Central Station - The Hub for Real Estate News

Maple Bluff Lake Home for Sale - 45 Cambridge Rd.

2010-08-02T13:39:00.000-07:00

Tax Credit Expiration = Great Time to Be a First Time Home Buyer!

2010-06-14T13:40:00.000-07:00

With tons of houses on the market, it just seems logical that you would be able to find the home of your dreams, at or below your price range, in your ideal neighborhood.....and all with just going to a couple of Open Houses. Two weeks max, and you would be at the closing table, ready to accept the keys to your first home!

Yeah, right. On average, it takes first time home buyers 18 weeks to find a home, as opposed to 10 weeks that repeat home buyers take for their home searches. Most first time home buyers take a while to get their bearings while looking at homes, not quite sure what they like and what they don't, and it does take a few trips out for them to formulate what they really want in a home. When I get feedback from other Realtors on my listings that are perfect for first time home buyers, I always sigh a bit when I hear, "They liked the home, but it was out first time out looking. We'll keep it in mind." Yes, sometimes first time home buyers find their dream home right away and quickly submit an offer, but the majority of the time that doesn't happen, even if it is their ideal place.

Now, let's talk about you. You missed the tax credit deadline and therefore missed the $8,000 tax credit. Are you screwed? Not hardly! Without so much competition from the other first time home buyers out there who have already submitted their offers, you are in a great position to negotiate with sellers who may be worried that you are their last chance for this year. In addition to that, you can expect to see home prices declining slightly in response to the tax credit expiration (and the shadow inventory of foreclosures about to hit the market....but that's a story for another day, gentle readers), so while you may not have that cash in your pocket from Uncle Sam, you may break even with a lower purchase price and solid term negotiation.

So don't be discouraged! It is still a great time to be a first time home buyer, and just because the tax credit expired does not mean that you should suspend your home search whatsoever. With so many properties on the market, your perfect home is out there and ripe for the picking!

45 Cambridge Rd. - The Best Lake Home Deal in Maple Bluff!

2010-06-03T06:50:00.000-07:00

Drive down the quiet, tree-lined street and pass the classic and well-kept family homes that border the wide avenue. You turn in at 45 Cambridge Rd. and enter the circular driveway of this charming English Tudor home. After a tour of the home with loving admiration of the original craftsmanship, you head to the back porch and your ultimate goal - Lake Mendota.
With 80' of frontage, 45 Cambridge Rd. has the best location in Maple Bluff. A sandy lake bottom makes swimming and floating fun for everyone, with a shallow depth that is safe for kids of all ages, but deep enough for boats to land. Head down the street a bit and admire the Wisconsin Governors Mansion, or keep going and enjoy your privileges at Maple Bluff Country Club.
Listed at $1.3 million, this is truly the best deal in Maple Bluff. Ask me for comparables - I have them all at my fingertips, and you will be surprised! Want to build you dream home? This level lot is ideal for a knock-down. I have all of the building requirements and surveys and will happily send them to you!
Contact me at heidit@restainohomes.com or (608) 239-0592.

Foreclosures: An Overview of the Wisconsin Process

2009-11-11T15:20:00.000-08:00

With unemployment hitting 10.2% this week, we can expect to see more foreclosures and short sales cropping up on the market over the next year. Sure, the media is painting rosy pictures about the real estate market turning around, but the numbers do not take into account the unemployment rate, and the sheer fact that foreclosures take a long time to file. The foreclosures that we are seeing now are very likely from people defaulting on their mortgages a year ago - which means that we won't be seeing foreclosed homes from folks who are just starting to default now until next year. That being said, if you are a buyer or a seller, it is important to know the foreclosure process and how it could affect you.

Act I: The owner misses a payment.
When an owner misses a mortgage payment, the bank issues a Notice of Default. This is not publicly filed, and it tells the owner that they missed a payment (or more than one) and to please please please pay them.

Act II: The Foreclosure is filed.
If the owner then continues to fail to make payments, the bank will go forward with a Foreclosure Filing - this is public and in fact can be searched on CCAP. The owner is served and has 20 days to "answer" the filing, or basically admit to everything written in the filing.

Act III: Lis Pendens is filed.
This is a written notice to creditors that foreclosure is being filed. It doesn't mean much to the owner or really the bank for that matter - it's just required by the State of Wisconsin.

Act IV: Judgment.
A judge decides that the owner is in foreclosure and this signals the end of the foreclosure process, and the beginning of the Redemption Period.

Intermission: The Redemption Period.
During this period of time, the owners are allowed to try to pay back the loan in full to prevent foreclosure - this nearly never happens. So how long does this period of time last? Many people will tell you that you have a year - in most cases, this is not true. State law says that the Redemption Period is one year long, unless the bank waives their right to a deficiency (the money owed the bank from the original loan after the home is sold if there isn't enough to cover it). If they do waive that right - and they always do - then the time period is shortened to six months. Why would a bank bother to wait an extra six months for a debt that the owner would most likely not be able to repay? Banks can also decrease the time period to two months if they claim abandonment of the property - that is, the owner either moved out completely or is renting the home.

Act V: The Sheriff Sale.
If the Redemption Period ends without a sale of the property (usually a short sale) or some other agreement, the property goes to auction. I'm sure you've probably seen the commercials - "Get this property for only $20,000!!!" Does that actually happen? Ummm.....no. Generally, the bank sets the minimum bid at what they are owed on the property and "buy back" the property if there are no higher bidders. If there are higher bidders, they are required to put 10% down immediately upon winning the auction. If not, the bank buys the property and is free to market it.

The Finale: The Sale of the REO
Here's a little political correctness for you: the real estate industry prefers to call foreclosures "REOs" instead (Real Estate Owned). Is there a difference? Not really, it just sounds better on a listing description. Once the bank gets the property, they hire a Realtor and put the property on the market. From there, the sale goes forward like a regular listing, except for some more paperwork to go with the offer to purchase.

If you are interested in buying a REO, there are a few things to think about when making your offer:

Put forth your highest and best offer first. Banks don't want to go back and forth with long negotiations, and you are most likely going to get a good deal on the property anyway, so don't mess around.
Understand that you may be buying a property "As Is." Beware that the bank may not want to fix problems in the home, so the property may not pass the inspection with flying colors. Talk to your lender to see how your loan is affected by problems in the home. For example, FHA loans will fall through in some cases if the inspection finds paint chipping away and it is not rectified prior to closing.

If you think you may be going into foreclosure, speak with an attorney immediately to discuss your options.

"Oh, We'll Just Reduce the Price Later" and Other Silly Sayings

2009-11-10T13:14:00.000-08:00

As a Realtor, one of the trickiest times during a listing presentation is when discussing the subject of price. Of course, every seller wants to get the highest price on their home, but sometimes that desire, and the inherent pride we carry for our houses clouds the decision on how a home should be priced. Before I go to a listing presentation, I research the neighborhood and look for comparable houses that have sold, are currently active, or had their listing contracts expire within the last six months. From there, I look at factors that would increase or decrease the price of my listing versus what is out there, and I also contrast the price per square footage to make sure that my house lines up with the rest of them.

But come on now, who really cares? It's not a big deal if a home is overpriced! You can just wait to see if anyone bites, and if they don't, just reduce it later!

Afraid not. Here are some of the ways that overpricing can hurt your sale chances, sometimes irreparably:

Reduction in buyer activity. You could have a lovely home that presents well on every real estate website out there, but if the price is too high, your buyers will not have that necessary motivation to click the button to schedule a showing. Likewise, if a buyer's agent sees that your house varies in terms of price per square footage or just plain recognizes a home is overpriced, they will find comparable properties in the neighborhood to show their clients and not go near yours.

Attraction of the wrong prospects. So you're getting buyers, but you aren't getting any offers. This is most likely because you have buyers who are willing to go through your home because it is within their price range. Unfortunately, when they get to your home, they find that it is smaller, older, has fewer updates, etc. than the other houses they are seeing that are priced appropriately.

You help sell the competition. Just like the previous point, this works for folks who may come through your house and then head to the listing down the street that is priced below yours. If the buyers see a comparable property that is priced right, your home makes them think that they are getting a better deal and they'll put an offer in there.

Appraisals come up short. This is the worst nightmare for real estate agents. Here we are, we've found the buyers, they've put in an offer and they have the financing, but now the bank won't finance the deal because they appraisal came under the selling price. This is a problem for folks who figure that they'll just wait and see if anyone will accept their asking price - even if you do find someone, you could be out of luck because the bank won't want to issue a loan to a buyer who is in love with your property who may never be able to truly pay it back.

Hopefully now you're sufficiently scared off of overpricing your home. But how do you tell if a home is overpriced?

It's been a month and there have been no showing requests. When a home is put on the market, there are tons of notifications that go out to interested buyers, agents, brokers, etc. Obviously, the proportion of new listings to existing listings will be higher, so people take notice when something new comes up. However, if you haven't received any showing requests, it could be because the house is overpriced and buyers recognize that and buyers agents do not want to show the home.

Higher Days on Market. In this down economy, this may not be as big of an indicator as it once was, and shouldn't necessarily be taken into account for luxury or lake homes, but if a home has been on the market for more than six months, it could be overpriced.

There are comparables in the neighborhood that are priced much lower. You can either research this yourself, or ask your agent to provide this information. If you have a house that is listed at $300,000 in a neighborhood where other similar homes are listed at $250,000, it is pretty unlikely that higher priced home really warrants that dollar amount.

