Ozaukee & Washington County Real Estate

Stop and Think before You plan to Change Your Credit Scores!!!!!

Sat, 28 Aug 2010 19:55:58 -0400

Need some clarification on how to best improve your credit scores? Check out this great post by Larry Bettag of Cherry Creek Mortgage and use it as a future reference.

Via Larry Bettag - Cherry Creek Mortgage:

Credit is one of THE MOST IMPORTANT ISSUES IN getting a loan today.

Time and time again, I'm called by a client who says "I PAY MY BILLS ON TIME, BUT MY PEOPLE SAY MY CREDIT STINKS....

Maybe I'll just pay off my credit cards today.....

No, No, No, No Nooooooooooooo!!!!!!"

Truthfully, there is more to a credit score than just making your payments on time or paying off your credit. In fact paying off all your credit today could be a bad move.  Needless to say, I've broken this down so that the complexities of mortgage credit scoring can be understood by the consumer. I reference this a lot when consulting clients. With this information you can self-analyze your situation to make sure that you monitor your scores or raise your scores to where you want or need them. In other words, this serves as a roadmap to building a good credit report.

Here are all 5 factors in the order of importance:

1) Payment History has a 35% impact. Paying debt on time and in full has a positive impact, and late payments, judgments and charge-offs have a negative impact.

2) Outstanding Credit Balances have a 30% impact. Debt ratio of outstanding balance to available credit is important. Keeping that below 50% is wise and below 30% even wiser. It is never a good idea to close an account; the debt ratio will go up and the number of seasoned lines will decrease. Pay outstanding debt down as close to zero as possible and evenly redistribute the remaining balance among the open lines. The increased interest incurred by moving a balance from a 0% card to a 23% card will be minimal relative to what the increased mortgage debt might be with a low credit score. Hitting the maximums of available credit can be very negative. It may be worth calling and asking the credit company to increase your available credit to lower the debt ratio, provided they can do so without a hard credit inquiry.

3) Credit History has a 15% impact. The length of time a particular credit line has been opened is important. A seasoned borrower is stronger.

4) Type of Credit has a 10% impact. A mix of auto loans, credit cards and mortgages is positive, rather than a concentration in credit cards only.

5) Inquiries have a 10% impact. Hard inquiries for credit will negatively impact the score. Auto and mortgage inquiries receive special treatment and 20 inquiries can be made in a 14-day period for auto or mortgage and will be treated as only 1 inquiry. The maximum number of inquiries that will reduce the score is 10. Any inquiries beyond that [11+] in a six -month period will have no further impact on the borrower. Each hard inquiry can cost 2-50 points on a credit score.

Make sense? It does to me. File this away in your back pocket. Every time you want to save 10% on the flashing blue light special for signing up for a new card....well...you may be paying a lot more than that with all of your other credit if your scores drop. Know your facts, call me if you want to talk further on how this may affect you.
Larry Bettag - Regional Vice President, Midwest Region

Illinois FHA Specialist

630-417-7172





An Illinois Residential Mortgage Licensee

Follow me on:

If We Don't Have the Same Goal, Should We Really Be Working Together?

Sat, 28 Aug 2010 19:33:25 -0400

One of the first questions I ask every seller is, "Why are you selling?"

We all know the reasons are many -- job change, downsizing, upsizing, divorce. And many times I've heard the seller slip in, "But I don't have to sell..."

My goal as the listing agent is to get the house sold in the shortest amount of time possible, getting the seller the greatest amount of money possible. So when I hear, "I don't have to sell" as any part of the response to the "why are you selling" question, I have to ask myself, "Does the seller really have the same goal as I do?"

If the motivation to sell is not there 100%, feedback from showings, updates on the current market, and reports on overall activity mean nothing to the seller. And if that's the case, should I really be working with this seller? Probably not.

To be the most effective and efficient Realtor® I need to be, I have to focus my time and energies on the sellers who do share the same goal I have.

I know that in any market -- even with the challenges of today -- every house can be sold -- assuming that's really what every seller wants.

Getting to That Point of Letting Go and Moving On

Sun, 08 Aug 2010 21:36:06 -0400

I admit it. I have a hard time letting go. Personally. Professionally. I hate letting go. Makes me feel like I failed or am giving up.

