Decoding Real Estate Listings - A Short Guide to Lingo and Acronyms

Decoding Real Estate Listings - A Short Guide to Lingo and Acronyms

Real estate ads are usually full of acronyms and terms that are unfamiliar to first-time buyers. Here's a cheat sheet to let you in on the lingo.

4B/2B: four bedrooms and two bathrooms

assum fin: assumable financing

bedroom: usually a sleeping area with a window and a closet, but the definition varies in different places

bathroom: There are three types of bathrooms: a full bathroom is a room with a toilet, a sink and a bathtub; a three-quarter bathroom has a toilet, a sink and a shower; a half bathroom or powder room has only a toilet and a sink.

closing costs: the entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. These costs include the brokerage commission; mortgage-related fees; escrow or attorney's settlement charges; transfer taxes; recording fees; title insurance and so on. Closing costs are generally paid through escrow.

CMA: comparative market analysis or competitive market analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market but did not sell within the listing period.

contingency: a provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. One example is a buyer's contractual right to obtain a professional home inspection before purchasing the home.

dk: deck

expansion pot'l: expansion potential means that there's extra space on the lot or the possibility of adding a room or even an upper level, subject to local zoning restrictions.

fab pentrm: fabulous pentroom, a room on top (but under the roof) that has great views

FDR: formal dining room

fixture: anything of value that is permanently attached to or a part of real property. Fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt about who will have ownership of fixtures, get it in writing.

frplc, fplc, FP: fireplace

gar: garage

gard: garden

grmet kit: gourmet kitchen

HDW, HWF, Hdwd: hardwood floors

hi ceils: high ceilings

in-law potential: potential for a separate apartment, subject to local zoning restrictions

large E-2 plan: one of several floor plans available in a specific building

listing: an agreement between a real estate agent and a home owner that allows the agent to market and arrange for the sale of the owner's home. The word " listing" is also used to refer to the for-sale home itself. A home being sold by the owner without a real estate agent isn't a " listing," it’s called a FSBO (for sale by owner).

lo dues: low homeowner's association dues. Do your research to find out just how " low" the dues actually are compared to other dues in the area.

lock box: locked key-holding device affixed to a for-sale home so real estate professionals can gain entry into the home after obtaining permission from the listing agent

lsd pkg: leased parking area; it may come with additional cost

MLS: Multiple Listing Service. An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate agents. Membership isn't open to the general public, although selected MLS data may be sold to real estate listings Web sites. MLSs are local or regional. There is no MLS covering the whole country.

nr bst schls: near the best schools

personal property:movables, such as appliances and furniture

pot'l: potential

pvt: private

pwdr rm: half bathroom or powder room

real property: real estate is legally called “real property”

REALTOR®: a real estate agent or sales associate who is a member of the NATIONAL ASSOCIATION OF REALTORS®. Not all real estate agents are REALTORS®.

title insurance: an insurance policy that protects a lender's or owner's interest in real property from assorted types of unexpected or fraudulent claims of ownership. It's customary for the buyer to pay for the lender's title insurance policy.

upr: upper floor

vw, vu, vws, vus: view(s)

Buying Step Offers, Counteroffers and Negotiation

When you are ready to buy, you will need to make a written offer. REALTORS® have standard purchase agreements and will help you put together a written, legally binding offer that reflects the price as well as terms and conditions that are right for you.  Your REALTOR® will guide you through the offer, counteroffer, negotiating and closing processes.

How Much Should You Offer?

You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, a successful offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order. Your REALTOR® will help you determine a suitable offer price and terms.

Terms and Conditions

While much attention is given to offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers - or additional costs. Terms are extremely important and should be carefully reviewed; they may include an escrow deposit, contingency deadlines for inspection and/or mortgage approval, payment of closing costs, etc.

Contingencies and “Subject to” Clauses

Buyer offers often contain contingencies or “subject to” clauses that must be met before the contract is considered binding. This gives you time to take care of final details. Contingencies can include the following:

approved financing

buyer selling an existing home

satisfactory home inspection report

test results for environmental factors including radon, mold and water quality

termite inspections

easements

liens

Work with your REALTOR® to determine which contingencies you should include for your home buying situation. You will likely be required to include a time clause, also called a kick-out clause, which limits the contingency to a short time period (say 12, 24 or 48 hours) should the seller receive another acceptable offer.

