Julie's Blog from Janesville, WI

Should the tax credit be extended??

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Wed, 28 Oct 2009 14:16:29 -0500

We all seem to have an opinion on the $8000.00 tax credit that is set to expire on November 30, 2009.

It seems to have sparked some new interest in real estate and caused some serious sales. Do you think that if the credit does expire the market will come to a halt again?

Should we push to have the tax credit extended? Would it make a difference in our business thoughout the winter months? Would it make a difference in the economy?

I would love to hear what your thouhts are! I know the folks in congress are working on what is the right thing to do.

Happy Selling!

Julie

Washing machines use a ton of energy

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Sun, 27 Sep 2009 18:46:18 -0500

Washing machines use a ton of energy, but did you know that 90% of that energy goes into heating the water? Forget the warm and hot wash cycles, and instead keep the dial on cold and rub a little eco-friendly detergent on those harder-to-clean stains. Not only are you saving the environment, but using less energy means a lower electric bill at the end of the month. Who could argue with that?!

2009 YWCA Walk a Mile In Her Shoes

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Fri, 25 Sep 2009 07:06:24 -0500

Friday, Sept. 25: YWCA Walk a Mile in her Shoes. This event--in which men walk one mile in women's shoes to help raise money for the YWCA of Rock County--starts and ends at Kutter Harley-Davidson and includes a party afterward. Go to www.ywcawalkamile.org for more information.

2009 YWCA Walk a Mile In Her Shoes

Supporting women and girls, one step at a time...

Last year, nearly 100 men, boys, and even women and girls, joined the YWCA Walk a Mile in Her Shoes one mile trek in high heels through downtown Janesville. (Like Paul Benish here of M&I Bank.) Help us reach our 2009 goal of 150-200 participants who will walk down Hwy 14 and Hwy 26 starting and ending at Kutter-Harley Davidson/Buell on September 25!

Stay for the Walk a Mile After Party beginning at 5pm, sponsored by Kutter Harley Davidson. Everyone is welcome and will enjoy great live music, drinks, hors d'oeuvres, silent auction in a fun venue at the Rudi Kutter Pavilion. Tickets are $25 each and may be purchased here or by calling 608-752-5445.

your cell phone

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Sun, 16 Aug 2009 09:05:13 -0500

When you are finished with your cell phone, make sure it gets disposed of properly.

The average lifespan for a cell phone is a brief 18 months, and currently, only 1% are recycled. On average, 130 million are retired annually in the U.S. alone.

Yet almost all cell phones contain enough lead to qualify as hazardous waste under federal regulations. And even lead-free phones are considered hazardous under California regulations because of the high amounts of copper, nickel, antimony and zinc that leach into landfills.

So do something good for the environment and recycle your old phone.

Here are 4 places that accept them (and will make a contribution to charity):

cellphonesforsoldiers.com

Wisconsin home sales and median prices both fell in the second quarter of 2009

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Sun, 16 Aug 2009 08:51:35 -0500

Date: August 12, 2009 MADISON, WI - Wisconsin home sales and median prices both fell in the second quarter of 2009 relative to that same quarter in 2008 according to data just released by the Wisconsin REALTORS® Association (WRA). But despite significant job losses in manufacturing and other sectors that have pushed the state unemployment rate to 9 percent in June, REALTORS® say the state housing market is actually showing signs of stabilization. The decline in home sales was 10.5 percent, which was higher than both the Midwest region, which fell 5.3 percent, and the nation, which was down just 2.9 percent, but it was well below the steep reductions in Wisconsin sales volume that we have seen over the last few quarters.

Mulleady also pointed out hopeful signs that the national economy may be starting to emerge from the depths of this steep recession. He noted the Conference Board's Index of Leading Economic Indicators was up for the third consecutive month in June of this year, and the Dow Jones Industrial Average closed above 9000 in July with the upward trend continuing into the first half of August. "These are positive developments because improvements in the national economy will help stimulate job growth in the state, which will directly improve Wisconsin's housing market," said Mulleady.

Median home prices in Wisconsin fell 9.9 percent to $146,000 in the second quarter of 2009 compared to the second quarter of 2008, according to the WRA. However, William Malkasian, WRA President, cautioned that these numbers are unique to this market. "These data need to be taken with a grain of salt because lower priced homes are moving more briskly than higher priced homes, thus skewing the median price downward," Malkasian said. "The most important factor is the federal tax credit on housing, which qualifies first-time buyers for up to $8,000 in tax credit on their purchase. This is a strong enticement for first-time buyers who typically buy lower cost starter homes, but it also brings down the state median price," noted Malkasian.