So when one of my listings nears its "expiration date," I typically contact the sellers a couple weeks before and ask for the opportunity to continue working with them. That has how it has always been for me. Until now.

This world of real estate has changed considerably over the past several months -- it's been a whirlwind of different challenges. And I've learned that there is only so much I, as the listing agent, can do for my sellers.

I can communicate with them on a regular basis and inform them of current market conditions, the competition's prices, the recent solds, short sales and foreclosures. What they do with that information, is their choice.

I cannot force them to adjust the price even if it is clear that needs to be done to get the home sold. I cannot force them to make repairs or minor updates even if those issues are brought up multiple times in showing feedback reports. I cannot change what is happening in the local market.

And I cannot make them respond to my emails and voicemails.

What I can do, however, is choose where to focus my time and energy. I can choose to put my time and effort into those listings whose sellers do understand and accept the current market conditions. I can choose to work with those sellers who, as disheartening as it is, know that to get their house sold must adjust the price to make it compelling to a buyer.

And so that is what I am choosing to do.

Letting go -- it doesn't have to mean failure or giving up. It can mean I am choosing to do what is best for me and my business.

Are You Committed to Working with Me to Get Your House Sold?

Tue, 27 Jul 2010 21:59:03 -0400

Regardless of the reason for selling your house, there has to be a commitment on your real estate agent's part, as well as yours, to get the job done. And in this market, it can be tough.

It can be humbling to hear what your house is worth today. It can create a sinking feeling to learn you probably won't get back what you paid for all those nice updates you made over the past couple of years. It can tear at your heart to find out you may have to bring cash to closing because you owe a bit more on the house than you'll get for it.

But the bottom line is, do you want to sell your house or do you just want to list it?

If you truly want to sell your house, you must pay attention to and hear what the market is telling you. It is that simple, and perhaps that difficult.

What is the feedback you're receiving from private showings and open houses? Are you getting private showings? Are you getting visitors at open houses?

Remember that the buyer will determine the value of your house. It doesn't matter what you need or want to net from the sale. It does not matter.

Depending on the publication you read, it could be another couple of years at least before prices start to turn around - start. And depending on the report you read, prices could fall another few percentage points in the next year or so.

Bottom line is no one knows what will happen for sure in the housing market in the near or even distant future. What we do know is what we have now.

Interest rates, at the time of this writing, are at 4.375%. The supply of homes is great in nearly every price point in our area, and, as you know, prices are down.

So even if you would sell your house for less than you would like to, you would also be buying for less than you might expect to and at these historically low interest rates, which will ultimately cost you less over time.

Assume you are purchasing a $200,000 home, have 20% down payment, and the term of the loan is 30 years. With a 4.375% fixed interest rate, your monthly principle and interest payment would be about $798. If the interest rate were 6%, however, the monthly payment jumps to approximately $959. Over a 30 year period, that's a savings of nearly $58,000.

Is this your time to sell? Should you try to take advantage of these historically low interest rates?

Is it worth taking the risk and waiting to sell?

Just how committed are you to working with your real estate agent to get the job done?

Only one person can answer these questions for you. And that person is you.

Keep a Song and Dance in Your Heart

Mon, 21 Jun 2010 20:48:19 -0400

It's a crazy world we live in. Seems we easily get bogged down with or stressed out about the many things we see going on around us or even in our own lives. Life presents to us so much to worry about or be sad about.

Unemployment. Cancer. Foreclosure. Rising gas prices. Wars. Divorce. Flat tire. Oil spill. Computer crashes. Floods. Death. A house that won't sell. An unmotivated employee. "Going Out of Business" sign. Bills. Drug abuse. Teens struggling to "find themselves." Disappearing savings accounts. Lost pet.

It would be great, wouldn't it, if at any given moment, the world around us broke into some impromptu song and dance, and, for just a few minutes. the troubles in each of our worlds disappeared?

Maybe it's time we all keep a song and dance in our heart -- remember and be grateful for the good that surrounds us.

