Right now is a great time to buy, especially if you're a first-time buyer. Here's why:
· $7,500 tax credit offered to first-time home buyers who close before 7/1/09
· 1st time buyer financing programs
· Low interest rates
· Large inventory of homes to choose from
· Motivated sellers = Better deals for you!
Contact me if you have any questions or would like to know more about any of the programs I mentioned. Email Kerry
Thursday, October 30, 2008
Wednesday, August 6, 2008
Housing Stimulus Bill- 2008 DETAILS
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
-Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
First-time homebuyer tax credit chart
-GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
-Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
-Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
First-time homebuyer tax credit chart
-GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
-Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
Thursday, June 5, 2008
Where McCain, Obama Stand on Housing (REALTORS Association)
As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who claims the Democratic nomination, here are their initial positions on housing and related economic issues.
McCain:
1. Proposes to spend up to $10 billion to allow some homeowners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Believes government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help homeowners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
McCain:
1. Proposes to spend up to $10 billion to allow some homeowners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Believes government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help homeowners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
Tuesday, May 13, 2008
WI REALTORS® Association 1st Quarter Press Release
Wisconsin Home Prices Fall Modestly as Sales Decline
Madison - Declining home sales nationwide and bad weather here in Wisconsin combined to drive state home sales down in the first quarter of 2008 compared to that same quarter in 2007, yet home prices fell only slightly, according to figures recently released by the Wisconsin REALTORS® Association (WRA).
Wisconsin home sales dropped 24.1 percent in the first quarter, which was somewhat higher than the rest of the Midwest region, which was down 18.3 percent. “It’s important to remember that bad weather always dampens home sales, and given the record snowfall this winter, we were expecting weak numbers for the first quarter,” said WRA Chairman Michael Spranger. “People don’t like to look at houses when the weather is bad, and the weather was definitely bad in January and February this year,” he pointed out.
Spranger noted that Wisconsin’s housing market started to improve in March, which means it’s likely that much of the spring sales activity has gotten pushed into the second quarter. “The good news is that market fundamentals remain solid, with 30-year fixed rate mortgages still around 6 percent, and statewide unemployment under 5 percent in the first quarter,” Spranger said.
Wisconsin’s median home prices fell by a modest margin (-3.8 percent to $154,000) in the first quarter of 2008 as compared to the first quarter of 2007. “We need to be careful interpreting changes in the median price given the rather sizeable change in sales volume, since it’s very likely that the mix of homes changed from year to year,” said Bill Malkasian, WRA President. “But it is healthy to see some price moderation.” Malkasian added, “The price change indicates that housing is becoming more affordable, while not significantly diminishing the asset value of homes. This remains an excellent time for first-time home buyers to get into the housing market given the low mortgage rates and the healthy inventories statewide.”
Looking ahead, the WRA released results from an online survey of top real estate offices from around the state, which showed broker optimism about the market for the balance of 2008. Fifty-two percent of survey respondents said they expected sales in the second quarter of 2008 to be at or above last year, and almost 73 percent said sales in the third quarter would be the same or better than last year. Sixty-eight percent of brokers in the survey also predicted buyer interest would be the same or higher than last year in the second quarter, while 88 percent of survey respondents said that sellers would be more motivated in the second quarter of this year than they were in the second quarter of 2007.
“Overall, it’s not surprising that it takes some time for buyers and sellers to get on the same page when market conditions change,” said Malkasian, noting that REALTORS® continue to work hard to bring the two sides together. “These survey findings do suggest that with highly motivated sellers, there are now some excellent opportunities for buyers,” he indicated.
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 17,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the state are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter.
Monday, April 28, 2008
Wisconsin Home Prices Stable Compared to Nation
Wisconsin Home Sales Dip in 2007 But Prices Stable
State's housing news much better than nation
02/08 REALTORS® Association Press Release
Madison - Wisconsin housing sales decreased but prices increased in 2007, leaving Wisconsin’s real estate market in much better shape than many parts of the Midwest and the nation, according to the year-end analysis of existing home sales conducted by the Wisconsin REALTORS® Association (WRA).
