Heidi Tiefenthaler, Your Madison, WI Realtor

Downtown Madison Condo Open House - Sunday, August 22, 12pm-2pm

Heidi Tiefenthaler (Restaino & Associates) — Fri, 20 Aug 2010 17:32:37 -0700

123 W. Washington Ave. #609

Madison, WI 53703

1 Bedroom/1.5 Bath

Offered at $340,000

Stop by to view this beautiful condo with direct Capitol views located in the historic Loraine Hotel this Sunday between 12pm-2pm! Want a taste of what you'll see? Check out the video below:

Still not convinced? Head to www.theloraine.restainohomes.com to view more pictures and information!

Can't make it? Call Heidi at (608) 239-0592 to set up a private showing.

Hope to see you Sunday!

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

Dane County Housing Market Statistics - 2nd Quarter

Heidi Tiefenthaler (Restaino & Associates) — Wed, 18 Aug 2010 09:59:01 -0700

As summer is drawing to a close (don't cry, just think "Badger Foortball"!), it is a great time to look at how the market did in the past quarter. Home sales once again improved over the same quarter in 2009, and while median home prices fell from the prior year, it was not the drastic cut that we saw between 2008 and 2009. Number of Home Sales
	Q1	Q2	Q3	Q4	Year End
2005	1307	2682	2540	1175	7704
2006	1154	2424	2078	1248	6904
2007	1246	2417	1999	1098	6760
2008	925	1885	1665	877	5352
2009	713	1712	1868	1143	5432
2010	847	2199

Median Price
	Q1	Q2	Q3	Q4	Year End
2005	$205,000	$206,950	$213,000	$218,000	$210,000
2006	$212,500	$209,900	$215,000	$220,000	$214,000
2007	$214,900	$212,500	$222,000	$223,873	$217,900
2008	$209,000	$214,900	$217,000	$218,000	$215,000
2009	$202,500	$201,500	$207,250	$190,500	$200,700
2010	$200,000	$200,000	n/a	n/a	n/a

So what does this really mean? Does it mean that homes will continue to sell at the rate that they are? Not necessarily. The First Time Home Buyer Tax Credit encouraged the majority of first time buyers to make their offers and close on their homes prior to June 30, 2010. While there are still first time buyers in the market who missed the tax credit deadline for whatever reason, the increase in home sales seen in 2009 between Q2 and Q3 (once again, bumped by the original tax credit bill) will most likely not be seen this year.

The good news in this equation is the decline in unemployment in Wisconsin. Hitting 7.9% recently, down from over 10% just as of January 2010, we will hopefully see increased consumer confidence. It's not just about people having jobs, it's about people feeling comfortable enough with the economy to make a move. You wouldn't believe how many people tell me, "Well, I would love to sell my home and buy a larger/smaller/more modern/more central/less central home.......but I just can't imagine making a move at a time like this!"

An interesting theory out there is that the relocation buyers from last year may be ready to purchase a home this year. Many Relocation departments suffered last year, because even though qualified buyers were moving in to the city, they had homes to sell in their previous cities, and most often opted to rent for a year - some companies were especially encouraging their new employees to rent for a year and really get to know the local market. If this theory does pan out, we could see a bump in the medium to higher-priced real estate market (like my listing at www.45cambridge.restainohomes.com ;) ).

If you have any questions or would like more information about a specific market or neighborhood, please send me an e-mail at heidit@restainohomes.com !

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

Short Sale: The Most Ironic Real Estate Term Ever

Heidi Tiefenthaler (Restaino & Associates) — Wed, 11 Aug 2010 20:21:30 -0700

Short Sale: The Most Ironic Real Estate Term Ever

A few years ago, you would see "SHORT SALE!!!!!" included in listing descriptions, enticing people to look at the home, ensuring them that they were getting a great deal. Today, since there are so many short sales on the market, will you rarely see it proclaimed in the description. Usually, the information will just be silently listed in the "Terms" section. Why the switch in stigma, and more importantly, what exactly is a short sale?

