How to Keep Your House Show Ready

Jeff Opdyke, from the Wall Street Journal muses in his June 25th column, http://blogs.wsj.com/juggle/2009/06/25/mastering-the-faux-clean-dealing-with-the-stress-of-selling-a-house that it is not easy to keep the house ready especially for those of you who work from home. I agree and I know it must be tremendously difficult to keep the kitchen clean when the Realtor calls for that last minute showing. This is an area that most sellers fret over and the only advice I can offer to sellers like Jeff is this: The Real Estate Community is invasive during the selling process and it is essential to price your home correctly from the get go so this inconvenience does not drag on too long.

As the listing agent I can help with this by screening the potential buyers. This is a delicate balance because if the buyer feels as though they are being given the third degree they will simply move on to the next property.

Daily task lists are good ideas for families on the go. One tactic I have taken with homeowners who have younger children is to have the parents create a reward system for their kids. Making beds, cleaning bathrooms etc. For each job that is well done the child receives a star. Accumulate so many stars and Mom and Dad will do something special for that child. I know it's bribery, but many of my clients have used it and it works very well. Besides everyone is working towards a common goal and the team work is great for the family. If poor Jeff is left to do everything himself then resentment builds frustrations will start to run high.

FDIC Chair Yanks House From Market

As reported in the Wall Street Journal http://tinyurl.com/nwj6ca Shelia Blair, the Chairwoman of the FDIC removed her home from the market. The price reductions just did not work. Really? Well price reductions do work and they do help homes to sell. We have a lot of homes on the market, but as a collegue of mine says, "There maybe a lot of signs in front of homes but only a few sellers are willing to sell" What he means by that is that even in this market some sellers are still "trying" to see what they can get for their home. My advice--Pack it up and do like Shelia did and remove your home from the market. The last thing serious sellers need in this market are unmotivated sellers who are playing with the idea of selling.

I recently particiapted in a significant poll for the top agents in the Metro Milwaukee area and one of the questions that was asked was this: "How should a Seller price their home in this market?" The number one answer: Agressively. I have had the privilege of selling over 30 homes so far for the year and they all sold because the seller agreed to price the home agressively. That is the key even in a difficult market. In Real Estate right after location, location, location it is price, price, price.

Just my two cents!

Bravo, Bravo

Kudos to Mike Duncan, the Director of the Oconomowoc Arts Center, in Oconomowoc, WI for landing the Waukehsa Symphony here at the OAC this October. The venue is simply stunning and it will be fantastic to have the WSO perform here at our very own Arts Center! Several other venues were announced in the JSonline article, which you can read here, http://tinyurl.com/d5vecw . But the really outstanding news is that Mike is working to make the already impressive building display outstanding talent as well. The first big step is to have a first class facility and now we are getting first class entertainment. I would encourage you, if you have not been to the OAC, to make it a priority to visit the OAC for a local performance or a professional performance like the WSO. You will not be disappointed, I can assure you of that. We have lived here in Oconomowoc for almost 23 years and it is a real joy to have such fine amenities available to us. We are very fortunate. Bravo Mike, Bravo!

Viva La Chilli's

The other day the boys ( my two sons) and I had lunch at Chilli's and I have to say what keeps me coming back are those darn chips. Those are a meal in themselves. This Chilli's is nice and close to work so taking time off for lunch is easy. As we walked inside the restaurant, I noticed past clients, friends etc. so I started making the rounds saying hi. When we finally sat down, Robert said, "So is that what happens when you get old?" I guess what he meant was knowing more people, but I couldn't help to focus on the "old" comment. We have lived in Oconomowoc now for 22 years and it is fun to see new places like Chilli's pop up in our little community. Pabst Farms is just around the corner and the new Pick N Save is sure nice too. I love fresh fruit and great meats and personally I can't wait for the Brennans Market to open this fall. If you are thinking about a move to Oconomowoc give me a call and I can help you find the right place to call home. You can reach me via email at ghanon@shorewest.com or feel free to call me at the office, 262-567-4349, or maybe we will just bump into each other at Chilli's!