Wisconsin home sales declined in 2007 by 10.8 percent relative to 2006, but median prices actually rose 0.2 percent over the period to $164,000, according to the REALTORS®’ report. Sales in the Midwest were also down by a similar margin, falling 10.5 percent over last year, but sales nationally were down nearly 13 percent.
“It’s a mistake to look at Wisconsin’s housing market through the lens of national indicators,” said WRA President William Malkasian. “Housing in our state and throughout much of the Midwest is much less volatile than many markets in other parts of the country, especially the Western United States,” said Malkasian. “While 2007 was a rough year for housing sales compared to our recent boom years, Wisconsin’s housing future looks like it will be brighter, faster.”
Malkasian pointed to recent action by the Federal Reserve to substantially cut short term interest rates as another positive sign for the housing market. “Thirty-year fixed mortgage rates averaged 6.3 percent for 2007, but fell to 5.8 percent in January, and this was before the Fed’s latest interest rate cuts,” said Malkasian. “These steps by the Fed will help to keep housing affordable for credit worthy buyers, and offer excellent buying opportunities in this market,” he said.
While sales fell in 2007, median prices in the state actually rose slightly, showing the underlying strength of Wisconsin’s housing market, according to the WRA report. “The stability of prices in this soft market is a good sign for buyers,” said WRA Chairman Michael Spranger. “The fact that we are not seeing the significant changes in the median prices that have been recorded in other parts of the country is an indication that housing remains a good way to accumulate and maintain household wealth for Wisconsin residents,” said Spranger.
According to Spranger, recent REALTOR® polling supports his optimism for Wisconsin’s housing market in 2008. “Wisconsin citizens love their homes, their neighborhoods and their state,” said Spranger, “and we asked their opinions in the middle of January!” According to the REALTORS®’ January survey, 83 percent of Wisconsin citizens ranked their quality of life as good, 80 percent gave their neighborhoods the same ranking and 74 percent said the same about their homes.
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 18,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted.
State's housing news much better than nation
02/08 REALTORS® Association Press Release
Madison - Wisconsin housing sales decreased but prices increased in 2007, leaving Wisconsin’s real estate market in much better shape than many parts of the Midwest and the nation, according to the year-end analysis of existing home sales conducted by the Wisconsin REALTORS® Association (WRA).
Wisconsin home sales declined in 2007 by 10.8 percent relative to 2006, but median prices actually rose 0.2 percent over the period to $164,000, according to the REALTORS®’ report. Sales in the Midwest were also down by a similar margin, falling 10.5 percent over last year, but sales nationally were down nearly 13 percent.
“It’s a mistake to look at Wisconsin’s housing market through the lens of national indicators,” said WRA President William Malkasian. “Housing in our state and throughout much of the Midwest is much less volatile than many markets in other parts of the country, especially the Western United States,” said Malkasian. “While 2007 was a rough year for housing sales compared to our recent boom years, Wisconsin’s housing future looks like it will be brighter, faster.”
Malkasian pointed to recent action by the Federal Reserve to substantially cut short term interest rates as another positive sign for the housing market. “Thirty-year fixed mortgage rates averaged 6.3 percent for 2007, but fell to 5.8 percent in January, and this was before the Fed’s latest interest rate cuts,” said Malkasian. “These steps by the Fed will help to keep housing affordable for credit worthy buyers, and offer excellent buying opportunities in this market,” he said.
While sales fell in 2007, median prices in the state actually rose slightly, showing the underlying strength of Wisconsin’s housing market, according to the WRA report. “The stability of prices in this soft market is a good sign for buyers,” said WRA Chairman Michael Spranger. “The fact that we are not seeing the significant changes in the median prices that have been recorded in other parts of the country is an indication that housing remains a good way to accumulate and maintain household wealth for Wisconsin residents,” said Spranger.
