Sarah Steelman, Century 21 Real Estate Agent

Duplex for Rent

2010-08-09T19:07:00.000-07:00

Duplex for Rent

911 Linden St., Waukesha

Entire building has been weatherized by La Casa Weatherization Program, WE Energies energy audit, and is very energy efficient. Both units have newer furnaces, water heaters, windows, and insulation. Entire yard, front and back, is shared. Driveway and garage are two cars wide, each unit gets one side. Shared basement for storage. Water is included

2 BR Lower $685/mo

3 BR Upper $775/mo

Each unit features:

Laundry hookups
Stove
Refrigerator
Central Air
Hardwood floors
1 Garage space
Near Hadfield elementary school
Near Buchner Park and Pool
Nice neighborhood

Most pets welcome (not all dog breeds). Credit/reference/background check.

Call property manager Sarah Steelman 414-405-8114, sarahsteelman@century21.com

The Home Buyer Advantage Seminar!

2009-06-14T18:10:00.000-07:00

HEY NEIGHBOR!

ARE YOU TIRED OF
MAKING YOUR
LANDLORD’S HOUSE
PAYMENT?

WOULDN’T YOU RATHER BE
BUYING YOUR OWN HOME?

Call 262.522.1230 or
Info@hbcservices.org

HBC Services, Inc. a non-profit, HUD Certified Agency is please to announce a home buyers training course called “The Home Buyer’s Advantage”.

Before going to a lender know the answers to these questions and more:

· How do I know if I am credit ready?
· How much down payment do I need?
· Who are the professionals/business people I will be dealing with?
· Are there grant dollars available to first-time buyers?

ACT NOW CLASS SIZE IS LIMITED!

DATE: July 15th & July 22nd (Wednesdays)
TIME: 5:30PM – 8:30PM
LOCATION: Goodwill Industries Community Room (SW Corner of Bldg.)
1400 Nike Drive, Waukesha, WI 53186

Home Buyer Counseling Services, Inc.
217 Wisconsin, Ste. 207, Waukesha, WI 53186

Free to call and Register- we have professional guest speakers
“Making Homeownership a Reality”

*I will be the Realtor speaker on the 15th. If you would like to attend the seminar you can contact HBC directly or you can contact me and I'll put you on the attendance list. This is a very informational class intended to help you prepare to purchase a home, whether you are looking to purchase now or simply seeking assistance in getting your financial ducks in a row for a future purchase.

FHA allows $8,000 to be used as downpayment

2009-06-14T18:03:00.000-07:00

Consumers across the country can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home. FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger downpayment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.

This will help many potential buyers break into the homeownership role and take advantage of today's low interest rates and competitive housing prices.

The deadline is December 1, 2009!

IRS Guidance for Filing for the First-Time Homebuyer Tax Credit

2009-04-20T18:41:00.000-07:00

IRS Guidance for Filing for the First-Time Homebuyer Tax Credit

Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000 or $4,000 for married individuals filing separately. The IRS recently released additional information to help homebuyers understand the ways they can file to claim the $8,000 first-time homebuyer credit for 2009 home purchases.

For people who recently purchased a home (closed or took up residence in new construction) or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they've already filed their tax return. The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible. "The new credit can get money in the pockets of first-time homebuyers quickly," said IRS Commissioner Doug Shulman.

People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year. The filing options to consider are:

File an extension. Taxpayers who haven't yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.

File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, and then follow up with an amended return later this year to claim the homebuyer credit.

Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.

Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov.From the IRS news release IR-2009-27: http://www.irs.gov/newsroom/article/0,,id=205416,00.html

Quote of the week

2009-04-02T19:13:00.000-07:00

We are what we repeatedly do. Excellence, then, is not an act, but a habit.- Aristotle

Tips For Buyers: Mortgage Application 101

2009-03-27T16:19:00.001-07:00

March 22, 2009, Bankrate.com via MSNBC.com

Don't be surprised if your friendly lender, the one who invites you to sit down and apply for a mortgage, ushers you politely out the door empty-handed after you've chatted a bit.

The sudden chill isn't personal. The Mortgage Bankers Association, or MBA, in Washington, D.C., estimates that about half of all mortgage applicants are now being turned down. Though refinancing approvals remained static, the acceptance rate on mortgage applications suffered a 10 percentage-point drop, from 63 percent in the first half of 2007 to 53 percent in the first half of last year, according to mortgage data tracked semi-annually by the association. Since then, further tightening of credit standards means at least half of mortgage-seeking consumers can't squeeze through to acceptance, says MBA spokeswoman Carolyn Kemp.

Instead of yielding to shame, anger or any of the usual emotions associated with rejection, today's consumers who are intent on buying or refinancing should adopt a pragmatic stance, since clear-eyed determination may eventually land them a loan.

Here's how:

1. Get a read on the reasonIf you've submitted a formal application, federal law dictates that you're entitled to a formal rejection.

Expect an "adverse action" notice, spelling out the reasons for turning you down, which these days is likely to state that the loan amount you're seeking is too large compared to the current appraised value of your home, says Joe Theisen, president of the Wisconsin Mortgage Professionals Association and branch manager of Fairway Independent Mortgage Corp. in Madison, Wis.

If it's not your home's value that's the issue, it may be your personal credentials, such as your creditworthiness, work history or debt load.

When credit is the issue, an adverse-action notice is required, naming the credit reporting agency that provided the data on which the lender based its decision, according to Federal Trade Commission rules. You're also entitled to a free credit report; see the FTC Web site for more information.