How Do You Make an Offer?

When a home is made available for sale the owner is essentially making an offer to buyers: for a given number of dollars and other terms you can acquire this home. Buyers, in turn, can respond with several options:

accept the offer

decline the offer

make a counteroffer

The process of making offers varies around the country. Typically, you complete a written offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counteroffer.

What is a Counteroffer?

A counteroffer is nothing more than a new offer with different terms. Offers and counteroffers reflect the back-and-forth activity of the marketplace. It's a common, efficient and practical process, but also one that may contain tricky clauses and hidden costs. Because of this, and because counteroffers are common, it's important for buyers to remain in close contact with a REALTOR® during the negotiation process so that any proposed changes can be quickly reviewed.

How Do You Negotiate?

No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. This is the point where the value of an experienced REALTOR® is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.

Real estate bargaining typically involves compromises by both sides. It's not war; it's not winner-take-all. Instead, negotiating should be seen as a natural business process: buyers should be treated with respect, and owners should never lose sight of either their best interests or their baseline transaction requirements, which must be met before the home can be sold.

There are a lot of considerations, not just price, in making and negotiating offers. This is where the working with an experienced REALTOR® can guide you to a win-win negotiation.

Keys to Selling Your House When Sales are Slow

What was once a booming residential real estate market across the country has slowed to a trickle.

It’s a whole new world for home sellers. So, how do you make your house stand out so it will sell when sales are slow?

Price your home aggressively. When mortgage rates are low and buyers are chasing too few houses for sale, sellers can ask high prices and get them. Even when houses are overpriced for the market, sellers are likely to receive some offers, as buyers are often desperate to find a home that meets their needs. When things are slow, pricing is absolutely critical. But instead of pricing your home aggressively high, you should consider pricing your home no higher than the middle of the range for homes comparable to yours. And if you need to sell your home quickly, you should consider pricing your home among in the bottom 25 percent of comparable homes. Why? With few buyers chasing many homes, you need to quickly get the attention of those who are serious about buying, If your home is priced too high, you many never get buyers to even consider looking at your home.

Quickly cut the price if you don’t get action. Everyone wants to sell their home for as much money as possible. Nobody wants to “give” their home away. But homes that languish on the market in a slow market often are forced to make one price reduction after another, as buyers and real estate agents may begin to question why the home has been on the market for so long. In a slow market with few buyers you may want to cut the price to make the sale more quickly.

Finding the right agent is critical. Any agent can list your house. But when buyers are few you need a first-class real estate professional on your side. They’ll help with everything from pricing to advising you on the other 6 points in this article. Finding leading agents who outsell other agents in your home town are the type of professionals you’ll need on your side. Talk with your family, friends, and neighbors to identify the best agents in your area. Interview several – hire the one who you believe will do the best job for you.

Curb appeal. After pricing, nothing will bring more potential buyers into your home than a house with outstanding curb appeal. Take a walk down your street with a critical eye. How does your home stack up from the outside? If it doesn't stand out from the rest then it’s time to get to work.

Consider home staging. The quickest way to add home value to a home for sale is a fresh coat of paint. But after you do that, you may want to consider home staging. Either do it yourself or hire an outside firm to do so. A home staging professional will come in and take away some furnishings and rearrange others to make your home show better. When home sales were going gangbusters this was a technique used mostly by those selling high-end homes. When things get slow and homeowners need to sell, more people find home staging professionals to help them prepare their home to make it more appealing to prospective buyers.

Fix stuff. The loose railing. The broken pane of glass. The closet door off of its track. The leaky faucet. They all need fixing. If you don’t have the time or skill, find a handyman to go through your home and make repairs.  Also, consider replacing the old roof that looks like it might leak, the antique furnace, and the stained rug. When there are few homes on the market, sellers sometimes offer cash at closing to repair the roof or for the stained rug. With so many homes on the market, buyers can afford to only bid on those that are in move-in condition. Fix what needs repair before listing your house.

Offer flexible terms. Flexibility is the key now. You’d like to close in two months, but the buyers might be in a hurry and need to close sooner. Find a way to make it happen. You were planning to take the appliances to your new home, but the buyers make a bid near the asking price – including the appliances.  Leave the washer and dryer behind (and then go find a store that offers no payments on appliance purchases for a year). And for those items that have deep sentimental value, make sure they are removed prior to any showings. Competition between home sellers is high – you don’t want to lose the only buyer who has looked at your home in a month.

