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The recent real estate market has been interesting, creating a challenging market for buyers and a golden opportunity for sellers; however, recent changes have many wondering-is the housing market finally slowing down?
As inflation rates push higher, buyers have responded. The sale of existing homes experienced a 3.4% decrease between April and May of 2022 and were down 8.6%, when compared to May of 2021. Meanwhile, the sale of new builds dropped 6%, on an annual basis. It’s not just a decrease in home sales; Redfin has also reported a reduction in competing offers, with just 60.7% of offers written by their agents facing competing offers, down from 67.4% around a year ago. Not only are there less competing offers but buyers are also backing out of deals, on a nationwide scale 60,000 home-purchase agreements fell through in June, almost the highest percentage on record. The reasoning behind this is the current market state, giving buyers more room to negotiate and the rising mortgage rates forcing buyers to back out.
Another aspect buyers are now dealing with is that mortgage rates have spiked from 3.11% to 5.25% in the past five months to control rising inflation and are now up to 5.51% at the time of writing this post; experts expect this number to range from 5 to 7% the remainder of 2022. The rising rates have affected the housing market, with the number of mortgage applications dropping by 18% when compared to last year. These high rates have turned some buyers away, as they simply cannot afford to buy a house. In fact, “today’s average monthly mortgage payment of $1,700 is nearly $500 more than last year” and is more than double the amount a homeowner would expect to pay a decade ago. When combined with the high listing price of homes, these higher rates reduce the fervent market we’ve become accustomed to. The rising rates also have potential sellers deciding not to, or risk losing out on low mortgage monthly payments.
However, that’s not to say that we’re headed towards a real estate market crash-at least not according to most experts. For example, Bill McBride an analyst, sees the current market as very similar to 1980; in a bid to combat the inflation of the 1970s, interest rates rose, and the housing market plateaued. McBride sees the potential for another stall or plateau as the worst-case scenario in the current market. Meanwhile, Fannie May predicts a modest recession will likely hit in the second half of 2023, brought on by multiple factors, including rapidly rising interest rates, food prices, and surging house prices.
Even if the statistics show a slow-down, it doesn’t equate to affordability. The higher mortgage rates and the high prices of homes will make purchasing a home unaffordable for many; however, there may be some changes on the horizon. As more people are priced out of this current market, and interest rates remain high, the chief economist for Comerica Bank predicts that price increases will slow during the remainder of 2022, while others believe that mortgage rates are close to peaking.
Many experts are seeing this period in the housing market as a correction, not a crash. However, with continued low inventory (as building is 30% more expensive than it was a year ago) the market is projected to continue to be good for sellers and not so good for buyers. Although there has been a cool down, it has been at the expense of buyers, with many being pushed out by high prices and now by mortgage rates.
Well, even with expert opinions and predictions, the state of the market is largely unpredictable, and opinions split. Additionally, the real estate market is different in every location. The following is some of our agents’ thoughts of whether the housing market is slowing down in the Oconomowoc area . . .
“There’s still a large pool of buyers and a lack of inventory in our area. The rising interest rates have taken some buyers out of the running; I am seeing homes stick around a bit longer, but it is still a good time to be a seller.”
“The market is experiencing a correction. Buyers are moving to the sidelines, due to higher interest rates and a lack of inventory and waiting for the market to become more favorable to their side of the transaction. For sellers in the area, they’ll start to see the effects of this change, with fewer offers and less competition.”
Summer is flying by this year, but before it’s over-be sure to get out there and enjoy Southeastern Wisconsin. Whether you’re a local or a visitor, here are our recommendations on 11 things to do this summer in Southeastern Wisconsin.
Taking advantage of the summer’s berry season is an absolute must. From strawberries to blackberries, the Wisconsin season for berries is here. The following are the typical seasons for berry picking in Wisconsin, although they are always subject to changes based on the good ol’ Wisconsin weather patterns.
Strawberry Season: late June to early July (the season is almost over-be sure to hit the fields before they’re gone!)