Given the odds of acceptance, a lender may not require you to pay a few hundred dollars to submit a formal application, which includes the cost of a professional appraisal on the property. Instead, he may pull a credit score, and tell you what you're likely eligible for, says Marc Savitt, president of the National Association of Mortgage Brokers.

2. Find a fixQualifying for a mortgage isn't a black-and-white issue. Rather, different loans at varying rates may be available, depending on how risky a lender thinks a particular mortgage will be. If you don't qualify at 5.5 percent, for instance, you may be able to get the nod for a loan at 6 percent or 6.5 percent.

However, many borrowers, especially those who are refinancing, need a certain rate to reach the monthly payment they want. Not only are rates higher for risky loans, but there are now upfront "point" charges dictated by Fannie Mae and Freddie Mac, the two big mortgage guarantors currently under government control, Savitt says.

To get a good rate, some borrowers may be able to make changes — like lowering the amount of the loan they seek.

When a borrower isn't far from the qualifying mark, he may be able to reapply and be approved relatively quickly. For instance, if you're within reach of a 740 credit score, which is usually required for the best rate, you might pay down a balance on a credit card and hit the target, Theisen says.

3. Seek out other opinionsNot every lending firm adheres strictly to the same playbook, and one lender may approve what another rejects, says Savitt, who recently had a borrower with good credit turned down for a low down payment, government-insured loan, but found another firm giving the green light.

A local "community bank," meaning a smaller, hometown institution, may be more flexible, contends Diane Scriveri, chief lending officer at Bogota Savings Bank in Teaneck, N.J., and vice chair of the affordable housing committee of the New Jersey League of Community Banks.
"Because we're local, we may know home values better. We still use independent appraisals of course, but we may look at comparable (home values) differently because we know what's really happening in different neighborhoods," she says.

Credit unions, which only offer loans to consumers who qualify for credit union membership, may also be more forgiving, says Tony Emerson, president of the Credit Union League of Connecticut.

"It would be foolhardy to suggest that in every case, you can go to a credit union and get a loan," Emerson says.

Still, he says, some credit unions may judge loan eligibility based upon the unique relationship they have with their members. For instance, many credit unions offer membership to employees of specific companies and would know more about a member's job stability, he says.

4. Give it another tryThe Mortgage Bankers Association is predicting that 30-year fixed rates will hover near the 5 percent range through 2009. So if predictions hold and interest rates stay relatively low, you should have time to try again if the factors behind your rejection improve.
Fortunately, a rejection shouldn't bring down your credit score, says Craig Watts, public relations director for Fair Isaac Corp.

Making a formal application and then reapplying more than a month later could lower your score, but only by about 5 points. Most scoring systems allow consumers to make multiple mortgage applications within a 30-day period without any negative impact on their credit score. But mortgage inquiries older than 30 days will count as a single inquiry if they're made within a 14-day or 45-day window, depending on the scoring model used.

© 2009 Bankrate.com
URL: http://www.msnbc.msn.com/id/29185509/from/ET/
MSN Privacy . Legal© 2009 MSNBC.com

First-Time Homebuyer Tax Credit

2009-03-14T19:50:00.000-07:00

First-Time Homebuyer Tax Credit

Frequently Asked Questions

In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale.

For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009..

Tax Credits -- The Basics

1. What's this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

2. Who is eligible?
Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)

4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what's called "refundable" credit. Thus, if the eligible purchaser's total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 - $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

5. How does withholding affect my tax credit and my refund?
A few examples are provided at the end of this document.. There are several steps in this calculation, but most income tax software programs are equipped to make that determination.

6. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.

7. How is my "income" determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.

8. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI).. Their eligibility for the credit will be based on their MAGI.

9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases-out between $75,000 - $95,000 for singles and $150,000 - $170,000 for married filing joint. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual's income reaches $95,000 (single return) or $170,000 (joint return).
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
Couple's income
$165,000

Income limit
150,000
Excess income
$15,000

The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute)..

In this example, the disallowed portion of the credit is 75% of $8000, or $6000($15,000/$20,000 = 75% x $8000 = $6000)
Stated another way, only 25% of the credit amount would be allowed. In this example, the allowable credit would be $2000 (25% x $8000 = $2000)

10. What's the definition of "principal residence?"
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as "owner-occupied" housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.

11. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.

12. Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage-revenue bond financing will not disqualify an otherwise-eligible purchaser. (Mortgage revenue bonds are tax-exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)

13. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.

14. Do 2008 purchasers still have to repay their tax credit?
YES. The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.

Some Practical Questions

15. How do I apply for the credit?
There is no pre-purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.

16. So I can't use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.

17. So there's no way to get any cash flow benefits before I file my tax return?
Yes, there is. Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer. In many cases their withholding would decrease and their take-home pay would increase. Those who make estimated tax payments would make similar adjustments.

Some "Real World" Examples

18. What if I purchase later this year but can't get to settlement before December 1?
The credit is available for purchases before December 1, 2009. A home is considered as "purchased" when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.

19. I haven't even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You'll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15..

They can extend their 2008 income-tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)

If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.

20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?
No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.

21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.

22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?
No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first-time homebuyer.

23. I live in the District of Columbia. If I qualify as a first-time homebuyer, can I use both the $5000 DC credit and the $8000 credit?
No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.

24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3-year recapture rule applies, as well, to the $7500 credit available for 2008. This provision is designed as an anti-flipping rule.

25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.

26. I have a home under construction. Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
WITHHOLDING EXAMPLES: Note: The impact of estimated tax payments would be the same.

Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000. She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.

Result: Sally's withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.

Situation 2: Nick and Nora file a joint return. Nick is self-employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first-time homebuyers and are eligible for the $8000 refundable tax credit.

Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 - $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200)

Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 - $5000). They also qualify for the $8000 first-time homebuyer tax credit.

Result: Cesar and LuzMaria have been under-withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 - $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.

First-Time Homebuyer Federal Tax Credit

2009-02-28T17:05:00.000-08:00

As you may have heard, significant improvements in the temporary First-Time Homebuyer Tax Credit were signed into law on Feb. 17 as part of the American Recovery and Reinvestment Act of 2009 to provide a housing stimulus for first-time home purchases that occur between Jan. 1 and Dec. 1, 2009.

This is even better news for first time homebuyers! Some of the most noteable points about this federal income tax credit are:

1. Credit maximum was increased from $7,500 to $8,000. The credit is calculated as 10% of the purchase price. Example: If the purchase price is $70,000, the credit is $7,000.

2. Removed the repayment requirement, provided the homebuyer does not resell the home for three years.

3. Eligibility remains for first-time homebuyers only. In this case, a first-time homebuyer is defined as an individual who has not owned a primary home at any time during the three years prior to purchase, but who may have done so prior to that time. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.

4. To be eligible for the full tax credit, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit.

5. The tax credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home between Jan. 1, 2009 and Dec. 1, 2009. It can be claimed on a 2008 tax return (to be filed by April 15, 2009), an amended 2008 tax return, or a 2009 tax return. Individuals should consult a professional tax advisor for exact tax calculations and timing.

Jan. 09: Waukesha County Home Sale Statistics

2009-02-13T09:26:00.000-08:00

2009 is off to a slow start for sellers. While the buyers are definetly out there and are getting great deals, the following is a list comparing January sales over the past 5 years:

Year: # of homes sold
2009 104
2008 166
2007 195
2006 208
2005 215

These numbers account for both single family homes and two-family homes. The statistics were taken from the Multiple Listing Service.

Foreclosure Prevention Counseling for Waukesha, Milwaukee, and Jefferson Counties

2009-01-24T09:21:00.001-08:00

Saving your home from Foreclosure

Who should worry?

You should be concerned if you are having trouble making your mortgage payment for whatever reason. You may be dealing with illness or unemployment. If you've missed a mortgage payment or are struggling to pay your mortgage for any reason, you need to seek help.

How can counseling help?

A housing counseling or credit counseling agency will review your case and contact your lending institution. The counselors will work on your behalf and will know about options that might benefit you.

For foreclosure prevention counseling in the Waukesha, Milwaukee, or Jefferson Counties, there's an organization called HBC Services. To find out more about them, visit their website at www.hbcservices.org.

Home Buyer Seminar

2009-01-16T14:03:00.000-08:00

HOME BUYER ADVANTAGE WORKSHOP

January 2009

hosted by hbc services

Date: Wednesday, January 21st and 28th

Time: 5:30 pm

Location: Waukesha County Administration Building

Room 355

This is a 2 day seminar. I will be the guest realtor speaker on the 21st, and speaking with me will be a mortgage lender. On the 28th the speakers will be a mortgage lender and a homeowners insurance agent. Attendance at both classes is required to complete the course.

For many first time buyers, the mortgage you're obtaining will require you to take a homebuyer education course. This class meets requirements of most lenders. Along with homebuyer education, hbc services offers credit counseling, foreclosure prevention, and has government funded downpayment grants and assistance to qualifying buyers.

Classes are free to attend, however childcare is not available.

RSVP to Rose Sura at 262-522-1230

call me!

Huge Waukesha house for SALE

2009-01-15T14:15:00.001-08:00

347 Delafield St.

Waukesha, WI

Great location, near Downtown!

click here

Brookfield house for sale!

2009-01-15T13:58:00.000-08:00

4630 Parkhurst Dr.
Brookfield, WI

3 bedroom, 1 1/2 bath, 2 car attached garage

click here

Short Sales and Foreclosures: Why They Are Not Always The Best Deals

2008-09-23T17:32:00.000-07:00

Very often I'll come across someone who'll request all the foreclosed properties I have access to. It's from my years of experience that I've found foreclosures are simply not the deal they are made out to be. Not, at least, to the person who's never experienced them before. The reason this market has so many foreclosed properties is because people could not afford their homes after they got into them. The taxes went up, the adjustable rate mortgages adjusted, other expenses went up, whatever their situation was. Below is the definitions of short sales and foreclosures, then I'll discuss why they are not always the best way to go:

Short Sales: A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.

Foreclosures: When a homeowner defaults by failing to make payments on his or her mortgage, the bank or financial institution that holds the mortgage note may foreclose on the property. Foreclosure gives the legal ownership of a property to the bank to allow the bank to recoup its investment.

For a short sale, the owner still owns the property. Some downsides of buying into either of these are…. time. It often takes the bank a long, long , long, time to decide whether or not to accept your offer. They don’t play by the same rules as a 'normal' sale. They have their own rules, and if you don’t follow theirs, then forget about that house. It could take 2 months just to hear a response as to whether or not your offer is accepted. My typical ‘normal’ offer gives the seller 1 – 2 days to respond. And if a better offer happens to come in at that time…you won’t hear about your rejection until after they accepted the other one, which again could be 2 months.

