Saturday, May 30, 2015
Real Estate questions? Call me
Real Estate questions? Call me
Lisa Bear
Direct: 262-893-5555
Broker/Owner
357 W Wisconsin Ave
Oconomowoc, WI 53066
Office: 262-567-2455
Connect With Me
If you have Family, Friends or Neighbors that are considering buying a new home or selling their existing please have them contact me. I appreciate referrals!
Friday, May 29, 2015
Living on a Lake interest you? Lisa Bear can help
Living on a Lake interest you? I can help
Lisa Bear
Direct: 262-893-5555
Broker/Owner
357 W Wisconsin Ave
Oconomowoc, WI 53066
Office: 262-567-2455
Connect With Me
If you have Family, Friends or Neighbors that are considering buying a new home or selling their existing please have them contact me. I appreciate referrals!
Thursday, May 28, 2015
If You are Thinking of Selling, Now’s the Time
If You are Thinking of Selling, Now’s the Time
If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.
Jonathan Smoke, the chief economist of realtor.com, in a recent article revealed:
“Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad. Their patience will be tested with tight supply—indeed, the No. 1 impediment of active shoppers in April was not being able to find a home that meets their needs.”
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.
Bottom Line
As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.
on May 28, 2015 in For Sellers, Move-Up Buyers
on May 28, 2015 in For Sellers, Move-Up Buyers
August 1, 2015 is coming --- FBSO's and Limited Service Brokers are you Ready?
August 1, 2015 is coming --- FBSO's and Limited Service Brokers are you Ready?
Real Estate Agents are educated professionals. They need to know the laws and processes to make real estate transactions successful --- and they are going to be even more neccessary than ever with the TILA-RESPA changes being implemented August 1.
Agents will know how the new process will work and how it will affect closings? FSBO's and Limited Service Brokers will you? Probably NOT!
Agents will know how the new process will work and how it will affect closings? FSBO's and Limited Service Brokers will you? Probably NOT!
Here are three TILA-RESPA changes you need to know now.
1) There is a new “Loan Estimate”
The Good Faith Estimate and initial Truth-In-Lending Disclosure (Initial TIL) forms have been combined into the Loan Estimate (LE).
The Good Faith Estimate and initial Truth-In-Lending Disclosure (Initial TIL) forms have been combined into the Loan Estimate (LE).
2) There is a new “Closing Disclosure”
The final Truth-in-Lending (Final TIL) and HUD-1 Settlement Statement forms have been combined into a single Closing Disclosure (CD).
The final Truth-in-Lending (Final TIL) and HUD-1 Settlement Statement forms have been combined into a single Closing Disclosure (CD).
3) The required delivery time for each of these forms is three business days
The Loan Estimate:The creditor is responsible for ensuring that it delivers or places in the mail the Loan Estimate form no later than the third business day after receiving the consumer’s application.
The Loan Estimate:The creditor is responsible for ensuring that it delivers or places in the mail the Loan Estimate form no later than the third business day after receiving the consumer’s application.
The Closing Disclosure:The
creditor is responsible for ensuring that the consumer receives the
Closing Disclosure form no later than three business days before
consummation.
It is best for a home seller to become educated about making wise choices and we offer free consultations to discuss all facets of listing and marketing your home.
GREAT ADVISE from a one time FSBO
For Sale By Owner vs. Hiring a Realtor: A True Story
I conducted an experiment with my home sale. When I first put my house up for sale in September 2010, I went to Lowe's and bought a "For Sale By Owner" sign and read up on the best sales techniques that I could find online. For the next six months, I learned many valuable lessons and want to share those with you.
Real Estate Agents - Friend or Foe?
The first thing I realized when I put my house up for sale "by owner" was how nasty and mean some real estate agents are. Even a couple of aquaintances who are agents were openly hostile to the idea of me selling by owner. However, a few agent friends gave me good advice on how to price my home, looked at my staging and gave advice, and generally were supportive. All along, I had a backup plan. My life-long friend Jenny Farrell ( a ReMax agent) agreed to be our agent for both houses if my "for sale by owner" plan didn't work. I'm offering advice to agents who encounter "For Sale By Owner" homes. If you are nice and helpful instead of a condescending "Know-it-all" you might be able to get some more business.
Pricing
I made the classic rookie mistake of pricing my house too high. In a neighborhood where comparable houses were only selling for $140-150 k I went ahead and priced mine at $162k. Why? Because it was adorable! Your house is not going to be that adorable to other people. They have a specific list of things they are looking for. If your house doesn't have those attributes, don't take it personally. It will be perfect for someone. Lesson: Price your home appropriately (according to market value) from the start. Interested buyers will notice your home more in the first two weeks it's listed than any other time. Don't turn them off by over-pricing the property.
Staging
I spent at least six months getting my house ready to sell. I cleaned the basement (and my husband Jim painted it), I threw away and gave away a bunch of crap. I painted each room a simple beige and painted the ceilings and trim white. Then I packed away all family photos, piles of paper, and extra furniture. I bought new pillows for the beds and sofas and I aquired a couple of new area rugs. I bought a new table runner and centerpiece for the dining room table. These new things really served one purpose. It made it look as though I had a sense of style and coordination. (I fooled them!) People need to be able to imagine their stuff in your house, so clear out as much personal stuff as possible. Hoarders, you need professional help. Stuffing your closets and garage full of crap is not appealing to potential buyers! Get a storage unit if you can't part with your treasures.