Still, sellers remain highly motivated," Malkasian said, "and when you combine the available tax credit with mortgage rates at near historic lows it makes this an excellent market for credit-worthy buyers." With such strong inventories statewide, buyers have a lot of options, and there are solid advantages to working with a REALTOR® to help identify the best values in this market.

For More Information Contact: David E. Clark, Economist, C3 Statistical Solutions Inc. Office phone: 414-803-6537

About the WRA
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing more than 15,000 real estate brokers, salespeople and affiliates statewide. Sales estimates for the state are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter.

Take part in your Farmer's market

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Sat, 15 Aug 2009 06:37:04 -0500

Are you supporting your local Farmer's Market? You should be. I intend to go again this morning.

Summer Fun at the Market!

Cooking Demonstrations, Recipe-Cooking Contest,
Kids Activities

The Janesville Farmer's Market has Summer activities scheduled for most Saturdays!

Join the JFM Cooking Demonstrations every second Saturday of the month. Area cooks will show you how to cook produce and goods found at the JFM.

Every third Saturday, show off your creative cooking skills at the Market's Recipe-Cooking Contest. Each month's Contest features a different theme, based on seasonal ingredients: June-Strawberries; July-Corn; August-Tomatoes; September-Potatoes; and October-Soups or Stews. Contest Rules and Entry Form are here.

Finally, every fourth Saturday of the month is Kids' Activity Day. Bring the kids and let them discover the various activities waiting for them throughout the Market!

Join us every Saturday for a summer of great farmer's market goods, activities, and fun. Come celebrate the Janesville community!

Stop by and support your local area!

July, 2009 stats for Rock County

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Sun, 09 Aug 2009 08:39:16 -0500

The statistics are in for July 2009. These numbers are direct from the MLS.

There are 602 active listings currently with 95 new listings this month and 75 that sold. The average sale price is $115,742 with average days on the market 111 and percent of sale to list 89%.

Janesville's condo market has 71 active listings with 7 new this month and 10 sold. The average sale price was $104,390 with the average days on the market 117 and the percent of sale to list 90%.

Janesville's investment property has 74 active listings with 14 new and 6 sold. The average sale price was $82,733 with the average days on the market 94 and the percent of sale to list 91%.

Rock county has a total of 1491 active listings with 255 new this month and 177 sold. The average sale price $124,090 and on the market for an average of 127 days.

YTD Janesville's single family SOLD 406 with an average sale price $118,107 for an average of 99 days on the market and 89% of sale to list.

So far this year in Janesville 30 condos, 22 multi-family units. Beloit has sold 190 single family,

7 condos and 2 multi-family units in 2009. Rock county has sold 847 total for an average sale price of $122,186 in an average 104 days.

Coldwell Banker-Success has 27.3% market share for the city of Janesville and 20.3 for Rock County.

The next competing company in Janesville has 13.7%. Our office is doing really well!

Banks Express Hope for Fed Short-Sale Effort

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Fri, 07 Aug 2009 06:49:09 -0500

Banks Express Hope for Fed Short-Sale Effort
The federal government is launching a program to simplify and speed up the short-sale process by providing standardized documentation, cash incentives to lenders, and a $1,500 moving allowance to borrowers. Holders of second liens will get up to $1,000 to relinquish their claims.

Banks say the short-sale process has been taking so long because both their employees and real estate practitioners are learning as they go.

David Sunlin, vice president in charge of short sales at Bank of America, says he hopes the new government plan will help. "About half of short sales never close. We see it as a big lost opportunity, and we need to improve the rate we close them," he says.

Wells Fargo says it has cut its short sale average turnaround time from 90 days to 30 days by preparing a guide from real estate practitioners and putting in place procedures to handle short-sale requests.

[Editor's note: The federal government announced its short sales initiative in May at the annual Washington meetings of the NATIONAL ASSOCIATION OF REALTORS® and the association maintains short-sale resources for practioners.

This would be a very good thing. Anyone who has worked on short sales know how frustrating this process is. More to come on this issue, I'm sure!

Source: USA Today, Stephanie Armour (08/05/2009)

Rent-to-Own Deals: Smart Questions to Ask...

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Thu, 06 Aug 2009 07:05:38 -0500

I get calls everyday asking about rent with option to purchse. I've found some info from NAR regarding this process. Sometimes it sounds like a better idea than what it really is. If you are planning to go with an FHA loan this process may not work for you either. Make sure you work the process through from start to finish before signing.

