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
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.
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
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 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
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
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
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
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
Here's our preliminary report on the month of August based on data from the South Central Wisconsin MLS:
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
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.
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. 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.
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 .
Have a good Sunday,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
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
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 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