Online listings
I created a profile on the online selling site DwellWell.com. It did not get me any leads, but it did serve a useful purpose. It allowed me to create my own "for sale by owner" site (for free) so I could share the link on my social media sites. I also created a posting on Craigslist.org. Mostly all I got from that was spam. I did have one lady call and make an appointment to see the house, only to cancel the next day.
Photographs
I invested in professional photographs by an experienced residential property photographer. Paul Gates just happens to be a classmate of mine. Whether you are selling yourself or listing your property, having photos that truly present your home at its best are a good investment. Plus, you will have a memento of your property to keep forvever. You can see the beautiful photos he took of my house here.
Kick-off Open House
When I first got my house ready to sell, I picked a Thursday evening and held an open house. I told everyone I know, sending out email, tweets and Facebook posts to all my friends. No serious buyers came, but it turned out to be an excellent excuse for my friends and me to stand in the kitchen and drink wine late on a school night.
Social Media
As I already eluded to, I used social media to let people know about my house. With more than 4,000 friends on Twitter and 1,500 on Facebook, I figured I'd have at least a chance of finding someone to buy my house. What I learned later is that even with those numbers, it still wasn't enough to guarantee a buyer for MY HOUSE. I found out very few of my friends shared my listing with their friends via social media.
A For-Sale-by Owner Offer!
I did receive an offer on my house while it was listed for sale by owner. A nice young man named Matt wrote a low-ball offer of $132,000 and presented to me with this logic, "Since you don't have to pay a realtor, I offered a lower price." Sigh. I am the one who was supposed to be saving the money, not you, moron. I countered with $150,000 and never heard from him again.
A Word About Open Houses
I held an open house every Sunday through September and October and even into November. There was at least three hours of cleaning ahead of each open house, and I always put out fresh flowers on the table. Then I got a few helium balloons, put up some sturdy signs, and opened up the house for four hours. Looking back, these open houses were a total waste of time and money. I learned that open houses do not sell homes. What does? THE INTERNET!
Listing the House
I listed my house in April 2011 and in a matter of three months it was sold. My realtor Jenny was a great moral support, but realtors really earn their keep during the offer negotiation and closing process. In fact, they don't spend much time trying to get people to buy your house. The internet is like a magnet that draws people to your listing. House sales are all about numbers. The more people who know about the house and can find the house, the higher the likelihood one of those people will buy your house. When my house was for sale by owner, the only people who saw my house were the people who drove by or found out from friends. People who are looking for a house usually start their search on the internet and then go to see the houses that match their criteria. That is why listing the house is so valuable. More people can search for and see your house.
The REAL Offer
I received a reasonable offer on the house ($142,000) and counter-offered. We ended up with a very respectable $145,000 purchase price. I must say, the whole offer-counter-offer process can be like a chess game. Both realtors (yours and theirs) usually have a good sense of what is going on with their clients. They are both motivated to sell the property, and they have really valuable advice to offer at key decision making moments. For example, the person who made the offer on my property asked for some pretty pricey ad-ons, and I said no on the advice of my realtor. It all worked out, so I did the right thing. If I would have been on my own, I probably would have wasted a bunch of money on unnessary stuff, or second-guessed myself to death.
Lessons Learned
- People tell you not to become "emotionally attached" to your home. In practical terms, it means that you will inevitably behave as though your house is worth more than it is due to your emotional attachment. I experienced this several times and a good realtor will talk you though the real chances and the real numbers and bring you down to reality.
- The power of the internet is what will bring the right buyer to your home. Only large real estate companies that use the MLS (multiple listing service) will have enough search engine power to get your home noticed.
- Your realtor earns their keep by assisting you with the offer/counteroffer and the inspection process.
- The advice of an experienced realtor can ultimately save you time and a lot of hassle. That is worth the money.
Wednesday, May 27, 2015
Full Service Listings Versus Limited Service Flat Fee Listings - RE/MAX Realty Center offers options!
Full Service Listings Versus Limited Service Flat Fee Listings
Oftentimes, we are questioned about the differences between a full service listing and a limited service flat fee listing. Home sellers are rightfully concerned not only with the costs associated with selling their home, but also with the package of services included for that cost. Home sellers want to know the potential benefits of those services and if they can justify the costs.To Understand the Differences Between a Full Service Listing and a Limited Service Flat Fee Listing, You Must Understand All of the Costs Involved.
When you pay for a real estate broker to list and market your home, there are several typical costs involved and a few that are not readily apparent. The actual fee for the package of services provided by the broker, whether a flat fee or a commission, is known at the beginning of the listing.
What is unknown is how effective the marketing strategy of the broker will be and how much that may also cost you in addition to the listing fees. Holding costs, such as interest payments, taxes, utilities, and insurance, will add up over time and will also have to be considered.
