3 Common Mistakes a Seller Makes

There are three typical mistakes a seller makes when hiring a Realtor to list their home for sale. Avoiding these can save you money and lots of hassle.

First and foremost, sellers often think they know more than the agent they are hiring. Here is a good tip; If this IS the case then find a true expert. The real pro's in real estate are highly engaged in the business and are watching trends daily if not hourly. Unless, as a seller, you are in real estate, chances are you are not as up to speed as you think.

Second, and this really goes with the first rule, if you don't trust your agent you are probably in for a rough selling season and have a greater chance of leaving money on the table. The really good agents, the pros, will not list your home for what you want. They will suggest a listing price that will work in the market and will be perfectly willing to NOT take the listing if you want more than it is really worth. The sellers who get trapped by the "this is what my house is worth" notion generally loose out big time.

Third, and this is the big one, listen to your agent. The selling process is complicated and there are other factors besides price that can cost you big bucks. Just focusing on price is short sighted and you may miss other variables in the contract.

In this market some buyers give a seller only one shot at the offer. You need to make the most of every opportunity you have and the pro's know how to make the best of every opportunity.

Underwater Mortgages

http://tinyurl.com/m7ftum

Most of the time I can agree with the WSJ and their respective authors' opinions as to the Real Estate market but with the above referenced article I take exception with Mr. Feldstein's take on the method in which we might stave off future foreclosures. In the article he suggests that the very people who are underwater with their current mortgage would somehow miraculously agree to the notion that the government will forgive a portion on their mortgage(not enough to make the bad situation an even break-even) and in exchange, the bank that holds your mortgage now has recourse against the borrower even if the borrower files for bankruptcy. Really? Who is going to stand in line for this ridiculous notion? Does Mr. Feldstein really believe that you would put yourself in this position because it will help everyone as he suggests? Let's be honest Mr. Feldstein; many of the problem loans that were generated that were "subprime" were not leant to people who were thinking of the common good. Those who find themselves severely upside down now due to a job loss are not thinking about the common good right now - they are thinking about how they can satisfy their family's "common good."

The problem stems from policy wonks who have little contact with the market, they wish to control, and their meddling into the free market system. The push to 'regulate' the masses into housing is what created our housing bubble and the FREE market is returning the level of home ownership back to 1985 levels.

The moral of the story is this; let the market work. There will be ups and downs. Interfere with the market and the ups and downs create more opportunities for a loss of our Freedom.

Remember GM?

The London Tea Room

The London Tea Room St. Louis MO

Lori and I are away in St. Louis for a conference and while we had a few minutes between sessions we wandered up Washington Street in Downtown St. Louis to discover this fantastic Tea Room. We have been tea lovers for the past 10 years and love this great Australian tea from Madura Tea Company. http://www.maduratea.com.au/ We especially like their Earl Grey blend. Well when we found this place we thought we would try their blend as well. WOW what a cuppa! Smooth, rich flavor in a great setting. We loved sitting outside with our steaming cup at a little marble topped table with a nice sandwich (those are great by the way) and a small buttery english shortbread. The cook knows his or her stuff that is for sure, because these little delights are the real deal! We enjoyed it so much that we have been back every lunch for the week. The englishwoman, who hosted us, is a real delight too. If you are in St. Louis, love tea, you must check this place out. It is worth the trip to find it.

Recovery Market?

http://tinyurl.com/mq5zn7 This link to the Wall Street Article mentions a home sellers dilema when pricing their home. The advice given is sound, from a professional's standpoint. When pricing your home one must really consider several factors that this article points out. First I would look at the what the competition is priced at and second, I would look at what the competition sold for. With the revised rules regarding appraisals, the price of a home is no longer what the seller is willing to sell for and what the buyer is willing to pay. The new third party to this equation is what is the appraiser willing to bless? Local experts are a valuable source of information, including appraisers.

Are we in a recovery market? I can't answer that question. But for starters Waukesha County lists 95 foreclosure sales are scheduled for the remaining days of August. I don't think we are in a recovery mode yet. Time will tell.

I Want What I'm Used To

http://tinyurl.com/l67ofd I read this interesting article in the Wall Street Journal this morning about the death of McMansions. And I thought the end paragraph best summarized the article, when the autohr June Fletcher says, "I suspect that when the recession ends, and today's first-time buyers are ready to move up, they'll want a home just like the one they grew up in. In other words, a McMansion". It was an interesting read.

Tax Assessment--Fighting City Hall

It is that time when the city will be sending out the reassement notices. Guess what? Taxes are not going down! Even with this economy. So here is a great article on how to fight City Hall with your property taxes.
http://tinyurl.com/mdsxy9

Values are plummeting in the city and across Lake Country. Go prepared to make your case. See what you think of the Wall Street Journal article and if it applies to you. The municipalities need to take notice that the citizens are watching how their elected officials are spending the money and if the reassessments are fair. Check the blog I posted a few hours ago about the values in Oconomowoc.

