Your Local Home Team's Blog

Homebuyer Tax Credit Update!

Brad Koenig (First Weber-Your Local Home Team) — Fri, 06 Nov 2009 14:34:37 -0600

Homebuyer Tax Credit Update!

On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

Tax Credit for Homebuyers

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit Versus Tax Deduction

It's important to remember that the tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

In addition, you may be able to benefit from additional housing related provisions, including the following:

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Tax Incentives to Spur Energy Savings and Green Jobs

This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings

This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing

This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance

This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

Do you think this is a good thing for the economy and housing? I would love to hear your opinion.

Property Assessments in a Declining Market

Brad Koenig (First Weber-Your Local Home Team) — Fri, 06 Nov 2009 12:35:11 -0600

Property Assessments in a Declining Market

Everything I read and hear in the news media tells me housing values have dropped over the past year so why hasn't my assessment dropped?
Wouldn't my property taxes go down if the assessor lowered home values in our community?
The family across the street was foreclosed on by the bank who sold their home for a lot less than the assessed value. Isn't that proof my assessment should be lowered?
Why am I paying taxes on an assessment that's higher than my property is worth?

Questions like these are being asked by homeowners nationwide as we struggle to make sense of the current economic climate. In each case, the property owner is concerned about the value of their assessment. These FAQs were developed to assist residential property owners in understanding how real estate trends affect their assessment and how the assessed value relates to the property tax bill.

Everything I read and hear in the news media tells me housing values have dropped over the past year so why hasn't my assessment dropped?
In Wisconsin, we've been fortunate that our property values are weathering the market relativity well compared to many other areas of the country. While the news media portrays values as dropping, it speaks to an overall trend in some areas and doesn't take into account a specific neighborhood or specific properties. In actuality, some communities, and some neighborhoods, have seen values increase; many neighborhoods are experiencing fewer sales yet values remain relatively stable; and a few neighborhoods have experienced foreclosures and short sales that have driven market values lower. It's the latter neighborhoods that capture news media attention.

If your municipality happens to be conducting a revaluation this year, then your assessment will reflect the most probable market value. A revaluation sets all properties at market value as of January 1 and establishes the relationships of one property to another. Those relationships remain until the next revaluation. If your community is not conducting a revaluation this year, then your assessment will likely not be adjusted if the only change occurring is the same market adjustment that the rest of the community is experiencing. Just as your assessment didn't go up each year when property values where rapidly increasing, your assessment will not be adjusted downward just because values are declining. The reason for this is twofold. If all values are going up or all values are going down, it doesn't change the relationship of one property to another and therefore doesn't change the tax burden relationships.

Secondly, in order to contain costs, most municipalities do not perform a revaluation every year. It is the revaluation process that adjusts everybody's value to reflect those properties which have sold.
Wouldn't my property taxes go down if the assessor lowered home values in our community?
Not necessarily. To illustrate how the levy affects your assessment we'll look at Badgertown; a community of two. Each resident owns a house valued at $100,000. Badgertown's tax levy is $2,000; the amount needed to cover its expenses. Since each resident owns 50% of the total property, they each pay 50% of the levy giving them each a tax bill of $1,000.

If property values in Badgertown go up 10%, then each property is assessed at $110,000. The amount they pay in taxes, however, remains the same. Each resident still owns 50% of the total property in Badgertown and must pay 50% of the $2,000 tax levy or $1,000. And what if values start dropping? Residents' property might drop to $80,000 each but because they each still own 50% of the property, and Badgertown still needs to collect $2,000, they will continue to see a $1,000 property tax bill.
The family across the street was foreclosed on by the bank who sold their home for a lot less than the assessed value. Isn't that proof my assessment should be lowered?
Usually not. Foreclosed properties are being marketed under duress and frequently sell at discount prices. While there have been more foreclosure-related sales during 2008 and 2009 than any time during the past 20 years, foreclosure sales have always been part of the market. In this downturn, Wisconsin has fared better than most states as real estate values adjust to the economic climate. Just as foreclosure-related sales are frequently not an indicator of market value when values are rising, they are not necessarily an indicator of value in a declining market and are not normally considered by the assessor when determining the market value of property in a community. In fact, Wisconsin law, appraisal standards, and Wisconsin courts, require very specific criteria for a sale to be considered as a reliable indicator of market value. Two of the most important of these criteria are whether the sale occurred under duress (such as a forced sale) and whether the property had adequate market exposure. For example, a property that sells two weeks after it's listed may have sold quickly because it was under-priced. This may be an indication of a duress situation, requiring closer review by the assessor, to verify whether is was an arms length transaction. In most cases, looking at non-foreclosure sales is the most reliable way to gauge what is actually happening with neighborhood values.