Rent-to-Own Deals: Smart Questions to Ask...

For Sellers:

Who will tend to the property and pay for routine maintenance?
Who pays for major repairs?
What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
Will you manage the property yourself, or hire an agent?
What if the renters change their minds? Who keeps the money in the escrow account?
If the buyers change their minds, what will be required to put the property back on the market?

For Buyers: How much of the rent is going to the down payment?
How locked in are you if you change your mind?
What will it cost you to get out of the deal?
How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

Source: REALTOR® Magazine Online.

Simple Tips for Better Home Showings

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Thu, 30 Jul 2009 07:22:42 -0500

With all the inventory we currently have, there are things you can do to help with the sale of your home.

Never has it been more important to go above and beyond to attract a buyer. The list below is from NAR and has some great points. Make yourself attractive both with price and condition. You will find a buyer!

Simple Tips for Better Home Showings

1. Remove clutter and clear off counters. Throw out stacks of newspapers and magazines and stow away most of your small decorative items. Put excess furniture in storage, and remove out-of-season clothing items that are cramping closet space. Don't forget to clean out the garage, too.

2. Wash your windows and screens. This will help get more light into the interior of the home.

3. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Wash fingerprints from light switch plates, mop and wax floors, and clean the stove and refrigerator. Polish your doorknobs and address numbers. It's worth hiring a cleaning service if you can afford it.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows to air out the house. Potpourri or scented candles will help.

5. Brighten your rooms. Put higher wattage bulbs in light fixtures to brighten up rooms and basements. Replace any burned-out bulbs in closets. Clean the walls, or better yet, brush on a fresh coat of neutral color paint.

6. Don't disregard minor repairs. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they'll give buyers the impression that the house isn't well-maintained.

7. Tidy your yard. Cut the grass, rake the leaves, add new mulch, trim the bushes, edge the walkways, and clean the gutters. For added curb appeal, place a pot of bright flowers near the entryway.

8. Patch holes. Repair any holes in your driveway and reapply sealant, if applicable.

9. Add a touch of color in the living room. A colored afghan or throw on the couch will jazz up a dull room. Buy new accent pillows for the sofa.

10. Buy a flowering plant and put it near a window you pass by frequently.

11. Make centerpieces for your tables. Use brightly colored fruit or flowers.

12. Set the scene. Set the table with fancy dishes and candles, and create other vignettes throughout the home to help buyers picture living there. For example, in the basement you might display a chess game in progress.

13. Replace heavy curtains with sheer ones that let in more light. Show off the view if you have one.

14. Accentuate the fireplace. Lay fresh logs in the fireplace or put a basket of flowers there if it's not in use.

15. Make the bathrooms feel luxurious. Put away those old towels and toothbrushes. When buyers enter your bathroom, they should feel pampered. Add a new shower curtain, new towels, and fancy guest soaps. Make sure your personal toiletry items are out of sight.

16. Send your pets to a neighbor or take them outside. If that's not possible, crate them or confine them to one room (ideally in the basement), and let the real estate practitioner know where they'll be to eliminate surprises.

17. Lock up valuables, jewelry, and money. While a real estate salesperson will be on site during the showing or open house, it's impossible to watch everyone all the time.

18. Leave the home. It's usually best if the sellers are not at home. It's awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

I had a closing today!

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Wed, 29 Jul 2009 13:09:51 -0500

This is a busy week. I've had 3 closings with a 4th one on Friday!

I'm excited to tell you that we've been busy. Prices are NOT up but, the market is busy with 1st time and some move up buyers.

I'm seeing more showings on my listings, which is great!

I am really very lucky with the buyers and sellers I work with. I just get to work with the nicest people.

Whether they are 1st time or experienced, It's so much fun to work with the same people over and over again. I even get to work with their children and/or parents. Great fun!

Still looking for people to get started with buying a home...I can just see how it's going to be with November 30 as the deadline...someone is not going to be happy!

If you have been considering a home..the time is right!!

National home sales up 10% in June

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Tue, 28 Jul 2009 14:14:20 -0500

National home sales up 10% in June!

Isn't that a great thing. It has been busy the last few months. I'm really hoping it will stay

busy for awhile. What do you think about extending the buyer credit? I think the whole purpose

was to deplete inventory. We still have more than enough listings. In our area, as of the 2nd quarter,

we have enough inventory to last between 9.2 months and 130 months depending on the price range.

And that is if NO ONE listed another home.