According to Spranger, recent REALTOR® polling supports his optimism for Wisconsin’s housing market in 2008. “Wisconsin citizens love their homes, their neighborhoods and their state,” said Spranger, “and we asked their opinions in the middle of January!” According to the REALTORS®’ January survey, 83 percent of Wisconsin citizens ranked their quality of life as good, 80 percent gave their neighborhoods the same ranking and 74 percent said the same about their homes.
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 18,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted.
Current Mortgage Rates
The following are current 30-year fixed mortgage rates at a few area banks.
Associated Bank: 6.055%
M & I Bank: 6.156%
Northshore Bank: 6.274%
Associated Bank: 6.055%
M & I Bank: 6.156%
Northshore Bank: 6.274%
Tuesday, April 22, 2008
Current Mortgage Rates
The following are current 30-year fixed mortgage rates at a few area banks.
Chase Bank - 6.19%
M & I Bank - 6.27%
North Shore Bank - 6.%
Chase Bank - 6.19%
M & I Bank - 6.27%
North Shore Bank - 6.%
Tuesday, April 15, 2008
WHEDA Loans
WHEDA is loan program in Wisconsin designed to help first-time home buyers finance a home purchase. The program started in 1972 as a way to make loans for low and moderate income households. WHEDA loan benefits include:
-Low, fixed interest rate
-Low closing costs (usually around $800)
-Low down payment (3% of purchase price)
-Lower mortgage insurance premiums
-Job Loss Protection
-Home buyer education.
In Brown County, your income must be less than $63,700 (1-2 person family) to qualify for a WHEDA loan.
When choosing a home to purchase, the price must be less than $204,432 and it must be your principal residence.
Keep in mind that although WHEDA is able to assist many first-time home buyers, there are some items that can affect your approval, such as poor credit history, not enough time at your current job, or not enough savings for the down payment.
Please contact me if I can answer any questions or get you more info about WHEDA loans.
-Low, fixed interest rate
-Low closing costs (usually around $800)
-Low down payment (3% of purchase price)
-Lower mortgage insurance premiums
-Job Loss Protection
-Home buyer education.
In Brown County, your income must be less than $63,700 (1-2 person family) to qualify for a WHEDA loan.
When choosing a home to purchase, the price must be less than $204,432 and it must be your principal residence.
Keep in mind that although WHEDA is able to assist many first-time home buyers, there are some items that can affect your approval, such as poor credit history, not enough time at your current job, or not enough savings for the down payment.
Please contact me if I can answer any questions or get you more info about WHEDA loans.
Thursday, April 10, 2008
Current Mortgage Rates
The following are average 30-year fixed mortgage rates in our area for the week of 4/7/08.
Associated Bank - 5.81%
M & I Bank - 6.03%
North Shore Bank - 6.15%
Associated Bank - 5.81%
M & I Bank - 6.03%
North Shore Bank - 6.15%
Tuesday, April 8, 2008
Monday, April 7, 2008
Understand Capital Gains in Real Estate
When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:
1. Purchase price: _______________________ The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.
2. Total adjustments: _______________________
To calculate this, add the following:
-Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
-Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
-Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. Your home’s adjusted cost basis: _______________________
The total of your purchase price and adjustments is the adjusted cost basis of your home.
4. Your capital gain: _______________________
Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
-You have lived in the home as your principal residence for two out of the last five years.
-You have not sold or exchanged another home during the two years preceding the sale.
-You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:
1. Purchase price: _______________________ The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.
2. Total adjustments: _______________________
To calculate this, add the following:
-Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
-Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
-Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. Your home’s adjusted cost basis: _______________________
The total of your purchase price and adjustments is the adjusted cost basis of your home.
4. Your capital gain: _______________________
Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
-You have lived in the home as your principal residence for two out of the last five years.
-You have not sold or exchanged another home during the two years preceding the sale.
-You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
Thursday, April 3, 2008
How to Hold a Successful Garage Sale
Garage sales can be a great way to get rid of clutter — and earn a little extra cash — before you sell your home. But make sure the timing is right. Garage sales can take on a life of their own, and it might not be the best use of your energy right before putting your home on the market. Follow these tips for a successful sale.