A short sale occurs when homeowners sell their home for less than they owe on their mortgage. The lender then receives the proceeds of the sale, and generally forgives the seller the difference. This process allows both the lender and the home owner to not only avoid foreclosure, but also the negative consequences that occur for both parties (do NOT believe anyone who tells you that banks gave out inappropriate loans in 2006 in the hopes that they would gain all of the properties through foreclosure proceedings - banks must pay hefty fees and go through an incredibly complex process to foreclose on a home that can take over a year).

Easy peasy, right? The home owner sells their home quickly, moves on with just a mark on their credit report for the next seven years, the bank gets some proceeds from the sale, they both avoid foreclosure, and the buyer gets an amazing deal on a house! Pizza and cake for everyone! Well, in FantasyLand it happens that way, but in the real world, it does not.

The reason why "short sale" is such an ironic term is that it can take months, if not years, to get through all of the paperwork and to get all of the parties to agree on a selling price. But wait, since the seller and the lender already agreed to this arrangement, doesn't the bank just have to sign off on an acceptable offer and they can all have cake/pizza at the swiftly scheduled closing? Again, that's in FantasyLand. In the real world, there are multiple parties that can be involved in a short sale, all with some power to prevent it from going through.

Besides the seller and the primary lender (the one who actually holds the original mortgage agreement with the owner), junior-lien holders may be party to the agreement. These folks include secondary lenders (the banks who bought the mortgage from the primary lender, usually in exchange for other equity), tax-lien holders (not real estate taxes, but rather outstanding income taxes, corporate franchise taxes, etc), mechanics lien holders, and even the people who insure the private mortgage insurance, since they will most likely have to pay a claim to the primary lender and want to make sure that payment is as small as possible. All of these people want to prevent the home from selling for too little because that decreases (or increases in the case of the insurers) their piece of the pie. Having to get approval from all of these parties can draw out the process.

Should you never place an offer on a short sale? No, not necessarily. If you see a home and fall in love with it, even if it is a short sale, put an offer in. As long as you are not under a tight time line, you can wait the extra time it would take to get into your dream home. For those of you who may want some extra room and don't need to move out tomorrow, or you just put your home on the market, a short sale may be a great choice and can get you into a home that you couldn't have afforded in 2005. As always, consult a Realtor to determine the best path for you. And if your Realtor balks at the thought of putting an offer in on a short sale (because, I'm not going to lie, they are a TON of work for all of the agents involved), give me a call.

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

Foreclosures: An Overview of the Wisconsin Process

Heidi Tiefenthaler (Restaino & Associates) — Mon, 09 Aug 2010 18:48:57 -0700

Foreclosures: An Overview of the Wisconsin Process

I've been getting a lot of inquiries regarding available foreclosures in Madison, WI right now from folks looking to get a deal or make an investment. Inspired by that, I decided to write a post on how the foreclosure process in Wisconsin happens!

Now, before we get started, there are a few things that I want EVERYONE to know:

The "Foreclosures" on websites such as Google Real Estate, Trulia, and Zillow do not necessarily provide accurate information. Those sites draw their information from public Notices (see Act II), which does not necessarily mean that the homes are available for purchase as foreclosures, or that they will ever be available as such - or the information is outdated and the bank sold the home months ago.
You get what you pay for. Many foreclosures need A LOT of work because they haven't been inhabited for at least six months, and if someone can't pay their mortgage, then they most often can pay for say, a new roof. Stripping homes of valuables such as kitchen appliances and flooring and selling them on craigslist is also not uncommon. If a foreclosure is in decent shape, it will be priced as such - often lower than normal, but not necessarily the "screaming deal" some think they will always find when a house is in foreclosure.
The foreclosure route may not be your best option for investment. With so many homes on the market, prices are at historic lows, so it is still a great time to invest, and a non-foreclosure may be just as good of an opportunity as a foreclosure.

Now on to the show! Curtain up!

Act I: The owner misses a payment.
When an owner misses a mortgage payment, the bank issues a Notice of Default. This is not publicly filed, and it tells the owner that they missed a payment (or more than one) and to please please please pay them.

Act II: The Foreclosure is filed.
If the owner then continues to fail to make payments, the bank will go forward with a Foreclosure Filing - this is public and in fact can be searched on CCAP. The owner is served and has 20 days to "answer" the filing, or basically admit to everything written in the filing.