Time for ReDirection...

http://tinyurl.com/cbbd6w. Time to redirect a little bit here to my other blog. If you have a chance check it out or follow me on Twitter at http://twitter.com/HeyGlen. There is so much happening in Oconomowoc right now that is so positive. By the way, now is a great time to buy that first house of yours especially witht he $8,000 credit out there.

Triple Net Leases

Now that sounds interesting...I mean how boring of a topic can you write about? What exactly is a triple net lease anyway? For simplicity sake, triple nets are leases for commercial real estate where the tenant pays for the utilities, taxes and any maintenance on the building. The Landlord simply collects rent. Generally speaking, triple net tenants are highly rated, have great track records and are very dependable.

Well I was thinking the other day about residential real estate, an area that I am passionate about for the past twenty years. One of the downsides of residential rental real estate is that you are always dealing with leaky toilets etc. Many real estate investors simply do not want that hassle day in and day out. While this idea does not answer, completely, the triple net issue, I think it is intriguing. By the way this idea will not work for everyone, but it will work for some.

If you have a good equity position in your residential property and you want to sell it, rather than sell the home in a down market with a buyer who is using a bank, why not sell the property on a land contract. The land contract instrument works like any other mortgage document from a bank. As long as the buyer has a good down payment this is an avenue that can generate some good (triple net) income for the current homeowner.

Have you ever really looked at an amortization schedule on a 30 year note? Do you realize that most of the payment for the first 5 years is almost all interest, very little principal reduction takes place.

Some folks look at this and conclude that it is not for them because they want all of their money at once. However if you evaluate this option you may decide that you are willing to receive installments over a several year period and actually make more money than you would by selling the house outright. I can show you how this works in detail, but I think this is a great idea, especially in our current market.

Help Fund the Fringe

Hey Oconomowoc here is a worthy cause that we all can get behind. The drama department at our very own Oconomowoc High School earned its place on the world stage with their selection to participate in the "Fringe" festival in Edinburgh Scotland this August. Just to let you know how amazing this honor is the high school theater director must first be nominated for excellence by a university faculty member or a state or regional theater organization. Then once nominated the school must submit a detailed application. This year 1,600 schools nationwide were nominated and only 42 schools across the country were selected to participate in the "Fringe" . This is a huge accomplishment for our community and something we can all be proud of. What an honor!

The kids need our help with raising funds to go on this fantastic trip. If you can help out check out their website at http://www.fundthefringe.com/ or call Tom Klubertanz, the Oconomowoc High School Theater Director, at (262) 560-3100 x 3211. All donations are tax deductible through the OHS Mamas and Papa Inc.

Oconomowoc is the shinning star in Western Waukesha County!

What Are My Options?

The rate of foreclosures are up and families are struggling to make ends meet. Some unfortunate homeowners are forced into a horrible situation by no fault of their own. If you have found yourself in this spot there are options available other than foreclosure and bankruptcy.

Short sales are becoming more popular with struggling homeowners and banks. A short sale occurs when a bank agrees to take less for the mortgage than is owned at the time of sale. The sale price is obviously less than the balance on the mortgage note. For example; Mr. & Mrs Smith owe $200,000 on their mortgage, they need to sell the property, however the value of the home has declined and the property is now worth$180,000. The Smith's receive an offer for $175,000. The proceeds from the sale will not cover the first mortgage. The banks, while never preferring this option, will in some cases, agree to a short sale and thus forgive the $25,000 owed to them. This helps the bank in one fashion; their liability is now determined and fixed. Whereas if the bank takes the home through the foreclosure process their costs could be significantly higher.

Real Estate has now moved to the realm of mitigating the loss. Short sales generally have less of a negative impact on the credit score than a foreclosure does. Not all applications for short sales are successful, however, we have found them to be a way out for homeowners and banks -- a win win if you will. If you have questions about a short sale, feel free to contact me or let me know what you think of this blog.