Family Fun in Grandhaven

It looks impressive from the outside and inside it is equally impressive as well. Grandhaven in the Town of Delafield and is the setting of this fantastic property. Here is the really cool thing about this home. This past Tuesday I had a broker's open for the top agents in the area. We had a nice lunch catered for these professionals. These folks are in lots and lots of homes, some huge and rambling. The overall comment when they walked into this 9,000 plus square foot home with an indoor basketball court, was "This feels like a family home." WOW I was blown away. I knew the moment I walked in that this was a special home. It has 18 rooms, but each room is intimate, warm and inviting. So many of the larger homes have these cavernous rooms that leave you feeling less than invited. So when I heard that the other agents, competitors of mine, were saying how comfortable they felt and that this was a great "Family Home" I knew that this was a winner.
http://tinyurl.com/kj53ga. Click here to see the YOU TUBE video of this great home. If you know of someone who loves grandeur and comfort then this might be the place for them.

Feel free to call me at 1-888-HEYGLEN or shoot me an email for more info at ghanon@shorewest.com. This homes website can be seen at http://www.shorewest.com/1088908

Oconomowoc Housing Statistics

For those of you who like the crunchy stuff here are some stats as to the state of real estate in the greater Oconomowoc area. The numbers are averages, but they give you an idea of what is happening in our city. The data is from MLS (Multiple Listing Service) and is for the greater Oconomowoc area only. Currently we have 311 homes actively for sale in all price ranges. Of the 311 homes the low is $105,000, the average is $515,886 with the high of $3.1M.

The solds in this sampling were from January 1, 2009 through today, July 17, 2009. There were 112 sales in that time frame with the low of $85,000, the average of $253,923 and a high of $995,000.

With that many homes on the market it is a good time to purchase a home in the city! If you would like more data or have questions about this data, feel free to contact me at ghanon@shorewest.com or you can call me at 1-888-HEY GLEN, toll free.

Ahh the Lake Life...

Over the fourth of July we spent a little time at the lake and I have to say that this is one of the best times we have as a family. The boys can spend all day on the lake sailing and we can just relax and enjoy the warmth of Wisconsin in the summer. Probably the best part of being together as a family is after dinner playing dumb card games. Our only entertainment are silly games, but we are all together and I guess that is what makes those times at the lake the most special. No cares, at least for the moment, no telephone interruptions, just fun and family. Those breaks are essential, no matter what line of work one is engaged in. Those fun times are always highly anticipated and never seem to last long enough but I guess that is why they are the fondest memories. Ahhh the lake life....

The Condos at Pabst Farms

Oconomowoc WI--

Centrally located the condos at Pabst Farms are a perfect addition to the single family homes. Of the 10 units that are constructed only 3 remain for sale. This aerial view shows the proximity to Summit Elementary School (on Valley Road) which is located at the top right of the picture. The homes on the bottom right comprise the western edge of Eastlake Village--a single family development. The condos blend in very well to the neighborhood feel of Pabst Farms. Everyone who attended the open house on Saturday and Sunday were impressed with the quality of construction in the units. Pella windows, tiled showers, Kohler fixtures, granite counters, underground sprinklers are just a few of the "standard" features of these very upscale condominium homes. As a Realtor holding open homes it is always interesting to hear what people think and say off the cuff. The other comment that comprised most of the attendee's was that these condos "don't feel like condos they feel like a home" That is due to the fantastic floor plans that this developement offers. So if you are in the area and want to see some outstanding condo-homes you should stop by on Saturday or Sunday from 1-2:30 or give me a call and I can set up a time for you to see these units at your leisure. You can reach me at 262-567-4349 or the Toll Free number 1-888-HEY GLEN. www.heyglen.com

Is Time Running Out?

Yesterday while waiting for our respective clients at a closing, the other Realtor and I were discussing the market and the first time home buyers. We both could have pulled our hair out trying to convey the sense of urgency that is just around the corner. The hardest part of the job sometimes is informing people of what is really happening in the market. I guess it is a matter of trust and I can understand that. Here is what is happening with the first time home buyers who are applying for the credit. Most of those buyers are using FHA which is a government program that will allow you to have less down on the house and in some cases the interest rate will be better. (But not all cases) So with the lure of lower downpayment and a smaller interest rate buyers have flooded FHA with applications. Remember this is the government!! Have you ever waited in line for a drivers license at the DMV? Well that is what waiting for loan approval from FHA is like--a nightmare! Missed dates for loan commitment are the norm. What would normally take 30-45 days is now taking 60-75 days. So here we are in the middle of July and it appears as if you have half the year to make a decision. Hold that thought. You have about a month or two to find your home then you are going to be one of the scores who are trying at the last minute to get their loan approved, in an already swaped system. So time is running out and I am not kidding...if you are on the fence make a decision either way.

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.