As always, I am open for questions and am more than happy to review home pricing with you!

Updates and Increasing Your Sale Price

2009-11-04T13:30:00.000-08:00

I often get the question from sellers, "What do I need to update in my house?" This can be a tough question to answer because, unless it is brand new construction, there are generally a multitude of areas that can be updated to fit 2009. As you all know, fashion trends change over time, and that is no less true about interior design trends. While pink and teal toilets and sinks may have been all the rage in the '70's, those are a huge deterrent to buyers now. I mean, yes, buyers can live with a pepto-bismol inspired bathroom, especially if the fixtures are still working, but most buyers would take one look at them and head to the next listing. With the current market favoring buyers, it is important to assess your home from the viewpoint of what you should update to give the impression of an up-to-date home. Here are a few areas that are heavy hitters:

Carpeting: As recently as the 1990s, people loved carpeting. Actually, many elderly folks still prefer carpeting - I recently saw a gorgeous condo in downtown Madison that was perfect except for the overly-plush carpeting that covered everything except for the kitchen. Nowadays, hard wood floors are not just a plus, but pretty much expected. If you have a house that was built in the 1980's or afterwards, you're probably stuck either leaving the carpet or pulling it up and putting in wood floors. But if you have an older home, there is a good chance that those threads are covering wood beauties that just need a little sanding.

Wood Paneling: Ugh, I am so glad this trend is gone. It's like the 1980's had everything is reverse - no wood on the floors, but plenty of wood on the walls. This one isn't a huge deterrent for buyers, but it is relatively easy to rip off the paneling, re-drywall if needed, and then slap a new coat of paint on.

Wall Paper: This kind of goes back to my article on staging, but it's the same concept. Nobody wall papers anymore - it's all about painting the walls. Rip down that pattern with the border and paint it either a neutral color or plain white.

Kitchen Appliances: If your appliances are older than dirt, they'll not only look old, but very likely look kind of dingy from years of cooking. You can go to plenty of appliance stores and get a great discount for buying new appliances for the entire kitchen and boom, you have a completely updated room to promote.

Window Coverings: Gone are the days of froo-froo draperies. Here are the days of minimal, functional window coverings that are generally there just to let down or bring up. For this, instead of trying to guess what your buyer would want, it is best to offer an allowance for them to go out and choose what they would like and to have it installed prior to closing.

Basements: If the basement is unfinished, you can add a lot of value and square footage to your home by finishing it with some drywall, a ceiling and flooring. Caveat: do NOT attempt this half way. If you go the cheap route, people will notice and it will end up being a deterrent. Nothing is worse than pricing a home that has a finished basement only to find huge water stains in the carpeting a week later because the owners finished it as cheaply as possible.

Master Bathroom: If you don't have one, see if you can put one in. If you do have one, make sure that it has a shower, a tub, and double sinks. Personally, I'm not too concerned with the master bath having a tub considering the multitudes of buyers I work with who all say, "That doesn't matter to me, I never take baths." However, agents will look at that and immediately reduce the price of the home. If you can have a tub and a walk-in shower, that is ideal.

Exterior: When buyers walk up to your house, they expect it to be clean and have a nice coat of paint. Hire a power washer and spray away the dirt. Then, either hire a painter or paint at least the front steps yourself. Nothing is worse than approaching a house with pealing paint - it really sets the mood for the rest of the showing.

Remember, you don't have to do everything to get your home price to rise, just update the areas that buyers would really notice. A great way to help prioritize is to tour other homes in your neighborhood that are within the price range you would like to ideally be in. Likewise, you can consult your local friendly Realtor for advice, considering that the majority of our working lives are spent touring homes or all shapes and sizes.

Short Sale: The Most Ironic Real Estate Term Ever

2009-10-28T14:24:00.000-07:00

A few years ago, you would see "SHORT SALE!!!!!" included in listing descriptions, enticing people to look at the home, ensuring them that they were getting a great deal. Today, since there are so many short sales on the market, will you rarely see it proclaimed in the description. Usually, the information will just be silently listed in the "Terms" section. Why the switch in stigma, and more importantly, what exactly is a short sale?

A short sale occurs when homeowners sell their home for less than they owe on their mortgage. The lender then receives the proceeds of the sale, and generally forgives the seller the difference. This process allows both the lender and the home owner to not only avoid foreclosure, but also the negative consequences that occur for both parties (do NOT believe anyone who tells you that banks gave out inappropriate loans in 2005 in the hopes that they would gain all of the properties through foreclosure proceedings - banks must pay hefty fees and go through an incredibly complex process to foreclose on a home that can take over a year).

Easy peasy, right? The home owner sells their home quickly, moves on with just a mark on their credit report for the next seven years, the bank gets some proceeds from the sale, they both avoid foreclosure, and the buyer gets an amazing deal on a house! Pizza and cake for everyone! Well, in FantasyLand it happens that way, but in the real world, it does not.

The reason why "short sale" is such an ironic term is that it can take months, if not years, to get through all of the paperwork and to get all of the parties to agree on a selling price. But wait, since the seller and the lender already agreed to this arrangement, doesn't the bank just have to sign off on an acceptable offer and they can all have cake/pizza at the swiftly scheduled closing? Again, that's in FantasyLand. In the real world, there are multiple parties that can be involved in a short sale, all with some power to prevent it from going through.

Besides the seller and the primary lender (the one who actually holds the original mortgage agreement with the owner), junior-lien holders may be party to the agreement. These folks include secondary lenders (the banks who bought the mortgage from the primary lender, usually in exchange for other equity), tax-lien holders (not real estate taxes, but rather outstanding income taxes, corporate franchise taxes, etc), mechanics lien holders, and even the people who insure the private mortgage insurance, since they will most likely have to pay a claim to the primary lender and want to make sure that payment is as small as possible. All of these people want to prevent the home from selling for too little because that decreases (or increases in the case of the insurers) their piece of the pie. Having to get approval from all of these parties can draw out the process.

Should you never place an offer on a short sale? No, not necessarily. If you see a home and fall in love with it, even if it is a short sale, put an offer in. As long as you are not under a tight time line, you can wait the extra time it would take to get into your dream home. However, if you are first time home buyer and need to close by November 30, 2009, don't even have your agent take you to a short sale listing because you'll most likely miss your deadline and potentially miss out on homes that would fit you just as well.

But for those of you who may want some extra room and don't need to move out tomorrow, or you just put your home on the market, a short sale may be a great choice and can get you into a home that you couldn't have afforded in 2005. As always, consult a Realtor to determine the best path for you. And if your Realtor balks at the thought of putting an offer in on a short sale (because, I'm not going to lie, they are a TON of work for all of the agents involved), give me a call.

All About Offers - What, Why and How Much?

2009-10-26T09:04:00.000-07:00

I was working with a buyer who wanted to buy a condo in downtown Madison. She found a place that was smack dab in the ideal location for her, was completely her style of architecture, and had a view of both Lake Monona and Lake Mendota. She loved it. The condo had to be hers. Unfortunately, she wanted to offer way below asking price because "she didn't mind a little of the back and forth." I told her that I would write the offer, but to be careful because she could possibly lose the place to someone who would offer what ultimately she would be willing to pay - but without the drawn out negotiations. What happened? She lost the place to someone who offered above her - but still below the asking price.

So what can we learn from this? What should you really offer? Should you always do your best offer first? Well, yes, in some cases you should. In others, if you don't mind "the back and forth" and don't feel in danger of another buyer swooping in, start with a lower offer and let your agent do the negotiating. Here are some factors to take into account when discussing what amount you should offer with your agent.

How much do you really want the place? If the property is perfect for you and you just have to have it, why mess around with a low-ball offer? Now, if you just can't bring yourself to offer asking price (I have a buyer who absolutely cannot bring himself to even consider that, but that's really for personal ideals), you should still consider how much the home is worth to you. If the home is worth $225,000 to you, offer $225,000. If the home is listed at $225,000 but it's only worth $215,000 to you, offer $215,000. Just be warned that you should offer what it is worth to you so that if you get it, you paid what you felt was right, and if your offer isn't accepted, you aren't buying a house that you maybe couldn't justify to yourself.

Is it a REO, Short Sale or Bank-Owned property? If yes, than you should absolutely ALWAYS offer your highest and best price. Once again, that could be over listing price or under, depending on how you feel about the place. However, when your offer is being reviewed by the bank, they don't want the back and forth - they just don't have the time to put into lengthy negotiations. In most cases, they will either simply accept your offer or reject it. Don't expect to start low and work your way up - it doesn't work that way when you are working with the bank.

Has it been on the market for a while or is there a "motivated seller"? In this case, you can probably plan for more negotiation possibilities. If the house has been on the market for a while, there is less of a chance that another buyer is just going to pop up out of the blue and steal your house. If the seller is "motivated" that means that they either really need or have to sell their house - moving out of state, divorce, etc. Since they are motivated, they are more likely to be interested in coming to an accord rather than rejecting lower offers outright.

What else do you have to offer? Does it matter to you whether you close tomorrow or in two months? If you can offer a flexible closing date to work around the seller's schedule, that can make your offer more attractive. Being able to show you can obtain financing is nice, but doesn't mean a whole lot in this day and age, so you shouldn't necessarily rely on having your pre-approval letter be your ace in the hole. But if you can bring things to the table such as a willingness to cover the cost of title insurance or not writing in a sale of home contingency, your offer is more attractive.

