hand information is so much more reliable than hear say.
Setting expectations too high
Two major points here; price and how long will it take to sell the property. Having an open mind to the current market conditions will set your expectations at realistic levels.
Expecting too much from the Agent
You should expect a lot from your Agent in terms of Real Estate matters. But these do not include shoveling snow, cutting grass, cleaning the house, dealing with pets or any of the other errands that come up in everyday life. Your Agent needs to be dedicating the time and effort it takes to sell your property in matters that relate to finding that one qualified buyer.
Taking the sale of the property on a personal level
You need to take your personal feelings out of the sale of your property. This includes the memories of all the good times you have spent and the personal attachments that you do have. You need to set your frame mind on the fact that this is a business transaction and weigh your options accordingly. You should not be insulted by an offer that is obviously too low. There are other matters to consider and you need to have your mind open to all of the options and not dwelling on one aspect of the sale. Agents are trained to handle these matters.
Not being fully committed to the sale
You need to be fully committed to the sale of your property before you sign a contract. If you have any reservations you need to discuss these before entering into a legally binding contract.
Not being aware of all of the costs involved
All of these details need to be discussed before making the decision to sell your property. How much do you owe on the mortgage? Is there a second mortgage. Get an estimate on the proceeds of the sale before committing yourself.
Not having enough knowledge of current market conditions
These are facts that should be discussed before deciding on a list price and marketing plan.
Not asking enough questions
Make sure that you understand everything you need to do and everything your Agent is going to do for you. If there are any questions make sure you ask them.
Top 10 Mistakes Buyers Make
Top 10 Mistakes Buyers Make
Not having a personal Agent
Many Buyers are able to find that home on their own. But what happens after that may determine if it will turn out to be the best value for them. There are many conditions and contingencies that may become part of a contract to purchase a home. Sitting down face to face with your Buyer's Agent can make a significant difference in the way an offer to purchase is structured.
Not understanding representation
On July 1, 2006 the Real Estate laws have been changed in Wisconsin to benefit Buyers significantly. You need to know where you stand as a Buyer and who the Agent represents. Ask about a Buyer Agency Agreement and what one can do for you.
Not having a plan
How often do you purchase a home? This is not an everyday occurrence for you and it may look simple from the outside. There are two facts to consider. Purchasing a home may be the largest investment of your life. If this were a business would you be entering into such a large investment without a plan?
Using more than one Agent
Often times Buyers will think that by working with more than one Agent they have less of a chance of missing that one property that is right for them. Loyalty is a two way street. A dedicated Agent will work for you until the job is successfully done. Looking for the home is only a small part of that job. By giving your loyalty you will see many returns throughout the transaction and beyond.
Not knowing what they want
This is why a face to face meeting without distractions is necessary. The type of home you need is determined by your lifestyle, your family situation, plans for the future and a host of other questions. After a short interview many of these questions can be answered and in most cases the search time will be greatly shortened. The best part of this is that the quicker you find your home the better chance you have of buying it before anyone else has the opportunity.
Waiting to make a decision
Often times in Real Estate, if you wait to make a decision someone will make it for you. It makes sense, you are looking for the best value on the market, just like everyone else in your price range.
Not being pre-approved for a loan
Imagine finding that perfect home then losing it because you could not prove your ability to secure a loan. Having a pre-approval letter in advance can eliminate that problem. It will also inform you of the maximum amount you will be able to spend on a home.
Not choosing the right lender
This is something that is covered to a great extent in a Buyer Counseling Meeting. Choosing the right Lender is as important as finding the right home.
Unreasonable offers
This could happen on either side of the list price. Too low of a price may offend the Seller and make any further negotiations more difficult. Do I need to explain how too high of a price will affect you?
Not having an inspection
We recommend that the prospective purchaser PERFORM A THOROUGH INSPECTION of all properties visited. We further recommend that the prospective purchaser have the property inspected by a qualified inspector. The standard language in the Offer To Purchase provides for an inspection by a Wisconsin Registered Inspector.
Not having a personal Agent
Many Buyers are able to find that home on their own. But what happens after that may determine if it will turn out to be the best value for them. There are many conditions and contingencies that may become part of a contract to purchase a home. Sitting down face to face with your Buyer's Agent can make a significant difference in the way an offer to purchase is structured.
Not understanding representation
On July 1, 2006 the Real Estate laws have been changed in Wisconsin to benefit Buyers significantly. You need to know where you stand as a Buyer and who the Agent represents. Ask about a Buyer Agency Agreement and what one can do for you.
Not having a plan
How often do you purchase a home? This is not an everyday occurrence for you and it may look simple from the outside. There are two facts to consider. Purchasing a home may be the largest investment of your life. If this were a business would you be entering into such a large investment without a plan?
Using more than one Agent
Often times Buyers will think that by working with more than one Agent they have less of a chance of missing that one property that is right for them. Loyalty is a two way street. A dedicated Agent will work for you until the job is successfully done. Looking for the home is only a small part of that job. By giving your loyalty you will see many returns throughout the transaction and beyond.