1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.
2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.
3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.
4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.
5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.
6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.
7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)
8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.
9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.
10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.
11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.
12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!
1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.
2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.
3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.
4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.
5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.
6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.
7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)
8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.
9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.
10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.
11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.
12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!
Current Mortgage Rates
The following are average 30-year fixed mortgage rates in our area for the week of 3/31/08.
Associated Bank - 6.05%
M & I Bank - 6.15%
North Shore Bank - 6.27%
Associated Bank - 6.05%
M & I Bank - 6.15%
North Shore Bank - 6.27%
Monday, March 31, 2008
Why You Should Work With a REALTOR®
Why use a REALTOR®?
REALTORS®:
-are experts on real estate
-are hired by 9 out of 10 buyers.
-are pros at bringing transactions together.
-have strict education requirements.
-have leads.
-have current market data
-ensure real estate forms are accurate.
-help price your home and determine your buying power.
-handle sales calls and follow-up.
-arrange advertising and host open houses.
-are experienced negotiators.
-can handle closing issues.
-abide by a strict Code of Ethics.
-use their money to market your home.
-network with others REALTORS®.
Friday, March 28, 2008
5 Things to Know About Title Insurance
Title insurance protects the holder from any losses sustained from defects in the title. It’s required by most mortgage lenders. Here are five other things you should know about title insurance.
1. It protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.
2. It’s a one-time cost usually based on the price of the property.
3. It’s usually paid for by the sellers, although this can vary depending on your state and local customs.
4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.
5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.
1. It protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.
2. It’s a one-time cost usually based on the price of the property.
3. It’s usually paid for by the sellers, although this can vary depending on your state and local customs.
4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.
5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.
Your Costs When Buying or Selling
Seller Closing Costs
-Title Insurance Approximately $450 for a sale price of $150,000
-Administrative and/or Attorney Fees Usually less than $100
-Recording Fee Typically around $20
-Wisconsin Real Estate Transfer Fee .3% of sale price
-Commission Agreed upon percentage or flat amount paid to your agent
-Real Estate Taxes Prorated taxes for the number of days you owned the home this year
Buyer Closing Costs
You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:
-Down payment
-Loan origination
-Points, or loan discount fees, which you pay to receive a lower interest rate
-Home inspection
-Appraisal
-Credit report
-Private mortgage insurance premium
-Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
-Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
-Deed recording
-Title insurance policy premiums
-Land survey
-Notary fees
-Prorations for your share of costs, such as utility bills and property taxes
-Title Insurance Approximately $450 for a sale price of $150,000
-Administrative and/or Attorney Fees Usually less than $100
-Recording Fee Typically around $20
-Wisconsin Real Estate Transfer Fee .3% of sale price
-Commission Agreed upon percentage or flat amount paid to your agent
-Real Estate Taxes Prorated taxes for the number of days you owned the home this year
Buyer Closing Costs
You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:
-Down payment
-Loan origination
-Points, or loan discount fees, which you pay to receive a lower interest rate
-Home inspection
-Appraisal
-Credit report
-Private mortgage insurance premium
-Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
-Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
-Deed recording
-Title insurance policy premiums
-Land survey
-Notary fees
-Prorations for your share of costs, such as utility bills and property taxes
Wednesday, March 26, 2008
Business Opportunity of the Week
Business For Sale - 1915 S WEBSTER- Village of Allouez, WI $55,900
Business Type: Tanning
Comments: Established salon is the perfect little business to provide you with a nice income & you are the boss. Includes a client database, 6 beds.1 stand up,1 mega bed & a Thera Sauna. Located with high traffic.
Contact Kerry for more details
HOLY COW! House of the Week
Just sold in February - 7 Bedrooms, 8 Baths, 7,780 square feet - On Broadway, along the Fox River in E De Pere- $1,250,000
Tuesday, March 25, 2008
'Green' Home Tips from HGTV
One: Use Fluorescent Bulbs Replace conventional incandescent light bulbs with compact fluorescent light bulbs (CFLs). They cost a little more, but last up to 10 times longer, use two-thirds less energy and give off 70 percent less heat.