Buying and selling real estate is a very emotional journey. When dealing with a bank-owner, you are a file on their desk. You also might need to take responsibility for fines that were assessed to the home. You could have a home inspection, but know that the bank won’t likely renegotiate. And finally, foreclosures are NOT this great deal of the century that we hear they are. They are often trashed, I showed one just this week that had 3 dead mice floating in the kitchen sink….. And most of all, the bank will still try to get fair market value. Occassionally, once in a blue moon, as lightening does strike and people do win the lottery, you might come across a great deal, but the 99% majority will not be.

September Homebuyer Seminar

2008-09-12T08:33:00.000-07:00

La Casa de Esperanza will be hosting this month's HBC Service's Homebuyer Seminar.

HBC Services is a non-profit organization which offers credit and homebuying counseling, and has various government grants available to qualifying buyers.

This month's seminar is:

Saturday
September 20, 2008
9 am - 3 pm

This is a one day class. Speakers will include a representative of HBC Services talking about credit and how to decide if buying a home is your best financial move at your current situation. I will be the guest realtor speaker and will discuss the whole homebuying costs and procedures and what to expect and when. Other guests speakers will include a mortgage lender, home inspector, and an insurance agent.

This seminar will be jam packed with educational material for whatever stage of homebuying you are in. Seminars are usually held monthly, so if this date doesn't work out for you, please check back for future dates!

To ensure you have a seat and materials, please RSVP to HBC Services: 262-522-1230. For information about HBC Services, visit their website at http://www.hbcservices.org/.

Mistakes Sellers Make

2008-08-20T18:57:00.000-07:00

Sometimes sellers have their own ideas of what is right, what works, and what it takes to sell in this market. This is a list of just a few that I have run into:

1. Pricing too high. What I do for my clients when pricing their house is to pull comparable properties, not just properties in the neighborhood, or what they want for it, and I use the same addition and subtraction that an appraiser would use when setting fair market value. You are much more likely to get a full price offer on a house that's priced right than you are to get a low ball offer on a house that's priced too high.

2. Questioning the first offer. If there's one thing I've learned from my broker (who's been selling real estate for some 40 years) it is that the first offer is usually the best offer. It's likely from the person who's been out there looking and just waiting for their perfect house to show up.

3. Not responding to all offers. Sure a low ball came in, but what do you expect from a buyer in this market...that's what their programmed to do! Never be the one to let the negotiations die.

4. Using a stager. That's what you're realtor is for! I work with plenty of buyers, and I know what they notice, how they see it, what makes a room look usable vs cramped...let your realtor work for you!

5. Picking the wrong buyer. The highest bidder might not be the best one, especially when it comes to closing day and oops their not qualified after all! Your realtor will be familiar with area lenders and will know the signs of what to look for in qualifying a buyer.

Of course nothing is fool proof. But as you can see, using a well qualified realtor will lessen your chances of making a mistake by using their expertise in marketing, person skills, and knowledge in the closing of the deal. It pays to use a realtor!

Testing Potential Dangers in a House

2008-08-12T08:44:00.000-07:00

When purchasing a home, you have the right to have a home inspection done. You do not have a right to certain testing, unless it's written in and agreed upon in the accepted offer. Some testing you might know beforehand, some the home inspector might recommend. These common tests are:

1) Radon
2) Lead
3) Asbestos
4) Mold

RADON is a colorless, odorless gas that seeps into the home from the ground, such as from a basement. There are radon mitigation systems to remove the gas from the home.

LEAD based paint was used prior to 1978, and can contribute to many health problems. A buyer, when submitting an offer, will need to either ask for the right to have this tested, or must waive their right to testing. There is a separate form that must accompany an offer to purchase on all homes built prior to 1978.

ASBESTOS This fibrous material was very popular in building materials but was banned in 1985. It is still found in many homes. Asbestos is dangerous when it's been disturbed, causing fine dust particles to enter the air.

MOLD The opinions vary greatly. Mold needs water and dampness to grow, and finding the source of the leak is something the home inspector can try to do.

Kudos to The Equitable Bank

2008-07-08T10:25:00.000-07:00

Several years ago I purchased some investment duplexes. To get the lowest interest rate possible, I did what many, many other people were doing at the time...getting an adjustable rate mortage. I knew that it would adjust in 3 years, and I knew the maximum it could adjust was 2%. The first two mortages were with St. Francis Bank, and I was very happy with the service I recieved from them. Unfortunetly, they were bought by Mid America Bank. When the 3 years were up, they adjusted. However, much to my surprise, they did not adjust to the current interest rate. Rather, they adjusted the maximum amount they could! This new rate was way above the the normal interest rate, causing me to incur the cost to refinance, with a different company of course. I was lucky that I was able to refinance...my credit was good, my loan to value was good, and the properties had not depreciated in value. This is where many other people ran into problems though. When their ARMS adjusted, they weren't as lucky.

So this month, my ARM was due to adjust on my 3rd property. I was expecting the worst. However, my lender for this one, The Equitable Bank, did NOT adjust the maximum amount they could. Rather, they adjusted to an amount LOWER than what I could get if I did a refinance! While my payment did raise, it went to a reasonable amount, better than I expected. So my hat goes off to The Equitable Bank! Their action shows they really do care for their customer.

PS my loan officer is Cara Reese, out of the Delafield office! I'd recommend her to anyone.

Closing Checklist

2008-06-02T16:53:00.000-07:00

Alot of my buyers were requesting a closing checklist of things they should do and have in line ready for the closing. To accomodate their request, I've compiled this general list that would apply to everyone in the Milwaukee/Waukesha area.

