9/25/08 Buyers News

Economy Changes Listing Lingo

Have you been reading some house listings on line or in the newspaper and become confused with some of the abbreviations and terms used? Here is a quick run down of a few of the terms:

A Short Sale is a property that is being sold for less than the owner owes on their mortgage. For it to work the mortgage lender and other lienholders (people the owners owe money to that is attached to the house), must agree to reduce some or all of the debt. This can be a very long process and many may never close.

Real Estate Owned (REO) properties are owned by the bank. The house has been foreclosed and the lending institution has taken over the property. These houses can be great deals but you are negotiating with a bank that can potentially have thousands of other houses on their books. An out of state lending institution can take longer to purchase from than a local lender. Patience can win rewards with an REO.

"As is condition" simply means you agree to purchase the house in the condition with all its faults and agree to not sue for any damages you incur. Most REO sales fall under this category as well as auctioned homes. This does not mean you are prohibited from doing an inspection. In fact, it is crucial to do an inspection so you can know what you are getting into with the purchase. Spend more money up front in inspections and potentially less later on in repairs.

Whether to purchase any of these listings requires a great deal of information and thought. There is a misperception that these are "great deals" and for "pennies on the dollar." Some deals can be had but usually the market determines the price of these and all homes.

8/3/08 Buyers News

Newspaper article reports local real estate sales up in 2nd Quarter

In the three county area (Winnebago, Outagamie and Calumet) real estate sales are up 14.1 percent in the second quarter of 2008 over 2007, according to a report on the WISINFO site.

Winnebago county sales are up 19.9 percent comparing 2008 with 2007. Outagamie sales were up 18.3 percent.

The report does not separate out commercial versus residential which can be wildly different. The report states the statistics are provided by the Realtor Association of Northeast Wisconsin. My attempts to find the report on our local board websites were unsuccessful. When the report is made available to the membership as opposed to the media, I will post the numbers.

7/11/08 Buyers News

Two Wisconsin Counties Best Places to Raise Family

According to Forbes Magazine, two Wisconsin counties made the top ten best places to raise a family. Ozaukee and Waukesha Counties were on the list along with a pretty clear cut domination of the Mid-West as those best places. There was a population requirement or else we all know our community would have made the list as well.

The factors use for their decision included:
Majority of school funding from property taxes
Average SAT and ACT scores must top 1,050 or 22
Cost of living
Percentages of homes occupied by owners
Per-capital income
Air Quality
Crime Rate
Commute Times

To adapt a line from Garrison Keiller, our community is above average.

Holding Back the Wrecking Ball

A NYT editorial bemoans with loss of historic homes which are being replaced with "starter castles."

In 2008 the National Trust for Historic Preservation identified 100 communities throughout the country where tearing down of homes were occurring in architecturally significant neighborhoods. Hinsdale, IL lost one third of its houses before restricting the practice. In Westport, CT a website has sprung up, Teardown of the Day, which publicizes the teardowns with pictures. Some communities have put a slowdown before homes 60 years or older can be demolished.

As an older home advocate I know I am working to protect, preserve and reuse our historic properties. Imagine if a film company didn't have to put up fake facades to make our downtown buildings historically complete.

6/23/08 Buyers News

First-time buyers in luck
Low prices, interest rates boost starter homes

By Anne Straub, Florida Today

Home prices are down, interest rates are low and the first-time homebuyer is back.
After being shut out of the real estate market as prices zoomed, buyers looking for starter homes now have plenty to choose from and needn't fear losing a house to a competing offer in a bidding war.
"I tell first-time buyers it's not a scary time to buy if you're buying your first home to live in," Bray said. "If you have a 3 percent down payment saved or a 3 percent gift from a family member, have decent credit and income, then you're golden."
Published June 22, 2008

6/18/08 Buyers News

Gas prices latest worry for real estate market
The financial burden of longer commutes makes homes in outlying areas that are already reeling even less attractive.
By Roger Vincent, Los Angeles Times

Christopher Leinberger of the Brookings Institution, a Washington think tank, says home values in so-called exurbs may continue to languish long after urban markets begin to recover, thanks to higher gas costs.

"Under the old model we have lived with for the past 50 years, you could drive away from major employment concentrations until you could qualify for a house because cheap energy costs made it possible," Leinberger said. "Now as energy prices go up, the housing prices out there on the fringe take a major hit."

Lynette Williams, a real estate agent in Pasadena, said the clients she sees these days are more willing than in the past to accept modest homes if they are close to work.

"They're downsizing what they think their ideal house would be," Williams said. "Compared to two years ago, they are staying in closer proximity to their jobs. They're more focused on the neighborhood they want."
June 17, 2008

6/10/08 Buyers News

NAR lowers 2008 price forecast
BY INMAN NEWS

The median resale home price is expected to fall 6.4 percent this year, the National Association of Realtors reported today -- that drop is 4 percent larger than the group's previous forecast for a 2.4 percent decline, released in May.
The Realtor trade group's latest forecast also anticipates a 4.5 percent annual drop in existing-home sales this year, followed by a 6.3 percent rise in sales in 2009.