Our GM Plant closed and 170 people have received a transfer to Kansas. Several have gone to Texas

already. It seems that it will be important to have the tax credit extended and/or broadened to all buyers

in order to help our area.

Tell me what your thoughts are??

working harder

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Mon, 27 Jul 2009 06:02:08 -0500

"I find that the harder I work, the
more luck I seem to have."
- Thomas Jefferson

This week I'm going to be really lucky! I'm working on 4 closings this week! Yes, things are moving.

People always ask me: "Is the housing market improving?" I would say it's holding it's own. We are in a bit harder situation with our GM plant closed and about 170 people moving to the Kansas area. Good news is the construction of the new hospital starting in October. They predict 500 jobs there.

Our office has seen an increase in accepted offers, even showing an improvement over the same month last year. We still need to work together..keep supporting your local businesses as much as you can.

Work hard!

Have a successful week!

Julie

No Gm plant coming to our town

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Mon, 29 Jun 2009 12:43:37 -0500

So what do you think about this one?? If you're living in Tennessee, I wonder how you feel as well.

It really seems interesting how much money and tax credits were given to them to make them want to

keep the plant in either Michigan, Wisconsin or Tennessee. Have we not given GM enough money to

date? Was this not a game to see how much they could get from Michigan (even though the expected

pick was Michigan)?

How does a failing company have that much leverage?

So here we are starting over yet again. This time I'm hoping it's a blessing that we won't have the GM

threat in our news every so many months like we've had as long as I remember.

Let's get someone in our plant that wants to be here and wants to have a very respectable work force!

So are you looking for a new place to call home? Consider Janesville, WI!

Tax credit for home purchases could rise!

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Mon, 22 Jun 2009 10:44:24 -0500

Tax credit for home purchases could rise!

New article out today in the USA today. Below is the link to read about it!

http://www.usatoday.com/money/economy/housing/2009-06-22-homebuyer-credit-may-be-extended_N.htm

Because we're still trying to get the housing market moving this just may be the best idea to help everyone. What are your thoughts??

The Harley’s are Coming…….The Harley’s are Coming!!!!!!

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Sat, 20 Jun 2009 05:34:51 -0500

Saturday's events start with registration at Kutter's from 9:00 until 11:30 a.m. for the MDA tub Run. The ride leaves Kutter ‘s at noon sharp!!! Approximately 1,500 bikes and 2100 riders will pass down Pontiac Rd and Ruger ave leaving Janesville and winding through the scenic back roads of Rock County.

If you can't be a participant, be a spectator! Cheer us on as we parade through Rock County. We'll Stop in picturesque Beloit. Waving goodby to Beloit, We will head back to Janesville and our final stop at Thresherman's Park. On our final leg of the route Thresherman's Park welcomes us back at 3:30 for the final events: a steak dinner for $8.00, on & off bike games, live band playing from 7:00 to 11:00 pm. The silent auction and raffle are a big part of the MDA fund-raising! Thee are many beautiful donations! And camp for free at the ark.

All bikers are welcome in the ride, and EVERYONE is welcome to join in the festivities at the park Free admission. Help the Janesville Harley Owner's Group in our ride to fight Muscular Dystrophy Call Kutter Harley Davidson (608)7570880 for all the info... Or check our web site at: http://mdatubrun.jvlnet.com.

If you've never been involved in this event, today is the day!

Do you know a WWII Vet?

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Tue, 09 Jun 2009 19:07:50 -0500

D-Day

The Landing Zones:

Utah beach

Pointe du Hoc

Omaha beach

Gold beach

Juno beach

Sword beach

the Drop
Zones :

the sector of the british airborne troops

the sector of the american airborne troops

The Role of the Navy and the Aviation:

the aviation's role in the landings

the Navy's role

The momentous events of June 6^th 1944 began shortly after midnight, with the dropping of the first British airborne troops between the Orne and Dives rivers. Then it was the turn of the Americans to parachute into the Cotentin, at the other end of the sector.

Meanwhile, the RAF's heavy bombers were pounding those artillery batteries of the Atlantic Wall that were thought to pose the greatest threat.

At dawn, the incredulous Germans woke to find a sea covered with ships. Operation Neptune, the first phase of the Overlord plan to reconquer Europe, was underway.

