Dane County Real Estate Blog

The Dane County Real Estate Blog has moved

2010-03-08T06:09:00.000-06:00

The Dane County Real Estate Blog has moved.

Due to technical issues with this blogging platform, we've moved our blog to Madison.com. You will find it here:
http://my.madison.com/MadisonRealEstate/blog

Please add our Madison.com blog to your list of internet favorites, or use our RSS feed:
http://my.madison.com/MadisonRealEstate/blog/nf/rss.xml

Thanks and have a great day!

Dan

3 home energy improvements with good returns on investment

2010-03-01T06:31:00.000-06:00

Lee Schwartz, a home energy efficiency expert from Piping Plover Home Energy Solutions, has contributed some great articles about home energy conservation to our web site.

In this article, Lee covers the 3 home energy improvements that provide the best return on investment. You might be surprised by the results. Installing energy efficient windows did not make the list.
You can find all of Lee's articles on the buying real estate page at DaneCountyMarket.com.
Have a great day,

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

Choosing the right loan program for you

2010-02-28T08:02:00.000-06:00

UW Credit Union has contributed a new article to our web site. In this article UWCU lists 5 questions you should ask yourself as you consider your mortgage options. UWCU also provides a high level overview of different loan programs, including FHA-insured mortgages, VA home loans, rural housing loans, and the new WHEDA Fannie Mae Advantage program that will be available March 1st. (The new WHEDA program offers up to 100% financing for first-time home buyers).

You can read the full article on the buying real estate page at DaneCountyMarket.com

Have a great Friday,

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

More foreclosures around the corner?

2010-02-16T23:19:00.005-06:00

We recently reported Dane County foreclosures decreased in January - the first time foreclosures have fallen in 34 months. Is this the beginning of a new trend? Barry Ritholz from http://www.ritholz.com/ does not think so. Ritholz and others predict a huge wave of new foreclosures is just around the corner. You can read more here.

Dan Miller, Realtor, Keller Williams Realty and DaneCountyMarket.com

Dane County home and condo sales higher in January

2010-02-14T21:02:00.003-06:00

Dane County home and condo sales recorded via the South Central Wisconsin MLS totaled 182 in January, up 29% from last January's 141 sales. The median home and condo price was lower by 6.4%.

We are seeing very robust buyer activity right now. The extended and enhanced tax credit is certainly spurring sales - even during this cold Wisconsin winter. If you have been planning to sell but have been waiting for warmer weather, you may want to reconsider your plan. The weather may be cold but the market is heating up.

You can view our full report on the January home and condo market here. All of our statistics for the 2009 sales year have been updated, too. You will find them on the real estate trends page at www.DaneCountyMarket.com.

Have a great week,

Dan Miller, Realtor, Keller Williams Realty and DaneCountyMarket.com

Signs of a changing market?

2010-02-12T06:52:00.001-06:00

Recently two different people with interesting profiles have asked us to assist them with their real estate purchase. These buyers are different from each other in that one is purchasing a home and the other a condo.
However they are very similar in a few different ways.

Both buyers are analytical people. They have been planning to buy for the last two years but up until this point in time they didn't feel the market had fallen enough to their liking. In the meantime they have been tracking the market and researching properties on our web site. And now we are actively assisting them with their purchase.

Neither person would have thought of buying a year or two years ago, but they've decided now is the right time to jump in.

Are stories like these signs of a new market? Time well tell, but I view it as good news for the market when analytical consumers with an investor's mentality decide now is the time to buy.

Have a good Friday,

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

Dane County foreclosures down 18% in January

2010-02-09T22:35:00.000-06:00

For the first time in 34 months, Dane County foreclosures have decreased. A total of 127 foreclosures were filed in January, compared to 154 a year ago.

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

The buying season is here

2010-02-09T06:07:00.002-06:00

We've noticed a large uptick in buyer activity over the last two weeks. Our real estate search tools are receiving a ton of page hits. Our listings are receiving a lot of showings. Our buyers are out in large numbers, viewing properties and making offers. The market feels much warmer than it did at the same time last year.

If you're planning to buy, don't be surprised if other buyers are getting ready to write an offer on the same home as you. Make sure you have your mortgage pre-approval in order, and be prepared to act quickly.

If you're planning to sell, and you haven't listed your home yet, now is a great time to get your home on the market. From our perspective, the buying season has already begun.

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

Madison's Downtown Condo Event is Sunday, February 28th

2010-02-06T08:03:00.004-06:00

If you're interested in buying a condo in Downtown Madison, mark Sunday, February 28th on your calendar. That's the day every Realtor with a Downtown Madison condo listing will be invited to participate in a coordinated open house event.

Last February we coordinated a similar event for West Side homes and condos. Last year's event featured 73 listings and was very well attended. We're expecting another great day for our Downtown Condo Event on February 28th.

Stay tuned for a list of participating listings.

Have a great day,

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

Changes in the commercial market?

2010-02-06T06:30:00.005-06:00

Nine commercial properties totaling almost $2.7 million were sold in Dane County in December. That's almost 3 times the sold dollar amount from the 3 previous months combined. (All numbers come from the South Central Wisconsin MLS).

However, commercial sales in 2009 ended the year at just over $13 million. That's the lowest sales total of the decade.

Let's hope we see more encouraging months like the month of December in the near future. There is reason to believe so, as Dane County foreclosures decreased for the first time in 34 months in January (more on these numbers coming soon).

For more on the latest commercial real estate trends, you can check out our commercial real estate update on the economic trends page at DaneCountyMarket.com .

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

On the market: bank-owned Northern Bay Condos

2010-02-02T07:09:00.002-06:00

The Northern Bay Condos on Castle Rock Lake have a number of bank-owned units on the market, and by and large these units are priced hundreds of thousands of dollars below prices from just a few years ago. Recent re-sales at Northern Bay have gone for more than $200,000 below the original selling price.

This link includes a list of bank-owned Northern Bay condos. Buyers are reacting positively to current price points, as several Northern Bay units have accepted offers right now.

Have a great day,

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

Did the market improve in 2009?

2010-01-31T22:56:00.005-06:00

Sales of Dane County single family homes (excluding condos) increased in 2009, but did the market for single family homes really improve? To answer this question we turn to one of our favorite statistics - total days on market experience.

For those who want the details, the total days on market experience approximates the time required to sell a home by taking into account the average days on market for listings that sell, the average days on market for listings that expire, and the overall listing success rate for homes in Dane County. In other words the total days on market experience is a measure of the effort required to sell the average Dane County home.

When we look back at the last two years, we see the total days on market experience for the average Dane County home decreased from 258 days in 2008 to 225 days in 2009.

The time required to sell the average Dane County home improved; however, the real story becomes clear when we look at this statistic by price range. Here's how the total days on market experience changed by price range from 2008 to 2009.

Last year was a tale of two markets. Low interest rates and the home buyer tax credit boosted the market in many of the lower price categories, but the market for homes priced at $500,000 and above took a clear hit.

This year several of our higher priced listings have been receiving good showing activity and good offers - thanks in large part to our clients who have embraced proper pricing, home staging, and aggressive marketing that leverages our clients' efforts to make their homes show their best.