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List Your Home Today With Shorewest Reators

Real Estate Q&A

Q. What is a home warranty and who pays for it?

A. A home warranty is insurance and peace of mind after you purchase your home. If a mechanical component in your home fails within the first year, you simply call your warranty service provided and they will send out a technician.  Depending on the plan you usually pay $75 - $100 deductible per separate occurrence.

A home warranty can be provided by the seller, real estate agent, or purchased by the buyer. Some properties are sold with a home warranty that is paid by the seller. If your purchasing a short sale, most times the Bank will not allow the seller to pay for a home warranty. In these cases your agent can provide the home warranty as an incentive for doing business with them. In all cases the buyer has the choice to purchase their own warranty if no party is willing to provide it. The home warranty must be purchased at closing.

Special notes -
1. Not all home warranty plans are the same. If your purchasing a home that is advertising a home warranty, ask for a brochure or more information about deductible and what is covered.
2. Home warranties usually don't cover cosmetics or bad carpentry.
3. You can upgrade and or extend your warranty by calling the service provider.
4. +Shorewest Realtors recommends a home warranty.

For more information visit http://www.onlinehsa.com/

Disclosure -  Questions regarding legal issues will not be answered. All information provided are only  opinions, and by submitting question you agree to waive any legal rights or liabilities.


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Ask Me Your Real Estate Related Questions

Do you have a real estate questions and need answers? Post or email me your question to andygonzalez@shorewest.com. If question is specific to a property or situation please provide a detailed summary. Note -  as a real estate agent I cannot give legal advise.

Disclosure -  Questions regarding legal issues will not be answered. All information provided are only  opinions, and by submitting question you agree to waive any legal rights or liabilities. 



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The Right Real Estate Agent for you

What makes me the right Real Estate for you? 

With over 10 years of combined experience with Mortgages and real estate experience, I truly understand the business. My experience includes Team lead for M&I Bank in the Mortgage Collections division, Short Sale Negotiator for +JPMorgan Chase, Mortgage Insurance Adjuster for MGIC, and finally a Realtor for +Shorewest Realtors. My experience and countless training programs attended while in corporate America really set the stage for my success as a real estate agent. I understand not just the real estate side, but the full equation and duties of all parties involved in any given transaction. How many agents can say the same. 

After years in corporate and working hand in hand with Realtors  I decided to make the leap in to real estate. I completed all the requirements and received my real estate license. I joined the Greater Milwaukee Association of Realtors. I wanted to increase my knowledge, so I upgraded my accreditation to Broker Associate. I can't say it was all flowers and roses. Early in my career I made mistakes as I endured the learning curve. However, I was relentless in improving my skills. After each transaction I became more confident and expanded my knowledge.  Being a former short sale negotiator I focused primarily on pre-foreclosure sales. I slowly expanded my transactions to include buyers, investments, and commercial. 

In real estate the most important factor is price. If your a buyer you want a good deal, and as a seller you want the most for your home. Early on I felt a lack of experience in pricing homes, so I went back and received the Broker priced Option designation. I then applied to all the asset companies to due bpo's. Since then I've priced over 500+ homes for bank's and other financial institutions. I can truly say today that I'm a price expert, a statement most agents cannot say. Seller's and buyer's can feel safe that I'm advising them intelligently and in their best interest. Doing bpo's expanded my knowelege of prices outside my general marketing area. I've completed values in most parts of Milwaukee County. This insight really gives me a clear picture of market condition. 

When it comes to negotiating, I regard myself as pro. As a short sale negotiator they taught and beat into us the skills needed to negotiate. I've read many books on the subject and practiced the strategies for years. Seller's and Buyer's can feel safe that I'm confident and not afraid to negotiator on their behalf. 

I've completed a lot of do it yourself projects on my own home, however working with investors and estimating repair cost on bpo's really gave me great insight. I'm very familair with the mechanical parts of your home. I've trained my eye to spot potential problems for my buyers. When I price a home for a potential listing, we go in dept over condition to give an accurate fair market value of the home.

We have learned to be skeptical with sales people in every industry. We heard the horror stories of being taken advantage of, and sales reps only out to make more money. I can truly say this is not me. A successful transaction and a happy customer equals repeat business and referrals. So if you looking to sale or buy your next home, please look me up. I will be happy to assist you in a successful transaction. 

