Ozaukee & Washington County Real Estate: January 2011

It's not uncommon to be asked by a potential seller if I will reduce my commission, especially in cases where this individual will also be using my services to purchase a new home. And oh, how I used to cringe when that question would arise. But having been in the business for a few years now and gaining a clear understanding of the time, effort, and manpower it takes to get a house sold, I've learned that saying "no" really isn't so hard after all.

So where does all that commission go?

OFFICE -- rent, electricity, phones, computers, copy machine, fax machine, secretary, sales director, paper, insurance, Closing staff, Accounting staff

SALES AGENT COMMISSION -- cell phone, errors and omissions insurance, tech fees, car expenses, association dues, license fee, personal web site, living expenses, self-employment taxes,

COMPANY PROFIT

CO-BROKE COMMISSION -- Incentive offered to other brokers to show and sell your house

MARKETING -- shorewest.com, billboards, radio, mailings, open house, Shorewest TV, yard sign, Shorewest hotline, smart phone apps, listing flyers

Charging less means spending less.

If the broker spends less on overhead, they wouldn't be able to do the work they need to do.

If the broker reduces the percentage paid to the sales agents, those agents will work elsewhere.

If the broker reduces their profit margin, they won't survive.

If the broker reduces the co-broke percentage, fewer agents are motivated to show their listings.

And if the broker reduces the marketing dollars, homes will not get the same level of exposure, which translates to fewer buyers, longer times on the market and lower sale prices.

I remember when I bought my first house I did the math. I thought the agent, who both listed and sold the house, was walking away with literally thousands of dollars in her pocket on a $100,000 house.

But I get it now.

Those thousands of dollars are covering several paychecks and paying several overhead bills.

I just have to remember that the general public isn't in the business so really have no way of understanding this, and it's therefore my job to explain it to them. And it's my job to prove to them my broker and I are worth every penny.

I recently received an offer on one of my past listings from a "protected buyer." The sellers are no longer together but are still tied to one another because of this house.

Both told me individually that it's time to move on -- that they needed to be done with this. I could hear in each of their voices the "wear and tear" this house was putting on them. You can't help but feel for them.

The parties in the transaction were far apart on the price, and it was easy to see why. It's simply a difference in perspective. One sees the dated kitchen, the dated baths, the old windows, and the oil tank in the basement. The other sees the the financial ramifications of accepting an offer any less than their "bottom line."

I can't help but feel for both parties. Here are two buyers who love the house enough to come back months after seeing it to put in a bid, and two sellers wanting to move on with their individual lives but held back because of financial constraints.

Circumstances like this are something I have yet to "get used to." My heart goes out to those who see the equity in their home disappear but continue to pay the mortgage on time. And when a broken relationship is added to the mix, the situation becomes even heavier.

But it is also in circumstances such as this that each person has to decide for themselves the value in being able to move on. Is it worth bringing some money to closing to get the deal done? Is it worth talking to your lender about a possiblel short sale to allow each of you to move on? What is having the sale of this house behind you worth to you?

I wish I had the answer for any of my sellers faced with this. The answer, though, is within each of them -- only they know, in their heart of hearts, what they are willing to do to close this chapter and start living the next.

Wondering what other handy use you can make of your iPhone or Android? How about search for your dream home?!

Shorewest, Realtors® just released an Android application and updated the iPhone application. The app allows you to:

• search for a location (Android GPS required)
• search for active and sold listings & open houses
• check out recently viewed homes
• sync "MyShorewest" profile
• search for agents by name
• save your favorite properties

         
The free application is available through the ‘Market' on your Android-powered device and on iTunes  http://www.apple.com/itunes/?cid=OAS-US-DOMAINS-itunes.com for your iPhone, iPad and iPod Touch.

Just another great tool to help make your home search just a little bit easier.

LOOKING TO HAVE SOME CHARM IN YOUR LIFE?

Just step inside this updated 3-bedroom, 1-bath cream city brick home, priced at $179,000,
and you'll see it all around.

Warm and gleaming rosewood hardwood floors flow throughout the living and dining rooms.

The newer eat-in kitchen, with an exposed brick wall, has a handy pantry and easy access to the back yard and garage.

The upper level has been completely redone with new carpet, walls, fixtures and 6-panel doors. Each bedroom closet makes great use of space with well-planned organizers.

The bathroom has updates, as well, including new tub surround, drywall, and vanity.

Need a place for toys or workshop? That's here, too, in the oversized 3-car garage. This charmer is just a short distance from Port's downtown and breathtaking marina.

MAKE HOME OWNERSHIP YOUR REALITY IN 2011! 

Effective February 1, 2011, all single-family and two-family homes in the state of Wisconsin will be required to have a carbon monoxide detector installed. This law was signed by former Governor Jim Doyle on March 10, 2010. (All existing multi-family structures were required to have carbon monoxide detectors installed effective April 1, 2010.)

What is carbon monoxide? It is an invisible, odorless, poisonous gas that cannot be detected by humans, but can cause death within a few minutes. It is oftentimes called "the silent killer," causing more than 2000 deaths each year.

This new law requires one detector to be installed in the basement and on each floor (excluding the attic) of the home, and new construction must have the detector hard-wired to comply with national model safety codes. Battery-operated detectors may be installed in existing homes and be combined with a smoke detector. Also, if the home does not have a basement, fuel-burning appliances, or fireplaces, it is exempt from this new law.

While no fines or penalties will be implemented if this law is not complied with, be aware that all home inspectors will be required to check for carbon monoxide detectors.

Whether or not you have plans to sell your home in the near future, don't take any chances. Make it a priority to have the proper number of detectors installed in your home for the safety of you and your family.

If you would like more information, contact Tom Larson, Director of Regulatory & Legislative Affairs at 608-240-8254 or tlarson@wra.org