In this market a listing's success depends a lot on how well the seller and the agent are able to work together on an aggressive, well-conceived plan. And in the highest price categories, a strong collaboration between client and agent is a requirement, not an option.

Have a good week,

Dan Miller, Keller Williams Realty and http://www.danecountymarket.com/

25 bank-owned condos in Sun Prairie

2010-01-29T23:57:00.002-06:00

As of this post, our quick search of Sun Prairie foreclosures shows 25 bank-owned condos for sale in Sun Prairie - all of them listed for less than $200,000.

Now our quick search tools on the property search menu at DaneCountyMarket.com make it easy to find bank-owned and short sale properties in 13 different Dane County communities.

Have a good weekend,

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

Madison home buyer seminars in February

2010-01-28T07:06:00.002-06:00

UW Credit Union is offering a free home buying seminar on Tuesday, February 9th 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 sessions on both Tuesday, February 16th and Tuesday, February 23rd. Both sessions run from 6:00 to 9:00 PM. For course details and registration info, click here.

Both seminars are good sources of information. You will find there is no sales pressure whatsoever at either event. Both seminars also provide plenty of opportunities for you to ask the questions that matter most to you.

Have a great day,

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

Quick search for bank-owned and short sale properties now at DaneCountyMarket.com

2010-01-27T01:06:00.004-06:00

You can create your own custom foreclosure search at DaneCountyMarket.com.

And now you can run foreclosure quick searches by city for single family home, condo and multifamily real estate. The searches cover both bank-owned and short sale properties.

For example, the city of Madison has 6 different foreclosure quick searches:

So far our foreclosure quick search includes the cities of Madison, Cottage Grove, DeForest, Fitchburg, McFarland, Middleton and Monona. Soon we'll be adding quick searches for Mount Horeb, Oregon, Stoughton, Sun Prairie, Verona and Waunakee.

You'll find our foreclosure quick search on the property search menu at DaneCountyMarket.com.

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

How changes in the market have affected real estate agents

2010-01-23T18:58:00.004-06:00

How has the real estate downturn affected real estate agents? The graph below paints a clear picture. It shows Dane County home and condo sales (in millions of dollars) dating back to the year 2000.

You'll see 2005 was the grand daddy of all years, with Dane County home and condo sales totaling $1.94 billion. That's the year everyone and their uncle was in real estate.

Home and condo sales decreased steadily thereafter to $1.247 billion in 2009, a 36% decrease from the peak year of 2005. That 36% decrease is a good proxy for how much annual commission dollars have decreased since 2005. In reality, commission dollars have probably decreased by more than 36% due to the compensation structures for some of today's listings.

All of this negative news means it's a great time to be in real estate. There are plenty of opportunities right now for real estate professionals who have a long-term focus and a commitment to service.

It's also a very rewarding time to be in real estate. Many of today's clients want someone they can trust who will help them successfully navigate today's complex market. And then there are those clients who are in a really tough spot and need help getting out of a challenging situation.

This year promises to be another year full of challenge and opportunity. We're very much looking forward to embracing the next 12 months and growing our business once again.

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

How the Dane County home and condo markets vary by price range

2010-01-21T06:42:00.005-06:00

The market for sellers is most challenging for the homes and condos that are on the high end of the price ladder. And the data for Dane County listing success rates bears that out.

For example, in 2009 the overall listing success rate for Dane County homes was 56%. Homes under $100,000 had a success rate of 71%. Homes over $800,000 had a success rate of 14%.

In the condo market, the overall success rate was 36%. Condos under $100,000 had a success rate of 53%. Condos over $800,000 had a success rate of 9%.

Another way to view the market by price range is to look at how months of inventory vary across the price spectrum. If you take a peek at this data, the pattern is very clear.

Given the data and the realities of the market, pricing and marketing become ultra-critical as you work your way up the price ladder. The cost of not being able to sell a high-end property in a downward trending market is very real.

Remember all of those golf course homes that were worth a million dollars 3 years ago?

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

December's distressed property index decreases to 23%

2010-01-20T06:27:00.001-06:00

Approximately 23% of the home and condo sales in Dane County are related to foreclosure, according to the Distressed Property Index we developed a few months ago. The December index decreased from November's index value of 24%.

For more details, please visit our monthly update at DaneCountyMarket.com .

Have a good day,

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

Time to lock in? Mortgage rates back below 5%.

2010-01-19T06:05:00.001-06:00

According to the latest mortgage rate publication by UW Credit Union, interest rates for 30 year fixed rate loans are back below 5%.

If you haven't visited the UW Credit Union mortgage web center before, you'll find it to be a very useful resource. The UWCU mortgage web center allows you to monitor interest rates, apply for a loan, and monitor the status of your loan all from a single online location. In the very near future you'll also be able to search for properties. That's pretty cool.

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

Dane County December market update

2010-01-16T09:07:00.004-06:00

What happens after a tax credit deadline passes?

Sales decrease.

Our preliminary review of data from the South Central Wisconsin MLS shows a total of 253 Dane County homes and condos sold in December, compared to 289 sales from a year ago - a decrease of 12%. A total of 5,455 homes and condos sold during the 2009 sales year, compared to 5,336 in 2008 - an increase of 2%.

You may remember home and condo sales more than doubled in November, as first-time home buyers rushed to cash in on the previous tax credit prior to the November 30th deadline. We do expect home and condo sales to rise similarly once again as we near the deadline for the extended and enhanced tax credit.

You can view our full report on the December Dane County home and condo market here.

Have a great weekend,

Dan Miller, Realtor, Keller Williams Realty and DaneCountyMarket.com

Tips on how to save for your down payment

2010-01-13T22:59:00.003-06:00

UW Credit Union has contributed another useful article to our web site. In this article UWCU provides some common sense and creative advice on how you can save for your down payment. You'll find it on the buying real estate page at DaneCountyMarket.com.

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

NARI Remodeling Expo is January 15th through the 17th

2010-01-13T07:48:00.002-06:00

The Madison chapter of NARI (National Association of the Remodeling Industry) is holding its annual expo January 15th through the 17th at the Marriot Madison West. This is a great event for anyone planning a home renovation, or anyone who just wants to learn more about the latest and greatest in home remodeling.

You'll find more information about the event here.

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

2010-01-12T05:27:00.003-06:00

Kathy Quade from House To Home Interiors has just released her new E-book "Showing Well Selling Well" on Lulu.com. In her book Kathy provides some great advice on how you can prepare your home for today's market in some very simple, practical and AFFORDABLE ways.

Kathy stages all of our listings, and does a tremendous job for our clients. She also has a number of useful articles on DaneCountyMarket.com, including Showing Well and Selling Well, Let Your Home Shine, and Enhance Your Curb Appeal.

Kathy's E-book is available for $19.99 and can be ordered here.

Have a good day,

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

Interest rates headed higher?

2010-01-11T05:48:00.001-06:00

Eric Rosengren, chief of the Federal Reserve Bank of Boston, predicts rates will rise between .5% and.75% over the coming months. You can read more in this article from The Hartford Courant.