But let's get one thing clear, gentle readers: you need to know your market and understand what your market's definition of a "low-ball offer" really is. One of the biggest misconceptions I run into - and I have to say, the Journalism major in me is mad at the media for fueling this - is that every market is way down. Arizona? Florida? There is a lot on the market and fewer buyers than projected. Madison, WI? You can find great deals here like the rest of the country if you're willing to go the short sale or foreclosure route, but the majority of homes are selling within their asking ranges and are generally just seeing longer days on market. So while you may be able to get away with offering $100,000 on a condo assessed at $300,000 in Miami Beach, you probably aren't going to get an accepted offer on a comparable property in Madison, WI.

And for my sellers out there - if you get a price that is way below what you expected to get out of the place, go ahead and reject it. But if you get an offer that is within range, don't be afraid to counter it to a higher price. The buyer may just be testing the waters to see how low you would go and are willing and able to pay more than their original offer.

When deciding what to offer, ask your agent for advice and discuss the various factors surrounding yourselves and the property. And for Pete's sake, if you really like a place, just offer your best price right away. You'll be glad you did when you get that accepted offer and move in to your dream home.

Neighborhood Spotlight: Atwood-Schenk

2009-10-22T08:55:00.000-07:00

Located on the near East side neighborhood, Atwood is a close-knit community bursting with young families. With plenty to do within walking distance of any given home, Atwood provides a social atmosphere that is unique to this established neighborhood.

Start your day out right with an amazing breakfast at Monte's Blue Plate Diner, one of the best greasy spoons that you will ever dine at. Any time of day finds this neighborhood favorite packed with young, old, police officers grabbing their morning coffee, and friends catching up over fried potatoes. Once you've had your fill, walk over to the Olbrich Botanical Gardens to take in the lovely walk ways both indoors and out. You can easily keep active on the bike trails that wind their way through the neighborhood, or you can just hang out by the shores of Lake Monona.

If you're in the mood to go out at night, there are plenty of taverns to choose from. However, for something really fun, head to the Barrymore Theater to take in a concert. Arguably one of the best music venues in the city, The Barrymore hosts all different music genres and live theatre.

With the median home price being around $215,000, this neighborhood is great for first time home buyers. Because of this, it is one of the most popular neighborhoods in Madison, with residents generally not having any trouble selling their homes when they are ready to move on to a larger home.

Assessment, Appraisals and CMAs - A Witches Brew for Home Pricing

2009-10-19T09:09:00.000-07:00

I got a call from an attorney up in Marshfield, WI asking me to do a Comparable Market Analysis on a home that is part of an estate. The owner passed away in July and left his property to his church. The church received several offers on the property, but they were not satisfied because the offer prices were all under the assessed value of the home. Without knowing what to do next and with winter coming, the attorney asked me to check out the house and see whether the church's expectations were too high or right on target. I set up a time to meet with the owner's brother and headed out into the pouring rain armed with my notebook and a tape measurer.

The three bedroom house sat on a nice wooded lot with an attached garage and a fenced-in backyard. The brother let me in and crossed the stained carpeting in the living room to pull back the most hideous window coverings I had ever seen in my life. I toured the three-season porch, noted the damaged flooring and the flaking ceiling, and skirted the washer and dryer that were placed prominently in the small kitchen. The pink tub and toilet in the main bathroom were covered with dirt and the teal toilet and sink in the master bathroom could have used a good scrub. When headed down to the basement, I briefly considered using the electric chair that spanned the staircase in lieu of taking the creaky steps.

Did I think that the house would go for assessed value? Not a chance! This house needed a lot of work and, like many properties in Madison, WI currently, would most likely not go for assessed value, let alone for a price above it.

So what good is assessed value? Assessed value gives the tax man something to go on when determining your property taxes. Agents use it as a good starting point to base our pricing off of, but there is much more that goes into pricing a home, and assessed value is absolutely no guarantee that the price you are taxed on will be the price the home will sell for. One of the reasons leading to that is that assessors are required to assess properties each year, but they are not required to take in market conditions and adjust accordingly (but you can bet they do in an up economy....).

Fair Market Value is the price that your agent believes that your house will sell for. We arrive at these asking prices by comparing your property to other similar properties in your neighborhood that have sold in the last six months to a year. We also look at what other comparable homes are actively on the market (aka, your competition) and which listings expired before they sold. We also take into account the condition of the property, the aesthetic properties of the neighborhood, and other factors that may make your price go up or down.

Appraisals come in when an offer has been made on the property and the lender wants to make sure they are financing a loan on a property that is worth the selling price. For example, a buyer finds a house and falls in love with it. Not wanting to lose the property, she offers the asking price of $350,000. When her lender orders an appraisal of the property, the appraiser says that the property is worth $300,000. Woah, big problem. Why did it come in so much lower? Because the fair market value is the price that the buyer is willing to pay, whereas the appraised value is the appraiser's opinion of what a typical buyer would pay. In our example, the house backed up to a busy railroad and was relatively close to a methadone clinic. While the buyer didn't care about either of those factors, a typical buyer probably would, hence the decrease in price.

Does this mean that you should definitely price your home below assessment? Not necessarily - if the condition is impeccable, if there are very few properties like yours on the market, and if your location is desirable, you very well could ask for above assessed value and get it. However, it is more important to look at what other comparable homes are selling for and determine where your home should lie within them. Pricing a home for sale is definitely more of an art than a science. Even if you think you can justify a higher price based on appraisals or assessments, if your home is not selling, then those two prices are not necessarily equal to the fair market value.

If you are interested in what your home is worth or are thinking of buying a home and are wondering whether what they are asking is really fair market value, I would be happy to do a Comparable Market Analysis for you on either type of property. Call me at (608) 239-0592 or e-mail me at heidit@restainohomes.com.

Will the $8000 Tax Credit Be Extended?

2009-10-14T09:01:00.000-07:00

As time is running out on the $8,000 tax credit, many people are asking whether it will be extended through 2010. Rumors abound - some say that yes, absolutely the tax credit will be extended. Others say that it will not only be extended, but increased to $15,000 and will be available to everyone, regardless of income or first time home buyer status. What is the reality? Well, the reality is that at this point, we don't know squat.

The First Time Home Buyer Tax Credit was enacted in February of 2009 and some say that it has done wonders for the real estate industry. In truth, of all of the first time home buyers who purchased a home this year, only 15% of them would not have bought a home had it not been for the tax credit. What does that mean? It means that we Americans are now footing the bill for folks who would have bought homes anyways.

Now, the way I see it, there actually was more value added than those 15% of fence-sitting buyers. I believe that the tax credit got a lot of potential first time home buyers to actually think about home ownership, run through financing options, and start to save for a down payment for the future. Several of my buyers this year told me the exact same thing, "You know, Heidi, I think the tax credit is great, but when I looked at what I can afford in a mortgage payment now, I am going to save up and wait until next spring to buy. Then I'll be able to afford the house I really want instead of jumping into a so-so home because of $8,000." While some say that all of the first time home buyers are gone, I believe that we'll be seeing just as many next year, as those who became interested by the press surrounding the home credit get their finances in order and buy.

Ok, so back to the future of the tax credit. First of all, let's talk about the potential jump to $15,000 and the idea of extending the credit to everyone. Where exactly did these concepts come from? Those terms were specified in a bill introduced in June of 2009. However, whether it will actually get passed through Congress is another story. If we look at the track record of those currently in office, we see that a lot of activity happened in the beginning of the year, but that the frenzy has died down to nearly nothing. Bottom line: there is absolutely no guarantee that this bill will be passed before the current bill expires.

Some critics of the bill say that it would just be printing more money for people who are already planning on buying a house, citing the statistics from the current bill. Let's face it, people are always going to get married, have babies, get divorced and die. Should we increase our national debt for naturally occurring events? The other point that critics bring up is that it raises home prices unnaturally and that if we just followed some laisez-faire logic, we would all realize that the market dictates prices, and folks who are underwater with their mortgages are so perhaps because they simply paid too much money for their homes in a time that shady lending messed with prices.

Personally, I am on the fence. As a Libertarian, I believe in small government, and having government mess with any industry is distasteful to me, to say the least. As a real estate agent, I think it is neat to give people an opportunity to either buy their first home or upgrade from their starter home to one that better fits say, a growing family. Either way, we really don't know at this point what is going to happen. If you want to take advantage of the tax credit, do so quickly. If you want to wait until next year, save your cash for a nice down payment, but don't count your tax credit extension until it's hatched.

So What Is It You Do Exactly?

2009-10-13T15:12:00.000-07:00

I was on the phone with a friend recently, remarking about how busy I've been lately. Now, my friend does work for a local health care software company and a 40-hour week for him would be considered "slow", so I was not that insulted by the pregnant pause that followed. After a bit he cleared his throat and said, "Ummm....doing what?"