At 5.45 am, the fleet opened fire on the German defences
The Allied fleet opens fire

	At 6.30 am, the first American assault waves reached the Utah and Omaha beaches. In the British and Canadian sectors, the attack was launched an hour later, to take account of the different tide times.
The Americans land at Omaha

By the evening of June 6^th, 20,000 vehicles and 155,000 soldiers (including the paratroops). had been landed The number of men reported killed, wounded or missing came to approximately 10,000 - far fewer than the planners had feared.
	The Canadians land at Bernières

With the exception of Omaha, where the outcome of the battle hung in the balance for many hours, the Atlantic Wall was unremittingly smashed and the Allies advanced ten or so kilometres inland.

If you know a WWII vet, talk to him. Let him know what a great thing he did for our country!

I lost my WWII vet in January. He was in this mess! Right in the middle of it. I visited Normandy in his honor last year. Consider it something to do. It means so much!

Understanding Capital Gains in Real Estate

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Tue, 09 Jun 2009 18:53:46 -0500

Understanding Capital Gains in Real Estate

When you sell a stock, you owe taxes on your gain - the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: _______________________

To calculate this, add the following:

Cost of the purchase - including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
Cost of sale - including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
Cost of improvements - including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home's adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________

Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.

A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

· You have lived in the home as your principal residence for two out of the last five years.

· You have not sold or exchanged another home during the two years preceding the sale.

· You meet what the IRS calls "unforeseen circumstances," such as job loss, divorce, or family medical emergency.

Navigating Short Sales: What to Do When the Sale Price Leaves You Short

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Thu, 04 Jun 2009 06:19:17 -0500

Navigating Short Sales: What to Do When the Sale Price Leaves You Short

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

· Refinancing your loan at a lower interest rate

· Providing a different payment plan to help you get caught up

· Providing a forbearance period if your situation is temporary

When a loan modification still isn't enough to relieve your financial problems, a short sale could be your best option if

· Your property is worth less than the total mortgage you owe on it.

· You have a financial hardship, such as a job loss or major medical bills.

· You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest.

A qualified real estate professional can:

· Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

· Help you set an appropriate listing price for your home, market the home, and get it sold.

· Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

· Ease the process of working with your lender or lenders.

· Negotiate the contract with the buyers.

· Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can't sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale "package" that accompanies any offer typically must include

· A hardship letter detailing your financial situation and why you need the short sale

· A copy of the purchase contract and listing agreement

· Proof of your income and assets

· Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender's review of the short-sale package can take several weeks to months. Some experts say:

· If you have only one mortgage, the review can take about two months.

· With a first and second mortgage with the same lender, the review can take about three months.

· With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender's loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

· You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can't pay back the balance, talk with your real estate attorney about your options.

· Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

· Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.

Thinking of Making an Offer on a Short Sale? What You Need to Know

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Thu, 04 Jun 2009 06:15:13 -0500

Thinking of Making an Offer on a Short Sale? What You Need to Know

Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? That's true, but it pays to know a little about the seller's situation before you make an offer.

If a home is being sold for below what the current seller owes on the property-and the seller does not have other funds to make up the difference at closing-the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You're a good candidate for a short-sale purchase if:

· You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller's lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.

· Your financing is in order. Lenders like cash offers. But even if you can't pay all cash for a short-sale property, it's important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.

· You don't have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property-or you need to be in your new home by a certain time-a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you're serious about purchasing a short-sale property, it's important for you to have expert assistance. Here are some people you want to work with:

· Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who's knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.

· A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn't know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they've represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as "lender approval required.")

· Title officer. It's a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic's lien, homeowners association lien, etc.), it's much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you've waited for months for lender approval. If you don't know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short-sale properties include:

· Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you'll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.

· Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you've already negotiated, which may not be agreeable to you.

· No repairs or repair credits. You will most likely be asked to take the property "as is." Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.

* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR's strict code of ethics.

10 Ways to Prepare for Homeownership

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Wed, 03 Jun 2009 01:49:40 -0500

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don't forget to factor in closing costs. Closing costs - including taxes, attorney's fee, and transfer fees - average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options - such as 30-year or 15-year fixed mortgages or ARMs - and decide what's best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you've saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

2008 Cost vs. Value Report: Still Many Happy Returns for Home Rehabs

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Mon, 01 Jun 2009 07:05:24 -0500

2008 Cost vs. Value Report: Still Many Happy Returns for Home Rehabs
Remodeling magazine's annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market. By G.M. Filisko | December 2008

Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

Many people are wondering where their money will be safest during these uncertain economic times. When home owners turn to you for your expert advice, counsel them that some things never change: Investing in their home still pays off.

