Ozaukee & Washington County Real Estate

I think I've written about this topic in the past, but because of some recent happenings, I think it bears repeating.

The first step to buying a house is to get pre-approved.

I know some buyers out there don't want to hear that. You just want to get a taste of what's on the market. What can you get for $150,000? What can you get for $200,000? What can you get for $250,000?

But the bottom line is, it's too risky for me to take the time to search the market for you, to email listings to you, and to drive around showing houses to you if we don't know how much the bank will loan you. And it makes me wonder if perhaps you're not as serious about buying a house as I might have thought you are.

And there's a risk for you, as well. You could walk through a house that you fall in love with only to learn you don't qualify for the price point. Or worse, you could write an offer on a house only to have the seller reject you because you aren't pre-approved.

It's worth it to take the time to talk to your lender about what's affordable to you. It doesn't cost you anything, and it's the most important step you can take toward home ownership.

So please don't back away when the question of whether you are pre-approved comes up in our conversation. It's important for both of us to know the answer so we can determine the best way to proceed with your home search.

You found the house. It's perfect. It has the number of bedrooms you need and the updated bathrooms you were looking for. It's the perfect location in the neighborhood you most wanted to be in. So let's go take a look!

Whoa!!! Not so fast. Have you talked to a lender yet? Do you have that pre-approval letter?

If the answer is "no," there's no need to go look at that or any house just yet. Here are the reasons why.

In today's market -- and even in any market -- a seller will likely not even look at an offer unless they know you've talked to a lender and are qualified to purchase their home.

There are different loan options available. How much of a down payment will you need? Will the type of loan you qualify for allow for repairs to be made after closing? 

You could fall in love with a house you can't afford. Wouldn't it be better to know before you start looking what your price point is rather than get emotionally attached to the perfect house and then find out it's out of your price point?

It could send a red flag to your Realtor® if you opt not to get pre-approved. I'm pretty sure I've lost a couple buyers along the way because I asked that they get pre-approved before we start the search. If they refuse, I tend to wonder how serious they are about their home search. Is there a reason they think they may not get pre-approved?

Getting pre-approved is part of the overall home-buying process; it's something every buyer who is going to finance their home is going to have to complete. And it's to everyone's benefit -- most importantly your's -- to make it the first step.

After working with a variety of buyers over the past several years, I've come to realize I have a wish list -- just some things I would like every buyer to know and understand so we're sure to use both their time and my time in the most efficient way to find the house they are looking for.

And so I would ask this of every buyer:

Loyalty -- I ask that you work with me exclusively, and that means signing a Buyer Agency Agreement. A lot of time, effort and research goes into looking for a house. I run searches throughout the day for you and forward any new listings or price reductions that I think might be a good fit. I need to know that I am using my time the best way I can, and that I will be compensated for that time and effort.

Get Pre-Approved -- The first step to buying a house is to talk to a lender. Find out what type of loan you qualify for. Find out how much house you can comfortably afford. Find out what interst rate you are looking at. If you don't know the price point you should be looking in, there is no reason to begin looking at houses.

Respond to Emails -- Let me know if the listings I send you are of any interest. If they're not, tell me why. Don't let emails go unanswered.

Keep Me Informed -- If anything about your homebuying plans changes, tell me. If you need to look in a different price point, tell me. If you need to consider other communities, tell me. If you need to put your search on hold, tell me.

Allow Yourself to Adjust Your Needs and Wants -- When we start looking at houses, you may realize that what you really want in a house -- all the updates and features -- may not be feasible with your current budget. That's okay. Most buyers won't know until they actually walk through and see homes what they are comfortable spending and what type of home fits that budget.

Understand There is No House Out There That You Will Not Have to Put Money Into -- Plumbing can fail at any time. A roof can spring a leak at any time. A window can break at any time. A strong storm can cause damage at any time. The water heater can go at any time. Part of owning a home is maintaining it. Be sure to keep that in mind when budgeting.

Understand How Real Estate Agents Are Compensated -- I think many consumers assume that real estate agents are paid a salary in addition to commission. That's not the case. We do not get paid until we close on a property. Therefore, I have to do everything I can to ensure that the buyers I am working with are committed to buying and committed to using my services. I cannot afford to work for free.

I love the job I have of selling homes. Seeing the buyer's face when the key is placed in their hand is something that never gets old. Working together as a team and using our time the best way possible will help each of us to reach our respective goals.

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This unit was designed by its award-winning interior designer owner.

• Glass tiled fireplace with custom-built mantel and bookshelves
• Custom-built cherry kitchen cabinets, buffet and butcher block island
• Custom-designed, one-of-a-kind, hand-forged iron railing
• Cherry hardwood and ceramic tile floors
• Cathedral ceiling
• Deep claw foot tub
• Oversize shower stall
• First-floor laundry
• Attached 2-car garage
• Private herringbone patterned patio
• Integrated sound system
• Custom paint job thruout
• On-demand water heat
• Lower level plumbed for full bath

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For any seller or buyer out there who is not yet 100% committed to selling or buying, consider the gamble you're taking in waiting.