Act III: Lis Pendens is filed.
This is a written notice to creditors that foreclosure is being filed. It doesn't mean much to the owner or really the bank for that matter - it's just required by the State of Wisconsin.

Act IV: Judgment.
A judge decides that the owner is in foreclosure and this signals the end of the foreclosure process, and the beginning of the Redemption Period.

Intermission: The Redemption Period.
During this period of time, the owners are allowed to try to pay back the loan in full to prevent foreclosure - this nearly never happens. So how long does this period of time last? Many people will tell you that you have a year - in most cases, this is not true. State law says that the Redemption Period is one year long, unless the bank waives their right to a deficiency (the money owed the bank from the original loan after the home is sold if there isn't enough to cover it). If they do waive that right - and the banks always do - then the time period is shortened to six months. Why would a bank bother to wait an extra six months for a debt that the owner would most likely not be able to repay? Banks can also decrease the time period to two months if they claim abandonment of the property - that is, the owner either moved out completely or is renting the home.

Act V: The Sheriff Sale.
If the Redemption Period ends without a sale of the property (usually a short sale) or some other agreement, the property goes to auction. I'm sure you've probably seen the commercials - "Get this property for only $20,000!!!" Does that actually happen? Ummm.....no. Generally, the bank sets the minimum bid at what they are owed on the property and "buy back" the property if there are no higher bidders. If there are higher bidders, they are required to put 10% down immediately upon winning the auction. If not, the bank buys the property and is free to market it.

The Finale: The Sale of the REO
Here's a little political correctness for you: the real estate industry prefers to call foreclosures "REOs" instead (Real Estate Owned). Is there a difference? Not really, it just sounds better on a listing description. Once the bank gets the property, they hire a Realtor and put the property on the market. From there, the sale goes forward like a regular listing, except for some more paperwork to go with the offer to purchase.

If you are interested in buying a REO, there are a few things to think about when making your offer:

Put forth your highest and best offer first. Banks don't want to go back and forth with long negotiations, and you are most likely going to get a good deal on the property anyway, so don't mess around.
Understand that you may be buying a property "As Is." Beware that the bank may not want to fix problems in the home, so the property may not pass the inspection with flying colors. Talk to your lender to see how your loan is affected by problems in the home. For example, FHA loans will fall through in some cases if the inspection finds paint chipping and it is not rectified prior to closing.

If you think you may be going into foreclosure, speak with an attorney immediately to discuss your options.

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

123 W. Washington #609 - Gorgeous Condo in The Loraine with Capitol Views!

Heidi Tiefenthaler (Restaino & Associates) — Mon, 09 Aug 2010 11:49:41 -0700

Wake up to the sun streaming through your windows as it reflects off of the Capitol Dome. Put on slippers and head downstairs through your private door to Barriques for a cup of coffee, or start your day with a run along Lake Mendota! With an open floor plan and gorgeous kitchen, you can entertain at home, or head out to the many nearby restaurants. Listen to Concerts on the Square from your windows that overlook the Capitol. Seller will entertain all offers!

Call Heidi Tiefenthaler today at (608) 239-0592 to schedule a showing.

For more information and photos, please visit www.theloraine.restainohomes.com !

Check out this video for a tour of the unit and tour of the neighborhood!

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

Buyer Agency Agreements: So, ummm.....You Wanna Go Out?

Heidi Tiefenthaler (Restaino & Associates) — Fri, 06 Aug 2010 09:58:32 -0700

Back in the day, buyers used to go to Open Houses or call agents from newspaper ads or signs advertising homes to find their new place. That agent would then write up the offer, present it to the seller, and a deal would be struck. Done and done.

Sounds like a pretty easy transaction, right? Well, in some ways it was. In other ways, it put the buyer at a disadvantage, because (and what many buyers didn't fully realize) the agent was only representing the seller. That is, the agent was fully on the side of the seller, and was always going to put the seller's interests ahead of the buyers.

And so the Buyer's Agent was born! This agent shows buyers homes, writes the offer, and most importantly, negotiates and works in the interests of the buyer.

Where do you meet Buyer's Agents? If you already know someone in Real Estate (like your humble blogger, yours truly), they can represent you! Just let them know that you are interested in buying a house and they will start the home buying process with you. Don't know an agent? Many people find their agents when they tour Open Houses. Little Real Estate inside secret: the reason agents do Open Houses for homes that they are not listing, is to use it as a prospecting tool. I'll be honest, I suck at doing that kind of prospecting, but many agents get the majority of their buyers that way!

