Great Job Beth. You are a real Go Giver!  The power of gaining your customers trust and long term relationship is in your corner because it is your core value.

Great Success.

Joyce

Beth,

Thanks for sharing your goal and also the article on home businesses.

To your success,

Kathi

  We all know that obtaining good credit is tough these days.  Not only that, higher credit scores are required for home loan approval.  Preparing for home ownership is a great step for both first-time home buyers and those who plan to downsize or move up.  Take the steps to secure your credit score and boost financial security at the same time.

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you'll qualify for a loan and what loan terms you'll be able to qualify for.

• 1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else's poor financial management.
• 2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.
• 3. Don't charge your credit cards to the maximum limit.
• 4. Wait 12 months after credit difficulties to apply for a mortgage. You're penalized less for problems after a year.
• 5. Don't purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.
• 6. Don't open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.
• 7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
• 8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

Provided by Beth Sorenson, Shorewest Realtors

2270 Holmgren Way, Green Bay, WI

bsorenson@shorewest.com

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, "Knowing and Understanding Your Credit," visit http://www.homebuyingguide.org .

Shrinking Homes: How Small Will Homes Go?

This is a re-post originally By Melissa Dittmann Tracey...I found the topic interesting and wanted to share.

Have the days of the 4,000-square-foot McMansion come to an end?

Maybe, according to a recent article in The Los Angeles Times by Nicholas Riccardi (see Home Sizes Change With the Times)

The size of the average America home shrunk by 11 percent last year, a faster rate than any time since the 1970s, according to the article.

In fact, the National Association of Home Builders is reporting that 90 percent of its builder members are opting to build small now due to increased energy consciousness, downsizing empty-nest baby boomers, and, not surprisingly, the softening economy. Builders are also going smaller with less-expensive models in trying to compete with the large inventory of discounted foreclosures dominating the market.

"Families and lifestyles are changing," Bobbie Cooper, director of sales for The Development Group, told The Los Angeles Times. "In 2005 you couldn't build it big enough. Now it's all about getting back to the basics."

So, Greater Green Bay...Do you agree with this trend?  What have you noticed with friends or family that reveals the downsizing trend in our local area?  If you were to buy a home now, would you buy a larger home?  Smaller home?  I have noticed that builders are catering to this trend and I am interested in your thoughts.

You are right about the home based business insurance Beth.  There are several different options available to those of us who run businesses in our home.  They range from a simple endorsement on the home policy to a stand alone policy.  If anyone is interested in learning more, please contact me so we can evaluate your needs and find the best solution. 

First time homebuyers are out and about, seeking their opportunity to earn an $8,000 tax credit.  Homes need to have a closed sale by December 1, 2009 in order to meet the deadline, so buyers need to act fast.  However, acting too fast or not fast enough could cost them more than a lost chance at a tax credit. 

Note the common first-time buyer mistakes below.  Through a trusted referral, I will be glad to help any first time home buyers know how to avoid these mistakes and have the best home buying experience possible.

5 Common First-Time Homebuyer Mistakes

1. They don't ask enough questions of their lender and miss out on the best deal.
2. They don't act quickly enough to make a decision and someone else buys the house.
3. They don't find the right real estate professional who is willing to help them through the homebuying process.
4. They don't do enough to make their offer look good to a seller.
5. They don't think about resale before they buy. The average first-time buyer only stays in a home for four years.

Do you know someone who is ready to buy a home and who could use the help of a professional real estate agent? 

Do you know a first time home buyer who might like $8,000?

Pass it on.

Beth Sorenson

Shorewest Realtors

-Creating the Art of Home-

Reprinted with permission from Real Estate Checklists and Systems (www.realestatechecklists.com)

Great job on this discussion Beth.

Home Buyers...

Is your agent working for your best interests?

In Wisconsin, a homebuyer can choose to work with a Selling Agent or a Buyer's Agent. Either way, the agent is a trained professional, licensed by the state of Wisconsin, who is obligated by law to treat all parties to a real estate transaction fairly. So, what's the difference?  Plenty. 

Selling Agent

As a buyer, if you work with a Selling Agent (even an agent that is not the Listing Agent of the seller), there is initially no contract between you and the agent, and you are not the agent's client. In this non-contracted buyer relationship, you are the customer and the agent is working in the best interest of the home seller. 