Two: Look for the Energy Star Label Energy Star-qualified refrigerators use about half as much energy as refrigerators made before 1993, and saving energy also cuts down on pollution. Look for Energy Star certification when shopping for other home appliances such as dishwashers, clothes washers, water heaters and many home electronics. Visit www.energystar.gov/ for more information about this program.
Three: Get Unplugged Many home electronics still consume energy even when they are turned off. Many devices with a "standby mode" will continue to use power, running up your electricity bill. Also, chargers and power adapters continue to draw power from the wall socket even if the device is not attached. Unplug these devices or use a power strip to turn off multiple units, when they aren’t being used to make sure that you aren’t wasting energy.
Four: Double-Up on Windows Replacing old single-pane windows with double pane-windows helps reduce heat loss in winter and heat gain in the summer. They can also help reduce noise pollution in your home.
Five: Turn Down the Thermostat Lowering you thermostat by just one degree can reduce costs by about four percent, so keeping the heat turned down just a little bit can reduce energy costs. Using a ceiling fan in the summer and the winter can also help with A/C and heating energy consumption.
Six: Sustainable Floors Cork flooring not only looks great, but it’s also natural insulator. So when you look into purchasing flooring, consider using bamboo, cork or another sustainable material. Not only will your new floors look fantastic, but they’ll also save you money in the end.
Seven: Earth-Friendly Decks A lot of deck material comes from tropical hardwoods. These woods look great and stand up to the elements for a very long time. But when choosing decking material, make sure you choose wood that has been harvested using sustainable methods. This helps the environment and preserves endangered rainforests.
Eight: Low-Flow Faucets Low-flow water fixtures such as showerheads, faucets and toilets reduce water consumption and water heating costs by as much as 50 percent.
Nine: Buy Renewable Energy Check with your local utility company and see if you can purchase renewable energy. Renewable, non-emitting sources such as wind, solar and hydroelectric power cut down on emissions, reduce volatile fuel prices and can save you money.
Ten: Recycle! After you replace all those inefficient, windows and fixtures, make sure you recycle all that metal and glass. Also, most household paper items, glass, aluminum cans and plastic can be recycled. By recycling half of your household waste, you can save 2,400 pounds of carbon dioxide annually. Find more information about programs in your area at www.recycle.com/.
Two: Look for the Energy Star Label Energy Star-qualified refrigerators use about half as much energy as refrigerators made before 1993, and saving energy also cuts down on pollution. Look for Energy Star certification when shopping for other home appliances such as dishwashers, clothes washers, water heaters and many home electronics. Visit www.energystar.gov/ for more information about this program.
Three: Get Unplugged Many home electronics still consume energy even when they are turned off. Many devices with a "standby mode" will continue to use power, running up your electricity bill. Also, chargers and power adapters continue to draw power from the wall socket even if the device is not attached. Unplug these devices or use a power strip to turn off multiple units, when they aren’t being used to make sure that you aren’t wasting energy.
Four: Double-Up on Windows Replacing old single-pane windows with double pane-windows helps reduce heat loss in winter and heat gain in the summer. They can also help reduce noise pollution in your home.
Five: Turn Down the Thermostat Lowering you thermostat by just one degree can reduce costs by about four percent, so keeping the heat turned down just a little bit can reduce energy costs. Using a ceiling fan in the summer and the winter can also help with A/C and heating energy consumption.
Six: Sustainable Floors Cork flooring not only looks great, but it’s also natural insulator. So when you look into purchasing flooring, consider using bamboo, cork or another sustainable material. Not only will your new floors look fantastic, but they’ll also save you money in the end.
Seven: Earth-Friendly Decks A lot of deck material comes from tropical hardwoods. These woods look great and stand up to the elements for a very long time. But when choosing decking material, make sure you choose wood that has been harvested using sustainable methods. This helps the environment and preserves endangered rainforests.