Now, on to the very important Buyer Agency Agreement. This is a contract between the agent and the buyer saying that they are working together. This is the piece of paper that actually allows the agent to work on behalf of the buyer. Interestingly, if you are seeing homes with an agent - even if it is not her listing - and you haven't signed this agreement yet, she is obligated to still be working on behalf of the seller. It's technical stuff, and if you want to learn more about why, shoot me an e-mail.

So, when do you sign these contracts? Well, I like to look at it kind of like dating. You go on a first date and see if there is any chemistry. If there is, you go on a second date and delve a little deeper into what you are looking for. Things are still going well, so you decide to start a relationship. Working with a Buyers Agent, in my opinion, is a very similar process. You find out if you have chemistry because you should have a good working relationship with someone who is taking you through such an important decision. If you do, you commit to working with each other.

Like dating, you should also look for the basic common human courtesies. Does she call you back within a reasonable time? Does she listen to what you are saying? Does she seem like she knows what she is doing, or has she never been in a long-term relationship before? Well, that last analogy was kind of weak, but you get the picture!

Bottom line, signing a Buyers Agency Agreement definitely puts you at an advantage during your home search, but don't just go jumping into bed with the first agent that sends you a list of active properties!

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

Condo Financing and Why Condos May Become Exclusively 55+

Heidi Tiefenthaler (Restaino & Associates) — Tue, 03 Aug 2010 20:28:00 -0700

Condo Financing and Why Condos May Become Exclusively 55+

I love my condo. I am within walking distance to restaurants, UW Badger games, Mondays Pub, and my amazing downtown real estate office. Downtown Madison doesn't offer many single family homes, and those that are available are generally either very expensive, or in poor condition. So for those of us who love living downtown, condos are a fantastic option for more affordable living in brand new construction.

So, that being said, you can imagine my surprise when one of my buyers recently told me he spent four hours researching condos on a Sunday (he's not a big football fan, obviously) and found them to be a poor investment. Poor investment? Really? Nationally, condos appreciate faster than single family homes, and buying a downtown condo is one of the safest investments you can make. However, he actually was right - with new lending regulations and Congress getting their regulatory wish list fulfilled daily, it will become increasingly more difficult to obtain financing for a mortgage on a condo.

AIG recently released a statement saying that they would no longer finance condo purchases in "declining zip codes." They published a list of hundreds of areas where they felt that the condo market was declining and therefore not worthy of their money (*cough* bailout, our money *cough*). Now, condo owners in Madison, before you start to panic, Madison, WI is not on their list, which is yet another indicator that Madison's real estate market is not dire as many other areas, such as Arizona.

Ok, so if you want a condo, don't call AIG about financing. Check. Who do you call? That depends. If you have the means to put 20% down, call any lender. If you don't, you may want to shop around. Fannie Mae and Freddie Mac recently put more financing restrictions in place to make it difficult to obtain financing on a condo if you do not have a large down payment. Both firms said that they will not offer Private Mortgage Insurance for condos in developments where less than 70% of units are sold (up from the previous 51%), for developments where 15% of unit owners are delinquent on association fees, or where 10% or more of the building is owned by investors (read: landlords for the renters who actually inhabit the units). What does this mean for lenders? It means that obtaining financing for buyers who have less than 20% to put down will be time consuming and expensive.

But let's look at this objectively. Fannie and Freddie are actually just protecting you from yourself. Buying a condo pre-construction can be a great way to get an amazing price, plus the added fun of being able to pick out light fixtures, flooring, cabinets, etc. However, you do run the risk of buying into a building where you are the only one who appreciates it. I myself nearly did just that - I seriously considered The Colony on Blair St. a year and a half ago when I was in the market. Had I done that, I would have moved into a 20% occupied building that would later implement a rent-to-own program for new residents.