1. Home owners insurance: you will need to have a homeowner’s insurance policy in place before closing. Check with your car insurance company first, often times you’ll get a reduced rate if you have both your car and home insured with the same company. You can always change down the road, but you need this policy in place before closing.

2. Gas/Electric: Call we energies before closing to have the gas and electric transferred to your name on closing day. 800-242-9137

3. Water: You don’t need to do anything, the bill will be sent to the house every 3 months. The seller’s credit for their portion used for the quarter is credited at closing, and you pay the full amount on the bill when it comes.

4. Phone: Personal preference if you want a land line and with who.

5. Cable: Personal preference, again. Time Warner Cable is the local provider: 800-627-2288

6. Mail: make sure to fill out a change of address at the post office prior to closing.

7. Subscriptions: make sure to contact your magazine/newspaper subscriptions to go to your new address.

8. Amount to bring to closing: your lender will let you know the day or two before closing what the exact amount is. You’ll need to bring it in a cashier’s check or money order.

9. At closing, you’ll receive a HUD 1 statement, you’ll likely be able to use this on your 2008 tax return, so put it somewhere where you’ll find it easily.

10. Movers: if you are hiring movers, have this scheduled well beforehand. Don’t wait until the last minute to pack; you have more stuff than you think!

April is Open House month!

2008-04-10T11:23:00.000-07:00

It's spring and the sun is shinning, the birds are chirping, snow pants and boots are put away...OK maybe not here in Wisconsin, however the buyers are out in full force! Spring is the busy season in real estate. The weather is warmer, not freezing cold, not boiling hot, which makes for nice moving weather, and most families want to be into their new house before the start of the next school year.

April has become "Open House Month". This is a great and fun way to preview houses. Here is some simple open house etiquette:

Introduce yourself, and sign in on the sign-in sheet.

If your shoes are dirty, take them off!

Let the agent know if you are currently working with another agent. You may even want to sign in your agents name and number instead of your own.

Please don't try to avoid the agent! We are not the plague! We are there to show you around the house and answer questions. Homesellers don't really like strangers having free reign in their house.

If you happen to show up at the very end, please only take a quick peek! Chances are the agent has another appointment to get to. If you want to see more for longer, make an appointment for a private showing.

Most importantly, enjoy!

84th Realtors Home and Garden Show

2008-03-31T15:55:00.000-07:00

SHOW VENUE & LOCATION
Wisconsin Exposition Center at State Fair Park
8200 W Greenfield Ave, West Allis, Wisconsin

SHOW DATES & HOURS
Friday, March 28: 11AM - 9PM
Saturday, March 29: 10AM - 9PM
Sunday, March 30: 10AM - 6PM
Monday, March 31: Closed
Tuesday, April 1: Closed
Wednesday, April 2: 4PM - 9PM
Thursday, April 3: 4PM - 9PM
Friday, April 4: 11AM - 9PM
Saturday, April 5: 10AM - 9PM
Sunday, April 6: 10AM - 6PM

ADMISSION
Adults: $8.00
Children 12 & under: FREE

SPECIAL GUESTS & FEATURESVisitors to the REALTORS Home & Garden Show will have the opportunity to get decorating, gardening, cooking and home improvement tips from some of their favorite national and local celebrities.

For more information, visit: www.realtorshomeandgardenshow.com

Sixth Annual Property Owner/Manager Seminar

2008-03-13T09:35:00.000-07:00

The Waukesha Police Department will be hosting its sixth Annual Property Owner(s)/Manager(s) Seminar on Tuesday, April 8, 2008, from 8:30am to 12:30pm. The event will be held at the Meadows Apartments Clubhouse located at 2400 Springdale Rd., Waukesha 53186.

This seminar is to provide assistance to Property Owners and Managers in running an effective apartment complex through education. The seminar will also create and maintain a partnership with the Waukesha Police Department.

Snacks and beverages will be provided!

Please RSVP by March 28, 2008.

For additional information, contact Officer Chip Moilanen or Officer Dean Zastrow of the Waukesha Community Policing Unit at 262-524-3916 or by email at hmoilanen@ci.waukesha.wi.us or dzastrow@ci.waukehsa.wi.us.

Why Fed Rate Cuts Do Not Equal Lower Mortgage Rates

2008-02-29T12:13:00.000-08:00

This is a copy of an email that came to me from Keith Borngesser of Mortgage Bankers of WI:

By Barry Habib, CEO

Last Updated: February 28, 2008

The Federal Reserve has been on a rate cutting spree once more. Many mortgage applicants are calling their mortgage representative and expecting a lower interest rate. Others who have been waiting to refinance are puzzled as to why mortgage rates have not moved lower during the recent five Fed rate cuts. This is difficult to explain to consumers who have watched a 2.25% reduction by the Fed with very little benefit in mortgage rates.

Is a Fed rate cut really good news for mortgage rates? The facts may be surprising. The Fed can only control the Discount Rate and the Fed Funds Rate. This is very different from mortgage rates. A mortgage rate can be in effect for 30-years while a rate set by the Fed can change from one day to another.

It is often said history repeats itself. And if history is any teacher, we can learn from what happened to mortgage rates the last time the Federal Reserve was in a rate-cutting cycle.
The last time the Fed was in a lengthy rate cutting cycle was back in 2001 from January 3, 2001 to December 11, 2001. In the span of 11 months, they cut the Fed Funds rate 11 times with eight of those cuts by 50bp. This resulted in a total of 475bp or 4.75% in short-term interest rate cuts taking the Fed Funds Rate from 6.00% down to 1.75%. Now most uninformed people would naturally think because the Fed cut rates by so much during this time that mortgage rates would follow suit and trend lower as well. Not so. Mortgage rates actually moved higher during this time of significant rate cuts because inflation, the arch enemy of bonds, gradually rose.