Remember the sunshine, the opportunity to work, friends, children, laughter, your home, food, good health, a bed to sleep in, vacations, your faith, music, our pets, childhood memories, picking strawberries, bike rides in the country, grandparents, watching your garden grow, a kiss, freedom, and on and on.

Remember to sing and dance -- anytime, anywhere.

Facing the Challenge of Pricing Your Home in Today's Market

Sat, 05 Jun 2010 20:01:02 -0400

Recently my broker, Shorewest Realtors(R), has invited Steve Harney to speak to us about current and expected market conditions. While some of what he has to say is difficult to hear, I think he's helping us to provide the information our buyers and sellers need to make the decisions that are best for them in these ever-changing times.

Following is a recent blog of Steve's that discusses what must be taken into consideration when pricing your home for sale.

WHAT IS IMPORTANT WHEN PRICING A HOME?

by Steve Harney on June 5, 2010

We have shown how even the experts are having trouble determining price in the current real estate market. There are so many moving parts and each part is evolving rapidly. Today, we want to look at the major determining factors in establishing the current value of a residential property.

If you currently have your house on the market or you are considering selling it in the near future, make sure you find a local real estate professional. Request them to explain each of the following points and how they apply to your region or neighborhood. You will be better prepared to determine the best option for you and your family once you have this information.

1. Demand for a Particular Type of House

We realize each home has a unique value based on its amenities; however, buyers look at certain basic requirements (ex. style, number of bedrooms, school district, and proximity to mass transit). You should look at your home and see which category it would fall into. For example, you might have a 4 bedroom colonial in a certain school district. Ask the real estate person you are working with to give you a list of the homes in this category that have sold in the last six months. This will give you an accurate depiction of what homes like yours are actually selling for.

But don't stop there. Take the six month number and divide it by six. That will help you determine the approximate number of buyers that will purchase a home like yours each month. Then go to the next step.

2. Supply of a Particular Type of House

Have the agent prepare a list of all houses like yours currently on the market. Divide that number by the number of monthly buyers you determined above. That will give you the month's supply of inventory of available homes like yours. (Example: 24 buyers in the last six months divided by 6 months equals 4 buyers a month. There are currently 40 homes like yours for sale so divide that number by the 4 buyers per month that buy which equals 10 months supply.)

Once you have that number, you can put the principle of supply and demand into play. In real estate:

· 1-4 month's supply constitutes a seller's market where prices have a good chance to appreciate

· 5-6 month's supply constitutes a normal market with stable prices.

· 7+ month's supply constitutes a buyer's market where prices have a good chance to depreciate

Now take the average price of houses like yours that sold in the last six months and adjust that price depending on which market you are selling in.

· If it is a normal market, list your home at the average price.

· If it is a seller's market, add 10% to the average price and start there.

· If it is a buyer's market, deduct 10% from the average price. (Remember, in a buyer's market there is an excess of inventory supply. That will mean homes will depreciate.)

All of the information above should be readily available to your local real estate professional. They will be ready to share this with you if you ask them to prepare a Comparable Market Analysis (CMA) on your home.

You now have a good idea regarding today's value of your home. However, do not allow your agent to stop there. Other factors will impact the price at which your home will sell. Let's go over them now.

3. Interest Rates

The interest environment has a major impact on home values. The demand for housing increases when rates are low or falling. The demand for housing weakens when rates are high or rising.

Rates are at historic lows today. However, most experts expect rates to climb steadily throughout 2010. As they rise, buyers will be eliminated because they will be priced out of the market. Others will have to buy a home for a lesser price in order to keep the mortgage payment within their monthly budget.

Simply put, there will be a downward pressure on prices as rates increase.

4. Employment Rates

Regional unemployment rates are an interesting dynamic when pricing residential real estate. A person without a job obviously can't buy a home, so areas with high unemployment have less potential purchasers.

There is also another interesting effect the local job situation can have. If the unemployment rate is rising quickly, many people refrain from making big ticket purchasers out of a fear that they might be next. If you are in an area where the unemployment rate has risen lately, the demand for housing will have fallen. That change in demand will impact prices in a negative way.

5. Foreclosures In the Area

We believe that this factor will impact housing values the most in 2010. We define this ‘shadow inventory' as the number of foreclosures currently held in banks' inventories, the number of homeowners seriously delinquent on their mortgage payments (potential foreclosures), and the number of borrowers willing to ‘walk away' from their mortgage obligations.