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How to Get a Mortgage

Examine your finances and shop around before you apply for a mortgage. Shopping for a mortgage is the first step toward owning a home and perhaps the most daunting, especially if you are not prepared.

Once a simple task that meant comparing fixed rates from among perhaps a dozen or fewer savings and loan companies, the mortgage hunt today is like finding your way through a maze.

There are dozens of loan types and hundreds of loan programs available through thousands of mortgage brokers, bankers, lenders, finance companies, credit unions and even stock brokerage firms.

Contrary to popular belief, finding a mortgage doesn't begin with an application.

Education is a better first choice. Mortgage information sources are as vast as the number of mortgages available: Web sites, topical newspaper articles, mortgage books, consumer seminars and workshops, financial planners, real estate agents, mortgage brokers and lenders are all available to assist you along the way.

First and foremost, you must determine how your mortgage payment will fit your current budget and, to some extent, your future obligations 15 to 30 years down the road.

If you discover too late that you can't afford your mortgage, you'll not only face the possibility of losing the roof over your head, but you could also damage your ability to purchase a home in the future.

Step 1: Examine Your Finances
If you can afford to buy a home, you must then determine how much mortgage you can afford. Lenders are apt to put your loan application in the best light and qualify you for as much as they are willing to lend, which can be more than you can afford.

It's up to you to take stock of your income and expenses, both current and projected, to determine what you can comfortably manage each month. Along with your mortgage payment, don't forget related insurance, taxes, homeowner association dues and any other costs rolled into the mortgage payment.

Step 2: Shop for a Loan
When you are ready to shop for a loan you have two basic types of mortgage stores to shop from: direct lenders and mortgage brokers.

Direct lenders have money to lend. They make the final decision on your application. Lenders have a limited number of in-house loans available.

Mortgage brokers are intermediaries who, like you, have many lenders from which to choose. Brokers shop from many lenders, each with their own offering of loans.

If you have special financing needs and can't find a lender to suit them, an experienced broker may be able to ferret out the loan you need. Mortgage brokers, however, are paid with a slice of the amount you borrow - some more than others, so it pays to compare rates. Internet brokers today perhaps receive the smallest cut, sometimes none at all, and can prove to be a real bargain.

Along with shopping the source, you'll also have to shop for loan costs, including the interest rate, broker fees, points (a point is an amount paid to the lender and is charged at one percent of the amount you borrow), prepayment penalties, loan term, application fees, credit report fee, appraisal and a host of others.

Step 3: Apply for a Loan
The application process is the easy part - provided you've gathered the documents necessary to prove claims you make on the application.

The application will ask for information about your job tenure, employment stability, income, your assets (property, cars, bank accounts and investments) and your liabilities (auto loans, installment loans, mortgages, credit-card debt, household expenses and others).

The lender will run a credit check to determine your credit status, but you'll have to supply additional documentation including paycheck stubs, bank account statements, tax returns, investment earnings reports, rental agreements, divorce decrees, proof of insurance and other documentation. A lender that deems you creditworthy will likely hire a professional appraiser to make sure the value of the home you are about to buy is truly worth your loan amount.

For a no obligations pre-approval consultation contact :
Miguel Pesqueira | VP Community Lending Sales Manager| North Shore Bank

10533 W. National Ave. West Allis, WI 53227

P: 414.327.2336 |  F: 262.797.3565  |  M: 262.389.9234 |  mpesqueira@northshorebank.com

northshorebank.com | twitter.com/northshorebank | facebook.com/northshorebank

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Thinking About a Second Home

If you’re thinking about buying a vacation home, you’re not alone. The rate of second homeownership has jumped, as large numbers of Baby Boomers move into their prime wage-earning years. It is estimated that 6-10 percent of homes in the United States are second homes. That number is much higher in desirable vacation communities.

According to the U.S. Census Bureau, 32 percent of homes on Cape Cod are seasonal and prices have increased by more than 60 percent since 2000. Seasonal homes represent an even higher percentage on Cape May – 48 percent – and prices have increased by more than 70 percent since 2000, dwarfing the national average, which increased by about 32 percent.