NATIONAL ASSOCIATION OF REALTORS® statistics show that home prices have fallen by an average of 7 percent nationally in the past year. But the value of home owners' investment in remodeling projects has declined only 3.86 percent on average between 2007 and 2008, according to Remodeling's 2008-2009 Cost vs. Value Report.

Remodeling produces the Cost vs. Value Report each year in cooperation with REALTOR® magazine. REALTORS® responding to a survey in midsummer said home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, home owners could expect to recoup a national average of 86.7 percent on projects.

Remodeling remains hot in 10 cities, where, on at least some projects, home owners can recover 100 percent of their costs. In Charlotte, N.C., for example, decks, midrange kitchen remodels, vinyl siding, and window-replacement projects all would net more than they cost, in respondents' estimation. High rates of recovery were seen in both strong real estate markets and weak ones.

Many cities with the highest rates of recovery were smaller-Jackson, Miss., and Billings, Mont., for example-which may point to lower labor and materials costs that are easier to recoup.

Seattle also made the list of cities with a cost recovery of more than 100 percent on decks and minor kitchen remodels. In fact, Pacific Coast cities recorded the best payback on remodeling by a wide margin, as they did in 2007. Although construction costs on the Pacific Coast are nearly 17 percent higher than national averages, the value of renovations at resale more than makes up for those higher prices.

The result is an average cost-recouped percentage that's 14.8 percent higher than in the rest of the country. The toughest place to get your money back: Midwestern cities such as Chicago, Cleveland, Indianapolis, and Milwaukee.

Top 10 Project Paybacks

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year's Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal-siding, windows, and decks-give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%)

2. Midrange wood deck (81.8%)

3. Midrange vinyl siding (80.7%)

4. Upscale foam-backed vinyl (80.4%)

5. Midrange minor kitchen remodel (79.5%)

6. Upscale vinyl window replacement (79.2%)

7. Midrange wood window replacement (77.7%)

8. Midrange vinyl window replacement (77.2%)

9. Upscale wood window replacement (76.5%

10. Midrange major kitchen remodel (76.0%)

The Real Deal: Examples from You

REALTORS® around the country helped us track down home owners who had recently completed remodeling projects. In all cases, the projects cost far less than the job cost estimates provided with the Cost vs. Value survey.

ATTIC-TO-BEDROOM

Location: Oak Park, Ill.

When Rick Nagle and Eileen Deamer of Oak Park, Ill., spent more than $35,000 to convert the attic of their 100-year-old home into a combination master bedroom and office, "resale value wasn't our concern," says Deamer, a U.S. government employee and the married mother of two.

The transformation turned 600 square feet of makeshift office with a toilet in the middle of the room to a colonial-style bedroom/office with two walk-in closets and an adjoining sage green bath with a walk-in shower. To allow two simultaneous uses, pocket doors separate the bedroom and office spaces.

BATHROOM

Location: Fountain Hills, Ariz.

"This is such a crazy market to try to judge how much a renovation is worth, but having a refurbished kitchen and bathrooms makes almost any house more salable," says Shari Gay, ABR®, sales associate at RE/MAX Sun Properties in Fountain Hills, Ariz. The owner-Gay's sister-added Saltillo clay floor tile throughout the 1,800-square-foot home, including the new bathroom. Bathroom finishes included a new cherry vanity cabinet, a tile shower, oil-rubbed bronze fixtures, and a soothing, sophisticated yellow color scheme, which all add up to a great look.

Total cost? About $5,000. "She'll at least break even on the upgrades," predicts Gay. "If this were a boom market, she would get even more."

KITCHEN

Location: Honolulu

A kitchen is the heart of most homes. That's why Hollywood set designer Wally White decided to spend most of his $15,000 renovation budget on upgrading the kitchen of his Honolulu studio condo. To spruce up the existing white cabinetry, which he left to save costs, the owner added bursts of color with celadon green granite countertops and walls painted in a complementary shade of light green. An undermounted white porcelain sink, a six-light halogen fixture on a dimmer, and brushed stainless steel faucet completed the look. It paid off.

White grossed $45,000 when he sold eight months later. "The unit sold for more than any other studio-and most of the one-bedroom condos in the building," says Susan Weinik, a sales associate with Realty Executives Oahu.

BASEMENT

Location: West Brighton, N.Y.

In a modest 1950s ranch in West Brighton, N.Y., a midrange basement upgrade suited Bernard Fallon's mother-in-law, Ligaya Nocon, just fine. After purchasing her home "on the high end of the market," according to Fallon, broker at Fallon Associates Realty in Rochester, N.Y., Nocon kept basement renovation costs under $9,000.

