Buying your first home is exciting but also a big decision. Check out these recommendations to help prepare you for buying your first home.
A healthy down payment is 20% of the purchase price but some first-time home buyer programs accept as little as 3.5% of the purchase price if you meet the eligibility requirements. Set a goal amount and track your savings for a down payment to visually see your progress which will help motivate you.
Although there are loan programs that accept lower credit scores, your score can still affect your loan terms and interest rate. Before applying for a loan, make sure there are no errors that could be affecting your credit score and try to pay down any debts. After you apply for a mortgage, do not open any new credit accounts such as a credit card or car loan until your home loan closes.
There are multiple types of mortgage options and down payment assistance programs to help first time home buyers. Below are a few resources to check out:
Wisconsin Housing & Economic Development Authority (WHEDA)
Jefferson County Home Buyer Program
United States Department of Agriculture & Rural Development
When you’re close to buying a home, request a pre-approval letter from your lender showing how much they are willing to lend you. Having the letter will make you look like a serious buyer which can better your chances of the seller accepting your offer.
Owning a home requires maintenance such as snowplowing and yard care. If you’re looking for less maintenance and more amenities, buying a condo may be a better fit for you.
When buying your first home, working with professional real estate agent to guide you through the home buying processes is indispensable. You will want to hire someone that is knowledgeable about the area and is highly skilled. If you’re looking to buy a home in Oconomowoc or the Lake Country Area, our team of agents have the expertise to help you purchase your first home with confidence. Check out what others have to say about working with us.
In today’s market, there is high competition for homes under $300,000. Homes for sale in Oconomowoc and the Lake Country area in this price range are exceedingly limited, so it is common for sellers in these localities to receive multiple offers. By shopping for homes under budget, you can leave wiggle room for bidding.
Besides the purchase price, there are additional closing cost expenses. Examples of these expenses include homeowner’s insurance, home inspections, title fees, and closing fees. Closing costs typically range between 2-5% of the purchase price.
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Statewide, the total number of home sales in 2018 came in just short of 2017’s record year for home sales, down 2.2% as announced in the Wisconsin REALTORS® Association’s (WRA) December Home Sales Report. Sellers have had the advantage in most real estate markets across the state due to low supply of homes for sale.
The association’s report revealed that it is a strong Sellers’ market for homes selling below $350,000, which had inventory levels of only 2.9 to 4 months of supply last year. Having 6 months of supply indicates a balanced housing market. Homes priced between $350,000 and under $500,000 had roughly 5.1 months of supply. Homes priced $500,000 or more had 9.7 months of supply which indicates a Buyers’ market.
The tight housing supply has put upward pressure on home prices yet again. Last year, the median home sales price rose over 6% compared to 2017. For 2019, the WRA predicts that demand for housing will moderate as a result of the recent decrease in affordability and slowing of economic growth. The report goes on to say, “Assuming no recession, the WRA predicts the combination of solid but moderating demand and flat or slightly improving supply should keep housing sales in the vicinity of the last three years. This should also keep prices from going up as quickly as they did in 2018.” (December 2018 Home Sales Report)
If you would like to find out what your home is worth in today’s market or to discuss your other real estate needs, please contact us.
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4 Noteworthy Reasons to Sell Your Home in 2019
Winter in Wisconsin is well underway but each day, the long nights are gradually getting shorter reminding us that Spring is on its way. For most real estate markets, the spring season is when it starts to get busier with new homes listed and more buyers in the marketplace. The Oconomowoc real estate market is certainly no exception. You may have been thinking about downsizing or capitalizing on the low inventory of homes for sale in Oconomowoc and the surrounding areas. If you’re considering selling your home in 2019, winter is the time to begin preparing your home before it hits the market. Here are some improvements you can start doing now, to ensure you will get the best price for your home.
These minor improvements to your home can help make a good lasting impression on potential buyers and could help sway them to write higher offers. Starting to prepare your home now before putting in on the market is a good way to ease in to the home selling process. Despite the fact that inventory of homes for sale in Oconomowoc and the Lake Country Area are currently limited, Spring is generally the time when we start seeing new listings pop up on the real estate market. A good way to get ahead of the competition for buyers is to list your home earlier (within the first quarter of the year), when there are fewer competing homes for sale.
If you would like advice on what improvements would be recommended for your home or would like to discuss what your home is worth in today’s market, we would be happy to help. Please contact us or request a complimentary home market analysis today!
If you love to entertain or often host holiday parties, check out our list of some of the best home features to look for when purchasing or renovating your home.