As an example, if the marketing strategy offered by your broker is ineffective, then your home may sit on the market for an extended period of time and that will encourage low offers which may cost you significantly. You may have holding costs adding up over time that will also cost you money. In addition, you may not reach enough potential buyers to ensure that your home receives the greatest chance for the best selling price, again costing you money through a lower selling price.
If the pricing strategy is ineffective, this can also cause your home to sit for an extended period of time on the market. This in itself can encourage low offers and cost you money, in addition to the continuing holding costs. The secondary effect is that your price reductions will be noted by home buyers and they may make lower offers thinking that you are motivated to sell, which can be costly to you.
Think about it - For a home seller, in many ways the ideal scenario for them is to sell their home for the maximum price, with the best terms, in the minimum amount of days, for the lowest possible cost, and for it be a positive, enjoyable experience. Of course, everyone's personal situation is different, but in general that describes an ideal home selling scenario.
Complicating things, many of the factors in that ideal home selling scenario are out of the direct control of the seller and involve negotiations. The seller does have a choice, though, when it comes to the costs associated with hiring a real estate broker to market and represent their home. This makes the comparison between a full service listing and a limited service flat fee listing important.
What Are the Costs of Full Service and Limited Service Flat Fee Listings?
In general, there are two types of fee structures offered to sellers by real estate brokers and they directly affect the level of service available to the seller. The first type is a full service listing that is usually performed for an agreed-upon commission payable at closing, frequently costing between 5% and 7% of the home's sales price (shared between the listing and selling broker).
The second type is a limited service flat fee listing that is paid upfront, usually in the $500-$1,000 range, plus a 2.4 commission offered to the selling broker. There is a third type as well, a hybrid between a straight commission and a flat fee paid upfront, with the benefit to the seller of a full service listing for a reduced cost.
Limited service flat fee listings in general include placement on the local MLS, a yard sign, a lockbox, limited marketing and limited consultation time for pricing strategy and negotiations, and an agent may attend your closing. You are typically responsible for showing the home, paying for and doing additional marketing, plus researching pricing and negotiating strategies on your own.
How Does a Full Service Listing Compare to a Limited Service Listing?
We decided to make a statistical analysis of the differences between a limited service flat fee listing and a full service listing package. The RE/MAX REALTY CENTER TEAM
When combined together, the limited service flat listing companies sold their listings on average approximately 5.0% less than the listing price in 2014. This means that a limited service listing for a home with a listing price of $100,000 can cost a seller $5,000 on average when comparing the listing price to the selling price, plus $500 (or more) for the flat fee and a 3% commission for the selling broker, for a total of approximately $8,350.
RE/MAX REALTY CENTER TEAM sold our listings on average approximately 1.7% less than the listing price in 2014. For a home listed at $100,000, this means that we helped clients negotiate on average approximately $1,700 off of their listing price. In addition to a 6% percent commission on the selling price (our brokerage commissions are variable), the total cost to a seller for our full service listing package averaged out to approximately $7,600 for a home listed at $100,000.
Our full service listing package has the potential to save a seller approximately $750 over the average limited service flat fee listing for a home listed at $100,000.
The flat fee listing average days on the market in 2014 was 132 days, while ours was 56 days. This means that we sold homes using our full service listing package on average 76 days less than the comparable average for a limited service listing.
If you were to make the same comparisons with a home at a listing price of $500,000, the average total cost for a flat fee listing, including a selling price negotiated on average 5% lower than the listing price and the cost of the flat fee listing at $500 with a 2.4 commission to the selling broker, could be estimated at approximately $39,000.
Our average total cost to the seller, with a selling price negotiated lower than the listing price by 1.7% on average and the cost of the full service listing at a 6% total commission, could be estimated at approximately $38,000 for a home with a listing price of $500,000. In addition, this home may have sold in fewer days on the market.
Again, when comparing the costs of a full service listing to a limited service flat fee listing, there is an opportunity for real savings, plus a reduced days on the market, by choosing a full service listing package.
Carefully Weigh the Differences Between a Full Service Listing and a Limited Service Flat Fee Listing.
These statistics may be surprising to home sellers who think that picking the lowest possible selling cost is the best way to save money when selling a home. There are additional costs involved with selling your home, both in real money and in time, that have to be considered when choosing between a full service listing and a limited service flat fee listing.
In reality, this is just a glimpse at the differences in cost between full service listings and limited service flat fee listings. Home sellers have to weigh all of the factors involved to decide which route is ideal for their needs. It is best for a home seller to become educated about making wise choices and we offer free consultations to discuss all facets of listing and marketing your home.
At RE/MAX Realty Center we offer listing package options to suit your needs!
Tuesday, May 26, 2015
The Importance of using a Real Estate Professional to Buy a home
I'll say it again.....
The Importance of using a Real Estate Professional to Buy a home
I constantly emphasize and stress the importance of using a Real Estate Professional to help you with the most sale and purchase you will most likely make during your lifetime!
I know the pro's of enlisting their help!
The agents at RE/MAX REALTY CENTER are great resources and very easy to work with! Contact us today! 262-567-2455 or 262-893-5555
Monday, May 25, 2015
Sunday, May 24, 2015
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