There are times when the majority of homes that are selling in your neighborhood tend to be around the same price as foreclosure-related sales. In this case, they may represent a reasonable picture of market value
Why am I paying taxes on an assessment that's higher than my property is worth?
Property owners know their assessment is used to calculate their December tax bill. What many taxpayers find confusing is that the assessment is only one part of the equation for computing the property tax. The other variable used to compute property taxes is the tax levy.

The levy represents the budgets established by the municipality, schools, etc. to cover their expenses. Those expenses are apportioned among property owners according to the percentage of ownership they have in the total property of the municipality. Thus, the actual tax bill is dependant on both the amount of all the taxing jurisdiction levies and the proportion of your assessment to the total value of property in the community. If you own 1% of the property value in your community, then you will pay 1% of the tax levy. It is the proportion of your assessment to the total value of the community that affects your tax bill, not the assessment number itself.

Said another way, your municipality must collect a certain amount; no more, no less. It divides that amount among all owners in proportion to the amount of property they own. Whether the property in the municipality is assessed at 90% of market value or 110% of its market value has no effect on your particular tax bill so long as your neighbors are also being assessed at that same 90% or 110%. This is the concept of uniformity and the basis for Wisconsin tax law.

An increase or decrease in the assessment of an individual property does not predict whether the tax bill for that property will go up, down, or remain the same.

Additional information is available at the following websites: Wisconsin Department of Revenue's Guide for Property Owners

www.revenue.wi.gov/html/govpub.html#property and Wisconsin Association of Assessing Officers www.WAAO.org

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Division of State & Local Finance
Bureau of Assessment Practices
P.O. Box 8971, MS 6-97
Madison, WI 53708-8971
Phone: (608) 266-7750 (608) 266-7750
Fax: (608) 267-0835
E-Mail Additional Questions

October 2009 Home Sales, (Waukesha-Jefferson-Dane Counties)

Brad Koenig (First Weber-Your Local Home Team) — Mon, 02 Nov 2009 17:23:20 -0600

Many of you ask us "What is going on in my local housing market?"
We will continue to update this on a monthly basis so bookmark this page and visit often...

...or sign up for a monthly email report that is specific to your neighborhood!

See blog post http://mywisconsinrealestateblog.com/post/1218462/pricing-your-home-in-todays-market

Below you will find sales data for Waukesha, Jefferson and Dane Counties.
These sales are single family homes only. If you would like to see postings on Condos, land or any other county let us know.

Compare 2008 vs 2009 notice the Days On Market as well as the average sale price difference.
This is a good time to buy your first home or move up in size. If you are curious on the value of your home visit

www.YourLocalHomeValue.com


This Search Waukesha county under $400,000 2009	Original Price	List Price	Sales Price	CDOM	Price Chg	% Price Chg
This Search (223 Matches)
Average	$247,311	$239,425	$229,878	119	$-15,844	-6%
Median	$234,900	$224,900	$218,000	78	$-12,100	-5.01%
Low	$111,900	$69,900	$69,900	1	$-110,000	-44.48%
High	$499,900	$399,900	$385,000	769	$100,000	37.74%
	223 w/Orig. Pr.	223	223 sold	223	111 changed price

Of these 21 sales were in Brookfield, 3 in Delafield, 5 in Hartland, 22 in Menomonee Falls, 9 in Mukwonago,9 in Muskego, 33 in New Berlin, 20 in Oconomowoc, 9 in pewaukee, 9 in Sussex, 52 in Waukesha. Other areas were 31.
Click to view listings (may take a mintue to load, report only good 30 days.)