If rates increase even one point, the cost in waiting is tremendous. And some of the buying power is lost.

So as a seller, you have to decide. Do you get your house priced where it needs to be to get it sold now, even if that means selling at a lower price than you would like? Or do you keep it priced where it's at and risk losing some buyers in the near future?

And as a buyer, you also have to decide. Do you wait to see if prices drop more and risk losing some of your buying power if interest rates creep up, therefore not being able to afford as much house? And what about the cost? What about the cost over time??

The choice is yours. How much of a gambler are you?

I closed on a house yesterday -- one of my listings. This had turned into one of those "bitter-sweet transactions," with emotions running high.

My sellers had put years and lots of blood, sweat and tears into this house. As they described it, pretty much the entire interior had been gutted and redone over 10+ years. I'm pretty sure they intended it to be a "forever" home, but a job opportunity on the West Coast took them away from this pride and joy of theirs.

With challenging market conditions, the house sat for nearly a year before we got an offer, and probably needless to say, the sellers didn't get what they had hoped to get. Ouch.

The inspection found some relatively minor issues, which the buyer asked the seller to repair, and which the seller agreed to repair. But the cost ended up being quite a bit more than anticipated. Ouch.

As closing neared, the conversations with Mrs. Seller became more emotional. There seemed to be a pure sadness at the reality of having to say good-bye to this house that was hers and some resentment mixed in at the buyer's requests and the cost of repairs.

After we closed, I had separate phone conversations with each seller. I cringed at the sound of defeat in their voices -- how can someone put so much time, energy and money into something and walk away with virtually nothing? Is it worth it? Is owning a home a good investment? Would they ever buy again?

I've seen enough of short sales and foreclosures over the past few years to know the heartache many, many families have had to endure. But I've also seen more circumstances in which sellers have walked away with a great return.

Yes, we are in a tough market -- still. But real estate is still viewed as the best investment.  

I would also have to agree with other articles and blogs that I've read that say owning a home is about more than just a financial investment. It's an emotional one, as well. Those walls are yours. That land is yours. Renovate as you wish. Design your landscaping as you wish. There is pride in seeing your blood, sweat and tears in this structure -- this place you call "home."

So to my seller and anyone else asking if it's worth it to own a house, I would have to say, yes. Yes, it is worth every bit of financial and emotional investment you make.  

I remember those days when we hardly had the sign in the yard, if at all, and already there were multiple offers on a home. Ahhhh....

I also remember those days when we had the sign in the yard for days, weeks, months, even years(!) and there weren't any offers on the house. Gulp....

The experts tell us it will be a few years for the housing market to make a full recovery, and I would say I agree with them. But I would also say I sure am getting a kick out of watching things improve, slowly though it is.

Several weeks ago I listed a home in the town of Cedarburg, and within a day of being on the market, we had multiple offers on it. Over the past few days, I received word of multiple buyers having a strong interest in another listing that's been on the market for nearly five months.

In recent weeks, I've had buyers (unfortunately) miss out on homes they had been thinking about because another buyer came along and wrote an offer. It seems like "sitting on the fence" may not be a very good strategy right now, even with those homes that have been on the market for a long time.

Buyers are out there, and they are ready to buy. They understand that with the low interest rates we have right now, their overall cost of owning a home will be less. They understand that the prices on homes are competitive and offer a great bargain. They understand that they may find themselves in a price war with another buyer if they aren't proactive now.

Thinking about buying a house? Don't get too comfortable on that fence.

A colleague posted a "note" on Facebook the other day directed at buyers and their tendency to make offers that "even put low-ball offers to shame" in this buyer's market. She cautioned them by advising that they might want to mentally prepare themselves for a flat-out rejection.

I could not agree more.

She's right -- it still is a buyer's market out there. But the building you are bidding on is someone's home. There is an abundance of emotion behind each and every listed property. It doesn't matter if the sale is due to downsizing, upsizing, divorce, death, health issues, foreclosure, job change or job loss. 

So when you're thinking about writing an offer on the house of your dreams remember this: 

• Starting out by low-balling with no sales facts to support the price is not an effective or smart strategy. All you do is offend the seller right out of the gate.
• Asking for repairs such as replacing an outlet cover or painting window trim is out of the scope of "defects" as defined in the offer to purchase. 
• Trying to squeeze every last penny out of the seller will not endear you to them.

Consider how you would feel if you were on the receiving end of your offer.

I'm not suggesting a buyer needs to or should include terms based on how they think the seller will react or what they think will make the seller feel good. But showing respect by including terms that are a true reflection of the current market and the home's condition will get you much further along in the process.

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.

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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!