Raspberry Season: July to September
Blueberry Season: mid-July to August
Blackberry Season: August and September
There are plenty of great berry farms to visit in southeastern Wisconsin this summer. Here are just a few:
Jelli’s Market: N5648 S. Farmington Rd., Helenville
This spot is top-tier in berry picking and other fantastic produce. They have strawberry, blueberry, and raspberry picking, alongside beans and even apples in fall. They offer u-pick or pre-picked options and have lots of great goodies in their store market on-site.
Mayberry Farm: W2364 Cty Rd Y, Mayville, WI 53050
This farm knows strawberries! They are first-generation strawberry farmers who continue to perfect the strawberry-picking experience after six seasons. Their farm also offers raw honey and a full line of soap & skincare products.
Fideler Farm: 2863 Ridge Rd, Kewaskum, WI 53040
Although the strawberry season here has ended, they’ll have both summer and fall raspberries for picking-so be sure to check them out!
Wisconsin has so many great festivals during the summer, especially in Milwaukee. So whether you’re looking for tasty food, great music, or a cultural experience, there’s a fest for you. . .
Summerfest: 6/30-7/2 & 7/7-7/9
There’s still time to hit Summerfest for Weekend II or III! Check out some tips on getting in for free by clicking here.
Bastille Days: July 14th through the 17th
One of the nation’s largest French-themed fests, with fantastic food and music.
Germanfest: July 29th through the 31st
The 40th-anniversary festival celebrating German culture and traditions- there’s even a Daushhound Derby Race.
Wisconsin State Fair: 8/4-8/12
Enjoy all things Wisconsin by stopping in at the state fair. From cream puffs to show cattle and everything in between, this fair is a must-go-to this summer.
A La Carte at the Zoo: 8/18 to 8/21
A weekend of wild fun, with local eats, trendy music, and an opportunity to see the 200+ species of animals.
Nothing better than relaxing by floating down a river in a tube. If you’ve been searching for a way to enjoy the nice weather, this is your ticket.
Spring Green: Wisconsin Riverside Resort offers a 1 or 3-mile float, with tubes due back at sunset.
Wisconsin Dells: Point Bluff Camping Resort offers a tubing experience that takes about 3 to 3.5 hours, although it is float at your leisure.
Enjoy your summer by hiking through one of the amazing state parks in Southeastern Wisconsin. The following offer a variety of trails and stunning scenery throughout.
You can’t skip out on a Wisconsin tradition this summer by missing a meal at one of these classic supper clubs.
Wisconsin is a cheesy place with a cheese-making heritage that goes back over 180 years. Celebrate this past by stopping at any of the cheese shops in southeastern Wisconsin this summer; here are just a few that you could make a trip to . . .
Besides the festivals, plenty of concerts are happening in the area; if you’re looking to attend some Lake Country Area free concerts-check out our last blog post!
It’s easy to forget how great of a place southeastern Wisconsin is, and when you start to feel like you might be forgetting-doing something a bit touristy is just the thing to make you appreciate your home.
For some ideas, check out this list of 100 things to do around Milwaukee or the 30 best things to do in Madison.
Bike riding is a great way to get outside to enjoy the outdoors and exercise at the same time. There are some excellent trails in the area. This site outlines the various routes all over Wisconsin, dividing them by their compass location.
If you’re interested in pedaling a different kind of vehicle, pedal taverns are alive and well in southeastern Wisconsin (there’s even one in Oconomowoc!).
There’s nothing better than enjoying a baseball game on a nice summer day or night. Whether you’re cheering the Brewers or a local team to victory, it’s a great event to add to your summer schedule.
Did you know that Oconomowoc just got their own baseball team? Be sure to attend a game at the new stadium and cheer on the Dockhounds.
Summer in southeastern Wisconsin is prime time for arts festivals and classes. If you’re an arts connoisseur, it’s the perfect time to hit the festivals and pick up some great art or create some of your own.
