Dane County Real Estate Blog

Five Northern Bay Condos up for auction on Saturday, December 12th

noreply@blogger.com (Dan Miller) — Fri, 13 Nov 2009 10:59:00 +0000

Five of the Northern Bay Condos on Castle Rock Lake will be put up for auction by Micoley & Company on Saturday, December 12th, at 11:00 AM. Registration for the event starts at 10:00 AM. The minimum acceptable bid will be $95,000 or $125,000, depending on the unit. For more information on the auction, you can check out this link from Micoley & Company.

Lately we've seen a number of condo developments getting serious about moving their inventory, either through public auctions or dramatic price reductions. Condo inventory remains very high. Don't be surprised if we see additional fire sales in the coming months.

Have a good weekend,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Dane County housing starts sluggish in October

noreply@blogger.com (Dan Miller) — Wed, 11 Nov 2009 12:07:00 +0000

We're almost ready to publish our Dane County existing home sales data for the month of October. October will mark the fourth straight month of increasing house sales (and the second straight month for condos). Clearly the home buyer tax credit is having an effect on the sale of existing homes and condos, especially in the lower end of the market.

However, Dane County housing starts remain sluggish. A total of 49 housing starts were recorded in October, compared to 52 in October of 2008, a decrease of 5.8%. Here's the monthly trend dating back to January of 2005.

Year-to-date, housing starts are down 17.6% compared to the same time period last year.

We do expect housing starts to gain some momentum with the implementation of the enhanced home buyer tax credit. We'll have more info about the credit soon.

Thanks to Dominic Collar from MTD Marketing Services of Wisconsin for sharing his data. For more information, you can contact Dominic directly at 920/993-8435. You can also check out our full housing start report on the real estate trends page at DaneCountyMarket.com .

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

154 Dane County foreclosure filings in October

noreply@blogger.com (Dan Miller) — Tue, 10 Nov 2009 11:24:00 +0000

A total of 154 Dane County foreclosures were filed in October, up 1.3% from the 152 foreclosures filed in October of 2008. Although only up slightly from last year's total, this October's number represents the third highest monthly total dating back to October of 2008.

For our full foreclosure report, you can check out the economic trends page at DaneCountyMarket.com .

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

You're buying a new home. Should you work with the lisitng agent? A buyer agent? An attorney?

noreply@blogger.com (Dan Miller) — Thu, 05 Nov 2009 12:46:00 +0000

We recently showed in this post why working with a good buyer agent can be a huge benefit to a home buyer. A listing agent can't provide you with the level of service and advocacy that you should expect from an agent in today's market. Remember, the listing agent works for her client, the seller. So when it comes to choosing between working with the listing agent and a good buyer agent, a good buyer agent is the clear choice.

But what about an attorney? We fully support any buyer who wishes to hire an attorney. An attorney provides peace of mind. She brings a different skill set to the table and helps to make sure that you, the buyer, are protected from all angles. A good attorney can be tremendously helpful during the home buying process.

Should working with an attorney preclude you from working with a buyer agent as well? We don't think so. But that is the perception held by more than a few people. Some folks believe the buyer agent and the listing agent will always be in cahoots, that both agents will conspire to ensure "the deal goes through". That's not part of our game.

Our firm belief is that if you decide to hire an attorney, you should have a good buyer agent assist you as well. It should be a team effort. And here are 3 big reasons why.

1) A good buyer agent brings market expertise to the table. The market is changing every day, and the market is not an attorney's focus. I go back to this post. Could most attorneys deliver the level of market expertise that this buyer received from his agent? I don't think so.

2) A good buyer agent is available to assist his client throughout the entire transaction, including the home inspection and final walk through. As a consumer making the biggest purchase of your life, don't you want someone to be by your side when your inspection takes place? You should. If issues arise during your inspection (as they often do), your buyer agent is a great resource to help you strategize your next steps - because your agent was at your side during the inspection and saw the same things you did. And what about the final walk through just prior to closing? Would you rather be joined by the listing agent (who represents the seller) or a buyer agent (who represents you)?

3) A buyer agent costs you nothing. And a good buyer agent is with you for the long haul. These days our buyer clients average about 2.5 offers per closing. That means our typical buyer is making 2 or 3 offers before he successfully closes on his home. Every time we go to bat for our clients, the cost is the same - nothing.