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Kick off the Christmas season by attending the much-loved event which takes place downtown Oconomowoc during Thanksgiving Weekend. The German Christmas Market celebrates Wisconsin’s hearty German community and promises that no matter if you are German or not, you will feel like you are. Enjoy unique shopping, authentic German cuisine, the indoor bier garten, live polka bands, and fun activities for the kids. You will also have the opportunity to take a picture with Santa. Visiting the German Christmas Market of Oconomowoc is a terrific way to get into the Christmas spirit!
One of the most spirited parades of the year in the community, the Oconomowoc Kiwanis Christmas Parade lights up downtown. Watch parade floats decked out with music and lights roll by and in true Wisconsin-like-fashion, see Santa and Mrs. Claus get pulled in their sleigh by Harley Davidson motorcycles instead of reindeers. The theme for this year’s parade is “Christmas Dreams” and will take place on December 1, 2018.
The Canadian Pacific Train brings holiday cheer to the community on December 7, 2018. The festively lit train will be making a stop in Oconomowoc for attendees to watch performances and to donate food and money for the local food banks.
Warm up your taste buds at the annual winter festival that takes place in January, downtown Oconomowoc. You’ll have the chance to sample different chilis from local businesses and organizations. The festival also has a beer tent, live ice sculpting around downtown, a pond hockey tournament, open family ice skating and an ice fishing clinic on Fowler Lake. Save the date to bring your whole family to the next Chili Fest, coming up January 26, 2019.
Your chance to sample beer, wine, spirits and food while helping out the local community and the world! The event helps to raise funds for the Oconomowoc Rotary Foundation which provides funds for worthy causes such as the International Polio Plus program, local charities and student scholarships. The fest will be held at a new location this year at the Bertrand Family Pavilion at Okauchee Lions Park on March 2, 2019.
Eat local and fresh by picking up local produce, specialty meats, cheese, baked goods, and more at the Oconomowoc Winter Farmers’ Market. The market is held on Sunday mornings at the Oconomowoc High School.
While the real estate season generally abides by the seasonal temperature changes, heating up in summer and cooling off in winter, the remarkably low inventory of homes on the market has impelled buyers to continue their house hunt through the winter months. Here is a summary of six advantages to selling during winter that points out in a recent article published on Realtor.com®. 
1) Less Competition. Inventory of homes on the market is commonly lower in winter making it a supreme time to sell. With less competition, your home can generate more attention from buyers.
Furthermore, it is likely that you will have less competition for contractors such as painters, carpenters, and inspectors during their slower season. As a result, you may be able to reap the benefits of better selection and availability, quicker results, and better rates.
2) Demonstrate your home is equipped for winter. The snowy season is a great opportunity to show off your home’s features that are beneficial during winter. Examples include having a short driveway denoting less shoveling, having a south facing driveway that expediates snow melting, or your cozy fireplace perfect for those chilly nights.
3) New parents need more space. September has the most birthdays of the year according to statistics. After a baby is settled at home, expanding families may want to search for more spacious family homes.
4) Serious Buyers. Typically, those “window shopper” buyers who are considering moving just want to see what homes are out there and don’t intend to buy just yet. These types of shoppers tend to surface during the spring and fall when more homes are on the market. Buyers looking during the winter tend to be serious about purchasing and don’t want to chance losing out on a great home by waiting until spring.
5) End of year bonuses and retirees. People that have year-end performance reviews could secure bonuses, allowing them the opportunity to upgrade their home or enable first time buyers to enter the market place. End of year retirees may also start their search for a new home they can settle down in.
6) Job relocation. The beginning of the year is a popular time for corporate relocation which motivates those buyers to act quickly to find a new home. Due to their urgency, it is likely that they won’t waste any time writing an offer on a home that meets their requirements.
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Here is a list of truths behind the most common misconceptions about purchasing a home. In a recent article, Lew Sichelman, a seasoned writer for Inman who has 50 years of experience writing about housing and mortgages, reported that 38% of renters plan to buy a home in the next two years but myths about costs are holding them back. Here is a list of three common misconceptions about purchasing a home and the truths behind them.
Truth: Some loan programs such as FHA have more flexible lending standards, qualifying buyers with lower credit scores. You can check the accuracy of your credit history for free once a year.
Truth: A 20% down payment has its perks which may include smaller monthly mortgage payments, less money spent on interest, and being able to avoid private mortgage insurance which typically costs between .5 and 1% of the entire loan amount per year according to Investopedia.com. However, there are government and some private programs such as FHA and VA loans that accept 0 to 3.5% down if you and the property qualify.