She created a cottage feel by whitewashing the knotty pine paneling rather than replacing it. She also reupholstered the existing bar to cover wear and warmed up the room with wall-to-wall carpeting instead of wood or tile. "We just dressed it up for the personal enjoyment of my mother-in-law," says Fallon, "but I think it will help sell the property later."

The Specs

To help respondents determine the resale value of improvements, the survey provided specifications for each project:

Attic Bedroom Remodel. Convert unfinished attic space to a 15-by-15-foot bedroom and a 5-by-7-foot bathroom with shower. Include a 15-foot shed dormer, four new windows, and closet space under the eaves. Insulate and finish ceiling and walls. Carpet floor. Extend existing HVAC to new space; provide electrical wiring and lighting to code. Retain existing stairs, but add rail and baluster around stairwell.

Minor Kitchen Remodel. In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install mid-priced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.

Basement Remodel. Finish the lower level of a house to create a 20-by-30-foot entertaining area with wet bar and a 5-by-8-foot full bathroom; construct 24 linear feet of finished partition to enclose mechanical area. Walls and ceilings are painted drywall throughout; exterior walls are insulated; painted trim throughout. Include five six-panel factory-painted hardboard doors with passage locksets. Electrical wiring to code. Main room> Include 15 recessed ceiling light fixtures and three surface-mounted light fixtures, as well as a snap-together laminate flooring system. Bathroom> Includes standard white toilet, vanity with cultured marble top, resilient vinyl flooring, two-piece fiberglass shower unit, a light/fan combination, vanity light fixture, recessed medicine cabinet, towel and paper-holder hardware. Bar area> Include 10 linear feet of raised-panel oak cabinets with laminate countertops, stainless steel bar sink, single-lever bar faucet, undercounter refrigerator, and vinyl floor tile.

Upscale Bathroom Remodel. Expand an existing 35-square-foot bathroom to 100 square feet within existing house footprint. Relocate all fixtures. Include 42-by-42-inch shower with ceramic tile walls with accent strip, recessed shower caddy, body-spray fixtures, and frameless glass enclosure. Include a customized whirlpool tub, stone countertop with two sinks, two mirrored medicine cabinets with lighting, a compartmentalized commode area with one-piece toilet, and a humidistat-controlled exhaust fan. Use all color fixtures. Use larger matching ceramic tiles on the floor, laid on the diagonal with ceramic tile base molding. Add general and spot lighting including waterproof shower fixture. Cabinetry includes a custom drawer base and wall cabinets for a built-in look. Extend HVAC system and include electric in-floor heating and heated towel bars.

Why Renovation Pays

Why are renovations holding their value better than home prices today? "When housing slows down, people stay put and renovate their house to make it more livable," says Paul Zuch, president of Capital Improvements, a designing, building, and remodeling company in Dallas. And by renovating before they sell, home owners get to enjoy the new space themselves, not just make the home more appealing to buyers. "It just makes sense," says Zuch.

Recent renovations also make buyers' lives easier. "Home owners who remodel their home are providing a service to future buyers," says Eileen Nelis, a broker at Savvy and Co. in Charlotte, N.C. "When buyers purchase, they don't want to do all that painting and remodeling, and they don't want that price tag. They may be willing to make improvements down the line, but when they purchase, they want to open the door and have everything complete. It reduces their stress."

Making home improvements can also reduce sellers' stress by heading off that time-honored negotiating technique-pecking away at the sales price by pointing out imperfections. "If sellers have done some improvements and dressed up their property, the improvements will help sell it," says Bernard Fallon, broker at Fallon Associates Realty in Rochester, N.Y. "If sellers don't want to improve their property, buyers will tick off the repairs and try to take them off the price."

That doesn't mean that every home owner should do every renovation, even in a more stable real estate market. Take Tulsa, Okla., where median home prices actually edged up slightly more than 2 percent in 2008, according to NAR. REALTORS® in Tulsa reported that, of the 30 remodeling projects surveyed, only 16 netted home owners at least 80 percent of the cost.

"Not every neighborhood will support the additional work," says Jim Hemphill, a sales associate at Coldwell Banker Select in Tulsa, "but in older, more established neighborhoods, if you redo a kitchen or bathroom or add a master bath or bedroom, you'll get your money out."

Despite the value, the weak economy is likely to slow seller spending on remodeling, at least in the short term, predicts the most recent Leading Indicator of Remodeling Activity computed by the Joint Center for Housing Studies at Harvard University.