Not knowing what they want
This is why a face to face meeting without distractions is necessary. The type of home you need is determined by your lifestyle, your family situation, plans for the future and a host of other questions. After a short interview many of these questions can be answered and in most cases the search time will be greatly shortened. The best part of this is that the quicker you find your home the better chance you have of buying it before anyone else has the opportunity.
Waiting to make a decision
Often times in Real Estate, if you wait to make a decision someone will make it for you. It makes sense, you are looking for the best value on the market, just like everyone else in your price range.
Not being pre-approved for a loan
Imagine finding that perfect home then losing it because you could not prove your ability to secure a loan. Having a pre-approval letter in advance can eliminate that problem. It will also inform you of the maximum amount you will be able to spend on a home.
Not choosing the right lender
This is something that is covered to a great extent in a Buyer Counseling Meeting. Choosing the right Lender is as important as finding the right home.
Unreasonable offers
This could happen on either side of the list price. Too low of a price may offend the Seller and make any further negotiations more difficult. Do I need to explain how too high of a price will affect you?
Not having an inspection
We recommend that the prospective purchaser PERFORM A THOROUGH INSPECTION of all properties visited. We further recommend that the prospective purchaser have the property inspected by a qualified inspector. The standard language in the Offer To Purchase provides for an inspection by a Wisconsin Registered Inspector.
Home Buyer Profile
Thinking about selling your home? Following is information gathered in a study that focuses on home buyers, thier habits practices and comfort levels.
The 2003 Profile of Home Buyers and Sellers indicates that home buyers and sellers continue to rely on real estate professionals to assist them in all aspects of real estate transactions. Despite the growing number of resources that allow buyers and sellers to obtain real estate information on their own, real estate professionals remain the primary source of information for those searching for, or selling, a home. The vast majority of real estate transactions continue to involve one or more real estate professionals, with most buyers and sellers reporting that they are very satisfied with the performance of their agents.
HOME BUYERS:
Forty percent of home buyers were first-time purchasers.
The median age of buyers was 40 years.
Most buyers were married with no children residing in the home.
The median income for all buyer-households was $66,300; among first-time buyers, the median income was $54,800.
Twenty-eight percent of buyers purchased a new home.
The median price of homes purchased was $164,500.
Roughly one in ten recently purchased second homes was in a resort or recreation area.
The typical buyer walked through 10 homes and searched for eight weeks before finding the home they ultimately purchased.
Eighty-six percent of buyers used a real estate agent during their search.
Three quarters of buyers bought their home with the assistance of an agent.
Forty-one percent of home buyers first found out about the home they purchased through an agent.
Forty-two percent of buyers used the Internet frequently as part of their home search.
Buyers typically searched for homes on their own for two weeks before contacting an agent.
Forty-four percent of buyers found their real estate agent through a referral from a friend, neighbor or relative.
Eighty-nine percent of home buyers who used a real estate professional would definitely use, or consider using, their agent again.
Ninety-three percent of buyers obtained a mortgage to finance the purchase of their home.
NATIONAL ASSOCIATION OF REALTORS®
The 2003 Profile of Home Buyers and Sellers indicates that home buyers and sellers continue to rely on real estate professionals to assist them in all aspects of real estate transactions. Despite the growing number of resources that allow buyers and sellers to obtain real estate information on their own, real estate professionals remain the primary source of information for those searching for, or selling, a home. The vast majority of real estate transactions continue to involve one or more real estate professionals, with most buyers and sellers reporting that they are very satisfied with the performance of their agents.
HOME BUYERS:
Forty percent of home buyers were first-time purchasers.
The median age of buyers was 40 years.
Most buyers were married with no children residing in the home.
The median income for all buyer-households was $66,300; among first-time buyers, the median income was $54,800.
Twenty-eight percent of buyers purchased a new home.
The median price of homes purchased was $164,500.
Roughly one in ten recently purchased second homes was in a resort or recreation area.
The typical buyer walked through 10 homes and searched for eight weeks before finding the home they ultimately purchased.
Eighty-six percent of buyers used a real estate agent during their search.
Three quarters of buyers bought their home with the assistance of an agent.
Forty-one percent of home buyers first found out about the home they purchased through an agent.
Forty-two percent of buyers used the Internet frequently as part of their home search.
Buyers typically searched for homes on their own for two weeks before contacting an agent.
Forty-four percent of buyers found their real estate agent through a referral from a friend, neighbor or relative.
Eighty-nine percent of home buyers who used a real estate professional would definitely use, or consider using, their agent again.
Ninety-three percent of buyers obtained a mortgage to finance the purchase of their home.
NATIONAL ASSOCIATION OF REALTORS®
Buyer's or Seller's Market?
Buyer's or Seller's Market?
Is this a buyer's market or a seller's market. To a degree the answer is contingent on three basic factors; the price, location and condition of your property.