Rock-bottom interest rates and tax credit incentives won't last forever. If you need to sell, you have a window of opportunity right now. We recommend you consider listing your home in January rather than waiting until spring.

Food for thought.

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

Dane County foreclosures up 29% in 2009

2010-01-10T07:51:00.005-06:00

Dane County foreclosures increased for the 33rd straight month in December. A total of 117 foreclosures were logged in December, an increase of 14% from the 103 foreclosures recorded in December of 2008.

Foreclosures ended the year up 29%. From the graph below you see foreclosures increased for the fifth straight year in 2009.

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

DaneCountyMarket.com community pages now include real estate search tools

2010-01-08T06:10:00.001-06:00

Our community and relocation page at DaneCountyMarket.com includes a ton of information on 13 local communities. We've enhanced each individual community page so you can automatically find all of the properties for sale in that area.

For example on our Verona page, you'll see a link to view all Verona condos for sale, followed by a link to view all Verona homes for sale.

Clicking the CONDOs link will display all listed condos in Verona, sorted by price. Clicking the HOMES link will display all listed homes in Verona, also sorted by price.

This improvement was recommended to us by one of our regular web site users. If you have any ideas for making our site more useful to you, we're happy to hear from you. Please feel free to contact us here.

Have a great weekend,

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

Dane County housing starts up big in December

2010-01-07T06:36:00.003-06:00

Dane County housing starts fell off a cliff at the end of 2008, as the building industry felt the full impact of the economic downturn. The twenty housing starts recorded in December of 2008 was the lowest monthly total of the decade.

This past December housing starts showed a nice rebound off that low. A total of 65 housing starts were recorded in December of 2009, marking the second straight monthly increase for Dane County.

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

More Madison homes sold for below the assessed value in 2009

2010-01-04T23:57:00.005-06:00

Our analysis of data from the South Central Wisconsin MLS shows 58% of the Madison homes that sold in 2009 ended up selling for under the 2009 assessed value. This marks the first year during the new millennium that more than 50% of all Madison homes sold for an amount less than the assessment. (Note: this analysis excludes condos, as well as new construction houses that did not reach their full assessment prior to sale).

Here's how the data has trended over the last 10 years.

The trend toward more homes selling for under the assessment is no big surprise. But these stats from 2009 may surprise you:

Only 40% of all Madison homes sold in 2009 ended up selling for a price that was within $10,000 (plus or minus) of the assessed value.
Thirty-seven percent of all Madison homes sold for a price that was more than $10,000 under the assessment.
Twenty-three percent of all Madison homes sold for a price that was more than $10,000 above the assessment.

In other words the majority of all home sales occurred at a price point that was either well above or well below the assessed value.

The data drives a home a point that we have been making for the last several years: It is the market that determines a home's true value, not the city assessor.

For more information, please see our articles Market Value vs Assessed Value and Pricing Your Home. You'll find both on the selling real estate page at DaneCountyMarket.com.

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

Madison Home Expo is January 8th through the 10th

2010-01-04T06:30:00.002-06:00

This year's Madison Home Expo is January 8th through the 10th at the Monona Terrace Convention Center. The Expo offers home owners the opportunity to meet with local remodelers, builders and design professionals. Tickets for adults are $5. Children under 18 are free. You can find all of the details here.

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

Why get a home inspection? This photo says it all.

2010-01-03T07:08:00.006-06:00

We see all kinds of things during home inspections. This photo from a client's recent inspection has quickly become an all-time favorite.

Getting your new home inspected by a quality home inspector is one of the smartest things you can do as a home buyer. The inspection protects you, in the event that your inspector finds a defect that could significantly impact the value or the safety of your new home. The inspection also provides a great educational opportunity to learn about home maintenance and home safety from a licensed pro who has seen thousands of homes up close.

Brian Paull from Premier Inspection and Consulting has a great web site that among other things outlines the home inspection process.

We've also listed a number of useful links on our inspection and testing resource 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

Location: another big selling point of The Loraine Condominiums

2010-01-02T07:42:00.006-06:00

One of the reasons The Loraine Condominiums are over 90% sold is the character of The Loraine Building.

Another reason is location. Located at 123 W. Washington Avenue, The Loraine is in the heart of Downtown Madison, just a block off the Capitol Square. Concerts on the Square, The Dane County Farmer's Market, The Taste of Madison, The Art Fair on the Square, Monona Terrace and The Overture Center are literally just a few steps outside The Loraine's Grand Lobby.

For those who enjoy food and drink, there are plenty of nearby options, starting with Barriques Market, which is located on the first floor of The Loraine Building. The Blue Marlin, Harvest, L'Etoile, The Tornado Club, The Great Dane, the Marigold Kitchen and many other fine establishments are all just a short walk away.

Several health and fitness clubs are within easy walking distance, too. Pinnacle Health and Fitness, Capital Fitness, and the Meriter Retirement Community for seniors are all within a few blocks of The Loraine.

The downtown, pedestrian lifestyle is easily accessible from The Loraine. Read these testimonials from current residents and you'll see location is one of the most appreciated aspects of Loraine living.

Dan Miller, Realtor, Keller Williams Realty and DaneCountyMarket.com

Includes contributions from Brandon Grosse, Realtor/Broker, Accord Realty and TheLoraine.com

Dane County multifamily real estate sales were strong in November

2010-01-01T08:06:00.003-06:00

Seventeen Dane County multifamily listings totaling 49 units and over $4M in sales were recorded in November via the South Central Wisconsin MLS. That's a good month for the multifamily market.

A closer look at the numbers shows the November 30th deadline for the previous version of the home buyer tax credit had a big impact on the market. Thirteen of the 17 listings that sold during the month were for duplexes, as buyers choosing to owner occupy closed in time for the deadline.

We've stated repeatedly over the past several months that it's a great time for investors to learn more about the multifamily market. With over 3 years of inventory and a strong trend toward lower prices, the market has clearly shifted in favor of the buyer investor.

For more details on the Dane County multifamily market, you can check out our monthly report on MadisonIncomeProperties.com.

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

Listing success rates say a lot about the Dane County commercial real estate market

2009-12-31T19:17:00.003-06:00

Listing success rates for the Dane County Commercial market were at or above 24% during the first 6 years of the decade. Success rates then decreased over the next 3 years and ended at 14% in the year 2008.

That trend continued in 2009. As of November 30th, the listing success rate over the prior 12 months was 6.8%.

Comparing the success rate to the success rates from other forms of Dane County real estate puts the commercial market in perspective.

* commercial success rate = 6.8%
* multifamily success rate = 19.8%
* condo success rate = 38.3%
* single family home success rate = 57%

For more on the latest commercial real estate trends, you can check out our commercial real estate update on the economic trends page at DaneCountyMarket.com .

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

The next UW Credit Union home buyer seminar is January 12th

2009-12-29T21:34:00.002-06:00

A quick heads up for first-time home buyers in Dane County: The first UW Credit Union Home Buyer Seminar of the new year is scheduled for Tuesday, January 12th from 6:30 to 8:00 PM. The seminar is free and open to the public.

UWCU offers a number of additional seminars covering other financial topics. You can learn more about them here.