The trend of second home ownership shows no signs of slowing. People in their 40s, 50s, 60s, and beyond are much more active than their parents.  They’re seeking outlets for fun, and with two wage-earners at home who have more disposable income than ever, the trend of second home ownership will continue.

If you’re considering a second home purchase, where do you start?

► Location. Consider your personal tastes, interests, and hobbies when you’re choosing a second home. For example, if you’re the type of person who thinks anything over a two-hour ride is long, you’ll have a fairly small geographic area in which to conduct your search.  If you plan to use your second home for a couple of vacations every year and long holiday weekends, then you can extend your search to a larger radius. Many second homeowners purchase properties in their favorite vacation spots because they already enjoy the area and want to spend more time there.

► How much are you willing to spend? Prices can vary greatly. Up and coming communities are less expensive than established vacation hotspots which have seen explosive appreciation. Prices in these popular areas range from a home on the beach worth $1 million to the same-sized home a mile down the road worth half that price. Check current mortgage rates to get an idea of what your monthly payment might be. Don’t shy from jumping in the car and spending weekends looking for different vacation homes.

► Get more specific on your location. Is your dream vacation home near the lake or on the lake? Do you want to water ski on that lake? Or do you seek a quieter spot to kayak or fish? Or is the lake in the mountains so you can combine winter and summer sports? Is it in an area that is a plane ride away, but one in which you hope to retire? This part of the process will take some time, but you can easily find the prices of second homes in your desired area without leaving your computer.

► Think about what it should look like. Is your dream vacation home a rustic cottage near the ocean? Or is it a condominium on a golf course? Perhaps it’s a ski chalet in the woods. You also need to determine how big it should be. Is it just for your immediate family or would you like to invite your extended family and friends?

► Find a great real estate agent.  This step is absolutely critical. A terrific real estate agent can not only find you a great home, but find one in a town with moderate property taxes and fun neighborhoods for your children.  They can help you with the finer
points of owning a second home – everything from obtaining beach stickers to trash removal to finding someone to watch your second home when you’re away. And if you rent out your second home, the agent can help you determine the rental price.

► Take your time. It’s tough to look for a second home, even with the Internet simplifying the process. A growing number of real estate agents make both interior and exterior photos available online to narrow your search without driving back and forth. Remember - rushing into a second home purchase can be a mistake. A trailer on the lake might look good today, but thinking about your long-term goals could lead you to a cottage down the street from a lake, just a mile from the ocean.

Look at a second home in the same way as your primary home. The most costly home repair projects are:

Kitchens
Bathrooms
Heating systems
Roofs
That doesn’t mean that you shouldn’t purchase a second home with an outdated kitchen. Just understand that if you can’t tolerate the current kitchen, it could cost you $10,000 to $40,000 to update. Unlike your primary home, you’ll have the additional challenge of managing a renovation project long distance with a quality contractor you can trust.

Buy a second home that suits your personality and needs. If you don’t like working on your primary residence or dealing with contractors, look for a home that needs little work. At the same time, buying the smallest second home in the best neighborhood you can afford means your investment may appreciate at a higher rate.

While rentals in your chosen area may be strong today, make sure you can afford the mortgage without any rental income when budgeting for your purchase. There are many facets of second home ownership that are out of your direct control – everything from a gasoline shortage to a hurricane.

Taking the time to choose wisely means monitoring events in your desired vacation community. Learn how long homes have been on the market to get an idea of how much room you have in negotiation. Learning the overall direction of housing values in your region also helps you make educated buying decisions.


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Important Steps to House Hunting with a Well-Trained Eye

It sounds like a great listing – in your price range – in a good neighborhood – with features you’re looking for. First impressions mean a lot – but you find the bushes are overgrown, the front hallway is covered with tacky foil wallpaper, the kitchen cabinets are painted dark brown, the living room rug smells musty, and the hardwood floors have black water marks on them.

Should you head back out the door? Maybe. But to fully determine whether you should cross this house off of your list you’ll need to gather more information, and perhaps look past the blemishes to get a full picture of this house’s potential. How do you do that? Follow these 10 steps.

Keep them straight
Looking at a bunch of houses? With digital photography making it easy and inexpensive to record images, be sure to take a digital camera along, first taking a picture of the listing sheet so you can remember which pictures go with which home, and then key elements of each home.