Now let’s take a look at what happened with the Fed’s most recent cutting cycle, the first since 2001. On September 18, 2007 the Fed cut the Fed Funds Rate by 50bp. The mortgage bond market briefly enjoyed a “knee-jerk” reaction to the Fed move by closing higher that day, but lost 140bp over the following two sessions. Then on October 31, 2007 the Fed lowered the Fed Funds rate by 25bp. The mortgage bond market responded by losing 78bp over the following five trading days. On December 11, 2007 the Fed once again lowered rates by 25bp and the mortgage bond market lost 88bp in the next three days. So far this year, the Fed delivered a surprise 75bp rate cut on January 22, 2008 and mortgage bonds lost a whopping 144bp in just 2 days. Eight days later and as widely expected, the Fed cut rates by 50bp. Within 13 days from that 50bp cut, mortgage bonds lost 269bp.

Keith then closed the email by saying:

Remember that a loss in bp(basis points) means an increase in mortgage rates. As volatile as the market is right now I do not want to forecast too much, but the experts are looking for short term lowering of mortgage rates.

Have a great weekend.

Keith

Keith Borngesser
Mortgage Bankers of Wisconsin
16655 W Bluemound Road STE 330
Brookfield, WI 53005
262-784-6600 x 224
262-784-6699 fax
262-391-9450 mobile

Home Buyer Seminar, Waukesha

2008-02-05T08:09:00.000-08:00

Where will you live when your lease is up?

A home is the smartest investment you'll ever make.

HBC Services is a non-profit, HUD certified agency which offers free home buying education and credit counseling. Grants and downpayment assistance up to $5,000 may be available to qualifying buyers.

Attend "The Home Buyer's Advantage" Seminar! Realtor speaker Sarah Steelman will explain the home buying process and answer any questions you have. Other professional guest speakers include a mortgage lender, home inspector, and homeowners insurance agent.

DATE: Monday and Tuesday, February 18th & 19th
TIME: 6:00pm - 8:00pm
LOCATION: Goodwill Industries (west end offices)
Community Service Center
1400 Nike Dr., Waukesha, WI 53186

Monday's speakers will be Realtor Sarah Steelman and a mortgage lender. Tuesday's speakers will be a home inspector and insurance agent.

Reservation required! Please call Gina Sanchez, HBC Services, at 262-522-1230 or email gina.sanchez@hbcservices.org.

Visit www.sarah-steelman.com for more information.

Real Estate in December

2007-12-04T08:20:00.000-08:00

Oh yes, it is once again that time...the area between Thanksgiving and Christmas where everyone is thinking about the traveling they'll be doing, the groceries they need to buy for entertaining, the gifts, the mall, the kids programs, the new black dress they want....ok so not everyone will want a new black dress. But, this is the time where the last thing on MOST people's mind is buying a house. And while this is the 'slow season', people are still out there wanting to move. Alot of job transfers happen at this time, and they need a home. The end of the school's 2nd semester is coming up, a good time to move the kids at. Also, right now in our local area (Waukesha, Milwaukee) our interest rates are as low as 5.75% for a fixed 30 year loan! So when people ask me if now is a good time to buy, my response is inevitably YES!

Wisconsin Transfer Tax Fee Shot Down!

2007-10-26T07:36:00.000-07:00

Recently, Gov. Jim Doyle tried to pass a bill to double the WI transfer tax fee. The transfer tax fee is the tax you pay on your home when you sell it, and stands at $3 per every $1,000 of the sale price.

I am very happy to say that this bill has been defeated and the tax will not raise!

The National Realtors Association and the Wisconsin Realtors Association have worked hard to protect home sellers and we have lobbied against this bill since day 1. Our local market remains strong with thanks to their combined efforts.

Milwaukee Housing Market

2007-10-05T11:49:00.000-07:00

I recently was the guest speaker at a First Time Homebuyer Seminar. One thing I really wanted to do was ease their minds about the local housing market. I found an article in the Milwaukee Journal Sentinal (September 11, 2007) that pretty much summed it all up and read that to the class. It was a letter to the editor written by Mike Ruzicka, President of the Greater Milwaukee Association of Realtors, and it goes exactly like this:

HOUSING

News locally is not all doom and gloom

While national housing figures are newsworthy, running the Sept. 7 article with its fervent headline "Housing market in for worse?" on the front page was a disservice to readers. Implying that national housing statistics directly apply here is like checking the weather for the entire United States and assuming the temperature is the same in Boise, Idaho, Houston and Milwaukee.

Foreclosures have increased, but 96% of homeowners in the state are not in trouble and are making their payments. The small increase in foreclosures we have seen is largely a dynamic of the subprime market: greedy Wall Street firms backing loans with overly optimistic terms to people who were marginally able to get into the housing market.

Over the next year, about 10,000 adjustable rate mortgages will reset in our market, but very few will default. That is because homeowners will refinance, just as they had intended when they originally took out the loans.

Readers would have been much better informed with just the facts and less zealous innuendo. The market may get worse - in seven other states. Locally, homebuyers can expect an economy that is in good shape, a variety of homes to choose from and interest rates in the 6% range.