Eight: Low-Flow Faucets Low-flow water fixtures such as showerheads, faucets and toilets reduce water consumption and water heating costs by as much as 50 percent.
Nine: Buy Renewable Energy Check with your local utility company and see if you can purchase renewable energy. Renewable, non-emitting sources such as wind, solar and hydroelectric power cut down on emissions, reduce volatile fuel prices and can save you money.
Ten: Recycle! After you replace all those inefficient, windows and fixtures, make sure you recycle all that metal and glass. Also, most household paper items, glass, aluminum cans and plastic can be recycled. By recycling half of your household waste, you can save 2,400 pounds of carbon dioxide annually. Find more information about programs in your area at www.recycle.com/.
Monday, March 24, 2008
This week's mortgage rates
The following are average 30-year fixed mortgage rates in our area for the week of 3/24/08.
Associated Bank - 5.93%
M & I Bank - 5.91%
North Shore Bank - 5.77%
Associated Bank - 5.93%
M & I Bank - 5.91%
North Shore Bank - 5.77%
Friday, March 21, 2008
Current Listings
[Click for Data Sheet]
2048 E Higgins Hill - New construction, Ledgeview
1224 Prairie Falcon Trl - Condo, Howard
319 W Lincoln Av - Little Chute
2048 E Higgins Hill - New construction, Ledgeview
1224 Prairie Falcon Trl - Condo, Howard
319 W Lincoln Av - Little Chute
Thursday, March 20, 2008
Spring Cleaning - Make Your Home Look Great!
Today is the first day of Spring - the perfect time to declutter your living spaces. Follow my tips below to help prepare your home to sell.
Kerry’s Tips
1) Clear surfaces - Remove everything from kitchen & bathroom counters. Items left on surfaces distract buyers and make counter space look smaller. Put away or pack knick-knacks on other surfaces like bookshelves & dressers.
2)Clean closets -Start your packing with your closets. Keep out only the items you currently use. Donate or toss items you haven’t used in the past two years. Clean everything off the floor so that buyers can see all of the storage space. Nothing should fall out when the door is opened.
3)Remove furniture - Get rid of pieces of furniture that are too big, bulky, or distracting for the room - put them in storage for now. Remember, you’re selling your house, not your decor. You want the buyers to envision their furnishings in the home. Regroup the remaining pieces of furniture so that buyers will understand the purpose of each room, or how they will use it themselves.
4)De-personalize - Pack all of your photographs, even those in frames. Personal items can be very distracting to potential buyers and can prevent them from seeing themselves living in your home. Also, take everything off of the refrigerator and pack things with names, family information, or souvenirs.
5)Organize kitchen - Serious buyers WILL look in your cabinets, pantry, & refrigerator. Throw away food that looks or smells unappealing or old. Wipe out cupboards and stack dishes neatly when you put them back. Wipe down the inside and outside of the refrigerator & freezer and neatly replace your food items. Arrange pantry spaces and cabinets as if they were visible book shelves. Buyers want to see that there is plenty of space for all of the things they need to store in their kitchen.
6) Minor Fixes - Repair minor things like loose door handles & leaky faucets. Even minor items in need of repair can dissuade a buyer from purchasing a particular home.
7)Finishing touches - Get rid of any odors, wash windows, put out crisp-looking linens, keep lawn and landscaping trimmed and free of weeds. You want prospective buyers to know that you have taken care of your home.
Kerry’s Tips
1) Clear surfaces - Remove everything from kitchen & bathroom counters. Items left on surfaces distract buyers and make counter space look smaller. Put away or pack knick-knacks on other surfaces like bookshelves & dressers.
2)Clean closets -Start your packing with your closets. Keep out only the items you currently use. Donate or toss items you haven’t used in the past two years. Clean everything off the floor so that buyers can see all of the storage space. Nothing should fall out when the door is opened.