Also, make a checklist before you visit the first house so that you can keep each of them straight. Here is a list of items you’ll want to include (rank each as either excellent, good, fair, needs repair soon, needs repair now).

Kitchen
Bathroom(s)
Roof
Windows
Furnace
Air conditioning
Floors (rate by each level of home)
Closet/storage space
Plumbing
Electrical (does it have 60, 100 or 200 amp service?)
Basement
Master bedroom
Siding
Garage
Then customize the list with your own “must haves,” for example, fireplace, master bath, walk-in closet, two (or three) car garage, dining room, open floor plan, eat-in kitchen, screened-in porch, large (or small) yard.
When narrowing down your home search, consider the following:

Start with emotion, but end with facts. Buying a home is an emotional process. You often find yourself trying to determine if this is where you want to spend the next 10, 20, or 30 years of your life (and perhaps raise a family). It’s OK if your initial impression is an emotional one. But because the purchase can be the largest you’ll ever make, it is essential that you gather all of the facts necessary to make an educated decision.
Look for good bones. Don’t get hooked on the decorating. The town or towns you are targeting for your home search likely have a handful of builders who have built a majority of the homes. Get to know the reputation of these builders. Then, before going to look at a home, find out who the builder was. You’ll want to be careful when looking at homes built by those with less than stellar reputations. Then, you need to learn to look past the furniture, wall colors, window treatments, and other decorating, and just look at the home layout and flow. New cherry cabinets and granite counters matter little if they are in the galley kitchen and you have a family of five. At the same time a family room with black walls featuring a mural of the moon on one side also matters little if it is big enough for your needs. Aesthetics are relatively inexpensive to fix – major construction is another matter.
When looking at room layout, corners are key. Rooms with doorways in the middle of walls flow better than rooms that open in a corner. Remember that when looking for your dream home.
Make sure the most expensive stuff works. The two most expensive rooms in a home to renovate are kitchens and bathrooms. If you’re stretching to be able to afford a home and still eat, make sure these two rooms don’t need renovating anytime soon.
Take an inventory of what needs fixing. Good news: With more houses on the market than in the past several years, you’ll likely be able to look at more houses before making a decision to put in a bid. Bad news: That means it can get quite confusing to remember the details of each. Develop a list of things you like in the house as you walk through each, and also make a list of things that might need fixing (see "Keep Them Straight", right).
Is there room for expansion? You might not be concerned with adding onto the home you’re viewing today, but what about tomorrow? Don’t necessarily exclude those that don’t have the room and a logical place to expand, but do understand that you will be limited in your options down the road.
Does the basement leak? If you’ve been lucky enough to live in a house with a dry basement (or perhaps without a basement) it’s hard to imagine the havoc a wet basement can bring to your life. If you’ve ever lived in a house with a leaky basement or hate the thought of a foot of water surrounding your furnace, you’ll likely be sure to check that the basement doesn’t leak, or has a system that automatically removes water from it.
What’s the condition of the home’s exterior? Does it need painting, or is it sided? Does it have painted brick that’s peeling? Is the aluminum siding chalking? Improving the exterior can be costly. Check the exterior walls carefully before putting in a bid.
Landscaping: Does it look like a park or a landfill? Landscaping not only includes the grass, bushes and any gardens, but also the hardscape – the sidewalk, deck and/or patio. People are spending more time than ever outdoors and you’re likely no different. Landscaping improvements can be costly, but is one area in which homeowners often tackle projects themselves. If you have the time, energy, and expertise you can save money by doing some landscaping improvements. But costs can add up here – be sure to factor that into your decision and/or bid.
Check the zoning, nobody likes surprises. Too often homeowners are horrified to learn that their tranquil neighborhood is being invaded by multi-family housing, a big commercial business, or a 24-hour convenience store. Before you put a bid on a house, go to the town hall, city hall, or county register of records and find out the zoning of all contiguous properties.


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Importance of a Home Inspection

Suppose you bought a house and later discovered, to your dismay, that the stucco exterior concealed a nasty case of dry rot. Or suppose that when you fired up the furnace in the winter, you discovered a cracked heat exchanger leaking gas into your home. The best way to avoid unpleasant surprises like these is to arrange for a home inspection before you buy.

Home Inspections Help You Avoid Unpleasant Surprises
A good home inspection is an objective, top-to-bottom examination of a home and everything that comes with it. The standard inspection report includes a review of the home's heating and air-conditioning systems; plumbing and wiring; roof, attic, walls, ceilings, floors, windows, doors, foundation and basement.