We think working with a good buyer agent is a no-brainer, but it's important to find someone you can trust. We'll provide some tips for finding a good buyer agent in a future post.

For more information on buyer representation and how the buyer agency agreement works, you can check out this link at DaneCountyMarket.com .

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

A very cool home inspection web site

noreply@blogger.com (Dan Miller) — Wed, 04 Nov 2009 12:08:00 +0000

Home inspector Brian Paull from Premier Inspection & Consulting has a very useful web site for anyone who is interested in learning more about home maintenance and the home inspection process. Brian's site includes a description of the home inspection standards of practice and a section on frequently asked questions, as well as information on radon, mold, and many other topics such as energy efficiency, electrical safety, asbestos, child safety, elderly safety and more.

For more useful inspection and testing information, you can check out the inspection and testing resource page under buying real estate at DaneCountyMarket.com.

Have a good day,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Dane County multifamily inventory still climbing

noreply@blogger.com (Dan Miller) — Tue, 03 Nov 2009 12:09:00 +0000

As of October 31st the months of inventory for Dane County multifamily real estate stood at 41.9 months. That's more than twice the inventory for Dane County condos, and almost 5 times the inventory for Dane County homes.

With high inventory and low sales, it's a great time to learn about multifamily real estate. Some sellers are becoming more flexible with pricing, and we're seeing more and more multifamily foreclosures.

If you're interested in learning more about multifamily real estate, please feel free to join us for our FREE workshop at 6PM on Tuesday, November 17th, at Bishop's Bay Country Club.

In the meantime, here is some additional useful information: You'll find our latest multifamily real estate report here, and information on how we assist our investor clients here. We've also launched a new web site - www.MadisonIncomeProperties.com - that makes it easy to find all of our information on multifamily investing. We'll be adding more useful content soon.

Have a great Tuesday,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Changes on the horizon for the tax credit?

noreply@blogger.com (Dan Miller) — Fri, 30 Oct 2009 02:54:00 +0000

It's beginning to look like the $8,000 tax credit for first-time home buyers will be extended, AND the tax credit may be enhanced to include individuals who sell a home to buy another. This article provides more details.

Speaking of buying, two local home buyer seminars are on the calendar for November.

The UW Credit Union is offering a seminar on Tuesday, November 10th from 6:30 to 8:00 PM. For more information about this seminar, click here.

The Dane County Housing Authority is sponsoring a two-part series with seminars on both Tuesday, November 10th and Tuesday, November 17th. Both sessions run from 6:00 to 9:00 PM. For course details and registration info, click here.

We'll be sharing more info on the tax credit extension if and when it occurs.

Have a great Friday,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Multifamily investment workshop is set for Tuesday, November 17th at 6 PM

noreply@blogger.com (Dan Miller) — Thu, 29 Oct 2009 11:51:00 +0000

We're excited to be holding a free real estate investment workshop at 6:00 PM on Tuesday, November 17th at Bishops Bay Country Club. The atmosphere will be very casual, and appetizers and refreshments will be provided. There's no need to worry about any heavy pressure or sales spin. That's not what we do. The workshop will last as long as needed in order to make sure we address everyone's interests and questions.

Our focus will be on passive income and multifamily real estate. Our panel will include Jim Hill and Shawn Kriewaldt from Keller Williams Realty. We'll also have a lender, an attorney and an accountant on hand - all of whom are experienced with multifamily real estate.

This is a great opportunity for anyone with an interest in multifamily real estate to ask questions about the market and property acquisition strategies, as well as lending, legal, financial and other topics. Rookies and experienced investors alike are invited to attend.

If you'd like to attend, please contact us at MadisonIncomeProperties.com. And while you're at it, please let us know what issues you'd like to discuss. We want to make sure the workshop addresses your needs.

Have a great weekend,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Looking for a good deal? Work with a good buyer agent.

noreply@blogger.com (Dan Miller) — Wed, 28 Oct 2009 11:38:00 +0000

We have a client who just closed on his condo last week. Several weeks ago he determined this property would fit his needs, and he asked us to represent him during the negotiation process. One of his main goals was to purchase the condo at a very good price.

We started by researching the condo market in the neighborhood and within the condo development itself. Our review of recent MLS transactions showed this condo was already competitively priced.

Next, we looked at the condo's listing and sales history. This condo had been on the market for 22 months. During that time it had undergone 3 price reductions, with the most recent reduction dropping the price $57,000 below the orginal list.