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Get the character with the condo in Downtown Madison

2009-12-29T08:05:00.006-06:00

The Loraine Condominiums offer a truly unique experience in Downtown Madison. With over 90% of all units sold, several condos across a variety of price ranges are available for purchase, starting at $324,900.

One of the reasons Shawn Kriewaldt and I are excited about our new listing is the history and character of the Loraine building itself:

The Hotel Loraine was originally constructed as a luxury hotel in 1924. More recently the city of Madison designated The Loraine as a national historic landmark due to its history, location, and architectural significance. The Loraine has been renovated for modern times, but take one look at the Grand Lobby and you'll see the hotel's original architecture and character have been wonderfully restored. This video provides a nice view of the Grand Lobby as you enter the front door. This panoramic tour provides another nice glimpse (click the lobby thumbnail image at the bottom of the page to load the lobby tour).

The Loraine offers much more than history and character. Soon we'll share more reasons why The Loraine Condos offer a unique value proposition in Downtown Madison.

Happy Holidays,

Dan Miller, Realtor, Keller Williams Realty and DaneCountyMarket.com

Includes contributions from Brandon Grosse, Realtor/Broker, Accord Realty and TheLoraine.com

3 good reasons to start your home search with a mortgage pre-approval

2009-12-23T06:19:00.002-06:00

Here are three great reasons to start your home search with a mortgage pre-approval.

A mortgage pre-approval helps you focus your search on homes that you can afford.
A pre-approval adds more weight to your offer to purchase, and helps you in the event that other buyers are competing for the same home.
A pre-approval helps you move through the financing contingency in your offer to purchase more quickly.

The UW Credit Union does a nice job explaining the mortgage pre-approval process in this article. You'll find it on the buying real estate page at DaneCountyMarket.com.

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

November Dane County Distressed Property Index sits at 24%

2009-12-21T06:22:00.002-06:00

Approximately 24% of the home and condo sales in Dane County are related to foreclosure, according to the Distressed Property Index we developed earlier this year. The November index decreased slightly from the index level in October.

The November index decreased because home and condo sales have been increasing at a faster rate than foreclosures. We don't believe this is a start of a long-term trend - and for two reasons. First, the recent rise in home and condo sales is due in large part to the home buyer tax credits. Second, some lenders have been implementing foreclosure moratoriums. Both of these are temporary measures. We expect the index to remain above . 2 for at least the next 6 to 12 months.

Have a good one,

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

Thinking of selling? Here's how the latest version of the tax credit affects you.

2009-12-20T07:16:00.002-06:00

June is typically the highest volume month for closings in our market. In a "normal" year we would recommend putting your home on the market by March 1st. This date ensures your home gets plenty of exposure to all of the buyers that begin to come out of the woodwork in the late winter and early spring.

However, we have the latest version of the home buyer tax credit in place. This version of the tax credit applies to both first-time home buyers and buyers who sell one home to buy another. The trick is the tax credit can only be claimed by buyers who have an accepted offer by April 30th and close by June 30th.

As we saw in the month of November, the tax credit deadline can have a huge impact on the market. Dane County home and condo sales more than doubled last month - due in large part to first-time home buyers rushing in to beat the previous tax credit deadline of November 30th.

It's impossible to predict the future. But it's very possible all of the recent housing stimulus efforts will end up stealing buyer demand from the future - when interest rates are higher and there are no more stimulus programs in place.

So, if you need to sell, and if you have not already listed your home, we strongly suggest you consider listing during the month of January. And while you're at it make sure your home is aggressively marketed and competitively priced. We don't have a crystal ball, but we do know tax credit deadlines have a tremendous impact on the market. The next four months offer a window of opportunity for buyers and sellers alike.

Have a good Sunday,

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

Now it's easy to find properties for sale in Verona, Middleton, Fitchburg, Sun Prairie and Waunakee

2009-12-15T05:51:00.004-06:00

We have 5 newer web sites built off the DaneCountyMarket.com platform which focus on real estate in Verona, Middleton, Fitchburg, Sun Prairie and Waunakee. One of the nice things about each of these sites is it's now very easy to find the local homes and condos for sale in each location.

For example, if you want an easy way to always know the homes and condos for sale in Verona, all you need to do now is go to VeronaRealEstateMarket.com. Here you'll find a SEE ALL VERONA HOMES button and a SEE ALL VERONA CONDOS button.

Both of the above search buttons query the active listings in Verona and display the results in order by price. You can choose to switch the display from ascending to descending to more easily focus on your price range. Here's a sample display for Verona homes.

We'll be adding more useful features to these sites in the near future. In the meantime, please feel free to check out our search tools at any of the following sites:

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

Dane County home and condo sales up 126% in November

2009-12-14T22:25:00.005-06:00

Our preliminary statistics from the South Central Wisconsin MLS are in for the month of November, and the headline is not a typo.

Dane County home and condo sales jumped from 212 in November of 2008 to 479 last month, an increase of 126%. November's median price for Dane County homes and condos was $192,000, down from last November's $215,950, a decrease of 10.7%.

The huge increase in sales was due to two factors. First, sales last November plunged after the stock market crashed in September of 2008. Second, many home buyers this November rushed to cash in on the first-time home buyer tax credit that was set to expire on November 30th.

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

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

Multifamily investment term #2: debt service coverage ratio

2009-12-11T07:05:00.003-06:00

We recently wrote about net operating income (NOI), which is the cash that remains after accounting for all revenues and expenses related to a property's operations. Note loan payments are not considered operating expenses; they do not contribute to the expenses that are used to determine NOI.

However, loan payments are used to determine a property's debt service coverage ratio (DSCR). The debt service coverage ratio is a ratio that measures the cash that is available after all loan payments are taken into account. In other words:

DSCR = (Net Operating Income)/(Annual Loan Payments)

The debt service coverage ratio is important because in addition to setting a maximum loan to value ratio, most lenders will require a minimum debt service coverage ratio before a loan can be issued.

For example, suppose a lender requires a minimum DSCR of 1.25.

Now suppose the annual net operating income for the subject property is $150,000, and the annual payments for the desired loan are $125,000.

DSCR = ($150,000)/($125,000) = 1.2

In this case the DSCR does not meet the lender's minimum requirements. The financed amount would need to be reduced in order to bring the annual loan payments down and the DSCR up to the lender's minimum standard of 1.25.

Soon we'll cover another important loan constraint - the loan to value ratio.

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

Dane County foreclosures up 24% in November

2009-12-09T22:40:00.001-06:00

Foreclosures were up again in Dane County, increasing from 127 in November of 2008 to 157 last month. November marked the 32nd straight month of year-over-year foreclosure increases in Dane County.

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

Housing starts sluggish in November

2009-12-09T06:45:00.002-06:00

Dane County housing starts were sluggish again in November. A total of 37 housing starts were recorded in November, compared to 35 in November of 2008. The graph below provides a clear picture of how the new construction market has been trending since the beginning of 2005.

Year-to-date, housing starts are down 16.4% compared to the same time period last year.

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

Dane County months of inventory DECREASE

2009-12-05T06:43:00.005-06:00

Dane County home and condo inventory stood at 10.3 months on November 30th, down from 10.8 months on November 30th of 2008. That's the first time inventory has decreased on a year-over-year basis since we started tracking this statistic in 2007.