Getting a professional inspection is crucial for older homes because age often takes its toll on the roof and other hard-to-reach areas. Problems can also be the result of neglect or hazardous repair work, such as a past owner's failed attempt to install lights and an outlet in a linen closet.

A home inspection is also a wise investment when buying a new home. In fact, new homes frequently have defects, whether caused by an oversight during construction or simply human error.

Getting an Inspector
Real estate agents can usually recommend an experienced home inspector. Make sure to get an unbiased inspector. You can find one through word-of-mouth referrals, or look in the Yellow Pages or online under "Building Inspection" or "Home Inspection."

Home inspections cost about a few hundred dollars, depending on the size of the house and location. Inspection fees tend to be higher in urban areas than in rural areas. You may find the cost of inspection high, but it is money well spent. Think of it as an investment in your investment – your future home.

Some builders may try to dissuade you from getting a home inspection on a home they've built. They may not necessarily be trying to hide anything because most builders guarantee their work and will fix any problems in your new home before you move in. Some builders, in fact, will offer to do their own inspections. But it’s best to have an objective professional appraisal - insist on a third-party inspector.

An Inspection Will Educate You about Your House
Education is another good reason for getting an inspection. Most buyers want to learn as much as they can about their purchase so they can protect their investment. An examination by an impartial home inspector helps in this learning process.

Ask if you can follow the home inspector on his or her rounds. Most inspectors are glad to share their knowledge, and you'll be able to ask plenty of questions.

Inspection Timing and Results
Homebuyers usually arrange for an inspection after signing a contract or purchase agreement with the seller. The results may be available immediately or within a few days. The home inspector will review his or her findings with you and alert you to any costly or potentially hazardous conditions. In some cases, you may be advised not to buy the home unless such problems are remedied.

You could include a clause in your purchase agreement that makes your purchase contingent upon satisfactory inspection results. If major problems are found, you can back out of the deal. If costly repairs are warranted, the seller may be willing to adjust the home's price or the contract's terms. But when only minor repairs are needed, the buyer and seller can usually work out an agreement that won't affect the sale price.

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Email me for a free property evalutation or with any questions to andygonzalez@shorewest.com

10 Buying Mistakes you Can't Afford

Most advice columns tell you what you should do, but just as importantly, there some things you shouldn't do. Here are 10 frequent home finance mistakes that consumers make - and that you should avoid.

Don’t choose the wrong mortgage: With the advent of instant refinancing, home loans are no longer the lifetime obligations they used to be. Still, you don't want to be saddled for even a short period of time with the wrong mortgage.

Investigate all your options, then lay your choices side-by-side and do the math, making sure to compare worst-case scenarios. Be sure to look at initial interest rates, future interest rates and payments (if different), and the possibility of prepayment penalties.

Don’t confuse "preapproved" and prequalified" with a loan commitment: These are debatable terms in real estate because not all lenders define them the same way. In fact, one leading real estate dictionary contains neither expression because their definitions are uncertain. 

According to one school of thought, when you are prequalified, the lender is making an educated guess about how much you can borrow based on information you've provided. When you are preapproved, the lender has verified everything you have told him or her and is offering to lend you up to a given amount at current interest rates - under certain conditions. 

Whether prequalified or preapproved, final clearance and a check at closing - a loan commitment - are subject to an appraisal satisfactory to the lender, good title, a last-minute credit check and other verifications. When meeting with lenders, always ask how they define each term and what additional steps will be required to actually obtain a loan.

Don’t have too much credit: Excessive credit is almost as bad as no credit or even bad credit. Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you as they do on timeliness. So being up to your ears in car loans and credit cards is a sure way to be turned down for a mortgage. Postpone any major purchases until after you buy your house.

Don’t lie on your loan application: Exaggerating your income on a mortgage application or putting down other untruths can be a federal offense. Lenders rarely prosecute liars, but if they find out later, they can call your loan due and payable. 

And don't ever sign your name to a loan application that is not completely filled out, either. Loan officers have been known to stretch the truth to get a client approved, but it's the borrower who ends up paying the price, often in the form of unaffordable monthly loan payments.