Apparently, my friend had the impression that Realtors have it pretty easy - we put houses on the MLS, we hold an Open House or two, and we organize paperwork. Piece of cake! And frankly, that may be true of some Realtors. In actuality, the majority of Realtors work very hard to sell their listings and just as hard to find perfect homes for their buyers. So, here are some of the things that Realtors....do. Or at least the things that I do. :)

Comparable Market Analyses: Before I order any For Sale sign installation, I spend hours researching who my sellers are up against in terms of competition. I don't just look up what other homes are on the market in the neighborhood, I also check out which listings expired, are pending, and which ones were sold - over the course of the past six months if not longer.
Track New Listings and Price Changes: I review the MLS every day to see what has come on the market and what properties have gone through price reductions. By doing this, I proactively find properties of interest for my buyers, and track market trends for my sellers.
Contracts, Contracts, Contracts: Yes, a large part of my day is spent making sure my contracts are air tight. There are so many areas in offers to purchase where, if not reviewed properly, could allow the buyer to walk away from the house - in some cases up to the day of closing. The means that your house has been off the market for what could be months and now you're stuck with putting it back on, all because the contract wasn't written to your advantage. For my buyers, I need to make sure that all contingencies are worded so that if something does go south with the house, they can walk away unpenalized. Plus, there is just a lot of paperwork needed to close a deal and all of that paperwork needs to be filed within specified periods of time.
Marketing: I am not content to just sit and hope that buyers find my listings. Every day, I review who has visited my website, run reports on the online traffic to my sites and identify user trends. With this information, I further optimize my advertising wording and develop alternate ways to reach those buyers. Not only that, I have to market myself! Part of being a Realtor is getting your name out there and developing sales leads. Let's face it - family and friends are a great way to get started in the business, but Uncle John is only going to buy a house every ten years or so. We must supplement our sphere of influence with people we don't already know.
Preview Listings: Instead of blindly taking my buyers to houses sight unseen, I like to preview listings of interest to save them time. I'll set up my own showing appointment, walk through the house, and then give my feedback to my buyer. That way, if there is a horrible smell or the "finished basement" is actually just stained carpeting on a concrete floor, the buyer will know going into it and can decide whether she still wants to see the house.
Feedback: Any time a buyer comes to my listing with an agent, I get on the phone and call that agent personally to get feedback on the listing. Since all of us agents have to play nicely together or risk a bad reputation, agents are generally more likely to take the time to discuss homes amongst themselves than to follow up directly with owners. Sorry, but that's just the reality.
Take Care of Vacant Properties: Going on a vacation for a couple of weeks? No problem. I make sure that your flower beds look pretty, that your cleaning lady shows up, and that your house is continually in perfect show condition.
Open Houses/Broker Opens: For all new listings, I hold an Open House exclusively for other agents. That way, they can come in and see the property and keep it in mind for either current or future buyers. Likewise, I hold Open Houses - check out my post about navigating Open Houses.
Negotiations: In most cases, it take a good amount of negotiation to come to an accepted offer where both parties are happy. This comes in the forms of conversations, counter-offers and addenda.
Post Accepted Offer Paperwork: Once you get an accepted offer, I still need to make sure that all earnest money is received and deposited, title insurance is ordered, the inspection goes well, and facilitate all communication between the seller and buyer.
Blog: But you already knew that. I blog so that I can offer the public help and guidance with their real estate questions. And no blog is worth it's salt if it's not kept fresh. :)

Condo Financing and Why Condos May Become Exclusively 55+

2009-10-09T08:27:00.000-07:00

I love my condo. I am within walking distance to restaurants, UW Badger games, Mondays Pub, and my amazing downtown real estate office. Downtown Madison doesn't offer many single family homes (click here to see what's currently on the market), and those that are available are generally either very expensive, or in poor condition. So for those of us who love living downtown, condos are a fantastic option for more affordable living in brand new construction.

So, that being said, you can imagine my surprise when one of my buyers recently told me he spent four hours researching condos on a Sunday (he's not a big football fan, obviously) and found them to be a poor investment. Poor investment? Really? Nationally, condos appreciate faster than single family homes, and buying a downtown condo is one of the safest investments you can make. However, he actually was right - with new lending regulations and Congress getting their regulatory wish list fulfilled daily, it will become increasingly more difficult to obtain financing for a mortgage on a condo.

AIG recently released a statement saying that they would no longer finance condo purchases in "declining zip codes." They published a list of hundreds of areas where they felt that the condo market was declining and therefore not worthy of their money (*cough* bailout, our money *cough*). Now, condo owners in Madison, before you start to panic, Madison, WI is not on their list, which is yet another indicator that Madison's real estate market is not dire as many other areas, such as Arizona.

Ok, so if you want a condo, don't call AIG about financing. Check. Who do you call? That depends. If you have the means to put 20% down, call any lender. If you don't, you may want to shop around. Fannie Mae and Freddie Mac recently put more financing restrictions in place to make it difficult to obtain financing on a condo if you do not have a large down payment. Both firms said that they will not offer Private Mortgage Insurance for condos in developments where less than 70% of units are sold (up from the previous 51%), for developments where 15% of unit owners are delinquent on association fees, or where 10% or more of the building is owned by investors (read: landlords for the renters who actually inhabit the units). What does this mean for lenders? It means that obtaining financing for buyers who have less than 20% to put down will be time consuming and expensive.

But let's look at this objectively. Fannie and Freddie are actually just protecting you from yourself. Buying a condo pre-construction can be a great way to get an amazing price, plus the added fun of being able to pick out light fixtures, flooring, cabinets, etc. However, you do run the risk of buying into a building where you are the only one who appreciates it. I myself nearly did just that - I seriously considered The Colony on Blair St. a year and a half ago when I was in the market. Had I done that, I would have moved into a 20% occupied building that would later implement a rent-to-own program for new residents.

Now, before you write off condos forever, here are a few things to think about. They are still going to be a wonderful option for empty nesters and seniors (who can most likely afford the 20% down payment) looking to downsize and decrease the amount of maintenance needed, and are still attractive housing for areas where there are not many other options (such as downtown Madison). Also, 30 year fixed rate mortgages are not the only kind of loan out there. I'm not recommending the exotic loans, such as 2-year ARMs, but you can get yourself settled into a nice 7-year ARM and refinance (or more likely if you are younger, move) before the interest rate terms fluctuate. And don't forget to consult your friendly Realtor (aka, me) about the developments you are interested in. We know the markets and will help steer you to a lovely home and a sound investment.

Land Contracts: The Sparkly Platform Heels of Home Loans

2009-10-06T14:10:00.000-07:00

In the 1970s, the housing market crashed. Woah, the housing market was worse off than we are now at some point in history? Yep, it was. At least with our current market, people are only seeing longer days on market and more foreclosures and short sales, not a complete collapse of the system. Yet. What was so rough about the 1970s housing market that only the most hardy of real estate agents dared to take it on? Four words: ridiculously high mortgage rates.

First time home buyers out there, prepare to be shocked. As lenders are doling out the more-than-comfortable 5% or less interest rates to their customers today, it is hard to believe that in the 1970s, interest rates were upwards of 18%! Here is an example: If you bought a house for $100,000 and put down 20%, you would have a monthly mortgage payment of $512.00 at a 5% interest rate. With the same scenario, but an 18% interest rate, your monthly payment jumps to a whopping $1,289.00. Not only is this unaffordable for folks who are looking to buy that $100,000 home, but it makes building equity more difficult since so much money is going towards the interest.

How did people get around this? No matter what the market, people are still going to get married, have babies, get divorced and pass away, so there will always be a market for buying and selling homes. Therefore, instead of waiting for ten years for mortgage rates to decline, buyers and sellers entered into land contracts. Basically, land contracts are where the seller finances the buyer's purchase of their property, most often at a lower rate than is what is currently offered. I was surprised to hear last night that my parents bought not only their first home, but also their second home with a land contract!

In these days of 5%, it seems crazy to think of someone needing a land contract. But with the lending regulations getting increasingly stricter with each passing day, and the forecast of rising interest rates, it is worthwhile to learn from our elders and keep land contracts in mind for the future.

Here's how it works: The seller agrees to finance the buyer, whether it is by unofficially taking over their existing loan, or taking straight payments on the property that they own in full. At this point, the seller still holds the deed to the property. Land contracts are often set up as balloon loans - loans that amortize over 30 years, but are due in 5-10 years. The buyer makes payments to the seller or to an intermediary who passes on the cash to the seller's bank account, and when the time period is up, the buyer either sells the house to pay for the land contract, or refinances with a traditional lender and pays the seller in full.

The benefit of this type of contract is that the seller can often make money on this investment, but the buyer can get also get better terms on the loan than she would from a bank. Sounds like a win-win? Well, sometimes it is and sometimes it isn't. The seller still holds the deed to the property, so it is hard to argue for buyers' rights if something happens, such as the death of the seller, and the buyer could potentially trash the house, which would put the seller's investment at risk. There are pros and cons for both the buyer and the seller, so land contracts should be entered into cautiously, and with the help of your real estate agent and a qualified real estate attorney.

While the popularity of land contracts has risen and fallen over the past four decades, you may be seeing them pop up again in the near future, just like those sparkly platform heels that once graced the dance floor of Studio 54 and are now seen strutting down Hollywood Boulevard.

Staging - The Importance of Evaluating Whether Your Decor Sucks

2009-09-29T12:46:00.000-07:00

I was driving by a For Sale By Owner house the other day and had to do a double take as I sped by. Was that really right there in the window? No way! Could the sellers really have such little common sense that the error of their ways wasn't jumping out at them as well?