Inventory for homes only stood at 7.8 months on November 30th, down from 8.2 months a year ago. Condo only inventory stood at 18.7 months, compared to 18.9 months a year ago.

This is an encouraging trend, but keep in mind much of the inventory depletion has been in the lowest price categories due to the implementation of the first-time home buyer tax credit. As you'll see below, inventory varies significantly by price range.

Here's how inventory varies by price range for homes only.

And here's how condo only inventory varies by price range.

Generally speaking, today's sellers have the most leverage in the home category for properties priced at $275,000 and under. Buyers have the clear advantage in the higher priced home categories, and in all price categories of the condo market.

For information on how home and condo inventory varies by location, you can check out the buying real estate page at DaneCountyMarket.com.

Have a good weekend,

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

Mortgage rates reach all-time lows

2009-12-04T07:12:00.006-06:00

If you've been waiting to lock in your rate, the time to act is now.

Mortgage rates have dropped to all-time lows according to the latest weekly mortgage market survey conducted by Freddie Mac. According to survey results released on December 3rd, the average commitment rate for a 30 year fixed rate loan was 4.71%. The average for a 15 year fixed rate loan was 4.27%.

This graph puts current rates in perspective. It shows the annual averages for the years 1992 through 2007, followed by the monthly averages for each month since January of 2008.

For our full mortgage report, visit the economic trends page at DaneCountyMarket.com. You can view the latest mortgage rates updated daily on the mortgage home page at uwcu.org.

UW Credit Union offering $500 off closing costs through April 30th

2009-12-03T06:50:00.002-06:00

UW Credit Union is offering $500 off closing costs through April 30th.

In case you missed it, UWCU recently joined our DaneCountyMarket.com web site. Now our web site users can research the market, search for properties, monitor interest rates, and apply for a loan all from one online location.

UWCU will be contributing a number of educational articles to our site in the very near feature. Needless to say we're ecstatic to have UWCU joining DaneCountyMarket.com, making it an even better resource for the consumer seeking comprehensive and reliable real estate information - without any strings.

Have a great day,

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

Dane County multifamily sales down in October

2009-12-02T23:42:00.005-06:00

Only 8 Dane County multifamily listings totaling 21 units sold via the South Central Wisconsin MLS in October. As you'll see below, the demand for multifamily real estate has decreased significantly in the last year.

This trend is even more apparent when viewed in the context of the past decade. The 455 units sold over the last 12 months are lower by 58% from the 1,077 units sold during the peak sales year of 2002.

As we've pointed out before, with high supply and low sales, now is a great time to learn more about multifamily real estate. For more on the multifamily market, you can check out our monthly report on MadisonIncomeProperties.com.

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

Dane County commercial real estate sales still decreasing

2009-12-01T07:01:00.003-06:00

While sales for Dane County homes and condos have been on the rise due to the homebuyer tax credit, commercial real estate sales in Dane County have fallen dramatically.

Just over $10.1 million in commercial real estate sold via the MLS during the 12 month period that ended on October 31st, compared to $28.1 million from the previous 12 months. That's a decrease of 64%.

Most recently, zero sales occurred via the MLS in September. Two sales totaling $205,000 occurred during the month of October.

For more on the latest commercial real estate trends, visit our commercial real estate update on the economic trends page at DaneCountyMarket.com .

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

Multifamily investment term #1: net operating income

2009-11-29T09:36:00.003-06:00

We've covered how the Dane County multifamily real estate market has changed, presenting investors with new opportunities that weren't available a few years ago. Due to this clear market shift, we've created a new web site, MadisonIncomeProperties.com, which we've designed to help Dane County investors with their multifamily real estate goals. We'll be adding more content to our site over the next several weeks, including a multifamily real estate search tool, so please check back often as we round out our site.

One of the tools we'll be adding soon is a glossary of investments terms, and we'll begin by covering these terms one-by-one in our blog. The first investment term that we'll cover is net operating income.

The net operating income (NOI) is the cash flow that remains after a property's operating expenses are subtracted from operating income. NOI is an important investment concept, as it's used as the basis for several other key investment calculations.

Net Operating Income = Operating Income - Operating Expenses

Operating income is the income that results from monthly rents, parking fees, laundry income, parking fees, etc.

Operating expenses are those expenses that are related to the operation of the property, such as taxes, utilities, insurance, maintenance, management fees, payroll and administrative expenses. Note loan payments, amortization and appreciation are not considered operating expenses.

Many times sellers of multifamily real estate publish the net operating income associated with a particular property. As an investor, it's important to know the details behind this number. Specifically:

Are are all operating expenses realistically accounted for in the calculation?
Is the operating income based on the ideal scenario with a vacancy rate equal to zero? Or is it based on historical performance which accounts for the actual vacancy rate?

Stay tuned. We'll be covering several other key multifamily real estate terms in the near future.

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

How some investors are using their cash

2009-11-28T07:41:00.004-06:00

We recently wrote about 4 brothers who are using their cash to invest in multifamily real estate - a long term approach to real estate investing. Other investors are using their cash in a different way.

We're working with one local investor group that has amassed a large sum of money for short-term real estate investment. The investor group uses its cash to buy distressed properties, which are then rehabbed and sold for a profit. Because this group pays cash for its investments, it can close on a property in a matter of a few days once an offer is accepted. This makes this buyer a good fit for the distressed property owner who needs to unload a property quickly - and without any worry of the deal falling apart due to a financing or inspection contingency.

We're also talking to an out of state investor group about its goals. This group has successfully implemented an investing system in several different markets around the country. In each market, the group uses its cash to buy 3 to 10 properties a month. Similar to above, these properties are rehabbed and then sold for a profit.

The advantage of the buy, fix and flip approach mentioned above is the investor receives a return on his investment in a matter of just a few months. In fact the investor can re-invest his money several times throughout the year for a very nice profit.

The disadvantage is there is more risk. These investors mitigate their risk by having clear standards. They focus on starter homes, where there is a relatively strong demand for the supply that is on the market. They "buy right" (ie at a good price), which gives them some cushion in case something unexpected pops up during the rehab process. They also develop detailed and realistic plans around the acquisition, rehab and resale of their investments, so they can reasonably estimate their returns.

We expect to see more and more short-term investors due to the growing number of foreclosures in Dane County. Even when foreclosures start to subside, distressed properties will continue to play a large role in the market for years to come. Keep in mind foreclosure levels right now are several times higher than they were just a few years ago. Also, it typically takes 6 to 18 months for a foreclosed home to work its way onto the open market. The irony is the number of distressed properties will continue to increase even as the number of foreclosure filings begins to subside.

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

Upcoming Madison first-time home buyer seminars

2009-11-27T09:16:00.006-06:00

The home buyer tax credit has been extended and enhanced, but in order to take advantage of the credit you must have your offer accepted by April 30th 2010 and your home closed by June 30th 2010. The deadline is not far away considering all of the steps that go into buying a home.