To put it in perspective, let’s say you wanted to purchase a decent starter home in Oconomowoc for $160,000. A 20% down payment would be $32,000 versus a 3.5% down payment of $5,600. Keep in mind that most loan programs that accept down payments less than 20% also require private mortgage insurance. The insurance premiums vary based on factors such as the loan amount and terms, and can be removed down the road when there is enough equity in the home.
Truth: Sellers often are more willing to negotiate the price of the home instead of waiting for a higher offer for a number of reasons. These motives could include the urgency they need to sell, if a prospect is already pre-approved for financing, and if they receive an offer that excludes the contingency of selling a different property. When the likelihood of getting to a successful closing is strong, there is a greater probability that sellers would negotiate on the price.
Information contained in this blog were gathered from reliable sources and believed to be accurate and reliable but is not guaranteed and is subject to change without notice.
The number of home sales are down but prices continue to climb as the supply of homes on the market remain sparse. The inventory of homes on the market under $350,000 lingered well below six months of supply, which marks a balanced market. The limited supply of homes for sale has directly impacted the number of home sales. Year-to-date, there were 524 less homes sold in Southeast WI compared to the same period last year. Affordability is slowly declining though as mortgage rates tick upwards, with another rate increase expected this December.
In Southeast Wisconsin, the median sales price in September increased 11% ($20,200) compared to September 2017, according to housing statistics published by the Wisconsin REALTORS® Association (WRA). This was the biggest price increase seen so far this year when comparing each month to their respective month last year. According to the WRA’s home sales report released on October 22, sellers have the advantage for homes selling under $350,000 statewide. Buyers have the advantage for homes above $500,000 as these homes are taking longer to sell, holding at 12.5 months available supply. If you’re considering upgrading to a home at that price range or above, now is an ideal time. There is a good chance you can sell your current house relatively fast and at a good price while also having the upper hand when it comes to purchasing your new home.
Due to the state of the existing real estate market, it is crucial to price a home appropriately. That is one reason why hiring a professional, local real estate agent is imperative. The housing market is continuously changing and a proficient, local realtor has their finger on the pulse of the local market. This enables them to price properties fitting to the current condition of the housing market in order to sell them at the best price on the most favorable terms for their seller. Whether you’re planning to buy or sell, working with an experienced realtor is highly advised to be successful in today’s resilient real estate market.
Here’s a summary of what the real estate market looks like in the Southeast region of the state compared to last year:
Source for data and information:
“Wisconsin Housing Statistics.” WRA: Wisconsin REALTORS Association, www.wra.org/Resources/Property/Wisconsin_Housing_statistics/.
“Wisconsin REALTORS® Association: September 2018 Home Sales Report.” WRA: Wisconsin REALTORS Association, 22 Oct. 2018, www.wra.org/HSRSep2018/.
Wisconsin home sales in the first eight months of 2018 were nearly two percent lower than the same period of 2017 due to weak housing inventories according to the Wisconsin REALTORS® Association’s (WRA) most recent home sales report. Their analysis revealed that during the same period, median home sales prices rose nearly 7 percent; over twice the annual rate of inflation which varied between 2.1 and 2.9 percent this year.
Just comparing the month of August to last August, home sales were up over three percent and median home prices increased five percent. Regions with more inventory had stronger home sales noted Peter Sveum, WRA chairman. The region with the highest growth of home sales was the North, which increased close to twenty-five percent. However, in the Southeast region of the state, home sales dropped almost one percent due to only having about four months of available supply of inventory (Less than six months of available supply signals a seller’s market).
We have seen houses for sale in Oconomowoc receive accepted offers within just days of being listed. The highly desired area to live in has amplified the interest of developers in the past couple of years. New development to the area brings a glimpse of relief from such a tight housing market. For now, buyers can still find good value in the existing real estate market but need to have financing aligned and be prepared to move forward quickly on the home they want to purchase. Hiring an experienced realtor that knows the area well is the best choice to guide you through today’s competitive real estate market.
If you’re curious to know what your home is worth in today’s market or would like to discuss your other real estate needs, please contact us.
Source for information: “Wisconsin REALTORS® Association: August 2018 Home Sales Report.” WRA: Wisconsin REALTORS Association, 17 Sept. 2018, www.wra.org/HSRAug2018/.
Gather up your friends and family and host a Labor Day cookout in your backyard! To ensure your summer bash is a hit, here are some ideas and tips to throw a terrific Labor Day party.
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