No, it wasn't a shrine to Hitler or a sign reading "National Organization of Pedophiles - Ask Us How to Join." It was a simple Barack Obama campaign poster, displayed prominently in their lovely front picture window. Why is this such a gaff? Well, for one, he won the election last year and the poster is a bit outdated. But more importantly, no matter what side of the aisle you are on, having that be the first thing people see completely skews their experience during the showing. If you love Obama, you go through the house thinking about how much you love him, how you named your dog Bo, and how you now insist that your wife do 150 bicep curls twice daily in the hopes that she will someday develop guns like Michelle. If you hate Obama, well.....you go through the house thinking about how much you hate him instead of admiring the antique china hutch the sellers are trying to show off. Either way, you are thinking about President Obama instead of the house that the sellers would really like you to make an offer on - and it's the sellers' fault.

When you decide to sell your home, one of the most important things to remember is that once you put it on the market, it is not your home anymore. It's theirs. When potential buyers walk through homes, they like to imagine their furniture, their pictures of family vacations, and their own political propaganda littering their lawn. So before you put up your For Sale sign, you should take a good long look at your house without any of those pesky emotions we humans battle with, and really imagine how other folks would react when walking through.

I'll give you an example and for your pleasure, gentle readers, I will actually use my own condo and my own decorating sense. In general, my condo is impeccably decorated, most of the walls are a nice eggshell color, and my style is traditional - nothing too wild and crazy. My condo is pretty non-offensize - that is, except for my master bathroom. I love the Caribbean - I love the sun, the sand, the colors, everything! So I obviously painted my bathroom bright bright bright yellow and added in playful accents of fuscia and cerulean. My bathroom makes me smile every morning and gives me a bear hug of brightness during the long winters in Wisconsin. However, when the day comes for me to sell my place, the first thing I am going to do is repaint my bathroom back to white. Why would I cover up something that gives me such a warm and fuzzy feeling? Because not everyone wants a bright yellow master bathroom. In fact, I would guess most people don't want a bright yellow master bathroom. I painted the bathroom yellow because I like it, but I would hate to turn off potential buyers because of something that I could have easily prevented.

Not all buyers are visionaries and can look past lavender wallpaper with unicorn borders - that is why you need to help them do it by stripping your house of what makes your house "yours." By identifying these areas, it doesn't mean that you've been living in a poorly decorated house for years (well, some of you may have....), it simply means that you aren't decorating it for you anymore. You are decorating it for "them." And who are they? The future owners - so put away your pride/reluctance to spend time redecorating a house that you want to move out of, and make your house more marketable by making it one size fits all.

Spotlight: Middleton Hills

2009-09-23T09:55:00.000-07:00

Middleton Hills: An Experiment in Community

Front porches. Neighbors. Parks and a community center. Everything within walking distance. So what do you get when you add those together? No, not the setting for a cheesy 1950's teen drama. Those concepts combine to make the very real and very popular Middleton Hills neighborhood.

Middleton Hills, located just outside of Madison, WI, was the dream of developer Marshall Erdmann. He began lobbying for this "not just another subdivision" in the early 1990's and now, nearly 20 years later, his dream is built, vibrant, and attracting everyone from young couples to seniors. But what is it about Middleton Hills that have people flocking to the single family homes, condos and townhouses?

Oh boy, am I glad you asked that. Middleton Hills was designed to be not just a development, but a true community. The lot sizes are small and tightly regulated as to home size and architecture - most lots include the requirement that you have a front porch and a very small front yard. This is meant to encourage a sense of neighborhood - and if you are worried about your dog getting enough exercise without a yard to run in, you can just walk Fido a short ways to the common park space and chat with your neighbors while your terriers and labradoodles frolic.

One of the benefits of Middleton Hills is that you can walk everywhere - fantastic freedom for the elderly who may not want to drive much anymore and those tweens out there that hate to rely on their working parents for rides to friends' houses. In addition to a highly-used community center, there is even a Copps Grocery Store located right in the heart of the neighborhood - which I think is a bit ironic, since having a grocery store so close means you would never have to ask your neighbor to borrow a cup of sugar.

While Middleton Hills is definitely popular, it may not be one size fits all. Because of the small lot sizes, there is not as much privacy as you would get in a traditional neighborhood. Likewise, the home prices tend to be on the higher side, so if you have your heart set on that neighborhood and have a lower budget, you may have to settle for a smaller condo.

But if you love the idea of living in a small town in the middle of a big city, Middleton Hills is the place for you!

E-mail or call me with questions or inquiries about what is on the market currently in Middleton Hills. I am happy to show you any of the lovely homes and condos! heidit@restainohomes.com (608) 239-0592

Spotlight: Tenney Lapham Neighborhood

2009-09-16T11:53:00.000-07:00

Located just off the Isthmus, the Tenney Lapham Neighborhood is truly a mosaic of people and lifestyles. From million dollar mansions on Lake Mendota to grad student housing to the Salvation Army Homeless Shelter, Tenney Lapham is home to some of the wealthiest Madisonians to those that are in the most need. So how does everyone get along? Fabulously! Just make sure you don't bring up politics....you'd never be able to guess whether you were talking to a Capitalist or a Communist, and this neighborhood has them both - and everything in between.

Tenney Lapham has a very active Neighborhood Association that publishes a regular newsletter and organizes events such as the Art Walk and the Neighborhood Block Party. The Association helps keep everyone informed on proposed neighborhood developments and creates a sense of community not found in many other neighborhoods so close to downtown. You also have an excellent chance to mingle with neighbors at Tenney Park. At Tenney, you can lay on the beach and enjoy the lake in the summer, and strap on your ice skates and grab a hot chocolate at the Tenney Lapham Warming House in the winter.

The main artery of the neighborhood is E. Johnson Street which boasts a line of locally owned businesses such as Studio 924 (where your humble blogger goes to get her hair cut....and yes, highlighted), and Sophia's Bakery & Cafe, an incredible dining experience that serves brunch and is only open on Saturdays and Sundays. Hungry for dinner? Grab a fish fry at The Avenue. Once you've had your fill, you can walk over to either Jewel in the Lotus Yoga or the Yoga Coop of Madison to downward dog the pounds off.

While more young families are being attracted to the area - especially with Tenney Lapham Elementary School being within walking distance from most homes - the neighborhood still hosts a large number of graduate students in multi-family homes. Don't be mistaken - these are not the beer chugging, bed hopping bevy of coeds you will find two miles down the road, but rather respectful and quiet neighbors. The downside? They tend not to hand out Halloween candy, forcing young parents and their costumed kids to turn to nearby Maple Bluff to forage for tricks and treats.

For a neighborhood with genuine eccentricity and a true blend of diversity, Tenney Lapham offers community and an entrepreneurial spirit that will have you one day realizing that, besides commuting to work, you live your life within a five block radius. Because with all of the stores, services and activities going on, why venture anywhere else?

Real Estate Marketing - Why are we so old fashioned?

2009-09-14T11:43:00.000-07:00

I make two promises to you, my gentle readers. One, I promise that this is my last post that will include ANYTHING about Open Houses. Considering that a good portion of my posts have mentioned something related to Open Houses, I am pretty sure you are sick of reading about them. I know I am.

My second promise is to never play soft jazz elevator music during any Open House I may host in the future (which you will just have to take my word on since I won't be writing about them).

On this subject, my journalistic intelligence is telling me three things:

1) If you write about something too much, people will stop reading your blog.
2) Open Houses are really not that interesting to warrant so much coverage.
3) Open Houses will eventually become extinct due to increasing reliance on Internet searches, so let's stop talking about them already.

I recently read that 80% of home searches begin online - much different from the pre-Internet days when most home searches began by looking in the newspaper and reading the ads. My grandma told me last week that she sold her last house in one day by placing an ad in the newspaper - my grandpa had quite a shock when she told him that evening after work, especially considering that he didn't know she was going to place the ad in the first place.

Would that work in today's environment? I would say that tactic has about as good a chance of selling your house as the Brewers winning the World Series (sorry, Brew Crew, you know I love you....).

Unfortunately, many real estate agents - especially those that have been doing this for decades - are not recognizing the changing terrain and are placing the blame of their unsold listings on the bad economy. My answer: maybe it's not the economy, maybe you just need to learn how to e-mail and stop getting your assistant to do it for you.

Who is the new home buyer? People are more tech savvy now and use the the Internet to do research before going out to see homes. Why spend hours in a car on a perfectly good Sunday driving to Open Houses sight unseen when you can go on a Broker's website and get a virtual tour of the home? While this isn't great news for people who rely on Open Houses to generate business, it is great news for Buyer's Agents: by doing their research up front, your buyers have a better chance of finding a home in fewer trips out because they've already screened their picks.

This turn of events also makes buyers more elusive - sure, they've registered on your website and you found their phone number on www.whitepages.com, but do not, I repeat do not, call them. Buyers who turn to the Internet will take their own sweet time and let YOU know when they would like to be called.

So what is a real estate agent to do? First of all, think more like a marketer and less like a Realtor. While Open Houses and newspaper ads used to golden tickets in the past, texting for information and setting up Personalized URLs (PURLs) for your listings is more effective and will ultimately save you time. Does this mean you should eschew the old techniques? No way - they worked before, and with a little updating they will work again. It's just like that wonderful listing you have that happens to have linoleum in the kitchen - if you rip out the linoleum, you just may find original hard wood floors.

You can make Open Houses more marketer and less Realtor very easily - make the advertising targeted. Invite all of the neighbors (neighbors love to see the inside of the homes and tend to talk freely to others about them), send out direct mail pieces to the kind of buyer you feel would fit best with the home (e.g. first time home buyer, young family, empty nesters), and make it seem like an exclusive invitation. That way, you can get a large number of interested parties through your home instead of just posting an ad in the paper and hoping that people show up.