This Search Waukesha county over $400,000 2009	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search (37 Matches)
Average	$668,504	$632,177	$582,619	219	$-56,004	-8.26%
Median	$549,765	$499,900	$460,000	143	$-30,050	-6.69%
Low	$419,000	$414,000	$386,000	7	$-176,000	-18.49%
High	$1,575,000	$1,575,000	$1,520,000	885	$-10,000	-2.22%
	37 w/Orig. Pr.	37	37 sold	37	24 changed price

Of these 2 sales were in Brookfield,3 in Elm Grove, 5 in Delafield, 2 in Hartland, 1 in Menomonee Falls, 4 in Merton, 2 in Mukwonago,3 in Muskego, 1 in New Berlin, 3 in Oconomowoc, 5 in pewaukee, 1 in Waukesha.
Click to view listings (report only active for 30 days)


This Search Waukesha county under $400,000 October 2008	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search (206 Matches)
Average	$265,918	$257,892	$246,628	112	$-19,919	-7.24%
Median	$259,900	$249,900	$240,000	76	$-15,000	-4.98%
Low	$74,900	$40,000	$32,000	1	$-90,000	-46.6%
High	$489,900	$400,000	$399,900	579	$9,000	6%
Number of listings	206 w/Orig. Pr.	206	206 sold	206	83 changed price

Of these 18 sales were in Brookfield, 3 in Elm Grove, 6 in Delafield, 6 in Hartland, 22 in Menomonee Falls, 6 in Mukwonago, 8 in Muskego, 21 in New Berlin, 23 in Oconomowoc, 15 in pewaukee, 3 in Sussex, 50 in Waukesha.


This Search Waukesha county over $400,000 October 2008	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search (41 Matches)
Average	$649,493	$628,612	$588,298	155	$-40,767	-5.69%
Median	$519,900	$514,900	$500,000	81	$-25,000	-4.35%
Low	$400,000	$400,000	$315,000	6	$-185,000	-16.67%
High	$1,935,000	$1,799,000	$1,620,000	545	$25,000	5.56%
Number of listings	41 w/Orig. Pr.	41	41 sold	41	21 changed price

Of these 5 sales were in Brookfield,1 in Elm Grove, 2 in Delafield, 4 in Hartland, 2 in Menomonee Falls, 2in Merton, 1 in Mukwonago,3 in Muskego, 4 in New Berlin, 4 in Oconomowoc, 6 in pewaukee, 1 in Waukesha.


This Search Jefferson County October 2009	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search (52 Matches)
Average	$208,223	$199,568	$187,325	133	$-18,002	-8.1%
Median	$176,450	$176,450	$171,450	95	$-10,850	-6.67%
Low	$35,000	$35,000	$42,500	1	$-89,100	-18.93%
High	$995,000	$995,000	$750,000	756	$-3,000	-2.46%
Number of listings	52 w/Orig. Pr.	52	52 sold	52	25 changed price

Of these sales 9 were in Fort Atkinson, 7 in Ixonia, 3 in jefferson, 1 in Johnson Creek, 6 in Lake Mills, 12 were in Watertown
Click to view listing(s) (report only good for 30 days)


This Search Jefferson County October 2008	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search (52 Matches)
Average	$195,490	$186,200	$176,564	175	$-15,097	-7.5%
Median	$176,200	$171,200	$163,500	149	$-10,000	-5.32%
Low	$60,000	$60,000	$55,000	9	$-74,900	-32.41%
High	$649,900	$575,000	$510,000	656	$15,000	5.88%
Number of Sales	52 w/Orig. Pr.	52	52 sold	52	32 changed price

Of these sales 9 were in Fort Atkinson, 4 in Ixonia, 9 in jefferson, 1 in Johnson Creek, 8 in Lake Mills, 15 were in Watertown

Dane County October 2009 Sales under 300,000

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$349,900	$28,000	$198,648	$195,000	$49,860,692	251
$300,000	$23,000	$191,451	$189,000	$48,054,399
521	0	69	40

Click Here to View Listings

Of these sales 7 were in Cottage Grove, 9 in Middelton, 22 in Sun Prairie, 124 in Madison

Dane County October 2009 Sales over 300,000

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$999,000	$304,900	$444,062	$389,900	$28,864,073	65
$860,000	$300,000	$427,297	$380,000	$27,774,338
436	0	89	60

Click Here to View Listings

Of these sales 3 were in Cottage Grove, 7 in Middelton, 3 in Sun Prairie, 13 in Madison

Dane County October 2008 Sales under 300,000

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$395,545	$64,900	$213,466	$214,950	$42,266,415	198
$299,000	$55,000	$203,622	$206,000	$40,317,173
483	0	80	57

Dane County October 2008 Sales over 300,000

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$2,100,000	$299,259	$478,570	$400,000	$36,849,904	77
$2,100,000	$301,900	$459,751	$390,000	$35,400,865
561	0	86	67

I hope you enjoy the market data. Bottom line. It is a good time to buy your first home or even sell and upgrade to a larger home.