There will be a dramatic effect on home prices. When and to what degree these discounted properties will be released to the market will determine the severity of the impact.

6. Consumer Confidence

All of the above factors combined will determine whether the American people have an appetite for real estate. The factors will also determine at what price points purchasers will enter the market. If the real estate market seems to be gaining traction, people will buy. If it seems to be about to take a ‘double-dip', the purchasers will retreat to the sidelines. The next couple of months will shed light on this factor.

What does this mean to you?

Piecing all the factors together, we believe that now is the best time to sell if you plan to sell this year. We feel strongly that prices will continue to weaken as the year unfolds.

Annual Village-Wide Rummage Sale in Belgium, Wisconsin!

Mon, 03 May 2010 13:52:40 -0400

Looking for a place where you can find just about anything at a "steal of a deal?"

Then be sure to stop in Belgium this Saturday, May 8, 8:00am-4:00pm for the annual community rummage sale.

A map of all participating households is available throughout town, and food and refreshments will be available at Community Park, located on Main Street Proceeds benefit various local community projects.

Belgium is located about 20 minutes north of Milwaukee right off of I-43 (exit 107).

I Know It Hurts, But What You Need or Want from the Sale of Your Home Doesn't Matter

Fri, 16 Apr 2010 16:29:21 -0400

It seems like things are getting tougher and tougher in the world of real estate. More and more "for sales" are popping up, interest rates have creeped up a bit, the buyer tax credit is nearing its end, and short sales and foreclosures continue to spatter the inventory. And yet, it is still difficult for some to accept that no one is immune from the rippling effects of these conditions.

Those of us who are in the business of residential real estate sales hear it all the time. "I need to net this amount of money, so I need to price my house here." If only it worked that way. But it doesn't. It simply doesn't.

In this complicated market, prices continue to drop. In our area, we rarely see a home sell for its assessed value anymore, much less fair market value. So if a seller is selling within a couple of years of buying and has made minimal improvements, if any, chances are they will not be making a profit. No matter what is wanted or "needed" to net from the sale, the buyer will determine what the home's value is.

Remember that today's buyers are pretty savvy -- they know what you paid. They know what the assessed and fair market values are. They know what comparable homes in the neighborhood have sold for. And they know that home values have fallen over the past few years and unfortunately continue to do so.

If your goal really is to sell your house, you must price it appropriately. A buyer doesn't care how much you need or want to walk away with at the closing table. So price it to sell, not to sit.

What You Pay in "Realtor Fees" Should Have No Bearing on Your List Price

Sun, 18 Apr 2010 11:30:04 -0400

A few days ago I wrote a post, I Know It's Going to Hurt, But What You Want or Need from the Sale of Your Home Doesn't Matter, which discussed pricing your house based on current market conditions and comparable homes, not on what you want or need to walk away with.

It seems that a comment I'm hearing more and more these days, too, is a sort of disgust over the "realtor fees" that will be paid. I think I prefer to believe that most consumers simply don't know or understand how the commission is paid (i.e., only if we close) and what that fee pays for. I know before I got into the business I thought the agent got "all of that." But that's just not the case.

That fee pays for, among other things:

MARKETING/ADVERTISING
CLOSING DEPARTMENT PERSONNEL
ACCOUNTING DEPARTMENT PERSONNEL
PROFESSIONAL PHOTOGRAPHER
SHOREWEST TV EXPOSURE
ONLINE GUIDED TOUR
24-HOUR HOTLINE
OFFICE SUPPORT STAFF
SALES DIRECTOR
SELLING AGENT
SELLING BROKER
LISTING AGENT
LISTING BROKER

Several months ago I wrote another post, So What Do Realtors Do All Day, to help shed some light on the time each of us invests into each of our listings and the expenses we incur. It isn't intended to muster up some sympathy for the time and energy that's exerted to get a house sold; it's intended to help the general consumer understand that "that realtor fee" is, quite frankly, money well spent.

But just as what a house is listed for should not be based on what you "need or want" to net, neither should it be padded to cover what will be paid in commission.