Same thing with newspaper advertising - instead of advertising in print, advertise on the newspaper's website. Studies show that people are increasingly getting their news online, so why spend all of the money to advertise in print when most of the readers of the paper will never see it?

On a final note to my sellers out there: if you are interviewing a listing agent and he tells you that his marketing plan is to place ads in the paper, hold Open Houses and Broker Opens, and maybe put an ad in "City and Country" magazine, thank him politely and then give me a call.

Need a Cobbler? I've got a guy......

2009-09-11T14:56:00.000-07:00

Over mojitos at Cafe Costa Rica, a friend of mine was telling me about his rash. Luckily, it was a story about a past rash and did not include visual aides......but anyways. He was saying how he went to a dermatologist in Madison who told him for months that there was nothing wrong. It wasn't until seven months later when he went home to Ohio for the holidays and saw a good dermatologist there that his rash was finally cured.

My reaction? "Call me next time!" Not that I know anything about rashes, but I do know a great dermatologist who runs a private practice in Madison. "Next time," I said,"let me know. I know people who could provide any kind of service you would want!" After we giggled like high school freshmen at the implication of my wording, he said, "You know, Heidi, you should put that list together and post it on your blog." His wish is my command.

So here is a list of service providers that I have hired personally and have been more than impressed with!

Home Improvement

Plumbing - Benjamin Plumbing: Benjamin Plumbing is polite, efficient, and answers their phone on weekends (which, as everyone knows, is the only time that pipes burst and toilets back up according to Murphy's Law). They are incredibly professional and reasonably priced.

Appliance Repair - Appliance Pros: Being the on-the-go gal that I am, I strive for efficiency. Unfortunately, when you try to put two loads of wet laundry into the dryer at the same time, that most often breaks the dryer, thereby elongating the fluff cycle.....by a few days. Luckily, I called Appliance Pros - who actually SCHEDULED a time to come over instead of telling me to be home between 8am and noon. They fixed my dryer in 45 minutes, had the parts right on their truck, and were pleasant to chat with while waiting.

Exterior Maintenance - Best Buds: I have never seen anyone work as hard as the Davenport brothers who own and operate this company. Lawn care, shoveling, you name it, they do it. Plus, they're easy on the eyes.

Healthcare

Women's Health - WomanCare Clinic: With soft lighting, friendly people, and every service that any woman could ever need - they have full time OB GYNs, NPs, and even a therapist on staff - you won't ever need to search for healthcare providers again.

Dentists - Excellence in Dentistry: Drs. Hill, Batchelor, Sergeant, and Yang provide top of the line dentistry with a friendly office and excellent support staff. Not only that, they specialize in minimizing discomfort - no pain, no pain.

Beauty and Fitness

Personal Training and Workout Classes - Studio Melt: Get ready to sweat! Studio Melt offers unbelievably fun and challenging fitness classes and personal training provided by a variety of personal trainers - it would be hard to not find a trainer who fits your interests (they have everyone from a professional sailor to a former PGA pro). Watch out - once you go to one class and meet the charismatic owner Mona, you may never leave.

Pilates - PilateSpa: PilateSpa on Atwood Ave. offers professional Pilates instruction that focuses on the form, not the fad. The classes are small and you will get plenty of personal attention from Kathleen, the owner, who will often reference the life and teachings of Joseph Pilates, gleaned from her years of classical study.

Skincare - Radiance: I used to have terrible skin. But one visit to Anne, the owner of Radiance, and that problem was cleared up (pun intended). Offering top of the line skin care products, make up, and cutting edge procedures (without the cutting part), you will look years younger and have that just-got-out-of-the-shoe-polisher glow.

Spas - Dolma's Rejuvenation: This spa is the best find in Madison! Not only will a pedicure from Dolma last for over a month without chipping, you will feel restored spiritually after any procedure (even waxing....now that's saying something).

Clothing Repair

Cobbler - Heel & Sole Connection: First of all, a cobbler is someone who fixes shoes (I really do get that question a lot). Broke a heel or need your shoes resoled? That's just the beginning of what you can get done here. The owner does amazing work and has great turn around time.

Tailor - Campus Tailors: Boasting same day service, the lovely lady who owns Campus Tailors will treat you with kindness and respect - and does fantastic work. When it only costs $10 to hem your pants, you really don't have any excuse for stepping on your cuffs anymore.

So here ends my list, even though I could fill pages with recommendations - if there is a service you need that you don't see, e-mail me at heidit@restainohomes.com.

Neighborhood Spotlight: Verona

2009-09-10T09:26:00.000-07:00

The post is the first in a new series spotlighting Madison area neighborhoods! Each neighborhood has a different feel and offers a different experience. This series will help guide you to where you want to look for homes and match you with what you want out of a community.

Verona, WI

In the past five years, Verona has grown immensely, attracting recent college grads and young families to its rolling hills. Why are recent college graduates finding there way from the heart of downtown Madison or relocating from out of state to a suburb? Generally because of employment at Epic Systems, a local healthcare software company that hires former coeds and transforms them into project management machines. While mostly residing in nice apartments, you can find these Epicurians in condos and homes as well.

Like many suburbs, Verona has an established downtown area surrounded by subdivisions. Many of them are in their first stages of building, such as Pine Hills Farms, but you can find others that are in later phases of their development. Likewise, single family starter homes abound.

Self-proclaimed "Hometown, USA," Verona is a great community for raising kids. With their own school district, you will find smaller class sizes as well as a number of after school activities to choose from. Amazingly, even with their own school district, you will find that property taxes tend to be lower in Verona than those in Madison.

While many in Verona find the need to occasionally venture into Madison for shopping, restaurants and entertainment, there is still plenty to do right there in town. They have their own soccer fields, ice arena, and are on a portion of the Military State Ridge Trail, offering superb biking, running and walking. And of course we can't leave out Verona Hometown USA Days, a four day festival held in June that offers everything from fireworks to an adult softball tournament - and of course, a beer tent. Because come on, we all know that 80% of the reason why we attend local community festivals is for the beer tent. The other 20% is to see the band Super Tuesday.

So if you're an empty nester looking for some peace and quiet in a lovely community, a young family looking for good schools and friendly neighborhoods, or someone who is just a huge fan of Verona Hometown USA Days, Verona is the place for you!

For more information about the real estate market in Verona, e-mail me at heidit@restainohomes.com.

Open Houses - Creepy or Informative?

2009-09-04T09:45:00.000-07:00

I was talking to a buyer recently who had just started her home search and had dipped her toes in the proverbial listings pool. She began her search like most people do currently - on-line. She went to some broker websites, got an idea of what was out there and focused her attention on the area that she could see herself living in. The next Sunday, over a cup of coffee and a cheese danish, she looked in the classifieds and found some Open Houses being held that afternoon in her ideal neighborhood. Armed with her trusty best friend and an optimistic attitude, my buyer set off into the world of real estate!

Three hours later, she and her best friend had sore feet, too many Realtor business cards to count, and the fear that those same agents were going to badger them like a clingy guy who just won't stop calling and sending flowers after only one date - I mean really, what is the protocol for "breaking up" with someone after only one date?

That's when she came to me. When I am working with buyers, my job is not only to help guide them towards their dream home, but also to protect them from all of those listings agents out there. Now, that doesn't mean you should avoid Open Houses. Actually, Open Houses are a great way to start your home search and find out what you like in a casual setting, and without having to coordinate times with a buyer's agent. Here are some tips on how to make it through unscathed, but with all of the information you are looking for:

1. When you walk in to the home, let the agent know immediately that you are "just looking" and "not in a rush." Those are code words for "please don't follow me around and point out every amazing feature that this house has."
2. Take a friend with you. It's not only beneficial to have a second opinion, but if the Open House isn't busy, you also have a buffer between you and the bored agent.
3. Do not gush over the house or mention very personal information. The worst thing you can say is something like, "Oh wow!!! Grandma's kitchen hutch is going look so GREAT over here!" The agent running the Open House will pick up on comments like those and remember them if you make an offer (especially if that offer is below the asking price). They'll know that you want that house and encourage their sellers to make a higher counter offer.
4. Take the agent's business card if offered. It makes us feel good. You don't have to call us, but it's such a little thing and it hurts our feelings to refuse something so simple. Truly.
5. DO NOT feel like you need to give the hosting agent your information. If you do, you can expect a call that evening, an e-mail the next day and a call every other day for the next few months. Ok, so that may be an exaggeration, but I don't know any agent who will not diligently follow up with you if they happen to have your information.
6. Do you feel uncomfortable about refusing to give out your e-mail address? Just tell the agent, "I am already working with someone." Does that have to be true? No. You can then follow that up with, "But I will definitely pass on your card to her if I have any questions."
7. Empty Open Houses can feel creepy. But remember, you are there to check it out, so feel free to show yourself around, open closets, etc. Act just as if you were at a busy Open House and had more anonymity.
8. Eat the cookies. For the agent's sake, if there are cookies, have one. Otherwise, the extra cookies are just going to go home with him and maybe turn stale before they can be eaten. Think of all of the hungry children out there and eat the cookies.
9. Don't feel like you have to take your agent. Most agents are busy doing their own Open Houses on Sundays anyways, and Open Houses are a great time for you to further hone exactly what you would like to see without another opinion creeping in there.
10. If there is a house that you do like, call you buyer's agent to set up a time for you to go back and see it again. That way, you'll get advice on the house and what type of offer you should make.