If you're new to the home buying process, you should consider attending one of the upcoming UW Credit Union or Dane County Housing Authority seminars. Both are no-nonsense seminars that provide a good introduction to the lending, inspection and purchasing pieces of the home buying process. With a little education under your belt, you will have the knowledge you need to go about your purchase in a thorough and efficient manner - and meet the deadline for the tax credit.

The next UW Credit Union Seminar is Tuesday, January 12th from 6:30 to 8:00 PM.

The next Dane County Housing Authority seminar is a two-part series with sessions on both Tuesday, December 1st and Tuesday, December 8th. Both sessions run from 6:00 to 9:00 PM. Click here for more course details and registration info.

Have a great weekend,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Two distressed properties, and many more on the way

2009-11-27T09:04:00.002-06:00

We recently wrote about two duplexes that are worth a look from investors who are seeking to cash flow multifamily properties. Below are two other intriguing properties, one a home and the other a condo.

This 3 bedroom home at 125 N. 5th Street in Madison is priced at $94,900 and almost $60,000 under assessment.

This large 3 bedroom condo at 619 Wood Violet Lane in Sun Prairie is priced at $110,000 and over $69,000 under assessment.

Both of these properties are lender-owned. And both require some work, so they're a good fit for someone who is willing to invest some sweat equity in order to improve the value of their investment.

There are plenty of properties like these on the market right now. And there will be plenty more coming down the pike as more and more foreclosures work their way through the system and onto the open market.

One of the ways we learn about properties like these is by implementing a key word search of the MLS which sends us an email whenever a listing with one of the key words hits the market (or when an existing listing with a key word match undergoes a price reduction). For example, we have this search currently set up for an investor:

"forecl*, *as is*, *bank*, *corp*, *fixer*, *flip*, *investor*, *lend*, *lien*, *reo*, *short sale*, *subj*,* tlc*"

We'll discuss how this investor is leveraging the market in a future post.

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

Good deals in a buyer's market (two ways to find them)

2009-11-25T06:47:00.001-06:00

A few days ago we downloaded from the South Central Wisconsin MLS all of the email addresses for agents with a single family home listing in Dane County. This amounted to almost 1,000 email addresses. Then we sent an email on behalf of an investor letting these agents know what our investor is looking for.

We've received a ton of responses, and they are still coming in. Most of the properties that we have learned about don't fit this investor's needs, but there are a few in our list that we will be looking at more closely.

There are two advantages to the mass email approach that are worth noting. First, for some properties we receive a lot of information that isn't available from the online listing. In some cases the client has given the listing agent permission to share his level of motivation, or the client has given his agent permission to share how low he is willing to go with price. Another nice advantage is we now have a large network of agents that is keeping us in mind as other properties become available in the future.

Over the next several weeks we'll share some properties that show some promise for the buyer that is looking for a good deal. And today we'll start with two duplexes located at 3010-3012 and 3014-3016 Union Street on Madison's East Side. Both buildings are listed at $117,000 with rents on each unit at $600 and higher. Run some numbers on these properties and you'll see they look pretty good, pretty quick. Also keep in mind if you plan to owner occupy a duplex, you could be eligible for the enhanced tax credit.

We learned about these two properties because we have an automated search set up that sends us an email anytime a new multifamily listing enters the Dane County market, as well as anytime an existing listing undergoes a price change. These two properties recently underwent huge price reductions, which is why we're sharing them with you right now.

Have a happy and safe holiday,

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

2009-11-24T06:20:00.002-06:00

Strangely enough we're assisting two different pairs of brothers with their investment plans right now.

Pair #1 already owns 2 duplexes and is in the process of expanding its portfolio. Last week these two brothers put in an offer on an 8-unit, and we're waiting to see how this one turns out.

Pair #2 is new to the game. These two brothers are looking to buy their first duplex using the money they have saved between the two of them.

Both sets of brothers are at different points in their investment plans, but they are similar in many ways. They are all planners and goal-setters, and they all believe in the "get rich slow" formula that multifamily real estate offers. All of these brothers are seeking a property that cash flows while they pay down their mortgage and their property appreciates in value over time. They are aware of the tax benefits that come with multifamily real estate, and they plan to leverage their equity in future years to buy additional properties.

Both sets of brothers are persistent and patient. They have clear standards, and they are willing to evaluate 30 properties in order to find the one property that meets their criteria.

As we've stated before, it's a buyer's market in multifamily real estate. The irony is not many people are buying. Here's our latest multifamily real estate report. You'll find more useful information at MadisonIncomeProperties.com, including how we help you buy and how we help you sell multifamily real estate.

Have a good day,

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

Video tours are a great idea for some listings

2009-11-22T07:51:00.003-06:00

We're starting to use professional home video tours for our listings because the quality of the product offered by Whirligig Online Marketing is excellent. Video tours are a great fit for homes with quality upgrades and professional staging. They give buyers a closer look at what each listing has to offer. Because of this, we're happy to invest in professional tours as part of our marketing plan.

For example, take a look at the video tours for these 3 new listings (click the "video" tab along the top menu).

For a list of over 25 marketing ideas, check out our online marketing plan. You can view it here on the how we help you page at DaneCountyMarket.com.

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

An overview of the enhanced home buyer tax credit

2009-11-22T06:28:00.002-06:00

The $8,000 first-time home buyer tax credit has been extended into the year 2010, and now "long-time" home owners who sell one home and buy another are eligible for a $6,500 tax credit. A long-time home owner is defined as someone who has owned and occupied a home as a primary residence for at least 5 consecutive years out of the previous 8 years.

Tax payers who plan to claim the credit need to have a binding contract by April 30th 2010, and must close on their property by June 30th 2010.

If you're planning to take advantage of the tax credit, we recommend you plan on making your offer by April 1st. In case your offer does not get accepted, you'll want to allow yourself some time to find another property that meets your needs. And don't forget right now is a great time to shop for a home. Buyer traffic is lower right now than at any other time during the sales year. That means less competition from other buyers and more leverage with sellers.

For more information on the enhanced tax credit, you can check out this article on the buying real estate page at DaneCountyMarket.com.

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

Dane County distressed property sales on the rise

2009-11-19T22:59:00.004-06:00

The Dane County Distressed Property Index rose slightly in October to .24, indicating approximately 24% of the home and condos sales in October were related to foreclosure. The chart below shows the index has quadrupled since January of 2006.

On a related note, the Mortgage Bankers Association announced today in its National Delinquency Survey that 14.41% of all loans were either in foreclosure or at least one payment past due at the end of the third quarter 2009. That's a new record.

With a rising number of distressed properties and lower prices, we're seeing a lot of interest from buyers who might not otherwise be in the market. This includes home shoppers, and investors, too. In the last several months we've met multiple buyers who have been saving their cash for the right moment to jump in. And many of them are jumping in right now.

Soon we'll share some stories of different buyers and how they are leveraging the market.

Have a good Friday,

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

UW Credit Union has joined the DaneCountyMarket.com web site

2009-11-19T06:22:00.002-06:00

We're excited to announce the UW Credit Union has joined our DaneCountyMarket.com web site. This means our web site users can now search for properties, research the market, check the latest mortgage rates, and apply for a loan all from one convenient online location.