Art Fairs/Festivals:
Morning Glory Art Fair (August 13-14, 2022)
Angora Art Fair (August 20, 2022)
Oconomowoc Festival of the Arts (August 20-21, 2022)
Art Classes:
Fisk Avenue DIY Workshop Classes (Waukesha)
Soul Fire Art Studio (Delafield)
Is there a better way to enjoy a Wisconsin summer than kicking back in a lawn chair and listening to quality music? We would argue that there’s not. So check out these planned 2022 Summer Concerts happening in the greater Lake Country area.
The events are color-coded so that you can better distinguish between them.
Red = Nixon Park Concert Series (Hartland)
Orange = Oconomowoc American Legion Band Concert (Oconomowoc)
Blue = Bands at the Beach (Oconomowoc)
Green = One-Time Events (Oconomowoc & Delafield)
Purple = Twilight Concerts at Fowler Park (Oconomowoc)
June 2nd: Nixon Park Concert Series-Ryan Meisel (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
June 3rd: Bands at the Beach featuring Geoff Landon & Friends
Time: 7:30 PM to 10:00 PM
Location: City Beach Bandshell
Cost: Free
Enjoy a free concert on the lake!
June 8th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
June 9th: Nixon Park Concert Series-Devon Huckstep w/ Catelyn Picco (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
June 15th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
June 16th: Nixon Park Concert Series- Montage (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
June 22nd: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
June 23rd: Nixon Park Concert Series- CIA2 (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
June 24th: Bands at the Beach featuring The Love Monkeys
Time: 7:30 PM to 10:00 PM
Location: City Beach Bandshell
Cost: Free
Enjoy a free concert on the lake!
June 26th: Summer Tango
Time: 6:00 PM to 9:00 PM
Location: Oconomowoc Community Center
Cost: Free
Enjoy this free community concert at the community center, with a theme of summer tango.
June 29th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
June 30th: Nixon Park Concert Series- Steve Meisner (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
July 6th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
July 7th: Nixon Park Concert Series- The Midnight Purchase (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
July 8th: Bands at the Beach featuring Bootjack Road
Time: 7:30 PM to 10:00 PM
Location: City Beach Bandshell
Cost: Free
Enjoy a free concert on the lake!
July 8th & 9th: Delafield Block Party
Time: 5:00 PM to 11:55 PM (Fri) & 5:00 to Midnight (Sat)
Location: Downtown Delafield
Cost: Free
Enjoy this two-day music festival downtown Delafield with various musical acts. On Friday, Totally Neon and Bella Cain perform & on Saturday, listen to the music of The Kingfish Band and The Toys.
July 10th: Twilight Concert in Fowler Park – Dan Rodriguez Band
Time: 6:30 PM to 9:00 PM
Location: Fowler Park
Cost: Free
Attend this family-friendly musical event with high-quality musicians, curated by the Magic Mansion. Bring your chairs, blankets, drinks, & food to enjoy while you kick back and listen.
July 13th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
July 14th: Nixon Park Concert Series- Twang Dragons (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
July 20th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
July 21st: Nixon Park Concert Series- Depot Express (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
July 22nd: Bands at the Beach featuring the 5 Card Studs
Time: 7:30 PM to 10:00 PM
Location: City Beach Bandshell
Cost: Free
Enjoy a free concert on the lake!
July 27th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
July 28th: Nixon Park Concert Series- Myles Wangerin (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
August 3rd: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
August 4th: Nixon Park Concert Series- Fat Andy (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
August 5th: Bands at the Beach featuring The Orange Whips
Time: 7:30 PM to 10:00 PM
Location: City Beach Bandshell
Cost: Free
Enjoy a free concert on the lake!
August 10th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
August 11th: Nixon Park Concert Series- Hartland Community Band (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
August 14th: Twilight Concert in Fowler Park- The Accidentals
Time: 6:30 PM to 9:00 PM
Location: Fowler Park
Cost: Free
Attend this family-friendly musical event with high-quality musicians, curated by the Magic Mansion. Bring your chairs, blankets, drinks, & food to enjoy while you kick back and listen.