Don’t hide if you can't make your payments: The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments. Lenders have many options at their disposal to help keep borrowers from losing their homes to foreclosure. But they can't do anything for you unless they can talk to you about your difficulties. Lenders are the enemy only if you give them no other choice.

Don’t skip a home inspection: Failing to make your purchase contingent on a satisfactory home inspection could be a costly mistake. Independent home inspectors examine houses from stem to stern. They'll be able to tell you whether the roof and/or basement leaks, whether the mechanical systems are in good shape and how long the appliances should last. They can't report on things they can't see, but at least their trained eyes are better than yours. So don't pass just to save a few hundred dollars - it’s money very well spent.

Don’t hire just any agent to sell your house: All real estate agents are not the same. You want to work with an agent who specializes in your neighborhood and who is a top producer. Ask your candidates how they plan to market your house, what you can do to make the place more attractive to prospects and what you should set as a selling price. If you don't like any of the answers, look elsewhere. And above all, stay away from relatives; unless Aunt Amy or Nephew Nick fit the description above, keep looking.

Don’t fail to check out a contractor’s credentials: Never, ever hire a contractor who knocks on your door or says his prices are good for only a few days. Reputable contractors don't solicit door-to-door, and they don't cut prices just because they happen to be in your neighborhood. Check out potential contractors thoroughly by calling several of their past clients, their bankers and suppliers, your local better business bureau and your local consumer affairs agency.

Don’t pay a contractor too much upfront: If a contractor asks for more than a third of the contract price as a down payment, chances are something's wrong. At worst, he's a scam artist who has no intention of returning after he cashes your check. At best, he's undercapitalized and can't afford to purchase materials on his own. Or, in between, he could be using your money to pay workers on another job. Also, never give a contractor cash.

Don’t burn your mortgage: It's a wonderful feeling when you make your last house payment. After all, the place is now yours, all yours. Many people celebrate by holding a mortgage burning party. But they torch the original document. Don't. Make a copy and burn that instead. Keep all your loan documents in a safe place.

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Email me for a free property evalutation or with any questions to andygonzalez@shorewest.com

Home Sales up in January

Home Sales Up 15% in January
February 12, 2013 – The 4-county Metropolitan Milwaukee housing market started 2013 in the same fashion it ended 2012, increasing sales over the previous year. Sales in January were 15% above January of 2012.
January marked the 19th month in a row that home sales increased over the previous year. The 874 January sales were the most for that month since 2007 (971), before the Great Recession began.
While there is a substantial amount of relief in the continued success of the housing recovery, there is also concern over the paltry level of inventory the market is carrying as we approach the spring selling season.
The market has 11.0-months of inventory (calculated by the number of active listings divided by the previous month’s sales), which is well below the 15.4-months from January 2012. To put that in perspective, over the last 6-years the number of months of inventory was usually in the upper teens or low 20s in January.
Only 1,889 homes were listed in January 2013, down 13.7% from a year earlier. January’s listings were the fewest the market has had in that month since 2000, when 1,784 homes were listed.
A major reason for the lackluster level of listings is sellers’ fear of not getting a good price for their home. Certainly, sellers will probably not fetch prices from the peak of the market, however, prices are starting to stabilize in many areas – though buyers are demanding concessions to complete a sale.
We cannot say with confidence that the Milwaukee market will see prices rise universally in 2013, but with consumer confidence and employment stable, and with interest rates historically low, many areas of our market could see some appreciation as we move through the year.
Sellers need to consult with their REALTOR® to determine the appropriate listing price for their home given current market conditions in their neighborhood and community.
Days on Market
While listings are lagging, buyers are very active. Of the closings in the 4-county area in January, 40.8% sold in less than 60-days. An additional 15.7% sold in under 90-days, for a total of 56.5% of sales from properties listed since October or November.

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Real Estate in Milwaukee, WI

Hello,

This is an exciting time in real estate. Interest rates are at record lows, and inventories are stable. Foreclosures have steadily declined, and Financial institutions are favoring short sales. Home prices are seeing slight increases. Go to www.shorewest.com to search for your next home. I'll be glad to be your agent. Andy Gonzalez, Broker Associate for Shorewest Realtors.

Andy Gonzalez / Shorewest Realtor / www.shorewest.com / www.wisconsinmaphomes.com / www.facebook.com/AndyGonzalezRealEstateProfessional / 414-698-5912