Show Me The Money

The much talked about Stimulus Package that Congress worked on last week has a housing stimulus component to it. In that bill that President Obama is likely to sign tomorrow, there is a $8,000 credit available to first time home buyers. Here is how we think this is going to work out. The credit will be given to the homeowner who meets the following criteria. Any single family residence, that will be used as a single family residence qualifies for the credit. The credit is available to individuals with adjusted gross income of no more than $75,000 or $150,000 for a joint return. The purchaser or their spouse may not have owned a principal residence 3 years prior to this purchase. There is no repayment required of the credit for homes purchased between January 1, 2009 and December 31, 2009. If the home is sold within three (3) years of the purchase the credit must be returned.

So let's give an example of how this will work. If you have not owned a principal residence for the last 3 years and you decide to purchase a home that is $160,000, and you and your spouse make a combined income of less than $150,000 you are eligible for this credit up to $8,000. When you file your taxes and your refund was $1,000.00 you would receive back from the government a check for $9,000.00.

Do you think this is a good idea or a lousy idea? Let me know. I am interested in your feedback.

Lake Country-A slice of Heaven

I was just thinking the other day as I was working with this great horse, that Lake Country and specifically Oconomowoc, are really like a little slice of heaven. I remember when I was growing up as a kid that life seemed to be at a slower pace. We played outside (no video games), we invented things to do. People knew who you were and most things seemed to stay just the same year after year.

Well living in Lake Country is a little different that those 'fond memories' but when you think about it we live in a cool part of the county. There is so much to do out here. If you love horses, like I do, there are so many areas to trail ride with your favorite steed. If you are into biking (road bikes) there are so many back roads that you can ride for miles and miles on back roads or paved trails. If you just love the outdoors you can spend time hiking in one of the many county parks. Lake Country is truly unique and I love living here. The best kept secret though of our area are the people. Most are very friendly and willing to help out a neighbor or complete stranger. Sure there are the occasional self absorbed types who wouldn't lift a finger but they are not the norm. The friendly ones are and that is why Oconomowoc has been home for the past 20 years for our family.

Shorewest Mobile

In a continuing effort to stay ahead of the competition we have just added this outstanding feature to our HOTLINE. If you are not familiar with our HOTLINE, this easy to use tool allows one to enter a five digit number for a listing while on your cell phone or land line and you can instantly hear a professionally voiced commercial about the home of interest. Now that 'smart-phones' are even more popular we have upgraded the HOTLINE to meet this growing demand. Here is how it works: After listening to a message on your smart-phone you press 9 and before you hang up you have received two text messages on your phone. One of the text's provides a link to the mobile version of the web with pictures, description and room dimensions that can be viewed on your smart phone. It is easy and requires no effort. Now here is the really good news. You can enter the address of any property, whether it is a Shorewest listing or a competitors listing and get a mobile version of the information that YOU want. This is just one more reason why Shorewest continues to be Wisconsin's #1 homeseller. We are making it easier each day to find the home of your dreams.

The Mall at Pabst Farms

Will the Mall Come to Pabst Farms?

Recently in the local paper here in Oconomowoc an article mentioned that the mall at Pabst Farms may be in question. I would like to weigh in on this topic. Just because I am a Realtor does not mean that I am always for growth, in fact I like to think that I am in favor of "Good Growth". Good growth is development that makes sense and is not development for the sake of development.

Pabst Farms originally indicated to the community that the mall would be a regional pull. I think most everyone knows what a "regional pull" entails. This would be stores that will pull shoppers from the region to Oconomowoc. I know that is a little sarcastic, but let's be serious--Kohl's is not a regional pull store. I like Kohls and I know my wife shops there quite a bit. I have nothing against Kohl's, but let's face it, the folks from Mequon are not going to hop in their cars and drive 60 minutes to go to Kohl's when they can visit one in their own backyard. However if Nordstroms were located in Oconomowoc you can safely bet that they will make the 60 minute drive to Oconomowoc.

If the city allows the mall that features tenants that the local market will use and enjoy, then I think the hope that so many retailers have put in the mall, and its efforts to revitalize downtown Oconomowoc, will not materialize. If Oconomowoc is going to be on the map for a destination city for retailing then we must hold out for a mall that will have a larger draw than the city itself. We have lived with driving to Delafield for Kohl's and other stores and we can certainly live a little longer with this fact. But if we settle for second best now, the ability to attract stores that will draw from the region, in my opinion will be limited. Pabst only has so much land to develop, let's do it right from the get go and not settle for second best.