August 17th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
August 18th: Nixon Park Concert Series- Burgundy Ties (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
August 24th: Oconomowoc American Legion Band Concert
Time: 7:30 PM to 9:00 PM
Location: City Beach Bandshell
Cost: Free
Join the Oconomowoc American Legion Band every Wednesday for good tunes this summer. Bring your lawn chairs, blankets, and snacks!
August 18th: Nixon Park Concert Series- 4 Wheel Drive (Hartland)
Time: 7:00 PM to 9:00 PM
Location: Nixon Park
Enjoy a collection of different styles of musicians at Nixon Park in Hartland during their Concert Series this summer.
August 25th: Bands at the Beach featuring The Decade
Time: 7:30 PM to 10:00 PM
Location: City Beach Bandshell
Cost: Free
Enjoy a free concert on the lake!
Check out the following links to obtain additional information on these concerts!
Hartland Events (Nixon Park Concert Series)
Have you ever heard the saying, “shoot for the moon, at least you’ll land amongst the stars.” Although the sentiment is nice when setting goals, it’s not so applicable when setting a list price for your home. When it comes to overpricing a home, there are no stars to land amongst, only low-ball offers and a long time on market.
In fact, multiple studies have shown that price is the “largest determining factor for length of time on market.” Essentially, this means that even with a stellar marketing program or a picture-perfect home, a listing could still sit on the market if overpriced. However, sellers are confident right now, with a recent Realtor survey showcasing this confidence in their findings:
With a deficit of 554,000 homes on the market currently, some of this confidence is justified; however, overpricing is still occurring, and there are homes that should be selling that are lingering on the market.
Well, the following factors are reasons why you should consider your price point carefully as a seller.
In our experience, the first month a listing is on the market is the best time to get it in front of buyers, increase traffic and retain attention. After this time frame, interest begins to wane, and buyers begin to wonder what is wrong with that house? Additionally, if you eventually have to drop the price of the home to get interest, this will further the idea that there is something wrong with the home in the minds of buyers.
By pricing a home correctly in the beginning, you’re able to capture buyer attention immediately, which assists you in getting the highest possible offer.
When a listing has been on the market for a while, buyers will begin to feel that they have the upper hand, and in a sense, they do. The longer a listing sits on the market, the more a buyer can negotiate, and their offers are likely to be lower than the realistic list price for the property. The National Association of Realtors discovered the following statistics regarding home prices and length on the market:
Coming up in searches is an important aspect of marketing, and if the home is priced out of parameters, it’s not going to show up in the search. Did you know that the majority of people set their search parameters in $25,000 intervals? That’s not to say that you need to pick a price with a $25,000 interval, but going over a common price cut-off, is going to shrink your overall impressions. The numbers look like this, if you overprice by 10%, you’re cutting the pool in half; by 15%, and you’ve lost 90% of your potential buyers.
On the note of pricing, why do some many listings seem to be priced with so many 9s, for example, $499,900? Well, it’s psychology. The human brain sees the first digits as the most important ones, and with a six-digit price tag, brains tend to focus on the first 3 numbers. So, when you price a home at $499,900 versus $500,000, even though the price isn’t that much lower, the person will feel like it’s a lower price point because of the starting number of 4 versus a 5.
Now, let’s say you get an offer that will give you the number you’re asking for. That’s great, but if the buyer needs a loan, the bank is going to require an appraisal. If the appraiser doesn’t appraise the home out at an amount that supports the purchase price, chances are the mortgage is not getting approved. This throws the whole sale into jeopardy and may leave the seller looking for a new buyer.
Beyond these main reasons, other reasons to not overprice a home are that it will increase your holding costs, and you’ll make comparables look like a better deal. So, when it comes to pricing your home, be sure to do your research or connect with a qualified real estate agent who can give you a realistic price point and advocate for you when negotiations begin!
Buying your first-time home is a daunting process! Unfortunately, many experience the same common first-time home buyer mistakes – leading to trouble. By identifying the more common errors and planning around them, you are likely to avoid making these mistakes.
