"Local Housing Market Fares Better Than National"

WEAU-TV (Eau Claire, WI) (07/03/07) Veremis, Lindsay



Existing home sales declined nationwide for a third consecutive month in May, reports the National Association of Realtors. In parts of Wisconsin, most notably the Chippewa Valley, the housing market isn't nearly so dire. Northwestern Wisconsin Realtors Association President Mark Fouts remarks, "I think the conservative nature of the people that live here and our culture keeps it a lot more stable. That's good and bad. At the times when other parts of the country are seeing double-digit increases in home sales, we don't necessarily see that, but then again we also don't see the fall." Still, Fouts concedes that the amount of time for-sale homes remain on the market has increased in recent months an estimated 8 percent or 9 percent from this time a year ago. Consequently, it remains a buyer's market, and sellers must do all they can to prepare their homes for sale.

Mortgage Rates Climb This Week

Freddie Mac reports an increase in the 30-year fixed mortgage rate to 6.73 percent this week, up from 6.63 percent a week ago. Chief Economist Frank Nothaft expects the benchmark to remain at or near this level for the remainder of the year.

The 15-year mortgage rate edged up at 6.39 percent from 6.3 percent over the same time span, and the five-year adjustable mortgage rate climbed to 6.35 percent from 6.29 percent.

Meanwhile, interest on one-year ARMs held steady at 5.71 percent. Nothaft attributes the jump in borrowing costs to a positive June jobs report and a jump in consumer credit in May.

Source: The Wall Street Journal (07/13/07)

Passing the Sniff Test in Selling the Home

Daily Real Estate News June 27, 2007

In addition to depersonalizing and decluttering, experts say home sellers need to be concerned about odors.

Sales associates polled informally by REALTOR® Magazine Online a few years ago said the lingering presence of pets, tobacco, mildew, and decay in the air are major deal-breakers.

Given that not everyone smells the same odors and that people can become accustomed to a particular smell over time, it is important for property sellers to have their sales associates or another objective party inform them about unpleasant scents in their homes.

According to Joan Cromwell, a Chevy Chase, Md.-based Long & Foster practitioner, if buyers "can't imagine clearing the smell, they can't imagine occupying that space."

In particular, the smell of cat urine is especially difficult to remove. Chris Coffin of the Alexandria, Va.-based branch of the cleaning company ServiceMaster estimates that spot-cleaning carpets and replacing the carpet pad would cost home buyers upwards of $400; removing and replacing saturated floors would cost much more.

Coffin says that it often takes three cleanings to remove nicotine odors from walls, and some cases involve the replacement of insulation.

Experts urge home buyers to be wary of air fresheners, candles, and other scents when touring homes, as they could be used to conceal offensive odors. A better solution for sellers, they say, is to clean drapes, sheets, and pet bedding as well as to air out the house.

Source: Washington Post, Dina ElBoghdady (06/23/07)

7 Tips for Foreclosure Property Investing

So many people ask me about foreclosures, if they're a smart investment, how they find "good deals", how to invest in them. I thought this article might be of interest with regards to those questions.

Daily Real Estate News June 29, 2007

With foreclosures rising nationwide, prices falling, and inventories swelling to historic levels, investors with a discerning eye and knowledge of the foreclosure process can build a profitable portfolio of distressed properties, says James Saccacio, CEO of RealtyTrac, which tracks foreclosure data.

Saccacio offers this basic advice to foreclosure investors:

Know your market. The most important tool in your real estate investing toolbox is knowledge of the area where you plan to invest.

Develop an appropriate investment strategy. Find an investment strategy that will work in your market, and then do what it takes to implement that strategy.

Make the foreclosure process work for you. Decide what foreclosure buying technique works best with your investment strategy and your strengths as a person.

Scrutinize each deal. Many real estate investors wrongly assume that if a home is in foreclosure it's a good deal.

Rely on a trustworthy team. You'll be in over your head if you try to do all the work involved in foreclosure investing on your own.

Network with banks and lenders. In a slow real estate market, banks and other lenders are saddled with larger inventories of foreclosed properties and will be more motivated to sell those properties at bargain prices.

Act quickly, but don't be in a hurry. A slow real estate market gives you the upper hand as a buyer, but you'll still need to act quickly to get the best deals.

— REALTOR® Magazine Online

When Contingencies Halt Negotiations

I found this article particularly appropriate this morning as I was catching up on my real estate news. While it's an article written out of Florida, it still reflects what's going on in our market here in Wisconsin as well.

Daily Real Estate News June 26, 2007

With the amount of time that homes are sitting on the market climbing, more practitioners are facing real estate deals that are contingent on the buyer selling a current residence. But before accepting a contract contingency, Apple Valley, Minn.-based REALTOR® Steve Fiorella urges sellers to determine whether the buyer "is marketing their home aggressively and pricing it accurately."

Buyers might want to indicate their commitment to the purchase by reducing the price of their existing home to ensure a speedier sale, Fiorella says.

However, real estate practitioner Faith McGown says buyers would be in a better position if they sell their current residence prior to making an offer. McGown suggests that those who need a contingency might want to make a full-price offer to compensate for having a contingency. Fiorella recommends they offer more earnest money — some of it nonrefundable.

Source: Lakeland Ledger (Fla.), Aimee Blanchette (06/23/07)