Brad Koenig, ABR, CRS, GRI, E-PRO and Kati Hatfield Client Care Manager

Your Local Home Team, LLC-First Weber Realtors
www.YourLocalHomeTeam.com Search for homes in the area!
Sold@YourLocalHomeTeam.com 262-719-7393
Office/Cell 262-364-3404 Direct Fax
Proudly Serving Southcentral Wisconsin with Referrals from our Clients
Visit my LinkedIn profile: http://www.linkedin.com/in/bradkoenig
or www.FaceBook.com

Searching for a home? I can find that diamond in the rough!

Brad Koenig (First Weber-Your Local Home Team) — Thu, 29 Oct 2009 11:46:18 -0500

I work with several clients that are looking in a large area for homes. They also want very specific items, such as fireplace in the master bedroom.

Searching online by yourself is fun and many of clients still do it. Let me save you some time. I have a more advanced searching site than the general public. Here I searched for homes in a mapped out area. I can change this map at anytime for a client.

I can even log in and view your list of likes and dislikes

Here are some examples of items I can add to your search. Do you only want vinyl siding? I can put that in a search. Do you only want a ranch or cape cod style?

Here are some interior features. Do you only want a forced air system for heating?

Some of my clients want a room to be a certain size. For instance if you want all bedrooms to be at least 12x12 I can enter that data in as well. Do you want a 2 story home with a master on the main floor? I can find it.

However with all these options I caution buyers on becoming too specific. When looking for a home you should create a "must have" list and a "I want list". You must have 2 bathrooms but you can live with a 2 car garage vs. 3 car garage. I have had buyers tell me they want one style of home and end up buying something completely different. I am OK with that, as long as you are happy in your home. When starting your search put in your "the must haves". This will email you a larger list. You can start to narrow the list after you have looked at few homes.

I hope this helps. Good luck with your home searches. If I can be of any assistance don't hesitate to email. Even if you aren't looking to move for 3 years I can still put you in our system.

Brad Koenig, ABR, CRS, GRI, E-PRO
Your Local Home Team, LLC-First Weber Realtors
www.YourLocalHomeTeam.com Search for homes in the area!
Sold@YourLocalHomeTeam.com
262-719-7393 Office/Cell
262-364-3404 Direct Fax
Proudly Serving Southcentral Wisconsin with Referrals from our Clients
Visit my LinkedIn profile: http://www.linkedin.com/in/bradkoenig or www.FaceBook.com
Check out our Blog! http://mywisconsinrealestateblog.com/

Pricing your home in todays market (part 2)

Brad Koenig (First Weber-Your Local Home Team) — Tue, 27 Oct 2009 14:19:10 -0500

When you search homes for sale, you will always see homes listed at $149,900 or $249,900. Why is that? Do you think the home is a deal because it is priced below $150,000 or $250,000?

I am guilty of this myself. In the past I would price homes with this strategy or at an odd price like $148,874 to make it stand out.

I started to think like a buyer and I just recently started pricing homes at an even number. For example $150,000. When do buyers search for homes under $149,900? I am going to guess never. They put in an even number. Some websites only allow you to search by a predetermined drop down box. Buyers may also put in a minimum price range when they search. (Homes between $150,000-$200,000)

So if you price your listing at $149,900 and a buyer puts in a max of $150,000 your listing will show up in the search. It will also show up if you price it at $150,000.

However if a buyer searches between $150,000 and $200,000 your listing at $149,900 will not show up in their search. If you price it at $150,000 it will show up in a buyers search.