Buying a house in today’s market is not as simple as finding a home and purchasing it. Instead, buyers should take the time to research; with areas of focus on local market, preferred neighborhoods, and a budget.
We recommend planning to begin the home buying journey at least a year in advance. This timeline will allow you the necessary time to research, plan, and save for the complex buying journey. Three financial things to do during this time are work towards boosting your credit score, paying down debt, and saving for a down payment.
One common mistake new home-buyers make is to drain their savings to purchase a home, using the funds to pay the down payment and closing costs. The idea that you need a 20% loan is outdated. But, of course, the more you pay for a down payment, the lower your monthly payment, and with increased equity and better rate—if you can afford to do it, it’s something to consider.
However, if paying the 20% down will drain your savings account, you’re better off paying a smaller percentage on the down payment and retaining that money for your future. For example, with a conventional mortgage with PMI, you can put down as little as 3%, and with an FHA loan, you could put down only 3.5% if your credit score is 580 or higher.
Researching your mortgage is just as important as analyzing the real estate market. Don’t just take the first and only quote you get; you need to compare offers! Mortgages vary from lender to lender, so you’re more likely to find the best deal by shopping around.
As part of the mortgage process, lenders will pour over credit reports to decide interest rate and whether or not to approve you for a loan. If there are inaccuracies in your credit report, you could be penalized with a higher interest rate. By checking your credit, you will know your loan eligibility, and you can correct any errors, saving you money in the long run.
Additionally, don’t do anything drastic with your credit if you’re planning on purchasing a house: don’t open new cards or close existing accounts, and don’t take out any other loans. While you can save the new appliances and furniture to your shopping cart, you shouldn’t purchase them until after closing.
When you purchase a home, while the actual structure itself is important, the neighborhood and its location are just as important. Therefore, you should always research and check out the general area to make sure it’s a good fit with your lifestyle and priorities.
Not only is buying a home expensive, owning a home is costly. There are different costs associated with being a homeowner, such as property taxes, mortgage insurance, homeowners insurance, hazard insurance, repairs, maintenance, utilities, and more!
If you’re not prepared for these costs, they can quickly add up and overwhelm a new buyer. We recommend setting aside some funds every year, specifically for repairs and maintenance.
We understand how tempting it can be to forgo a home inspection, especially when you are vying for the coveted accepted offer status amongst hoards of other buyers; however, we always recommend getting a home inspection. By choosing not to include this contingency, you are entering into the unknown where various things could go wrong with essential components in the home.
Around 86% of home inspectors find at least one necessary repair during their inspection—that’s a lot of repairs! However, the inspection report will be an asset to you in the long fun, protecting your wallet and ensuring your future home is livable.
Buying a home is an emotional process; however, you’ve entered dangerous waters when you allow emotions to guide you in your decision-making. Of course, there should be some emotions involved, but it’s a massive investment. Allowing yourself to get overly attached or emotional will only hurt you and your wallet in the long run.
It’s better to be very logical, rational, and practical. Create a list of needs vs. wants, have a budget that you’ll stick to, and turn to your real estate agent if you can feel your emotions starting to take over.
We recommend not hiring the first or only real estate agent you meet (even if it’s one of our agents). An experienced buyer agent will be able to help you in all aspects of home buying and set you up for a smoother transaction. It’s a significant relationship, and putting all your eggs into one basket, might hurt you in the long run if you determine later on you and your agent aren’t the best fit.
You may click with the first agent you meet, but we recommend meeting with a few to determine which agent will work best with you and has the expertise you’re searching for. If you’d like to meet with one of our agents regarding your buyer’s journey, reach out!
Myths are commonplace in our world, and sometimes it can be hard to distinguish between the truth and fiction with such established lore. Unfortunately, myths are profuse on both sides of the transaction when it comes to real estate. On Myth Mondays, we will be analyzing common real estate myths and using our experiences/knowledge to label them as truth, fiction, or somewhere in between.