Buyer Agent

If you work with a Buyer's Agent, you are that brokerage and Buyer's Agent's client. As a client, you hire the Buyer's Agent to work for you by signing a WB-36 Exclusive Buyer Agency Agreement that includes a Disclosure of Real Estate Agency. The Buyer's Agent works for the interests of the homebuyer, but also must effectively work with the Listing Agent of the seller.  A Buyer's Agent has abilities that go above and beyond Selling Agent status, including:

1. Give a negative opinion or critique of a seller's property beyond disclosing material facts provided by the listing agent.
2. Recommend or suggest an offering price or give you an opinion about whether a particular house is priced too high or too low by comparing similar properties.
3. Disclose all information and research a property's history and liens so the buyer can make an informed decision
4. Structure the offer and draft offer provisions with the buyer's best interests in mind.
5. Recommend and assist the buyer with negotiation strategies for the best price and terms. 
6. Give advice within the scope of the agent's expertise as a licensed real estate professional.

It is important to know that once you sign a Buyer agency contract, you are stating your commitment to that agent.  If you choose to work with another agent within the time of that contract to purchase a home, you may end up owing two commissions if the home is not purchased with the assistance of the Buyer Agent.  Yet, the benefits of Buyer's Agency outweigh the negatives, providing the buyer with full representation.

Need a Buyer's Agent?  Let Beth Sorenson from Shorewest explain mor about Buyer Agency to you.

This is a great discussion Beth and great information for us to pass on to Customers for you.

Diane Hinze

The Loan Lady

Cell 24/7:  920-277-7803

To Home Warranty

or Not to Home Warranty?

That is a good question.

Buyers and sellers both face the same question at some point during a real estate contract or transaction: Should we offer or purchase a home warranty?  It is a personal choice, so take heed and be educated on the options.

On the selling end, a home warranty can offer buyer security.  When a seller offers a home warranty, there is no money submitted until closing and only if the buyer chooses to accept the warranty offer.

A buyer also has choice of purchasing or requesting the seller purchase a home warranty.  A home warranty may be purchased at any time and sometimes up to 30 days post purchase.  However, making the choice prior to home inspection is often suggested.  Home warranties vary by company so check the home warranty policy to see which of the following items are covered. Also check to see if the policy covers the full replacement cost of an item.

• Plumbing
• Electrical Systems
• Water Heater
• Furnace
• Heating Ducts
• Water Pump
• Dishwasher
• Stove/Cooktop/Ovens
• Microwave
• Refrigerator
• Washer/Dryer
• Swimming Pool (may be optional)

Note that many home warranty companies require that buyers contact them first before servicing.

It is a good idea for buyers to research their regular homeowners insurance regarding repair or replacement process and post-purchase repairs to fully understand what will and will not be covered and what deductable levels need to be met first. 

Any home warranty stories to share? Let me know!

Beth

A regular homeowners policy typically only covers certain "perils" or causes of loss such as tornado, fire, theft, etc. Here's an example of the policy language for a regular home policy...

"HO-3 SPECIAL FORM covers dwelling, other structures and loss of use against all risks of physical loss (with certain exceptions). Covers personal property against loss by Fire, V&MM (vandalism & malicious mischief), Theft, Falling Objects, Collapse, Water Damage, Freezing and Electrical Currents."

The key words are "with certain exceptions". This usually excludes wear/tear, deterioration, mechanical breakdown, constant or repeated seepage or leakage of water over a period of time, and more.

Thank you for the great information Stacie!  The Home Warranty is focused on the "wear and tear" that a buyer may not have reasonable access to discover.  Again, it covers failure of major systems...for example a water heater failing within a month after purchase.  Every policy has limitations and exceptions, so be sure to fully understand the warranty.

Good news!

The tax credit extension is still in review, but on it's way to approval.  Based on most recent reports, the first time buyer $8,000 tax credit may be extended until April of 2010.  Meanwhile, requests from Realtors have been heard as the extension is set to reach out to repeat home buyers with an attractive $6,500 tax credit.  Repeat home buyers must have owned a home for at least 5 consecutive years.

Issues on the table are concerning allegations of fradulent collection of these government funds by consumers.  Once all is ironed out we can expect great incentives for first purchases and "buy ups".  I will keep you posted once the final approval makes these credits available.

Who do you know that may be encouraged to buy/sell if the repeat home buyer portion of this economic boost is passed?

Thanks for keeping us posted.  I am quite sure if the extension does go through it will not do  it again...it would defeat the entire purpose of stimulus!  

Everyone should jump in here and "hear" Beth's words and get out and buy or tell others to.  Great deal.

