Here are 8 terrific ways you can increase your home’s value and make your home more attractive to potential buyers when you decide to sell.
To figure out how much you need to save for a down payment on a home, you first need to determine what you can realistically spend on a house. According to CNN Money, most lenders restrict your mortgage amount in order for your monthly housing payments, including property taxes and insurance, to not surpass 28% of your pre-tax monthly income. Aiming for a lower percentage such as 20% may be better if your income fluctuates. Other expenses as a homeowner to keep in mind are repairs, maintenance, utilities, and even home owner association fees if they apply.
The second step is to identify how much money you will be able to set aside each month to come up with a down payment. This will give you an idea of when you can start house shopping. A healthy down payment is about 20% of the purchase price but there are programs out there such as FHA loans where you can pay as little as 3-4% down if you have decent credit. Mortgage insurance is usually required when the down payment is less than 20%, which can cost up to 1.5% of the loan amount annually according to Bankrate.com. The Wisconsin Housing and Economic Development Authority website is a great resource to learn about the home buyer programs offered in Wisconsin.
Make your dream of being a home owner a reality! When you’re ready to start house shopping or are looking for a referral for a credible lender in the Lake Country area, we are here to help. Give us a call at 262-567-3611 or email us.
Demand for homes in Wisconsin remained strong in May but the number of home sales fell 5% compared to May 2017 according to the Wisconsin REALTORS® Association’s May 2018 Home Sales Report. In contrast, median home sales prices increased 8% over the same period. The main reason for the drop in home sales and increase in home prices is lack of inventory of homes on the market, which has been a nationwide problem. Metropolitan counties in the state had just over 3.5 months of housing supply in May compared to rural counties which had over 7 months of supply. Typically, anything less than 6 months of housing supply signals a Seller’s market.
WRA President and CEO, Michael Theo indicated, “You still get a lot of home for your money in Wisconsin, but affordability has begun falling more rapidly as home price appreciation has accelerated and mortgage rates have inched up.” Last month, the 30-year fixed mortgage rate increase to 4.59% from 4.01% in May of 2017. Theo goes on to say that it is still possible to find good value in today’s market and an experienced realtor who knows the markets well is your best bet to find the right home. He adds that the key to success when you find the right home is to have your financing pre-approved, avoid contingencies, and move quickly with your realtor.
Source for information and data: “May 2018 Home Sales Report – Wisconsin REALTORS® Association.” WRA: Wisconsin REALTORS Association, 18 June 2018, www.wra.org/HSRMay2018/.
If you would like a free market analysis for your property or would like to start your home search with a realtor, we would love to help!
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Instead of focusing on major renovations that are expensive and time consuming, consider taking on a few inexpensive projects to make your home more appealing to potential buyers and help you sell.
The healthy economy continues to invigorate Wisconsin’s housing market as buyer demand remains strong, motivating home prices to persistently increase. According to the Wisconsin REALTORS® Association’s April Home Sales Report, median prices in the state have increased 5.9% in the last 12 months, pushing up the median home sales price to $180,000. The low level of homes for sale is also a major contributing factor to the surge in home prices. Comparing April 2018 to last April, the level of homes for sale were 19% lower and new listings were 14% lower. As a result, it left only 4.2 months of available supply which indicates a seller’s market. New residential construction is on the rise however. The number of seasonally adjusted permits for new residential construction grew 8.4% in April, relative to last April.
Traditionally, the real estate market heats up during the summer. More than half of all Wisconsin home sales occur between April and August. Due to the lack of homes on the current market, it is anticipated that monthly home sales will struggle to achieve the level of sales 2017 had. If you’re looking to buy, you should be geared up to compete aggressively. This means having your financing pre-approved, acting quickly to write offers, and submitting offers that are competitive. If you’re looking to sell, you should be prepared for a quick sale and have future housing plans in place. Working with an experienced realtor is one of your best options to navigate today’s fierce real estate market.
Source: “Wisconsin REALTORS® Association: April 2018 Home Sales Report.” WRA: Wisconsin REALTORS Association, www.wra.org/HSRApr2018/.
For the first quarter of 2018, real estate sales in Wisconsin were up 2.1% and median prices were up 6.3% compared to the first quarter of last year according to the Wisconsin REALTORS® Association’s (WRA) recent analysis of the current housing market. Lack of homes for sale is the leading contributor for the increase in sales prices. The WRA reported that there was only 3.1 months of available supply in urbanized metro areas of Wisconsin, making for a very strong seller’s market in these particular parts of the state.