Speaking of mortgage rates, loans for 30 year fixed rate mortgages were available for 4.75% yesterday. You can check out today's rates by going to our home page.

Like us, UWCU is a provider of good consumer information, and soon UWCU will be offering educational articles that will be available from our site.

Have a great day,

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

Dane County home and condo sales up again October

2009-11-16T05:30:00.005-06:00

Our preliminary statistics from the South Central Wisconsin MLS are in for the month of October.

Dane County home sales increased for the fourth straight month on a year-over-year basis. Home sales jumped from 269 in October of 2008 to 332 last month, an increase of 23%.

Dane County condo sales grew for the second straight month. Condo sales rose from 80 in October of 2008 to 114 in October of 2009, an increase of 43%.

Prices for both homes and condos were lower, as much of the market was focused on taking advantage of the first-time home buyer tax credit. Because of this, we're expecting higher sales and lower prices once again in November.

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

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

2009-11-13T04:59:00.003-06:00

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

2009-11-11T06:07:00.003-06:00

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

2009-11-10T05:24:00.002-06:00

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 listing agent? A buyer agent? An attorney?

2009-11-05T06:46:00.004-06:00

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

2009-11-04T06:08:00.001-06:00

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

2009-11-03T06:09:00.002-06:00

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?

2009-10-29T21:54:00.002-05:00

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

2009-10-29T06:51:00.003-05:00

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.

2009-10-28T06:38:00.002-05:00

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

2009-10-26T06:15:00.001-05:00

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?

2009-10-21T06:49:00.002-05:00

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

2009-10-19T06:07:00.004-05:00

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

2009-10-15T06:02:00.002-05:00

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?

2009-10-13T05:47:00.006-05:00

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

2009-10-09T06:07:00.003-05:00

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

2009-10-08T05:18:00.004-05:00

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?

2009-10-06T06:46:00.006-05:00

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?

2009-10-05T06:47:00.000-05:00

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

2009-10-03T07:17:00.005-05:00

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

2009-10-01T06:01:00.001-05:00

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

2009-09-30T05:51:00.002-05:00

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

2009-09-28T05:04:00.002-05:00

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

2009-09-26T20:36:00.001-05:00

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

2009-09-21T20:26:00.001-05:00

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

2009-09-20T07:42:00.003-05:00

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

The market feels warm in September

2009-09-18T19:37:00.001-05:00

We don't have the data to back it up, but the market feels like it is heating up for higher priced properties. We're experiencing a lot of buyer and seller activity for properties $250,000 and up.

Time will tell, but the market feels warm in September.

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

August update: Dane County single family home sales up, prices down

2009-09-15T04:44:00.005-05:00

Here's our preliminary report on the month of August based on data from the South Central Wisconsin MLS:

Dane County single family home sales rose 6% last month, while the median price of $229,900 decreased by 3.9% from the August 2008 price of $239,300.

Condo sales were lower by 5%, while the median price of $139,100 decreased by 18.2% from last year's price of $170,000. Fifty-four percent of the condos that sold in August sold at a price lower than $150,000, compared to 34% in August of 2008.

For more details, check out our featured articles section at DaneCountyMarket.com .

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

How one Madison condo development is selling its units

2009-09-14T21:08:00.004-05:00

Two-and-a-half years ago a very nice west-side condo development put its 42 units on the market. But sales were sluggish. Only half of the units sold after two years of marketing.

Then the development slashed the prices for all of its remaining units.

Take a look at the price history for all of the 1,236 square foot units in this development. Prices were cut by about $20,000 earlier this spring, and now all of the remaining units have either sold or will be closing soon.

We are seeing more and more cases of condo developments cutting their prices, and in some cases, buyers are responding. A good product at a good price can sell very quickly, even in this market.

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

Dane County housing starts remain sluggish

2009-09-13T08:15:00.003-05:00

Dane County housing starts decreased from 68 in August of 2008 to 55 last month, a drop of 18%.

The graph below shows monthly housing starts dating back to January of 2005. Each red dot represents a decrease from the same month of the prior year. Each green dot represents an increase.

The market for new construction has fallen a long way. The August total of 55 housing starts is the lowest total for any month of August since 1999, when the housing start statistic was started. The peak year for the month of August was 2005, when 219 housing starts were initiated.

With declining new construction and a growing number of foreclosures, it's clear distressed property sales will continue to play a growing role in the market for the foreseeable future.

Have a good Sunday,

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

Mortgage rates now available for under 5%

2009-09-12T06:32:00.001-05:00

Mortgage rates have been slowly decreasing over the last two months, and some local lenders are now offering 30 year fixed rate mortgages for under 5%.

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

Upcoming first-time home buyer seminars in Madison

2009-09-11T05:51:00.003-05:00

Two first-time home buyer seminars are scheduled for this month as the November 30th deadline for the $8,000 tax credit is now just 70 days away. Both seminars are straight-forward and information-based, without any sales pressure whatsoever.

The UW Credit Union is offering a seminar on Tuesday, September 15th 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, September 22nd and Tuesday, September 29th. Both sessions run from 6:00 to 9:00 PM. Shawn Kriewaldt and I from the Dane County Market real estate team will be volunteering for these sessions. For course details and registration info, click here.

Have a great Friday,

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

Dane County foreclosures up 42% in August

2009-09-09T22:14:00.001-05:00

Dane County foreclosures jumped from 106 in August of 2008 to 151 last month - an increase of 42%. You'll find our full report on economic trends page at DaneCountyMarket.com.

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

Resources for home owners facing foreclosure

2009-09-09T06:53:00.003-05:00

Many people who lose their home to foreclosure do so without knowing and reviewing other alternatives. If you are at risk of losing your home, here are some things you can do to learn more about your options:

First and foremost, talk to your lender. You and your lender may be able to work out an alternative to foreclosure.

Educate yourself. The Dane County Housing Authority provides some useful online materials, including:

The Wisconsin Realtors Association also provides a useful web site, http://www.wisconsinforeclosurekit.org/, that offers a number of useful articles and resources covering the foreclosure process.

Talk to an attorney. The Lawyer Referral and Information Service (608/257-4666) can put you in touch with an attorney who handles cases like yours.

Consult with a Realtor who specializes in short sales. Your Realtor can help you determine whether or not your home will qualify for a short sale. If it does qualify, he'll outline a plan that will help to get your home sold prior to the sheriff's auction.

Have a good day,

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

Dane County: two encouraging trends in August

2009-09-05T11:17:00.007-05:00

Trend #1: Although we aren't ready to publish our August numbers yet, Dane County single family home sales rose for the second straight month. Once again, much of the activity was in the more affordable price categories as buyers sought to take advantage of the first-time home buyer tax credit.

Trend #2: Dane County inventories on August 31st were lower than the levels from August 31st of 2008. Single family home inventory was lower by 223 units compared to last year. Condo inventory was lower by 208 units.

As you'll see from the red line in the graph above, inventory is still quite high. We'll need more months of increased sales, for both homes and condos and across all price categories, to move inventories to more normal levels.