The price will determine which buyers will actually consider your property. Very few buyers will take the time to look at properties beyond their price range. Most buyers have a predetermined maximum price they will spend and will look at a number of properties before adjusting that price.
The location is a key factor in determining a market price. There will always be locations that will sell quickly and then there are those that need an extra measure of effort to sell. This is especially emphasized in today's changing market. A study of the recent market trend in your area will clearly show how your location is being affected by the recent changes in the real estate market.
The condition of the property is the great equalizer. A property in poor condition will have more diffiulty showing and selling in any area, than a property that is clean and updated . With the increased use of the Internet buyers now have the opportunity to access and compare properties side by side in the comfort of their own home. With the expanded sophistication of today's buyers, the demand for both exterior and interior pictures is on the rise. Many of today's buyers want to know the condition of a property before personally viewing it. In today's market it is extremely beneficial to improve the condition of the property before marketing it.
The combination of these three factors help create a market price for the property. Each property requires an individual study.
The best way to determine the market value of your property is to arrange a personal consultation with a professional. By placing a call we will schedule a direct meeting in your home. This meeting will include a tour of your property. During this time you may present any questions you may have regarding the selling process. If you are interested we can then prepare a study on similar properties in your area which will help us determine the current market value. This study will give us an indication of how quickly or slowly other properties are selling in your area. In addition to that, this information will also help us to determine the amount of equity you have in your currant home.
These services are free of charge and this information is a valuable resource you can use in making your decisions.
Is this a buyer's market or a seller's market. To a degree the answer is contingent on three basic factors; the price, location and condition of your property.
The price will determine which buyers will actually consider your property. Very few buyers will take the time to look at properties beyond their price range. Most buyers have a predetermined maximum price they will spend and will look at a number of properties before adjusting that price.
The location is a key factor in determining a market price. There will always be locations that will sell quickly and then there are those that need an extra measure of effort to sell. This is especially emphasized in today's changing market. A study of the recent market trend in your area will clearly show how your location is being affected by the recent changes in the real estate market.
The condition of the property is the great equalizer. A property in poor condition will have more diffiulty showing and selling in any area, than a property that is clean and updated . With the increased use of the Internet buyers now have the opportunity to access and compare properties side by side in the comfort of their own home. With the expanded sophistication of today's buyers, the demand for both exterior and interior pictures is on the rise. Many of today's buyers want to know the condition of a property before personally viewing it. In today's market it is extremely beneficial to improve the condition of the property before marketing it.
The combination of these three factors help create a market price for the property. Each property requires an individual study.
The best way to determine the market value of your property is to arrange a personal consultation with a professional. By placing a call we will schedule a direct meeting in your home. This meeting will include a tour of your property. During this time you may present any questions you may have regarding the selling process. If you are interested we can then prepare a study on similar properties in your area which will help us determine the current market value. This study will give us an indication of how quickly or slowly other properties are selling in your area. In addition to that, this information will also help us to determine the amount of equity you have in your currant home.
These services are free of charge and this information is a valuable resource you can use in making your decisions.
The tax advantage of home ownership.
The tax advantage of home ownership.
Here are some of the tax advantages you may see when purchasing a home in the $100,000 range based on 100% financing.
At an interest rate of about 7.00% your monthly payments would be about $665 out of that amount about $580 goes towards paying the interest which can be tax deductible. That is nearly $7000 you can deduct in the first year.
Let's estimate that your property taxes will be about $3000. These are also deductible.
Here we are only considering Federal tax returns.
Your total deductions would be $10,000. If you were in the 15% tax bracket you could be getting back an additional $1500. That is like the Federal Government paying you $125 a month to live in your own home.
Here are some of the tax advantages you may see when purchasing a home in the $100,000 range based on 100% financing.
At an interest rate of about 7.00% your monthly payments would be about $665 out of that amount about $580 goes towards paying the interest which can be tax deductible. That is nearly $7000 you can deduct in the first year.
Let's estimate that your property taxes will be about $3000. These are also deductible.
Here we are only considering Federal tax returns.
Your total deductions would be $10,000. If you were in the 15% tax bracket you could be getting back an additional $1500. That is like the Federal Government paying you $125 a month to live in your own home.
Buyer Consultation
Buyer ConsultationFollowing is a list of some of the topics that can be covered in a Buyer Consultation Meeting. Contact me to arrange your personal consultation with no cost or obligation to you.
Loans
Pre approval
Finding a lender
Compare rates and loan costs
Types of loans
What zero percent down really means
Earnest money
Home Insurance
Searching for a home
TIP (Total Inventory Publication)
Newspaper
MLS
Internet
Open Houses
Contracts
Home Warranty
Buyer Agency
Home Inspections
Why inspect a home
Choosing an inspector
Inspection options in the Offer to Purchase
Inspection costs
Lead Based Paints
Homes built before 1978
Homes built after 1978
Lead based paint brochure
Addendum S
Pre closing
Utilities and phone service
Change of address
Closing
How to prepare
What to expect
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