I know this market is frustrating, and whether you admit it or not, humbling. But without the dedication and work of a professional Realtor(R) and all the people "behind the scenes," the process would be even more frustrating.

When you look at the overall picture, you'll see it is money well spent.

A "New Beginning" Day

Mon, 05 Apr 2010 19:55:35 -0400

It seems like there are a few days throughout the year that suggest opportunity for a "new beginning." New Year's Day. Our birthday. The first day of Spring.

The older I get the more sentimental I feel about where I am in my life versus where I want to be. Postings of life events and photographs by friends, family, co-workers, and customers on social networks have me longing for more both personally and professionally. And sometimes I wonder if my chance at those dreams and goals has passed.

But then a "new beginning" day comes along -- like yesterday, Easter Sunday, the happiest day in the Christian church. A day of renewed life and hope. And belief.

And so today has been a day of remembering and focusing on the final outcomes -- those goals I have set for myself. Though I don't necessarily see yet how each of these will be achieved, I have to believe I'll be shown the best way to get there.

And I have to believe my chance hasn't passed.

A Dog's Purpose

Sat, 13 Mar 2010 18:54:36 -0500

No introductory words needed here. This one speaks for itself. Thanks to Gary Woltal!

Via Gary Woltal - Associate Broker REALTOR® Dallas Ft. Worth (Keller Williams Realty):

These words were passed on to me from a very dear one, and while part of it I remember reading in the past with the forwarded emails, this one also had new parts in it for me as well. I hope you enjoy it as much as I did.

A Dog's Purpose? (from a 6-year-old).

Being a veterinarian, I had been called to examine a
ten-year-old Irish Wolfhound named Belker. The
dog's owners, Ron, his wife Lisa, and their little boy
Shane, were all very attached to Belker, and they
were hoping for a miracle.

I examined Belker and found he was dying of cancer.
I told the family we couldn't do anything for Belker,
and offered to perform the euthanasia procedure for
the old dog in their home.

As we made arrangements, Ron and Lisa told me
they thought it would be good for six-year-old Shane
to observe the procedure. They felt as though Shane
might learn something from the experience.

The next day, I felt the familiar catch in my throat
as Belker 's family surrounded him. Shane seemed
so calm, petting the old dog for the last time, that I
wondered if he understood what was going on.
Within a few minutes, Belker slipped peacefully away.

The little boy seemed to accept Belker's transition
without any difficulty or confusion. We sat together
for a while after Belker's death, wondering aloud
about the sad fact that animal lives are shorter than
human lives...
Shane, who had been listening quietly, piped up,
''I know why.''
Startled, we all turned to him. What came out of
his mouth next stunned me. I'd never heard a more
comforting explanation. It has changed the way I
try and live...

He said, "People are born so that they can learn
how to live a good life -- like loving everybody all the
time and being nice, right?" The six-year-old continued,
"Well, dogs already know how to do that, so they don't
have to stay as long.''
Live simply.
Love generously.
Care deeply.
Speak kindly.

Remember, if a dog was the teacher
you would learn things like:

When loved ones come home, always
run to greet them.
Never pass up the opportunity to go
for a joyride.
Allow the experience of fresh air and
the wind in your face to be pure Ecstasy.
Take naps.
Stretch before rising.
Run, romp, and play daily.
Thrive on attention and let people touch you.
Avoid biting when a simple growl will do.
On warm days, stop to lie on your back on
the grass.
On hot days, drink lots of water and lie under
a shady tree.
When you're happy, dance around and wag
your entire body.
Delight in the simple joy of a long walk.
Be loyal.
Never pretend to be something you're not.
If what you want lies buried, dig until you find it.
When someone is having a bad day, be silent, sit close by, and nuzzle them gently.

ENJOY EVERY MOMENT OF EVERY DAY!

FOR SALE: 3 Bed/2.5 Bath Home for Sale in Trenton WI

Thu, 11 Mar 2010 11:07:19 -0500

Great Home in Quiet Neighborhood!