Closing On Your Home

2007-09-13T17:39:00.000-07:00

The mortgage loan closing (or settlement) is the final step to official ownership of your new house. Even though you have a signed purchase contract and your loan request has been approved, you have no rights to the property, including access, until the legal title to the property is transferred to you and the loan is closed.
Every area of the country has its own unique closing customs. Your REALTOR® can guide you through this process and make sure everything flows together smoothly.

At closing, you will sign the mortgage loan documents and pay your closing costs, the seller will execute the deed to the property, and the closing agent will record the necessary instruments to give you legal ownership of the property.

Closing costs vary widely depending on your new home’s price tag, location and other factors. Overall, you can expect to pay between 1 and 3 percent of the sales price.

As soon as you receive your commitment letter from your lender, you should confirm the actual date of loan closing. Usually your real estate agent, lender and closing agent coordinate a date with you. You want to make sure that closing takes place before your loan commitment expires and before any rate lock agreement expires. The closing date also has to allow adequate time to assemble all of the required documentation.

There are standard documents and exhibits that are commonly required for a loan closing. Some of these will be your responsibility. Some of these will be the responsibility of other parties to the transaction, such as the seller and lender.

--Article taken from www.wra.org

Foreclosure Crisis

2007-09-06T16:27:00.000-07:00

Foreclosure Crisis

September 6, 2007

I was watching the nightly news tonight, something I rarely do since my tv never changes from the Nickelodean/Cartoon Network, and a story was on named the 'Foreclosure Crisis'.

Granted the media usually makes the real estate market seem much worse than it is, this is actually a true crisis that is happening within our present day market.

The first thing to do to correct this is to find what caused it. The main reasons: loose lending requirements and adjustable rate mortgages. Combine these two together with a borrower who only lives for the moment and you've got trouble just waiting to happen.

An adjustable rate mortage will have a 'teaser' rate to begin with, typically for 1 or 3 years. This teaser rate, 3 years ago, was much, much lower than the normal 30 year fixed rate mortgage. And the lending requirements....bad credit, no credit, no downpayment....some of these lenders were just letting it all fly out. Recently, a lot of lenders have gone belly up. 3 years ago it was still a seller's market, and some people were paying over inflated prices for their homes. That is part of the reason why they can't just refinance now...the property isn't worth what they paid for it!

So what can a new borrower do to make sure they

don't fall victim to the mortgage crisis? Have a nice amount saved up for a downpayment, that way you'll have wiggle room should the market decline. Also plan for the long run. Go with a fixed rate mortgage so you know your payments won't increase. You'll also need to keep your credit score up. Lenders are becoming much stricter in their lending practices.

Remember, right now it is a BUYER'S market. With historically low interest rates and alot of inventory to chose from, right now is a great time for a well qualified buyer to buy!

Noteworthy Housing Trends

2007-08-14T19:22:00.000-07:00

What are buyer's dreaming of in their next home? Following are some housing trends that are definitely worth watching:

Going Green
Not a green house where you grow plants...but an energy efficient home. This ranges from high-performing appliance, heating and cooling systems, windows, to insulation. Also reducing water consumption. Some extreme forms of green would include capturing rain water and recycling it. The rising cost of energy (and in Waukesha - WATER) is 'fueling' this trend.

Square Footage
Bigger is better? Not exactly....the trend for more square footage seems to be leveling off, and buyers are looking for smaller, better designed homes. This trend is also gaining speed from the rising energy costs, and consumers aren't wanting to pay so much to heat, light, and cool their homes. Another reason for this trend is commute time and the cost of gas. If you work in the city, chances are the homes are smaller than in the outlining country areas. Also, lets not forget our babyboomers. A lot of them are now downsizing. Will this trend keep going?

Formal Living Rooms
This room is often being cut out to make way for a larger family room. Formal living rooms don't seem to be a big hit with gen x and gen y, mainly because it's an 'unused room' and they are looking for more comfortable living space. The formal dining room is still a desired room.

High Ceilings

Master Bedroom
Ready for this? In an article I read "Housing Trends Worth Watching" by Julie Collins, Today's Buyer Rep magazine predicts that by the year 2015, homes with be built with 2, yes 2, master bedrooms! One on the first floor, and one on the 2nd floor. Why? To accommodate aging owners or elderly parents.

So, which trend will stay and which trend will go? Only time will tell!

Preparing A Home For Sale

2007-07-28T08:21:00.000-07:00

In a buyer's market, having a well prepared home for sale will definitely improve your chances of having interested buyers. Preparing a home doesn't mean you need to hire professional stagers to prep up your house. Here are a couple ideas that you can do yourself and will increase the saleability of your home:

Curb appeal: you've got to get the buyer's out of their car first! Plant some fresh flowers, keep the bushes trimmed and the grass mowed. In winter, keep the driveway and sidewalks clear of all snow and ice. Any peeling paint around the house? Faded shutters or doors? A fresh coat of paint goes a long way.

Clutter: remove remove remove! Rent a storage unit if you must! Having things packed in does not represent how much room you have to store stuff (as one seller expressed to me) it only shows how much stuff you have. It's a turn off to buyers. So declutter the closets, the basement, and the counter tops.

Paint! Again, a fresh coat of paint goes a long way.

Dust: sounds simple enough, but really do a thorough cleaning in every nook and cranny.

These are just a few ideas to share on this blog. For a complete list of ideas that won't break the bank or your back, please contact me by either email or phone and I can send it over to you!

How To Catch A Home Buyer's Attention

2007-07-20T10:34:00.000-07:00

What cracks me up most is when I'm searching thru the MLS for properties for my buyers and I see "broker bonus" or extra commission paid to the selling agent. Anything from a higher commission to a flat amount (I've seen thousands of $$) to be paid to the selling agent at close.