Although it can be tempting to hit the ground running when searching for a new home, it’s not very realistic, especially in the current market. Therefore, the first step interested home buyers should take is researching their local market. During this research, you could locate general areas you prefer, price trends in your locality, or a variety of other information that will allow you to start the process as an informed buyer. After the market research is complete, buyers must consider the financial aspect: getting a target price point, prequalified, and preapproved. For a breakdown of the steps, check out this article:
If you’re getting started on your real estate journey as a buyer, reach out, and one of our qualified team members can get you started on the right track!
Many buyers will choose to go after new builds because they feel that new construction will not have the repair costs of an older home. It does stand to reason that this would be the case, and sometimes it is; however, that doesn’t mean it’s always a fool-proof plan. Sometimes, newer homes with a rushed construction time may have even more underlying issues than older ones. By hiring a well-versed home inspector in new builds, you can help reduce the risk of running into problems.
Condos are popular; there is no denying that; however, some buyers may be under the impression that purchasing a condo or a home is interchangeable. On the contrary, a condo is not the same as a home for a few significant reasons.
Technically, you don’t need a home inspection, but our agents always recommend getting one. It can be very tempting to drop this contingency in this hot market, but this opens you up to possibly buying the home with no idea of the potential defects. Home inspectors look for more than 1,600 specific items in a home, including essential components like structure, roof, HVAC, and electrical system. These components are crucial to the health of a home, and any defects could prove very costly.
Check out this write-up on Home Inspections for an in-depth description:
Many online realty organizations may tell you that you don’t need an agent to buy a home in today’s day and age. To be fully transparent, it’s possible to buy a home without the assistance of a real estate agent. However, we would highly recommend that you interview agents and consider the benefits they would add to your home-buying journey. A good buyer’s agent is an expert in the industry; they will juggle all the aspects of buying a home and negotiate in your best interest; all in all, they will save you from the headache that can be working through a home sale.
If you’re looking for a good buyer’s agent, reach out to a member of our qualified team to get the conversation started!
Have any myths that you’d like us to discuss in the next edition? Let us know!
Sell the home as-is or renovate? This is a question that many sellers deliberate on before putting their homes on the market. The big decisions on whether to replace the outdated countertops or put in more modern and desirable fixtures are enough to keep a seller-to-be up tossing and turning at night. Unfortunately, the answer is complicated and requires the consideration of multiple factors.
If the market is a seller market, then it’s likely the home will sell quickly, whether it has the most up-to-date bathroom furnishings or not. A hot market allows a seller more leeway on selling a house as-is, due to the fierce competition amongst buyers. If there is no or low inventory, a buyer will look past the out-of-date fixtures. When the market leans the other way, buyers may be hesitant to even look at a home that “needs work.”
With the help of an agent, you’ll be able to do a comparative market analysis (CMA) and review the condition of comps. For example, suppose comparable houses to yours are more updated, or the less-updated comp sat on the market longer before selling. In that case, you will want to consider these factors and potentially consider a remodel.
Unfortunately, the average amount recouped for home remodeling projects has dropped in recent years. According to real estate professionals, the national average return on 21 popular remodeling projects in 2020 was 66.5%, whereas 2019 had 68.6%*. Additionally, it is essential to understand that you should not expect a 100% return on your investment, as it is far from the norm.
If you do choose to remodel, where even to start? Although focusing solely on the interior may be tempting, don’t forget the exterior remodels. In fact, according to Remodeling Magazine’s 2021 Cost vs. Value Report, the remodeling projects that will provide the most ROI are ones that seek to improve curb appeal. It found that projects like replacing a garage door ($3,907) provided a 94% ROI and a 92% ROI on installing exterior manufactured stone*. When moving inside, some key areas to focus on are:
Although the real estate factors are important when considering this question, it’s also important to ask yourself more personal questions. One of them is, do you want to live in a construction zone (if you’re currently living at the property), and do you want the hassle of managing a remodel? Remodels are messy, and if you’re preparing to sell and move on with your life, the hassle may not be worth it. Additionally, if you really want to do a remodel of something for yourself, and not a potential ROI, then you should do it.
We posed the question to our real estate agents, and they offered the following advice. If you’d like to chat to any of them on selling your own home, please reach out!