So go forth and attend Open Houses this weekend! Personally, I will be running one in Nakoma from 12-2pm and one on the lake from 2:30pm-4:30pm. As always, questions are welcome - heidit@restainohomes.com. Happy Hunting!

House v. Condo v. Income Property - Which is right for you?

2009-09-02T09:19:00.000-07:00

At my First Time Home Buyers Seminar last night, one of the attendees asked a truly excellent question: how do you decide if you want to buy a condo or a home? At first I was surprised - the majority of my buyers already have a strong idea of what type of property they are looking for. But once I had a chance to think about it, I realized how helpful it would be to buyers if they had information on the pros and cons of owning homes, condos and income properties.

Condos

I personally like to start with the underdogs. For some reason, I've worked with a lot of buyers recently who arrived at my door dead set against condos. Why? Because of the supposed harsh regulations imposed by condo associations, the high dues and the idea that condos afford little privacy.

Sure, there are dues that you have to pay. However, they often include things that you would have to pay out of pocket for a home, such as water, parking, and common area maintenance. Likewise, your homeowners insurance payment is lower because you only need to insure the interior of your property, and you are guaranteed to have other people take care of problems such as pipes bursting and furnaces burning out instead of having to worry about that yourself.

Privacy? In some cases, I am sure that is true. However, the amount of privacy you would get varies from building to building. Some buildings are very social while others have units that operate extremely independently of each other. If you want to get a true pulse on a building, ask to speak to one of the residents and ask what she feels is the level of involvement folks have with the condo community.

I've saved the best for last - the restrictions. Most condos do have restrictions such as how many pets you can have, whether you can hang a closeline on your balcony, and whether you can smoke in common areas. In my experience, most of the restrictions are very innocous, but if you are worried, you can ask to read over the covenants prior to even making an offer.

What are the benefits of owning a condo? Location is often one of them. If you are interested in living in an urban area, your best bet is to look for a condo, because the single family homes available will likely be incredibly expensive. Another benefit is the simplification of your life - no need to worry about shoveling the walk, mowing the lawn, or repainting the house. And resale? The National Realtors Association reports that condos are actually outpacing single family homes consistently in appreciation rates. Cha-ching!

Homes

Owning your own single family home is often a part of what people think of as the American Dream. You have your own yard, your own space, and you can even get one of those awesome custom made mailboxes shaped like a cat. And the best part of it can be described in two words: garden gnomes.

Owning a home is great if you have a family or are planning on starting one soon. Having a yard to play in and enough space to ensure that both kids and parents have the option of time away from the fam is a great quality in a house. Plus, you can often bribe either your kids or neighbor kids to mow the lawn and shovel the walk for a fraction of what you would pay in condo dues. Plus, with a little trip to Home Depot, you can put up a fence to keep pesky neighbors at bay and lock in your privacy.

Disadvantages? Arguing with your kids about whose turn it is to mow, or having to call neighbor Billy's mom to let her know that he didn't show up to shovel. Again. Not to mention the fines imposed by the city if your walk is not shoveled.

Another disadvantage is that while you may have all of that nice space to spread out in, you have to furnish that space and clean it periodically. While it may seem great to have a five bedroom home out in the country, if you are coming from a two bedroom home in the burbs, you had better get your butt to Steinhafels to buy new furniture and hope that they are having a Labor Day sale.

Income Property

My original inquisitor who inspired this post actually didn't ask about income properties, but I feel the need to include them. Lately, I've been seeing many first time home buyers drawn to multi-family homes with the intention of renting out one or more units and then living in one of the units themselves.

There are a few strong advantages - you collect rent, which not only helps pay your mortgage on the home, but could also potentially allow you to live there "rent free." You also are able to buy a larger property than if you were buying a condo or a home because of that income from your renters. Likewise, you have the potential to make a larger profit when you sell if because of the amount of equity that you are putting back into the house from the rent checks.

With income properties more so than house or condos, the disadvantages are pretty extreme and should be considered carefully before committing to a place. One of them is that to afford your mortgage, you have to find renters. If you can't find renters, you may be stuck with an empty property and large mortgage payment that you are responsible for. But let's say that you find renters and have a full house. If you are not handy, you could be liable for some hefty repair bills every time something breaks in one of your units. Unfortunately, regardless of whether you are handy or not, you are on call 24/7 if your renters have issues. Busy working on your dissertation? Well, better put it aside for a while because a toilet is clogged in 2B.

I hope this helps with your decision about what type of property to persue. As always, I am available for questions! E-mail me at heidit@restainohomes.com

5 Myths About Realtors - Revealed!

2009-08-26T11:21:00.000-07:00

Many of you have preconceived notions about what a Realtor is and what she does for a living. There are plenty of stereotypes on TV as well. I mean, who can forget the episode on "The Simpsons" where Marge becomes a Realtor and sells "The Murder House" to Ned Flanders and earns accolades from her peers? Hmmm....not very flattering.

So why do people distrust Realtors? In many cases because of the myths floating around about how we conduct business and how we conduct ourselves. Sure, there are plenty of horror stories out there about the Realtor that gave bad advice, or the Realtor that screwed up the deal and lost the house for his clients. But folks, that's why I'm here - to disspell these myths and let you in on the real skinny.

Myth #1: Realtors only care about their commission.

This one is only 8% true. Yes, Realtors do care about comission because that is how we make our living. But good Realtors care more about finding the right house for their clients. After all, if a client ends up buying a house that really isn't the right fit, do you think they'll go back to their original Realtor for a second try? I wouldn't bet my bottom dollar on that. Realtors survive by referrals, and putting someone in a house that isn't the best for them is a sure way to not only lose your current customer, but also any future customers you might have gotten from them.

Myth #2: Realtors are pushy and in your face.

This one is 50% true. There are definitely some pushy Realtors out there! How many of you have been to an Open House only to have a Realtor accost you for your information, your friends' information, your children and pets' birthdays, and everything in between?! We mostly do this because we like to have people to talk to and follow up with, but a good Realtor will be able to judge the level of interaction you would like to have and conform to your wishes. If you do see a pushy Realtor, it's perfectly fine to tell them to get lost - and then find yourself one who is better suited to your personality.

Myth #3: Realtors intentionally overprice homes in the hopes of a bigger killing.

Not a chance. If a home is overpriced, it simply will not sell. Realtors price homes as best they can to generate the most amount of interest - if you see a truly overpriced home, that most often is the interference of the seller who feels their home is worth much more than market value (another reason why For Sale By Owners are often overpriced!). Realtors suggest prices to their sellers, but it is the sellers who ultimately sign off on an asking price. Don't believe me? Watch "Buy Me" on HGTV - you'll see what I mean.

Myth #4: Realtors can represent both a buyer and a seller in the same deal and negotiate for both - or at least pretend to!

Realtors can work with both parties - in the case the buyer doesn't already have an agent that they are working with - but the listing agent will always be working for the seller. We like to explain this upfront so there is never confusion or hurt feelings in the end.

Myth #5: Realtors only pretend to be your friend so that they can list your home.

This one I find pretty interesting, considering the amount of I put into fostering relationships. As a Realtor, I keep up with friends and contacts and work hard to strengthen my relationships with people. Do I do this so that they will buy houses from me? Nope. I do this because I genuinely like my friends and contacts and want to spend my time catching up with people I actually enjoy talking to. I'm not sure if I could keep dragging myself into the office every day if my job was to keep in contact with people I don't like!

Some Realtors do try to keep up with all of their contacts and fake these connections, but surely you can see through those - as a wise woman once told me, "The truth is loud." You know when someone is not being genuine! But that doesn't mean that all Realtors operate the same way. In fact, most of the Realtors that I work with are some of the warmest and friendliest people I know, and they legitimately want to help others.

So bottom line, gentle readers: You can trust Realtors. If you meet someone who plays into any of the stereotypes above, just don't work with them - there are plenty of great Realtors out there who would love to serve you! Including me - Heidi Tiefenthaler, Restaino & Associates, heidit@restainohomes.com .

Using a Buyer's Agent: The Myths and the Magic

2009-08-24T09:12:00.000-07:00

I've gotten a lot of questions lately about what it means to use a Buyer's Agent. So, for your viewing pleasure, I've put together a list of topics to consider when deciding whether to use a Buyer's Agent or not.

What is a Buyer's Agent?

A Buyer's Agent is a Realtor who is working on behalf of the buyer. They will write your offers, show you properties, be loyal to your interests and negotiate on your behalf. They will also give you advice and point out facts that you might not get elsewhere.

What is a Listing Agent? How is that different?

The Listing Agent is working on behalf of the seller. They are the ones that list the house and try to entice people to buy it. If you set up a showing yourself for a home you find on the Internet or see while driving by, you are most often working directly with the Listing Agent.

Like a Buyer's Agent, they will write your offer and show you the property. However, they are already loyal to the seller and are not obligated to be loyal to your interests.

Does it matter to the Buyers Agent if the house I am interested in is listed with their firm?

Not a smidge. A good BA will only be interested in finding a home that is right for you, not what would be best for their broker. Plus, there aren't any incentives for the BA to show properties listed by their broker over other properties - that is, they don't get any gold stars or increased commission or pizza parties.

If I don't work with an agent, I bet I could get a lower price on a house because the Listing Agent could reduce their commission since they don't have to pay the Buyer's Agent's commission.