Then we researched the mortgage and checked for other liens on the property. We found there was still plenty of equity left in the condo even though it would end up selling for well below the seller's original purchase price.

Last, we looked for evidence of delinquent property taxes and evidence of foreclosure. We didn't find any issues on either front.

Now we were ready to draft the offer to purchase. We drafted the offer, and along with that we submitted a cover letter. The cover letter outlined the justification for the price. We included recent sales data from the condo development, and we cited data from the MLS which showed a very strong trend toward lower condo prices. We stated in the letter that the offer price was not only based on recent sales data, but the overall direction of the market.

In our letter we acknowledged the offer price was well below what the seller was hoping to receive, but we politely stated the price was non-negotiable. We thanked the sellers in advance for their consideration, and we awaited their response.

Two days later the sellers signed the offer. The buyer's inspection went well and we proceeded smoothly to closing. As it turned out the sellers did not like our tactics and decided they did not want to sit with us at the closing table. They completed their closing paperwork several days prior to the buyers.

I sympathize with the sellers and understand why they were unhappy with the results of their sale. It was a bitter pill to swallow. But our job was to advance our client's goals and protect his best interests. And as it turned out, our strategy worked. It's also worth mentioning that although the buyer hired us to represent him for his purchase, it was the sellers who paid our commission.

For more information on buyer representation and how the buyer agency agreement works, you can check out this link on DaneCountyMarket.com .

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Cold Play

noreply@blogger.com (Dan Miller) — Mon, 26 Oct 2009 11:15:00 +0000

As we approach the month of November, the weather becomes colder - and the real estate market does, too. It may sound counter-intuitive, but the next few months offer an excellent opportunity to buy real estate. And for a few reasons:

#1: Although inventory is lower now than it is in the Spring and Summer months, it is still quite high by historical standards. .

#2: Buyer demand drops significantly in the Fall and Winter months. This means less competition from other buyers and more flexibility from sellers. Many sellers become very flexible with pricing after they've seen their home sit on the market through the Spring and Summer months.

#3: News of higher unemployment and higher foreclosure rates affects the psyche of many sellers, causing some to do whatever it takes to get their home sold.

#4: Interest rates are at historic lows. And there's no guarantee that they'll be this low next year.

A good buyer agent can be a tremendous asset for the individual who wants an excellent deal - and someone to advocate his best interests throughout his transaction. In our next post we'll share an example of how we assisted a buyer client who just closed on his new condo.

Have a good day,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Do you know someone who is worried about foreclosure?

noreply@blogger.com (Dan Miller) — Wed, 21 Oct 2009 11:49:00 +0000

This web site - DaneCountyShortSales.com - has a list of useful resources. It also includes basic information about the short sale process, as well as information on how we've structured our real estate team to assist our short sale clients.

You won't find any heavy spin on the site. We've done our best to lay out the information in a concise and straight forward matter. Also, we don't force users of our site to give up their contact info in order to view our information.

Have a good day,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Plenty of buying opportunities on the horizon in Dane County

noreply@blogger.com (Dan Miller) — Mon, 19 Oct 2009 11:07:00 +0000

Approximately 24% of the home and condo sales in Dane County are related to foreclosure. This is according to a new measure - the distressed property index - that we've developed along with Peter Zarov from Homestead Title. The graph below shows how the index has grown by almost 5 times since January of 2006.

We expect the index to grow in the coming months due to the recent spike in foreclosure filings. This means we'll see a greater percentage of Dane County sales going to short sales and lender-owned (REO) sales.

Keep in mind this index is an approximation. You can read more about the index and how it is calculated here.

Have a good day,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Dane County home and condo sales up big in September

noreply@blogger.com (Dan Miller) — Thu, 15 Oct 2009 11:02:00 +0000

Dane County home sales rose on a year-over-year basis for the third straight month. Home sales last month increased by 19% from last September. Meanwhile Dane County condo sales rose for the first month since October of 2007. Condo sales last month were up 33% from the number of condos sold in September of 2008.

The median Dane County home price decreased by 1.9% in September. The median Dane County condo price decreased by 13.5%, as much of the condo buying activity was in the most affordable price categories.

The first-time home buyer tax credit is certainly spurring sales. In the home market, we're also sensing more interest from move-up buyers seeking larger and more expensive properties.

For more details, your can check our our full report at DaneCountyMarket.com .