“We’re still experiencing a seller’s market; inventory is low, and demand is high. However, even with a large pool of eager buyers, sellers can still benefit from prepping their property – taking care of deferred maintenance items, touching up paint, decluttering, and depersonalizing – to bring in top dollar for their home. Replacing a broken window, resurfacing a tub, or painting that purple bedroom a warm white is a ‘yes,’ but I would steer clear of any major projects, e.g., redoing your kitchen or bathroom. Often, major home upgrades don’t provide a good return on investment. On top of that, many buyers prefer to fix it up once it’s theirs, rather than buy a newly renovated property that’s not to their taste.”
“I would always recommend fixing up anything that improves overall curb appeal to help generate interest. Additionally, in the interior, focus on the “little things” like repainting, cleaning up any disorderly areas, and deodorizing. In terms of major renovations, don’t go overboard because buyers today typically want to do their own renovations.”
Overall, if your house is a little outdated, don’t go rushing to do a big remodel before you sell because you think it will improve your home’s sale chances; instead, take your time and talk with your agent about what makes sense to potentially fix up before the sale.
As we head into the new year, let’s take a moment to reflect on last year’s real estate market with a market review. To put it simply, the real estate market of 2021 was wild. The demand of 2020 carried into 2021, creating massive amounts of competition that kept prices high and overall inventory low. This environment left buyers scrambling to see houses the same day they hit the market, or loose out, and sellers with a wide variety of offers to choose from.
The following graphics will seek to showcase the market of Waukesha County in 2021, as well as 2019 & 2020, in two main areas: the total number of sales and median sales price in the county. If you’d like to see data from additional years or the real estate market of 2021 in Wisconsin as a whole, click here.
The 2021 market saw a high amount of home sales. The lull at the beginning of the year was due to the lack of supply available. However, as we moved into the summer months, more supply became available before the subsequent seasonal fall beginning in September. This seasonal fall is not altogether surprising, as the local real estate market has a documented history of slowing down as the weather turns.
Stats
Low: February (253)
High: August (696)
Total # of Sales in Waukesha County (2021): 6,311
The following graph is created when comparing the last three years of sales in Waukesha County. Interestingly, the lowest number of sales in a month was in 2021 (February). Although, this wasn’t for lack of buyers, but rather a lack of inventory. As can be observed here, the uncertainty at the beginning of 2020 led to a dip in total sales which reversed as people became more comfortable; then, the market exploded, with the highest total number of sales recorded in August of 2020. If we compare 2019 to 2021, we can see more similarities in their overall pattern, showing that perhaps the market is beginning to stabilize a bit more when compared to the frenzy of 2020. However, experts theorize that the 2022 market will maintain a heightened level of competition due to continued low inventory.
You can read more about it here.
Stats
Low: February 2021 (253)
High: August 2020 (753)
Total # of Sales (2019): 6,073
(2020): 6,496
(2021): 6,311
2021 was a big year in terms of sales price, with the highest ever median sales prices recorded in Waukesha County. This was primarily due to the low inventory of homes, resulting in buyers having to pay a premium to secure the home.
Stats
Low: $349,950 (October)
High: $397,000 (August)
Average Median Sales Price (2021): $365,817
![Three Year Comparison of Media Sales Price [Bar Graph]](https://i0.wp.com/www.oconomowocrealty.com/wp-content/uploads/sites/467/2022/01/2010-.-2021-median-sales-waukesha-county.png?ssl=1)
When comparing the three recent years, it is clear to see the rising median sales prices over time, in both graphs. The increase has been gradual, increasing $28,660 from 2019 to 2020 and subsequent growth of $32,404 from 2020 to 2021. The jump is most noticeable when comparing 2019 to 2021, with the increasing average sales price of $61,064.