6854 Dennis Path
Trenton, WI 53090

$227,000

MLS #1129434

Beds:

Stories:

Subdivision:

Mapledale

Baths:

2.5

Garage:

2.5+

County:

Washington

Description

The spring home-buying season is here! Abundant sunshine filters throughout this gem, which is set in a well-established, quiet neighborhood. Enjoy preparing meals in the eat-in kitchen complete with great counter and cabinet space. The family room has a gas fireplace and enough room for formal dining area, office or study. An extra-wide staircase leads to the second level, which has three generous-size bedrooms and a full bath. The lower level is plumbed for another bath and could be easily finished for additional living space. Other features include first-floor laundry, deep closets, new furnace, and 2.5+ car garage with above-ceiling storage. Make this one yours! Year built/square footage per assessordata.org., not verified by broker.

Features

Interior:

Eat-in kitchen, gas fireplace in family room, first floor laundry

Exterior:

Electric garage door opener, paved driveway Miscellaneous: Quiet neighborhood

Agent/Broker Info

List Office:

Shorewest Realtors

List Agent:

Peggy Wester

Phone:

(262) 375-4108 ext 325

Cell:

(262) 370-1757

Website:

http://www.peggywester.com

Email:

pwester@shorewest.com

Finding Hope in Today's Real Estate Market

Thu, 04 Mar 2010 10:57:09 -0500

With the April 30 homebuyer tax credit deadline looming around the corner, it seems there's a growing sense of panic amongst real estate agents, sellers, buyers, and the public in general. What is going to happen to the real estate market after April 30? No one can say for sure, but in this interview, Steve Harney provides some insight and most importantly what we all need...hope.

Steve Harney Interview Rockford Illinois

WHEDA Returns!

Fri, 12 Feb 2010 21:22:13 -0500

After a brief absence, the Wisconsin Housing and Economic Development Authority (WHEDA) program is back! So along with great tax credits and great interest rates, there is yet another great reason to buy a house NOW!

The WHEDA program is returning March 1, and there are a few different options available to buyers.

The WHEDA Fannie Mae Advantage requires less of a down payment and eliminates some typical mortgage fees. This results in you getting a more affordable 30-year fixed rate loan product.

The Wisconsin Neighborhood Advantage Program loan is only available in Brown, Kenosha, Milwaukee, Racine, and Rock counties for a limited time and is intended for foreclosed and vacant single-family properties. The loan can also be used to finance limited home repairs.

The WHEDA Home Improvement Advantage loan is offered to WHEDA homeowners only to complete a maximum of $10,000 in home repairs.

Purchases in Ozaukee and Washington counties are not confined to first-time buyers. The income & purchase price limits are:

1-2 member household income $73,000
3+ member household income $89,000
Purchase price limit $285,000

You can find more detailed information at wheda.com.

Oh, The People We Meet

Fri, 12 Feb 2010 09:15:41 -0500

This April will mark eight years since I stepped into the world of real estate sales. Eight years -- who would have thought? That is a record for me; I've never been at any other job that long. But then again, this is the first time "going to work" hasn't felt like "going to work."

I've certainly met a number of memorable folks during my career as a writer, which is the world I was in prior to real estate. But for whatever reason, it hasn't been until now that I feel a special and unique connection with the people I meet in this job I have now.

Several days ago, I received a call from a buyer I had been working with for a while. She called to let me know she has decided to move out of state, closer to family, and would therefore not be purchasing a home here. Through our conversation, she disclosed some challenging times she'd been facing and the difficult decisions she has had to make. Although she had obviously been struggling, she seemed to now have a good grasp on what she needed to do. As I told her, she is wise beyond her years. She thanked me for the time I spent with her looking for a house and apologized that a sale was not to be.

As a writer, I don't ever recall having my time and efforts acknowledged to the degree they are as a real estate agent. While there are, of course, exceptions, I continue to be humbled by the kind and sincere words of thanks and appreciation my buyers and sellers express throughout the transaction. The amount of time spent with each gives that opportunity to move a bit beyond the "business" relationship and get to know them on a more personal level.

I find that most share a sense of humor about life, all have had hardships they've endured, and all ultimately want the same thing in life -- to be happy, to simply be happy.

I never thought selling homes would result in some great friendships with the buyers and sellers I'd meet along the way. But how lucky am I that things turn out that way.