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

How does Dane County compare to other area markets?

noreply@blogger.com (Dan Miller) — Tue, 13 Oct 2009 10:47:00 +0000

We pay a lot of attention to the Dane County real estate market. When we take a look at the data for other surrounding counties it becomes abundantly clear how good the Dane County market is compared to other local markets.

Take a look at this graph, which shows the single family home months of inventory for 9 local counties.

The months of inventory in Dane County are much less than the levels for any of the other counties in the South Central Wisconsin MLS. Dane County is not immune to national economic trends, but all-in-all it is a great place to be practicing real estate.

For more information on how inventory varies by location, you can check out this report.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosures set a record in September

noreply@blogger.com (Dan Miller) — Fri, 09 Oct 2009 11:07:00 +0000

Dane County foreclosures jumped from 101 in September of 2008 to 184 last month - an increase of 82%. The 184 foreclosures last month set a new record for Dane County. Here's how foreclosures have been trending since January of 2005.

You'll find our full report on the economic trends page at DaneCountyMarket.com.

Have a good weekend,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Dane County housing starts lower in September

noreply@blogger.com (Dan Miller) — Thu, 08 Oct 2009 10:18:00 +0000

Dane County housing starts totaled 48 in September, down by more than 22% from the 62 housing starts in September of 2008. The chart below shows how monthly housing starts have been trending since January of 2005.

The peak September for housing starts over the last decade was in 2003 (not in chart), when 239 housing starts were initiated. The 48 starts this past month were 80% off the peak.

Thanks to Dominic Collar from MTD Marketing Services of Wisconsin for sharing his data. For more information, you can contact Dominic directly at 920/993-8435. You can also check out our full housing start report on the economic trends page at DaneCountyMarket.com .

We'll cover foreclosures in our next post. September set another record for Dane County.

Have a good day.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Does your listing look great online and in person?

noreply@blogger.com (Dan Miller) — Tue, 06 Oct 2009 11:46:00 +0000

Over ninety percent of home buyers use the internet to find their home. And in many cases it's the online photos that either help a home "make the cut" or "get cut" from a buyer's list.

That's why we hire an interior designer to assist all of our clients with the staging of their home. Then we bring in a professional photographer to take the photos and create the virtual tour that will be posted to the internet.

Take a look at the three homes below. All of these homes look great in person, but just as important they look great online, too.

Fitchburg, Swan Creek, 4 BR/3BA, $299,900+

Verona, Westridge, 3 BR/2.5 BA, $299,900

Middleton Hills, 4 BR/2+ BA, $475,000

For more marketing ideas, you can check out how we help you sell on the selling real estate page at DaneCountyMarket.com.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Time to lock in your rate?

noreply@blogger.com (Dan Miller) — Mon, 05 Oct 2009 11:47:00 +0000

Rates for 30 year fixed rate mortgages were well below 5% on Friday. Interest rates don't get much lower than their current levels.

For the latest rates from local lenders, check out the mortgage update page, under buying real estate at DaneCountyMarket.com .

Have a great day,

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Opportunities in Dane County multifamily real estate

noreply@blogger.com (Dan Miller) — Sat, 03 Oct 2009 12:17:00 +0000

Buyer activity was very light in August, with 7 Dane County multifamily listings totaling 20 units selling via the South Central Wisconsin MLS. With sales very low, and inventory very high, it's a great time to invest in multifamily real estate. There are some great opportunities on the market right now. Contact us to learn more about how we can help you with your investment goals.

Here's how sales have been trending over the last 24 months. Only 515 units sold during the most recent 12 months, compared to 591 during the prior 12 month period.

Now put this in context with the sales statistics for the past 9 years. The current demand for multifamily real estate is off by more than 50% from some of the peak sales years earlier in the decade.

You'll find our full multifamily market report on the economic trends page at DaneCountyMarket.com .

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

How we assist our short sale clients

noreply@blogger.com (Dan Miller) — Thu, 01 Oct 2009 11:01:00 +0000

Our real estate team is assembling a group of short sale experts to assist our clients who need to sell before the lender takes possession. Our goal is to involve the right experts at the right time to ensure our clients get their homes sold.

First, we have a team of three Realtors who have achieved Certified Distressed Property Expert designation. The three of us work together to effectively price and market our listings. We also ensure our clients have the right paperwork in place for the proposal packet that is submitted to the lender.