Stats
Low: $275,000 (February 2019)
High: $397,000 (August 2021)
Average Median Sales Price (2019): $304,753
(2020): $333,413
(2021): $365,817
Overall, the 2021 real estate market had lower sales than 2020 (due to the low inventory) but higher average median sales prices. As a result, it was a seller’s market, with buyers battling to obtain the right to homeownership. Here is what our broker had to say about his experience with the 2021 real estate market:
“The 2021 real estate market was a breakout year in the Lake Country Area! While the Fed kept interest rates low in these pandemic times, demand went through the roof, but supply stayed low, which led to increasing prices and short duration of time on the market.”
That’s been our 2021 market review, be sure to check back next year for our thoughts on 2022!
Ever tour a home during your real estate journey, and get a feeling someone’s watching? Well, they could have been. According to a survey done by LendingTree, 1 in 3 home sellers admit to secretly recording home buyers during showings. The survey polled just over 2,000 consumers, 347 of whom were sellers. The top reason for using cameras (49%) was to understand what buyers liked and disliked about the home. The remaining reasons were:
– Gather any information that would be useful during negotiations (36%)
– Ensure my home is safe during showings (31%)
– See what my real estate agent is saying about the home (23%)
– Constantly on for security purposes (10%)
The low cost of Wi-Fi-enabled cameras has made it easy for the average joe (men were found to be more likely to use hidden cameras than women in the study) to put them up around their home. These cameras allow them to watch the showing in real-time or come back to the recording later. By this year, Parks Associates, a consumer technology firm, projected that as many as 50 million homes would have at least one Wi-Fi camera*.
Because one would not have a “reasonable expectation of privacy” when in someone else’s home—video recording is typically not prohibited. In Wisconsin, the law does not prohibit a seller from monitoring their home during an open house, nor does it require notification by the seller to interested parties that monitoring is occurring *. This law took effect in January 20202; however, there are some stipulations: no recording sharing may take place, and the bathroom cannot be under surveillance.
It’s always best to assume the seller may be watching on camera. One suggestion our agents have is to act as though the seller is present at your showing—because if they have a camera recording, they very well could be present at the showing. Additionally, with the prevalence of video recording doorbells and outdoor surveillance equipment—it’s best not to talk through your thoughts on the property until you’re away from the property entirely.
Although the digital age has brought many benefits to buyers and sellers alike, this is one point that buyers need to be aware of as they tour homes. So next time you’re at a showing or visiting an open house, smile–you could be on camera.
Commonly referred to as She-sheds, luxury sheds have become many people’s backyard oasis from the chaos of everyday life. With their popularity first taking off in the early 2000s, the pandemic accelerated the growth of the shed market. To many homeowners, it was the solution for increasing living space and providing separation, whether for relaxation or work purposes. However, are these fancy sheds worth it? Do they add any value to your home, especially for a resale?
Well, the answer varies on a case-to-case basis or a shed-to-shed basis in this instance. However, there is a greater potential of adding value if it adheres to a few rules. . .
When it’s not on a foundation, it’s personal property and doesn’t contribute towards the appraisal value. If it’s on a foundation, then an appraiser may add it into the property’s overall value. However, one thing to note is that if it’s on a foundation, it becomes taxable*.
Without proper building permits, the shed can quickly become a liability and deterrent to a sale—besides not adding any appraisal value. So, be sure to always check your local laws regarding building before you start the process.
Although you may want to build out the shed to your exact desires and building specifications, it will be more desirable if it’s more easily convertible, offering the potential for easy conversion for different uses.
For adding value, the outside of your shed does matter. If the shed is a square with a roof—you’re not likely to get much interest. To add the most value, you should match the aesthetic of your home and use the highest quality materials when building. Although custom-built sheds will be deemed more valuable, typically—a well-built, high-quality prefabricated shed can still add value.
If the shed isn’t well-maintained, any potential value gained by its presence on the property quickly disappears. A dilapidated shed is not only an eye-sore that may cause buyers to spend less on a home; it could also prevent a loan from being issued.
All in all, if you’re considering putting a shed in for the value additive properties-we would recommend to forgo it; because any added value will likely not be equal to the cost of the shed. However, if it’s something you really want, whether it adds resale value or not – then you should certainly add one to your property!
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