3)Remove furniture - Get rid of pieces of furniture that are too big, bulky, or distracting for the room - put them in storage for now. Remember, you’re selling your house, not your decor. You want the buyers to envision their furnishings in the home. Regroup the remaining pieces of furniture so that buyers will understand the purpose of each room, or how they will use it themselves.
4)De-personalize - Pack all of your photographs, even those in frames. Personal items can be very distracting to potential buyers and can prevent them from seeing themselves living in your home. Also, take everything off of the refrigerator and pack things with names, family information, or souvenirs.
5)Organize kitchen - Serious buyers WILL look in your cabinets, pantry, & refrigerator. Throw away food that looks or smells unappealing or old. Wipe out cupboards and stack dishes neatly when you put them back. Wipe down the inside and outside of the refrigerator & freezer and neatly replace your food items. Arrange pantry spaces and cabinets as if they were visible book shelves. Buyers want to see that there is plenty of space for all of the things they need to store in their kitchen.
6) Minor Fixes - Repair minor things like loose door handles & leaky faucets. Even minor items in need of repair can dissuade a buyer from purchasing a particular home.
7)Finishing touches - Get rid of any odors, wash windows, put out crisp-looking linens, keep lawn and landscaping trimmed and free of weeds. You want prospective buyers to know that you have taken care of your home.
BUSINESS OPPORTUNITY OF THE WEEK
Business For Sale - 508 Greene Ave- Village of Allouez, WI
$127,900
Business Type: Ice Cream Shop (Zesty’s)
Comments: Popular local ice cream shop & restaurant in high traffic Allouez location. Great opportunity to own an established, profitable business. Well kept shop includes all furniture, fixtures, equipment & inventory, all ready to go. A fun, affordable investment!
$127,900
Business Type: Ice Cream Shop (Zesty’s)
Comments: Popular local ice cream shop & restaurant in high traffic Allouez location. Great opportunity to own an established, profitable business. Well kept shop includes all furniture, fixtures, equipment & inventory, all ready to go. A fun, affordable investment!
Prepare Your Home to Sell this Spring
Prepare Your Home to Sell this Spring-
5 Things to do Before Putting Your Home on the Market :
1. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments? Eighty-four percent of home buyers use the Internet to search for homes. One-third of home buyers use the Internet first, before any other source. That means that people are making decisions whether or not to even drive by your home based on how it looks in video, virtual tours, and photographs.
2. Organize and clean. Reduce clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.
3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.
4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.
5. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. If you wait until the buyer’s inspection, the buyer could find a reason to wiggle out of a deal. If you have a seller’s inspection you can improve the condition of your home before a buyer sees it. You can keep receipts of recent improvements and provide estimates on optional upgrades to potential buyers. These actions will reinforce your trustworthiness and help overcome objections from potential buyers.I’d be glad to come to your home and help you determine what should be done to get it ready to sell. I’ll also do a free market analysis using comparable homes in the area. Contact me today!
5 Things to do Before Putting Your Home on the Market :
1. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments? Eighty-four percent of home buyers use the Internet to search for homes. One-third of home buyers use the Internet first, before any other source. That means that people are making decisions whether or not to even drive by your home based on how it looks in video, virtual tours, and photographs.
2. Organize and clean. Reduce clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.
3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.
4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.
5. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. If you wait until the buyer’s inspection, the buyer could find a reason to wiggle out of a deal. If you have a seller’s inspection you can improve the condition of your home before a buyer sees it. You can keep receipts of recent improvements and provide estimates on optional upgrades to potential buyers. These actions will reinforce your trustworthiness and help overcome objections from potential buyers.I’d be glad to come to your home and help you determine what should be done to get it ready to sell. I’ll also do a free market analysis using comparable homes in the area. Contact me today!
7 Reasons to Own Your Home
7 Reasons to Own Your Home
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the "Buy vs. Rent" calculator at www.GinnieMae.gov.
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the "Buy vs. Rent" calculator at www.GinnieMae.gov.
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