Second, we have enlisted the services of short sale facilitators who assist in submitting the short sale packet and work with the lender once the packet has been submitted. Our short sale facilitators come from Homestead Title. The Homestead Title team works with the lender to keep the sale moving forward. If issues arise during the approval process, our facilitators work to get them addressed quickly. And, Homestead Title will ensure that there are no 11th hour surprises and that all lien holders are identified early in the process.

Third, we provide our short sale clients with the services of an attorney of their choice. The attorney's job is to protect our client's best interests as we facilitate the sale with the lender.

Soon we'll be launching a web site designed for people who are in danger of losing their home to foreclosure. More on that coming soon.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosure filings reach a new high in September

noreply@blogger.com (Dan Miller) — Wed, 30 Sep 2009 10:51:00 +0000

Although the month of September is not in the books yet, foreclosure filings in Dane County will reach a new high this month. Keep in mind that most foreclosure filings result in either a short sale or a sheriff's sale, many of which do not occur until 6 to 18 months after the filing. Expect distressed property sales to become a large and growing part of the real estate market over the coming year.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Short sale failure: some reasons why

noreply@blogger.com (Dan Miller) — Mon, 28 Sep 2009 10:04:00 +0000

Short sales have been in the news a lot lately, and by now we've all read and heard stories about many short sales failing. Here are some reasons why many short sales do not succeed:

Improper pricing. First and foremost, a short sale needs a willing buyer and an accepted offer. A short sale property needs to be priced to sell, without giving away the farm.

An incomplete or improperly submitted proposal package. Once an offer is accepted, the seller needs to submit a proposal package to the lender for its review. The proposal package includes multiple documents and dozens of pages. If the package is incomplete or improperly submitted, it can delay the approval process and cause the sale to run out of time before the sheriff's sale. An experienced Realtor is essential to avoid these mistakes.

Inadequate follow-up. Once the proposal package is submitted effective communication with the lender is critical. If the listing team is not proactively communicating with the lender and helping to move the short sale through the approval process, delays can occur, causing the seller to run out of time or the buyer to walk away from the transaction.

Failure to negotiate all liens. A successful short sale requires that all debts that are liens against the property are satisfied. This requires the agreement of each and every creditor/lien holder and usually requires at least partial payment of the debt. Failure to identify which liens to negotiate can derail a short sale at the 11th hour.

Thanks to Peter Zarov from Homestead Title for his contributions to this post.

In a future post we'll share how our real estate team is addressing the pitfalls listed above.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Prices slashed for west side condos

noreply@blogger.com (Dan Miller) — Sun, 27 Sep 2009 01:36:00 +0000

You may have heard the radio spot. Prices have been drastically cut for many of the Crosswinds Condos at Hawks Landing.

We've posted about the very noticeable and very real trend toward lower condo prices. There are some great values on the market right now. A bitter pill for some. An opportunity for others.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

First time home buyers, the tax credit window is closing

noreply@blogger.com (Dan Miller) — Tue, 22 Sep 2009 01:26:00 +0000

The closing deadline for buyers seeking to take advantage of the $8,000 first time home buyer tax credit is November 30th. Unless the tax credit gets extended, first time home buyers should plan on getting their offers accepted very soon.

We recommend giving yourself at least 45 days to beat the November 30th deadline. We're expecting lenders and title companies to be very busy over the next two months, which could lengthen the time to close. Also keep in mind the Thanksgiving holiday is November 26th, just before the deadline.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Why lenders will accept a short sale

noreply@blogger.com (Dan Miller) — Sun, 20 Sep 2009 12:42:00 +0000

Lenders are in the business of finance, not real estate. They're not designed to own a portfolio of properties. There are many good reasons why a bank will accept a short sale over foreclosure. Here are just a few:

Legal fees. Foreclosure requires attorney fees that can be avoided through a short sale.

The declining market. In a declining market, a property loses value for every month it does not sell. A short sale allows a property to be sold more quickly and at a higher market value.

Holding costs. Holding costs for lender-owned properties add up quickly. These costs include taxes, insurance, utilities, maintenance, management, and other costs.

Repairs. In some cases lenders end up owning properties that are in need of significant maintenance and repair. Some owners who are losing their home to foreclosure neglect or intentionally damage their home.

There are many good reasons for lenders to choose a short sale over foreclosure. Despite these reasons, many short sales are not successful and end with the lender owning the property. We'll cover some reasons why in a future post.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com