So to all the folks at Pabst and the City, for the sake of our community let's push for the best mall development that has been promised to our area.

Just Minutes From Oconomowoc

I try to keep most of these entries about the local happenings around Oconomowoc, but I have to make this exception. My wife and I were spending some time in downtown Milwaukee last week and it was close to lunch time. I had been to Soup Bros before and thought that I would treat her to a different experience. Located on Florida Street just a block west of Water in the Historic Third Ward, Soup Bros is a real treat. As a Seinfeld aficionado, I love quirky places like this. The proprietor is not like the Soup Nazi, in fact he is a real nice guy, but can he make soup! For a little over $6 you get the best soup of your life and a large piece of freshly baked bread to dip into your little bowl of heaven. The establishment probably sits only 12 people ( I'm not exaggerating either) and if you get there when there is a crowd you will most likely be waiting outside, in line, for one of the days delights--BUT it's worth it. So if you want a little adventure head to Milwaukee for a bowl of soup that you will not forget anytime soon.

Silver Lake Intermediate School

A few weeks ago a friend of mine, who is working towards his commercial pilots license, asked if I would like to go flying with him. Without hesitation I said YES! On a calm August evening we took off and I literally hung my head out the window as I feverishly snapped pictures of my favorite city-Oconomowoc. One of the first places I wanted to see was the new middle school just north of Silver Lake. This stylish and exceptional building looks great from the ground, but from the air you really sense how large the building is. What a beautiful site too! If you were in town this past weekend you may have stopped by the open houses for both intermediate schools. Oconomowoc has made such amazing progress with respect to our schools. The old middle school, which was severely outdated and in need of tons of repair is now replaced by two intermediate schools. Nature Hill Intermediate School is located off of Z and Lapham Road on the north side of town. If you have a chance stop by and check out the new digs!

Is Real Estate a Good Investment?

Real Estate is still a great investment. In fact this year, with all the ups and downs in the financial markets, will probably be remembered as the best year to buy housing in the State of Wisconsin for quite some time. In fact if you can obtain financing for investment purposes now would be the time to act. However if you are thinking about flipping the house and making a bundle of money overnight --forget that notion. Part of the problem from years past, that we are now feeling the pains of, is that insatiable desire to make big bucks overnight. Real Estate was never meant to be a get-rich-quick scheme. Rather it should be a part of a well thought out portfolio.

Another reason why this is a good time is because the supply of good renters is increasing. Think about all those folks who have lost their homes due to the re-setting of adjustable notes. They need a place to live. Some are probably not credit worthy, but my guess is that you will be able to find several who are.

At some point the Fed is going to have to raise interest rates, so if you are buying your next home for yourself or as an investment now is the time. Rates have been artificially low for quite some time and as soon as we string together a quarter or two of good solid economic news you can bet that the Fed chairman will be raising the interest rates.

If you watch the stock market at all it was not too long ago that gold was near the $400 dollar mark. Folks are now saying, "I wish I would have bought more gold!" Well in a year or so people will be saying that about Real Estate as well.

Now is the time to act. Remember when you are watching TV that the national news is just a snapshot of the national market. Wisconsin, Southeastern Wisconsin is in a entirely different financial state. Don't make the mistake of making a decision on whether to buy or not buy based on a national snapshot.

Carpe Diem--Seize the Day!

What Do REALTORS Do?

Here is a quick example of what your REALTORS do for the homeowners in the State of Wisconsin. The REALTORS lobby just defeated a proposal that would allow assessors to trespass on your property without your permission to conduct their assessments. These are just a few of the examples that your REALTOR community does on behalf of all homeowners, whether you are or are not selling your home.

Last year the REALTORS also defeated a proposal by Gov. Doyle to increase the state transfer fee from $3/1000 to almost $6/1000. This is a fee that is paid by the seller at the time of closing. Most homeowners do not care about this fee until it is time to sell their home. As REALTORS we know that this grab for extra dollars was particularly unfair. We successfully defeated this measure for you!