This is not a good incentive to get your house sold. The AGENT isn't the one buying the house, the BUYER is. Don't get me wrong, I'd LOVE to receive that extra amount for doing my job, but if I have a buyer and another agent has a house listed that match their criteria, I'm going to show it to them. The extra $2,000 in commission is not going to enable me to make their mind up to buy that house. And I'm certainly not going to push someone into buying a house that isn't perfect for them.

What incentives work? Practical ones that focus on the home price and monthly mortgage payments:

1. Reasonable asking price. Have the most bang for the buck. Be "below assessed value".

2. Offer downpayment assistance.

3. Offer to pay all or some of the closing costs.

4. Buy mortgage points for the buyer to make the transaction more affordable.

5. Include a home warranty.

You can advertise your incentive to bring buyers in if you are not having much action, or you can use them once you have an interested party to sweeten the deal.

Buyer Representation

2007-07-18T19:04:00.000-07:00

In the state of Wisconsin, a buyer can chose to work with an agent in one of 2 ways, as a 'sellers agent' or as a 'buyers agent'.

Buyer representation occures when a buyer enters into a contract with a real estate agent allowing that agent to represent them. A buyer may not enter into a contract with more than one real estate agent.

Seller agency occures at all other times. In Wisconsin, the default agency is "seller agency".

The Multiple Listing Service (MLS) is a service that real estate agents use to 'list' your property. It is also an agreement from that lister to pay the commission (which amount is stated in the MLS for all agents to see) to the agent who brings in the buyer. For this reason, unless there's a signed buyer agency agreement, all real estate agents work on behalf of the seller.

Now there is also a period called pre-agency. Perhaps you've just met an agent and don't know yet if they are a good match for you. The pre-agency period allows the agent to act in a neutral state. Once negotiations begin, you do need to decide how you wish to be represented.

Why chose buyer agency? In most cases, you get all the knowledge and negotiating power of a professional real estate agent at no cost you. Remember, if the house is listed, the seller pays the commision. What if it's not listed? The commission can be negotiated to be paid by the seller, the buyer, or a combination of both. The percentage amount varies, my particular amount is either 2% of the sale price or what is offered on the MLS, whichever is greater.

Also, with an agent working on behalf of you, they are able to negatively critique a property, make suggestions of a purchase price, compare similar properties that have sold, and overall work with your best interests in mind, getting you the best price and terms.

How do you know which agent would be good as a buyer representative? Look for one that has the ABR Designation (Accredited Buyer Representative). This agent has specific training and experience in working with buyers. I earned my ABR in my first year as a real estate agent.

To learn more about buyer representation, please email me and I will send you some information.

About me

2007-07-16T07:28:00.000-07:00

This is the launch of my blogging! I have decided to blog about real estate to hopefully reach out and help people for all their real estate endeavors. The Internet is a great source of information, and today the majority of home buyers and sellers will search online first before contacting a real estate agent. My intent is to be your online source...your "online real estate agent" who's here to answer questions, give you valuable information, websites to visit, all without being that "harassing" real estate agent! No one wants to be bothered, and I understand that.

So, why me? Here's some information about myself...

I am a licensed real estate agent with Century 21 Reich & Roberts Associates. We are located at 161 West Sunset Drive in Waukesha WI. This office has been servicing Waukesha and surrounding counties for around 40 years.

I personally have been involved in real estate for almost 4 years. I started off reading and learning about investing in real estate. The book that got me going is none other than Rich Dad, Poor Dad by Robert Kiyosaki. I chose this broker (Dick Roberts) at this Century 21 office to be my agent because of his vast knowledge in the local housing and rental area. One of his first questions he asked me was "Are you interested in becoming an agent?", to which I quickly replied "No!". I didn't think I could do those 'crazy realtor hours'! Well, after a few years of searching, and searching, and researching, and running numbers, viewing hundreds of duplexes, triplexes, single family homes, making offers, counter offers, and accumulating 3 rental properties, I decided that yes, I am interested in becoming an agent! I was previously a stay at home mom with no idea of what I would do once the kids got older. I wanted to contribute financially to the household, which is why I decided to get into real estate investing. And after doing those 'crazy realtor hours' inadvertently for a few years, I was able to realize that this was my calling. This was my passion. I loved the research, the hunt, the crunching the numbers, the negotiating, and finally the accepted offers.

In March of 2006 I obtained my real estate license. Since then I have also acquired my ABR Designation. The Accredited Buyer Representative Designation is a nationally recognized designation awarded by the Real Estate Buyer's Agent Council, Inc. (REBAC) to REALTORS who meet the specified educational and practical experience criteria.

I am also a REALTOR (registered trademark, sorry I haven't learned how to make this symbol yet, any help would be appreciated!) Only real estate agents who have chosen to join the National Association and abide by its strict Code of Ethics can call themselves
REALTORS(registered trademark).

All of my affiliations are:
National Association of REALTORS (NAR)
REALTOR(registered trademark) (someone help me please!)
Wisconsin REALTORS(R) Association (WRA)
Women's Council of REALTORS(R)
Real Estate Buyer's Agent Council Inc. (REBAC)
Wisconsin Apartment Association (WAA)
Waukesha Area Apartment Association (WAAA)
Metro Milwaukee Multiple Listing Service

I hope this sets a good background of myself and why I do what I do. Any questions or comments are welcome!

Be sure to visit my website at http://www.sarah-steelman.com/ !