The LIRA for the third quarter of this year estimated that owners' spending on home improvements will decline at an annual rate of 12 percent by the second quarter of 2009, continuing a two-year downward trend. Spending is unlikely to recover until the housing market turns around, according to the Center.

Yet, despite declines in overall remodeling dollars spent and a still shaky housing market, "people's homes are still one of their best, most solid investments," notes Zuch. "Even though the markets have gone through some adjustments, it's still smart to invest in your home."

Does Moving Up Make Sense?

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Thu, 14 May 2009 20:32:45 -0500

Does Moving Up Make Sense?

These questions will help you decide whether you're ready for a home that's larger or in a more desirable location. If you answer yes to most of the questions, it's a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don't build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you've owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you're making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you'd like to be closer to your job or live in a better school district.

4. Are there reasons why you can't remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn't large enough, your municipality doesn't allow it, or you're simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you'll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

April Stats in Janesville and Rock County

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Thu, 14 May 2009 20:25:56 -0500

April was a much better month for Real Estate in our area!

In Janesville there are currently 641 active single family homes listed with 128 of them new listings for

the month. 76 homes sold in April for a median price of $125,000. Homes were on the market

for an average of 98 days. Sellers got 88% of their list price. 5 condos, 3 multi-family homes sold in the

month of April as well.

As you can see our sale prices are very reasonable and the sale to list price is still down! It's a great time

to buy. And remember, it's not a buyer's market if you don't actually buy!

2009 Press Releases

Julie Press-Raese, LLC Realtor, ARB, CRS, GRI (Coldwell Banker-SUCCESS) — Thu, 14 May 2009 20:16:43 -0500

If you're looking for info on how the first quarter of 2009 ended in the Wisconsin housing market

here is the link to read up!

http://www.wra.org/online_pubs/press_releases/2009/pr0512_hsgstats.htm

MADISON, WI - Wisconsin home sales and median prices both fell in the first quarter of 2009 compared to that same quarter last year according to data just released by the Wisconsin REALTORS® Association (WRA). The lingering national recession caused unemployment in Wisconsin to increase significantly during the first three months of the year, resulting in the housing market drop, according tot he WRA. "The housing market doesn't operate in a vacuum," said Michael Mulleady, Chairman of the Board of the WRA. "The national economic environment drives Wisconsin's economy and that in turn drives our housing market." Mulleady noted the national economy shrank by more than 6 percent in the first quarter, causing Wisconsin's unemployment rate to jump from 5.9 percent in December 2008 to 8.5 percent in March 2009.

Existing home sales in the state fell 22.6 percent in the first quarter compared to the first quarter of 2008. This was worse than the nation, which was down just 6.8 percent due primarily to healthy growth in the West from sales of deeply discounted foreclosed homes in the first quarter. In fact, home sales were up 24.3 percent in the West, while they fell 20.1 percent in the Northeast and they dropped 12.7 percent in the South and 13.1 percent in the Midwest.

Despite the severity of the downturn, there are reasons for cautious optimism, according to Mulleady. "Mortgage rates are now in the 5 percent range and banks are willing to lend to buyers with solid credit histories," he said, adding that the federal stimulus package has offered a refundable tax credit of up to $8,000 for first-time buyers in 2009. "This will certainly bring in potential first-time buyers who are just now learning the details of the plan," said Mulleady. According to a recent survey of buyers and sellers conducted by the National Association of REALTORS®, first-time buyers comprise about half of the existing home sales nationally "so this tax credit, which is only available for 2009, has the potential to get many of those first-time buyers off the fence in the next three quarters," Mulleady said.

Median prices in Wisconsin fell 9.5 percent to $137,500 in the first quarter of 2009 compared to the first quarter of 2008. "Although some of this decline results from price discounting by sellers in a soft housing market, much of it is due to the shift in the mix of homes selling this year as compared to last year," said William Malkasian, WRA President. "Less expensive homes have been moving much more briskly than top end homes," said Malkasian. "When that happens, the median price will naturally fall as a result, so we don't have an apples-to-apples comparison between this year and last year," he said. Nonetheless, it is clear that this continues to be "a buyers market with healthy inventories and very favorable mortgage rates," according to Malkasian, who also noted that "housing remains an asset that has historically kept pace with inflation and remains a very good way for a young family to build household wealth. This is a great time to buy a home, and working with a RELATOR® with extensive knowledge of local markets is a good way for buyers to find the best value in this market," he said.

For More Information Contact: David E. Clark, Economist, C3 Statistical Solutions Inc. Office phone: 414-803-6537