Single-family housing starts are expected to plunge 36.3 percent this year and another 1.8 percent in 2009, NAR reports, with the median new-home price dropping 3.1 percent this year. TUESDAY, JUNE 10, 2008.

6/1//08 Buyers News

Help with House Pays Off - Program coming to Oshkosh
Joanne Cleaver

Proximity and price are two compelling reasons for employers in Milwaukee and elsewhere to offer housing assistance benefits. In the first quarter, the median price for a Milwaukee-area home was $204,400. To purchase such a home, based on a 10-percent down payment, required an annual household income of $59,900. In the Milwaukee market, though, nurses' median annual pay is $44,000, and police officers' yearly average salary is $56,000.
Beverly Barnes, executive director of Homes for Working Families, states, "The working families of these types of employers are still significantly at a distance from buying the median house." With rising gas prices making commuting even more costly, employers have one more compelling reason to offer housing benefits.
The Center for Housing Policy has issued a new report that outlines the return on investment for employer-assisted housing initiatives, using Aurora Health Care's program as a case example. Aurora spokesman Ron Irwin notes that his company's program largely benefits minorities and employees under the age of 35. Ross adds that employees who buy houses using such programs tend to remain with their employers longer than others, thus providing a stable and experienced staff.
To earn forgiveness for the grant, those who participate in Aurora's housing assistance program are required to stick with the company for a minimum term of five years past the date of closing.
Milwaukee Journal Sentinel May 21, 2008

5/2/08 Buyers News

Midwest has highest percentage of first-time home buyers

First-time home buyers accounted for about 41 percent of first-quarter sales activity, according to a survey conducted by HouseHunt,, a real estate information and services company. First-time buyer activity rose from 36 percent in the second half of 2004, the company reported.

About 60 percent of home listings are selling in 30 days or less, according to HouseHunt's Current Market Conditions survey. Nine of 10 sellers got 95 percent or more of their asking prices despite rapid appreciation, shrinking buyer affordability and slightly higher mortgage interest rates, HouseHunt also reported, while 6 percent report getting less than 95 percent of the asking price.

First-quarter sale prices in the HouseHunt survey ranged between $160,000 to $900,000, with the median in the upper $300,000s.

Home-price appreciation in the past year was almost evenly divided between zero to 10 percent, and 10 percent or more. In 2004, the median home price appreciated 8.8 percent to $187,500. Regionally, median prices rose 13.5 percent to $222,500 in the Northeast; 14.1 percent to $278,000 in the West; 6.9 percent to $151,000 in the Midwest; and 8 percent to $169,700 in the South.
Inman News

4/13/08 Buyer's News

Even Renters Aren’t Safe (reg.req.)
By Elizabeth Harris

Many renters may believe that they have avoided the chaos of the subprime loan crisis and the mortgage meltdown simply by renting and not buying, but they may not be as insulated as they think. Buildings with tenants are going into foreclosure as well.

Many renters may believe that they have avoided the chaos of the subprime loan crisis and the mortgage meltdown simply by renting and not buying, but they may not be as insulated as they think. Buildings with tenants are going into foreclosure as well.

“This is a growing problem nationwide,” said Mark Zandi, the chief economist at Moody’s Economy.com, a research company. “Landlords of all stripes could potentially get caught up in this very severe downturn.”

“I suspect that it’s going to be more of a problem for lower- to middle-income markets,” Mr. Zandi added. New York Times 4/13/08

3/26/08 Buyer's News

Buyer's Agent Smoothes Sometimes Bumpy Road to Foreclosure Purchase
By Rick Sharga

...Most people hire a real estate agent to sell their home, but overlook the importance of having an agent when buying a property. While in some cases it's possible to negotiate your purchase through the seller's representative, make no mistake: these seller's representatives are charged with making the sale and negotiating the best deal for their clients — the sellers! With that in mind, it's best to secure your own representation as a buyer, in order to minimize potential conflicts, and make sure your interests are represented...

...Finally a word about etiquette: While you don't necessarily have to commit to working exclusively with a single agent (unless you've signed an exclusive agreement with them), it's most proper to ultimately extend your loyalty to an agent who spends a significant amount of effort helping you find a property. Remember, real estate agents work on commission, so the time they spend working on your behalf amounts to nothing if you don't ultimately make a purchase through them. If for some reason, you find that your needs are not being met by a particular agent, it's best to set the record straight early in the process, either to correct the problem or to retain alternate representation.

Working with a Buyers Agent can often result in a net savings on property purchases—whether traditional resale homes or foreclosure properties, and can also help inexperienced home buyers from making costly mistakes in negotiations, contract terms and property research.RealtyTrac 3/10/09