Joyce

Short Sale vs Foreclosure

We hear the terms "short sale" and "foreclosure" on the news and read it online and in newspapers seemingly on a daily basis.  However, contacts frequently ask me for clear definition.  When considering a home purchase, there is a chance that they will view a property in one of these two stages of sale.  With definitions from Realtor.org and Legal Dictionary to support, here is the difference:

Short Sale - "A transaction where title transfers, where the sale price is insufficient to pay the total of all liens and costs of sale and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies." 

Usually negotiated price is determined by the seller's lender.  The seller's mortgage holder has agreed to settle the transfer of property for less than when the seller still owes.  Due to the extra hoops and paperwork on the realtor and lender sides,  buyers should note that most short sale transactions have a longer completion time and need in some cases 60+ days to close. Short sale is one step a seller may choose to avoid foreclosure.

Foreclosure - "the actual forced sale of real property at a public auction...as security under a mortgage or deed of trust for a loan that is substantially delinquent."

At the point of foreclosure, the property owner has been delinquent for some time.  In response, the mortgage lender secures the property and will place it up for public auction.  Public auctions for Brown County, WI can be found at the following ink: http://www.co.brown.wi.us/departments/page_200c4224c226/?department=3377616beeef&subdepartment=b7aec876f340

Typically, bankers and real-estate investors will purchase auctioned properties, but private transaction is also possible.  Refer to the above site link for stipulations and requirements.

More questions about short sales and foreclosures?  Email Beth Sorenson at Shorewest Realtors:  bsorenson@shorewest.com

Beth,

I have land at Stratton Vermont that I am basically giving away to liquidate for cash. I just put it on the MLS but am looking for other sources to expose the opportunity so I can sell it fast. Any ideas?

Steve Smith

Steve,

Thanks for the question.  No doubt, land sales are one of the most challenging markets.  My questions to you would be: What is the land use?  Is it able to be developed?  Could the land be parceled into smaller lots for building?  Is there another possible use for the land (state purchase, etc)?

Here are 6 tips from Ann Johnson, a Real Estate professional in California who posts on E-How.  Good suggestions, especially # 3 with financing through a land contract which might work well in this market, since some lenders are offering little to no financing on land purchases.

• 1. Evaluate the local market conditions for similar properties. Pricing your land correctly is one key in selling it fast. But before you can price it, you need an objective understanding on what has been selling in the past six months and how your land compares.
• 2. Under price your land. Set the price below the current average of recent sales. This is different from pricing according to what is currently on the market. Sellers can put any price on their real estate. For example, if in the past six months, similar properties have sold for an average of $50,000, yet all the current listings are at $75,000, listing your land below $50,000 will help you make a faster sale than listing it at $60,000.
• 3. Offer financing. One difficulty buyers have when purchasing land is obtaining financing. If you are able to offer any type of owner carry or financing, you will have a larger pool of potential buyers, rather than just buyers with cash offers.
• 4. Consider financing with little or no down payment. If a buyer can afford your monthly financing payments but doesn't have a large savings for a down payment, consider offering financing with a minimal down payment.
• 5. Contact potential buyers directly. Neighbors or contractors who are building spec houses in the area might be prime potential buyers. Contact them to see whether they are interested. **If you hired a Realtor, he/she can do this.
• 6. List the property with a Realtor who specializes in land sales. Offer to pay a higher commission if the property sells within a specific time frame. This will be an incentive for the agent to act quickly and market your land immediately.

Good luck with your land sale!

Do you know someone who could use $8,000 or $6,500 in their Taxmas Stocking before April 30th?  First-Time and Repeat Homebuyers may qualify for this limited time tax credit. 

We reviewed the numbers at our last company meeting, and I am excited to share that this credit helped boost the housing market in the Northeast 9%.  Meanwhile, home prices are stabalizing.  It's a good time to live in NE Wisconsin, and the perfect time to invest in a home.

Share this link with someone you know who might like more information, and let them know that Beth Sorenson from Shorewest Realtors in Green Bay would be happy to help them with the process. 

New Year...New Home...New Future.

www.wisconsinhomebuyer.org

Thanks for the suggestions Beth.

The land can be developed and divided into 5 parcels.

Is there any social networking tools I can use to create awareness of the land sale i.e. Twitter, Facebook Groups etc. I don't know where real estate investors or developers participate online.

Steve 

Steve,

You might try ActiveRain or Localism.  There are also some For Sale By Owner companies or websites that will post you online for a fee.  I still think the best way to connect with Real Estate Investors and Developers is to list with a Real Estate agent (like me) and let me do the work for you...but I may just be bias. :-)   Good luck.  Wish I could help more, but I can't share your property with other agents...that would be marketing and I'm not allowed to do that without a contract.