Ok, so you call a Listing Agent and you say, I want to pay $95K for this $100K house. And since I'm working directly with you and you don't have to split the commission, you can just reduce your commission so that you would make the same as if I had my own agent, and I get a to save some money!

Hmmm.....so what exactly is the motivation for the Listing Agent here? They get less money, they have to do all of the paperwork and coordinate both parties, and the seller doesn't have any incentive to accept that offer. Here is how the conversation would likely go when the Listing Agent presents the offer that evening.

LA: Good news, Seller! You got an offer on your house today!
S: That's great! What is it?
LA: The buyer is offering 95K.
S: Hmmm....that's below my asking price.
LA: You're right, it is. I'll go ahead and let him know that you are declining.

Did you see anything in there about an offer to reduce his commission? Nope. Why would he? Instead of presenting that option to the seller, it is in his best interest to hold out for a buyer who doesn't expect him to do that. Like I said before, there is no incentive for him present that aspect of the offer because it is not the place of the buyer to request that.

What about For Sale By Owner? They often won't pay commission so I would be stuck with that!

Honestly, when working with FSBOs, that is where you need an agent working on your behalf the most! The paperwork can be complicated and there are lots of areas where a deal can fall through. You can hire an attorney, but they often have a minimum amount of hours that you need to hire them for, and you can end up paying more than you would have in commission.

Plus, with so many BAs out there now as opposed to ten years ago, more FSBOs are open to paying commission, or reducing the purchase price of the house to account for your commission obligation.

How do I choose a Buyer's Agent?

Well, if you're reading my blog, I hope that you would choose me. :) But if you'd like to look around a bit, here are some tips on how to find a BA:

*Referrals: Ask your friends and family if they know anyone! Referrals are a Realtor's bread and butter, so you should be able to find someone who worked really hard for a friend.

*Interviewing: Look up Realtors in your area either through the local association, from ads or find a brokerage in your yellow pages. Then set up interview appointments and ask things like how many years of experience they have, what their specialties are, and how they propose to find you a home. Determine if you click with the person - this is especially important because you are going to potentially be spending a lot of time together from house hunting all the way through closing.

*Talk to Your Lender: Lenders work with Realtors all the time and can give you ideas about who is organized, who has a sparkling personality, and who is successful in the local market.

Happy Hunting!

The $8000 Tax Credit: A Hello Kitty Bandaid for the Real Estate Market and a Lollipop for First Time Home Buyers

2009-08-19T11:29:00.000-07:00

In 2008, the real estate market took a beating. Now, I’m not talking about a light slap and tickle, I am talking about a beating akin to what you would see in a WWE ring. Except this beating wasn’t fake and full of whimsical costumes and back stories….blood was spilled and ribs were broken.

So where are we now, half way through 2009? Well, our nose stopped bleeding, the bruises are mostly faded, we’ve stopped getting pummeled, and at least one of our ribs has healed. We are on the road to recovery – or at least on the first leg of it.

Some folks attribute the slow journey back to health to the $8,000 tax credit being offered to first time home buyers. While that stimulus money has helped first time homes move more quickly, it hasn’t necessarily made the dent in the market that some champions were hoping for.

Does that mean you should wait around to see if they up the ante next year with a bigger incentive? No way. As my mom always told me, $8,000 dollars in your house is worth more than $10,000 in a potential tax credit in the future. Well, maybe she put it in different words, but you get the picture. Act now, before December 1, 2009, because there is no guarantee that this amazing opportunity will be renewed.

Here are the basics about this program:

1. First Time Home Buyer Defined: This means that you have never had an interest in a home before. Pretty simple if you’re single, but more complicated if you’re married – if your spouse has owned a home before, than neither of you are eligible for the credit. Sorry and congrats on your nuptials.

2. You have to make less than $75,000 a year if you are single or $150,000 if you file jointly with your spouse. Again, congrats on your nuptials.

3. The purchase needs to be after January 1, 2009 and CLOSE before December 1, 2009. That means that with all of the lending regulations in place now (see last week’s post for more info), you should ideally have an accepted offer on a house by mid to late October.

4. You can get the $8,000 by filing an amendment to your 2008 taxes, waiting until you file your 2009 taxes, or having your lender finance a short term loan for you (only if it is in conjunction with an FHA loan) and repay that loan in 2009.

5. The tax credit finances up to 10% of the purchase price – so if you want a 30 year fixed mortgage and have that as your down payment, you’ll still probably have to pay private mortgage insurance. Not a huge deal, but something to factor in when you’re planning your budget.

6. You don’t have to repay this credit. Never ever. Except in the case that you sell your home within three years of your closing.
S now that you know how to get that tax credit, give the real estate market some TLC of your own and become a homeowner!

The New Lending Regulations or The Boy Who Cried HERA

2009-08-14T12:31:00.000-07:00

Ok, so a couple of people screwed up over the last few years. Yes, there were some unethical lenders and even more under-informed buyers who borrowed more than they could really afford. Yes, some people lived in the moment and bought houses that were out of their price range, but seemed affordable because the smarmy lenders set them up with "exotic" mortgages. And yes, now many of those same people are losing those homes that they probably shouldn't have bought in the first place.

The question is, now what do we do? The government came up with an answer for us: instead of making the smarmy lenders write "I will not screw over my clients for personal gain" and the under-informed buyers write "I will read the terms of my mortgage and not borrow money I could never hope to pay back" 100 times on a blackboard, the entire class gets to stay late for detention.

That's right - the new regulations affect everyone, whether you are a first time home buyer, or someone who is refinancing your home that you've lived in for 15 years. Here is the breakdown and how it could affect future closings:

*The Housing and Economic Recovery Act (HERA) amended the Truth In Lending Act that obliges lenders to disclose to their customers upfront how much credit was going to cost them.

HERA, effective as of June 30, 2009, expanded on those previous requirements surrounding early and final disclosures. We now have a mandatory seven business day waiting period between the time a buyer receives the initial mortgage disclosure documents from the lender and the day of closing.

*In addition to the seven day speed bumb, another speed bump was created for when your Annual Percentage Rate (APR) increases by more than .125. If that happens, the lender must reissue a revised TIL disclosure, no later than three business days prior to closing.

*Appraisals will now present a two-pronged speed bump. To begin with, no upfront fees may be collected until the initial disclosure documents have been received. This could delay the scheduling of the appraisal. Likewise, the regulation states that the home buyer must receive a copy of that appraisal no later than three days before closing.

Ok, the that sounds like it really sucks, but what does that actually mean? Here is an example of how it could go:

Henry Homebuyer finds the house of his dreams! It's a fantastic house with three bedrooms, a huge backyard for his dog Steve, and even a hot tub for late night fun in the case that he ever finds a girlfriend. He goes to Larry Lender and applies for a home loan and would love to close as soon as possible - within a week preferably.

Now, Larry is having a hell of a week. He's had to reissue three TIL disclosures to clients and at least one of his clients is going to miss his closing in two days. Darn it, why didn't they all lock in their interest rates right away so that the APR didn't change from the month before when he issued the initial disclosures?! To make matters work, the cherry on top of Larry's week is that he just spilled a chai mocha latte chino with extra whip on the new tie his daughter got him for his birthday.

But let's get back to how that affects Henry. Larry is overworked and Larry is distracted. Larry has a ruined tie. All of that adds up to Larry not being as precise as possible in his calculations for Henry's initial TIL. Because of Larry's no good, very bad week, he takes the full three days to get back to Henry with the disclosure documents.

Henry looks at the documents and locks in his mortgage rate because he wants to move this along as fast as possible. He then sends in a check for Larry to order his appraisal. Unfortunately, Larry, in his overworked state, doesn't get around to ordering the appraisal for another two days, and the appraiser can't make it out to the house for another three. Now, ten days after the initial loan application, Henry is getting frustrated.

The appraisal comes back and everything looks fine. Unfortunately, when crunching the final numbers, Larry finds out that he forgot to carry a nine on his original calculations. Because of thta, Henry's APR increased over .125 points. Time to reissue the documents! He faxes them over to Henry, who takes a look and decides that the terms are fine - he really wants to get in that house and the increase isn't so bad.

But by this time, Henry has had to wait three days for the initial disclosure documents, five days after that for the appraisal to get ordered and completed, another two days for Larry to get caught up and reissue the TIL documents, and then the three-day waiting period needed prior to closing because of th reissued documents. And that's business days....

So the moral of the story is:

*Buyers should be encouraged to lock in their rates as soon as possible to minimize the chance of APR increase. Likewise, lenders should take extra care to be as precise as possible in their initial calculations.
*Buyers can waive the right to the waiting period which could help move up closings, but lenders should be aware that they are not insulated from future suits by that waiver.
*Everyone should plan on 30-45 day closings, just to be on the safe (and unfortunately, realistic) side.
*Henry should realize that hot tubs are great if you already have a girlfriend, but might make him seem like he is coming on too strong if he requests a late night dip in the hot tub on a first date. Hopefully Steve will keep him in line.

Welcome to Central Station!

2009-08-11T15:17:00.000-07:00

Hello everyone! Welcome to Central Station. The aim of this blog is to provide you with a pulse on current real estate market conditions in Madison, WI and to provide insight to those of you who are buying or selling your home. We will cover everything from marketing - especially social marketing which is as yet an under-utilized tool by many real estate agents - to government lending regulations. Please check back weekly to read new posts and see articles from guest bloggers!

Coming up this week: New lending regulations will go into effect in September. What does this mean to you home buyers and conversely, sellers?