What Will Ben Do?

The FOMC is set to meet very shortly and Ben Bernake, the chairman of the Fed, is expected to reduce the Fed Funds Rate 3/4 of a point. Some bets are now on a full 1 percentage point drop. The infusion of cash to the banking system this week was seen by Wall Street as a good sign and stocks rallied for a day. However if the news continues to, regarding the financial markets, be dire, some analysts conclude that Mr. Bernake must reduce the Fed rate by at least that 3/4 mark. With the upcoming election and a continuing sag in the credit markets some now are hinting that Bernake has a 59% chance of keeping his job. This is the worst thing that could happen. The minute the Fed is politicized we are all in deep trouble. For years Greenspan was free from populist pressure and Mr. Bernake should be free from that as well--Republican or Democratic. Monetary policy should never be governed by the 'flavor of the day' sentiment of a politician. If you are old enough you will remember the failed price controls of the 70's under Richard Nixon. Let's all hope that Mr. Bernake and the Fed governors next rate reduction is enough to provide some stability in the credit markets.

It's Time To Act!

If you have a chance to pick up the latest Time Magazine read the article by Dan Kadlec on page 54, titled "Ignore the Headlines!", the author makes the point in this piece that waiting until you think the market has bottomed out may actually cost you money in the long run. He says, "...let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interst rates (italics mine)wipes out your advantage"

Did you notice the "inevitable rise in interest rates" part of that statement? The Fed has to raise interest rates. They are artificially low and they will go up. Kadlec goes on to point that even if the house you were interested in buying goes down in price a simple 1/2 point rise in interest rates will wipe out any gain in a lower price. John D. Rockefeller said, "The way to make money is to buy when blood is running in the streets"

Some parts of the country are feeling this "blood running" but in the upper mid-west we are not seeing the downturn to this degree. Personally I think we hit bottom last fall and are now starting to move out of that position. We have seen a retreat of sellers to just give in to buyer demands and buyers are now realizing that a "wholesale" purchase price is no longer available. The worst thing a buyer can do now is to wait. The inventory levels are receeding and I think we will see rates begin to creep up. That creep up may not be next month, but it is on its way.

HEY GLEN!

This past Thursday evening House Hunters, HGTV's leading show, featured yours truly as the agent assisting a young couple find their first home. Erin and Jon, the buyers, were fantastic and very camera friendly. We had a great time shooting this show.

What I found interesting is how long it takes to make a reality show. We were in one home and I made a comment about the color of a bathroom. Everyone laughed and then the producer said, "Let's do that again, say the same thing." Well we re-shot that scene 5 or 6 times. For this 30 minute episode the filming consisted of a day in May, a full day in August and then another full day in October. They actually filmed this episode in 2006! I thought that our little show would never be aired, but then one day in late January I received a call from California and they said that we would be on air next week--that was exciting.

When you live in a city and then see it on TV it appears slightly different. The film crew did a fantastic job of showcasing Oconomowoc and all of its beauty. What an experience!

How Do I know If This is a Good Offer?

I was asked the above question just the other day and I would like to share with you what I told my client. Any offer that you receive on your home, in a good market or bad market, must be assessed based on the current market. If a seller makes a decision to accept or reject the offer that is before them based on; what they want for the house, what the house cost to build, or what the seller has 'into' the house then those decisions generally result in lower net prices for the seller. Let me explain. The emotions of selling can run high, but as a seller you have to remember that the buyer is not that emotionally involved in your home--yet. The buyer has seen literally dozens of homes and has compared them to yours. By the time they make the offer they have done some research and have come up with a fairly good estimate of what they think the home is worth. I liken this to the stock market. If you buy a good stock at $30/share and for some reason, out of your control, that stock goes down to $25/share, just because you think it is a great stock does not change the value. Real Estate is a little more complicated than that but the same principles apply. Your home is only what it is worth in the current market. The hard part of all of this is when the market is in decline, you can not accept the new value or market price of your home. But conversely when the market is accelerating I rather doubt you would have a hard time accepting the accelerated value of your home. It works both ways.