Also keep in mind there are a number of people who want to sell, but who are sitting on the sidelines until they have more confidence in the market. This "shadow inventory", along with future inventory coming from the growing foreclosure market, will most likely keep supply levels high well into 2010.

For more on the latest inventory trends, check out our monthly reports that show how inventory varies by price range and location, for both homes and condos.

Have a good weekend,

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

Reasons for choosing a short sale over foreclosure

2009-09-03T06:27:00.009-05:00

For many home owners the short sale is the preferred solution over the foreclosure. Here are some reasons why:

(A quick note before we proceed with the list below: Our real estate team recommends you pursue all of your options, including working proactively with your lender, to discuss solutions other than a short sale or foreclosure. If you do pursue a short sale we highly recommend you work with an attorney who will work to protect your best interests and work to minimize a short sale's impact on your credit score. Our real estate team includes the services of an attorney for our short sale clients.)

Future Fannie Mae loan for a primary residence

Foreclosure: A home owner who loses a home to foreclosure is ineligible for a Fannie Mae-backed loan for a period of 5 years.

Short sale: A seller who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage after only 2 years.

Credit score

Foreclosure: Credit score may be lowered by 250, 300, or more points. Credit will typically be affected for 3 or more years.

Short sale: Late mortgage payments are recorded, which does negatively impact credit score. After the sale the mortgage is reported as "paid in full", "paid as agreed", "paid as negotiated", etc. A short sale typically decreases a credit score by a lesser amount than a foreclosure, and credit can be repaired in as little as 12 to 18 months. As we mention in the note above, we recommend you use the services of an attorney during the short sales process, so you a have a qualified legal expert who is protecting your interests and working to minimize the impact of the short sale on your credit score.

Credit history

Foreclosure: Will remain on a person's credit history for 10 or more years.

Short sale: A short sale is not reported on a person's credit history. There is no explicit recording item for a short sale.

Future employment

Foreclosure: Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have, and in many cases will challenge employment.

Short sale: A short sale is not reported on a credit report and is therefore not a challenge to employment.

Current employment

Foreclosure: Employers have the right and are actively checking the credit of employees who are in sensitive positions. In some cases, foreclosure is reason for reassignment or termination.

Short sale: A short sale is not reported on a credit report and is therefore not a challenge to employment.

Security clearance

Foreclosure: Foreclosure is the most challenging issue against a security clearance outside a serious misdemeanor or felony conviction. If a client has a foreclosure and is a police officer, in the military, in the CIA, or in any other position that requires a security clearance, in many cases clearance will be revoked and the position will be terminated.

Short sale: On its own, a short sale does not challenge most security clearances.

Deficiency judgment

Foreclosure: In 100% of foreclosure cases (except in those states where no deficiency is recorded), the bank has the right to pursue a deficiency judgment.

Short sale: In some successful short sales, it is possible to negotiate with the lender to give up the right to pursue a deficiency judgment against the home owner. We recommend you use the services of an attorney when it comes to negotiate the recording of the deficiency.

Deficiency judgment (amount)

Foreclosure: In a foreclosure, the property will end up being owned by the lender if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.

Short sale: In a well-managed short sale, the home is sold at a price that is close to market value. In almost all cases the short sale price will be higher than an REO price, resulting in a lower deficiency.

This information comes courtesy of the Distressed Property Institute. We'll continue to cover the short sale market in more detail over the next few weeks.

Have a good day,

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

Dane County commercial inventory is up to 127 months

2009-09-01T22:14:00.002-05:00

As of August 31st, the inventory of Dane County commercial real estate listed on the South Central Wisconsin MLS rose to 127 months.

Commercial sales have been light during the last 12 months, while expired listings have gone up.

For more on the latest commercial real estate trends, visit our commercial real estate update on the economic trends page at DaneCountyMarket.com .

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

Dane County multifamily real estate update: sales low, inventory high

2009-08-31T20:58:00.003-05:00

Buyer activity in the multifamily market was light in July, when 14 Dane County listings totaling 40 units sold via the South Central Wisconsin MLS.

Meanwhile August 31st inventory climbed to over 39 months.

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

Short sales: qualifying reasons for financial hardship

2009-08-30T08:29:00.003-05:00

In our last post we defined a short sale. In order to qualify for a short sale, a home owner must be able to demonstrate one or more of the following:

financial hardship,
negative cash flow, where monthly expenses exceed monthly income, or
evidence of pending loss and insolvency

The most common justification for a short sale is financial hardship.

And by far and away the number one reason used to justify financial hardship is a mortgage adjustment or loan payment increase.

Other qualifying hardhip reasons include the following:

Separation or divorce
Job loss
Reduced income
Excessive debt
Death of a spouse or family member
Severe illness
Involuntary job relocation
Business failure (for the small business owner)
Damage to property
Inheritance (for heirs receiving ownership of property)
Military service
Tax or insurance increase
Incarceration

When you sell your home as a short sale, one of the things you will need to do is write a hardship letter to your lender. We recommend you keep the letter to a single page.

We'll cover this and other aspects of the short sale process in the near future.

Have a good day,

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

What is a short sale?

2009-08-29T07:46:00.003-05:00

An owner "is short" on his property when the amount he owes on his mortgage, combined with commission and closing costs, is higher than the current market value of the property.

A "short sale" occurs when a negotiation is entered into with the property owner's mortgage company (or companies) to accept less than the full balance of the loan(s) at closing.

A short sale is the preferred solution for many home owners facing foreclosure. That's because among other things a foreclosure can have a large and lasting impact on a person's credit score, credit history, and job status. More on this topic will be coming soon.

In order to qualify for a short sale, a home owner must be able to demonstrate one or more of the following:

financial hardship
negative cash flow where monthly expenses exceed monthly income, or
evidence of pending loss and insolvency

The most common justification for a short sale is an increase in monthly mortgage payments. We'll cover this and other acceptable forms of financial hardship in our next post.

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Why distressed property sales are more than a short-term trend

2009-08-28T06:03:00.004-05:00

Even in Dane County, a stable market compared to most others, distressed property sales are a common occurrence. According to Homestead Title's Peter Zarov, 27% of that title company's closings from December 2008 through May 2009 were for distressed properties. In 2006 and prior years distressed sales made up only 2% of closings.

We're expecting distressed property sales to rise for the foreseeable future, and for a number of reasons:

Mortgage delinquencies continue to rise to record levels, according to the Mortgage Bankers Association.
Dane County foreclosures are rising at a rapid pace.
Local unemployment is also increasing.
Meanwhile local prices are decreasing.

Many of the people who need to sell are those who bought their home within the last 5 years, with no or relatively little money down. The end result is a recipe for short sales and bank-owned properties.

We'll be devoting a lot of time to the distressed property market, in particular short sales, in the coming weeks. Plenty more to follow.

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

"How can I trust you'll serve my best interest when you get paid by commission?"

2009-08-26T06:16:00.002-05:00

We tend to get this question at first-time home buyer seminars when we talk about the benefits of buyer agency.

And it's a really good question.

The truth is the trust has to be earned. But the responsibility starts with you, the buyer, to interview your agent and ask the questions that matter most to you. And while you're at it why not check his references?

Dan Miller, Keller Williams Realty and DaneCountyMarket.com