Over the last year, home prices increased nearly 3 times the rate of inflation reported the WRA President & CEO Michael Theo in the association’s March 2018 Home Sales Report. With home prices and mortgage rates on the rise, affordability is decreasing. The average 30 year fixed mortgage rate increased almost half a point, up to 4.44% from 4% in 2017. The good news is that affordability is Wisconsin remains well above the national rate. If you’re looking to buy a home, it is imperative to be preapproved for financing and be prepared to act quickly. Today’s competitive market also places importance on writing clean offers.
If you’re looking to sell, it is essential to be aware that a home in good condition will likely attract a lot of interest and may not be on the market for long. Therefore you should be prepared for showings the day the home is listed and have alternative housing plans in place. An experienced realtor is a valuable asset to both buyers and sellers in today’s constricted housing market.
Sources for data and information: “Wisconsin Housing Statistics.” WRA: Wisconsin REALTORS Association, 23 Apr. 2018, www.wra.org/HousingStatistics/.
“Wisconsin REALTORS® Association: March 2018 Home Sales Report.” WRA: Wisconsin REALTORS Association, 23 Apr. 2018, www.wra.org/HSRMar2018/.
Myth #1: Pricing your property high equals a high return
The potential revenue may be alluring but a buyer’s agent will likely know when a property is overpriced. Overpriced properties have a greater chance to sit on the market longer and can lead to future problems as Myth #2 describes. Listing at an appropriate price can lead to a quicker and easier sale which is especially beneficial if you’re purchasing a new home.
Myth #2: It’s no big deal to lower the price later on an overpriced home
Homes that stick around on the market and/or have had multiple price reductions can be a red flag for buyers. Buyers may infer that there must be something wrong with the home and could cross it off their list or make an offer lower than the asking price.
Myth #3: Pricing a home low means making less
Pricing your home on the low end can be a good strategy to yield a lot of interest. A lower priced home could lead to a bidding war which can ultimately drive up the price and encourage buyers to submit offers with favorable terms for the seller.
Myth #4: A past appraisal can determine the right list price
A previous appraisal from when you bought or refinanced your home is not a reliable source for pricing your home. An appraisal determines the value of your home based on market conditions at a given point of time. Since the market changes constantly, an appraisal only a few months old can be inaccurate.
To determine a realistic price of what your home could sell for in the current marketplace, it is advised to have a local realtor prepare a comparative home market analysis. The market analysis will reveal the price range that similar homes are listed at and what other similar homes have recently sold for. To receive your complimentary comparative home market analysis, please contact us.
Finally! Spring has arrived in Wisconsin
You may have heard Harley riders revving their engines, seen your first robin, and smell your neighbors grilling again. Now it’s time to spruce up your home and yard for the season. Here are some reminders and great ideas to freshen up and get ready for Spring.
The housing market in southeast Wisconsin continues to look good in 2018. The driving forces in today’s market are solid buyer demand, limited inventory and first timers ready to buy. According to recent housing statistics published by the Wisconsin REALTORS® Association (WRA), the number of home sales between December 2017 and February 2018 was 15.8% higher than just 5 years ago. They went on to report that this winter had record high sales since they re calibrated their data system in 2005.
Home sales in January grew 3.5% and the median home sales price increased 4.9% compared to January 2017. The number of home sales in February was over 7% higher and the median home sales price was up 6% compared to February 2017.
As we approach the 2nd quarter of the year, the real estate market is anticipated to become livelier with more home sales and higher median sales prices. Naturally, a livelier market denotes more competition for home sellers and buyers. A good way to try and get ahead of the competition is to begin house hunting with a realtor from the start, since they are the first to know of new listings that hit the market and may know of upcoming listings that are not made public yet. With the way the market is right now, buyers must be ready to act quickly.
Whether you’re looking to buy or sell, it is highly encouraged to work with an experienced realtor to help navigate you through today’s aggressive real estate market.
To discuss your real estate needs contact us online or call our office at (262) 567-3611
Is winter weather giving you cabin fever? If so, here is a list of DIY projects perfect for doing during the winter months to improve your living space and add value to your home.
1) Update bathrooms. Replacing old fixtures such as faucets and lighting, re-cauking and re-grouting, and applying a fresh coat of paint are all easy updates that can dramatically change the look of your bathrooms.
2) Add a kitchen backsplash. Protect your walls and add style to your kitchen by adding a backsplash.
3) Update walls. Add crown molding and re-paint walls to enhance the aesthetic appearance of rooms.
4) Organize and declutter. Winter is a great time to get organized. Decluttering can make rooms and closets look bigger.
5) Refinish your basement. Add more living space by refinishing your basement. Winter is an ideal time to complete this large indoor project.
These winter projects are great to do before putting your home on the market because they will help add value to your home and make your home more appealing to potential buyers. If you would like to know what your home could sell for in today’s market, we’ll provide you a complementary home market analysis at no obligation.
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