Now, before you write off condos forever, here are a few things to think about. They are still going to be a wonderful option for empty nesters and seniors (who can most likely afford the 20% down payment) looking to downsize and decrease the amount of maintenance needed, and are still attractive housing for areas where there are not many other options (such as downtown Madison). Also, 30 year fixed rate mortgages are not the only kind of loan out there. I'm not recommending the exotic loans, such as 2-year ARMs, but you can get yourself settled into a nice 7-year ARM and refinance (or more likely if you are younger, move) before the interest rate terms fluctuate. And don't forget to consult your friendly Realtor (aka, me) about the developments you are interested in. We know the markets and will help steer you to a lovely home and a sound investment.

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

Why It is STILL Great to Be a First Time Home Buyer

Heidi Tiefenthaler (Restaino & Associates) — Mon, 02 Aug 2010 09:11:19 -0700

Tax Credit Expiration = Great Time to Be a First Time Home Buyer!

With tons of houses on the market, it just seems logical that you would be able to find the home of your dreams, at or below your price range, in your ideal neighborhood.....and all with just going to a couple of Open Houses. Two weeks max, and you would be at the closing table, ready to accept the keys to your first home!

Yeah, right. On average, it takes first time home buyers 18 weeks to find a home, as opposed to 10 weeks that repeat home buyers take for their home searches. Most first time home buyers take a while to get their bearings while looking at homes, not quite sure what they like and what they don't, and it does take a few trips out for them to formulate what they really want in a home. When I get feedback from other Realtors on my listings that are perfect for first time home buyers, I always sigh a bit when I hear, "They liked the home, but it was out first time out looking. We'll keep it in mind." Yes, sometimes first time home buyers find their dream home right away and quickly submit an offer, but the majority of the time that doesn't happen, even if it is their ideal place.

Now, let's talk about you. You missed the tax credit deadline and therefore missed the $8,000 tax credit. Are you screwed? Not hardly! Without so much competition from the other first time home buyers out there who have already submitted their offers, you are in a great position to negotiate with sellers who may be worried that you are their last chance for this year. In addition to that, you can expect to see home prices declining slightly in response to the tax credit expiration (and the shadow inventory of foreclosures about to hit the market....but that's a story for another day, gentle readers), so while you may not have that cash in your pocket from Uncle Sam, you may break even with a lower purchase price and solid term negotiation.

So don't be discouraged! It is still a great time to be a first time home buyer, and just because the tax credit expired does not mean that you should suspend your home search whatsoever. With so many properties on the market, your perfect home is out there and ripe for the picking!

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

45 Cambridge Rd. - Maple Bluff Lake Home with Views of Downtown Madison!

Heidi Tiefenthaler (Restaino & Associates) — Sat, 31 Jul 2010 17:34:37 -0700

Drive down the quiet, tree-lined street and pass the classic and well-kept family homes that border the wide avenue. You turn in at 45 Cambridge Rd. and enter the circular driveway of this charming English Tudor home. After a tour of the home with loving admiration of the original craftsmanship, you head to the back porch and your ultimate goal - Lake Mendota.

With 80' of frontage, 45 Cambridge Rd. has the best location in Maple Bluff. A sandy lake bottom makes swimming and floating fun for everyone, with a shallow depth that is safe for kids of all ages, but deep enough for boats to land. Head down the street a bit and admire the Wisconsin Governors Mansion, or keep going and enjoy your privileges at Maple Bluff Country Club.

Listed at $1.25 million, this is truly the best deal in Maple Bluff. Ask me for comparables - I have them all at my fingertips, and you will be surprised! Want to build you dream home? This level lot is ideal for a knock-down. I have all of the building requirements and surveys and will happily send them to you!

Contact me at heidit@restainohomes.com or (608) 239-0592.

For more pictures and information, please visit www.45cambridge.restainohomes.com .

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

45 Cambridge Rd. - Beautiful Lake Home in Maple Bluff with Downtown Madison Views!

Heidi Tiefenthaler (Restaino & Associates) — Thu, 03 Jun 2010 09:49:04 -0700

Drive down the quiet, tree-lined street and pass the classic and well-kept family homes that border the wide avenue. You turn in at 45 Cambridge Rd. and enter the circular driveway of this charming English Tudor home. After a tour of the home with loving admiration of the original craftsmanship, you head to the back porch and your ultimate goal - Lake Mendota.

Contact me at heidit@restainohomes.com or (608) 239-0592.

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com