Are you curious on the value of your home? Go to www.YourLocalHomeValue.com fill out some information about your home. Then you will be sent a computer generated report for your area. (sorry south central/Milwaukee wisconsin area only)

Here is the first blog post on pricing
http ://mywisconsinrealestateblog.com/channels/home_selling/topics/pricing_your_home_in_todays_market

Brad Koenig
www.YourLocalHomeTeam.com
First Weber Realtors
262-719-7393

September Home Sales, (Waukesha-Jefferson-Dane Counties)

Brad Koenig (First Weber-Your Local Home Team) — Thu, 08 Oct 2009 12:21:52 -0500

Many of you ask us "What is going on in my local housing market?"
We will continue to update this on a monthly basis so bookmark this page and visit often...

...or sign up for a monthly email report that is specific to your neighborhood!

Below you will find sales data for Waukesha, Jefferson and Dane Counties.
These sales are single family homes only. If you would like to see postings on Condos, land or any other county let us know.

www.YourLocalHomeValue.com

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search Waukesha county under $400,000 2009
Average	$251,094	$241,965	$233,030	124	$-19,911	-6.86%
Median	$234,900	$229,000	$221,000	67	$-15,000	-5.56%
Low	$95,000	$95,000	$83,200	1	$-119,100	-29.34%
High	$519,000	$400,000	$400,000	948	$5,000	2.78%
	229 w/Orig. Pr.	229	229 sold	229	105 changed price

Click here to view sold listings in Waukesha county under $400,000 in 2009 (may take a minute to load)

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search Waukesha county over $400,000 2009
Average	$704,349	$650,990	$607,978	188	$-82,799	-9.67%
Median	$549,900	$549,900	$500,000	144	$-38,000	-7.1%
Low	$425,000	$400,000	$385,000	1	$-404,000	-29.3%
High	$1,595,000	$1,399,000	$1,200,000	578	$-50,000	-0.11%
	45 w/Orig. Pr.	45	45 sold	45	29 changed price

Click here to view sold listings in Waukesha county over $400,000 in 2009 (may take a minute to load)

2008 Waukesha County Sales

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search Waukesha county under 400,000 2008
Average	$256,826	$249,048	$239,943	109	$-16,466	-6.47%
Median	$249,900	$245,000	$233,500	77	$-10,885	-4.95%
Low	$99,900	$69,900	$69,900	1	$-70,000	-44.04%
High	$444,900	$399,900	$399,900	552	$10,000	4.76%
	235 w/Orig. Pr.	235	235 sold	235	111 changed price

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search Waukesha county over 400,000 2008
Average	$660,761	$633,645	$587,430	153	$-65,398	-8.38%
Median	$559,900	$525,000	$499,900	110	$-55,100	-9.1%
Low	$416,500	$409,900	$375,000	10	$-200,000	-14.81%
High	$1,790,000	$1,790,000	$1,706,000	516	$-10,000	-2.38%
	41 w/Orig. Pr.	41	41 sold	41	17 changed price

Compared to last year. Average sale price was only down $6,000 and total units was down
for under $400,000
Sales were up for homes above $400,000 on average of $20,000 with 4 more total units
compared to 2008

Jefferson County Sales

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search Jefferson County 2009
Average	$174,904	$170,547	$163,666	166	$-13,442	-7.46%
Median	$159,900	$154,900	$151,000	121	$-10,000	-6.71%
Low	$1,918	$40,900	$40,900	1	$-50,000	-29.19%
High	$399,900	$399,900	$399,900	855	$7,000	5.39%
	69 w/Orig. Pr.	69	69 sold	69	31 changed price

Click to view listings sold in Jefferson County September 2009

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
This Search Jefferson County 2008
Average	$169,857	$164,861	$158,838	119	$-14,362	-11.16%
Median	$151,900	$149,900	$149,400	88	$-10,550	-8.39%
Low	$44,500	$39,900	$35,000	6	$-35,000	-38.93%
High	$339,000	$339,000	$331,500	544	$-4,600	-2.66%
	46 w/Orig. Pr.	46	46 sold	46	16 changed price

Jefferson County sales were up by 23 units and average sale price was up $5000 compared to 2008.

Dane County 2009 September Sales

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$739,900	$18,000	$248,453	$224,900	$84,474,149	340
$690,000	$18,000	$239,556	$217,123	$81,449,225
832	0	76	49

Click Here to View Listings Dane County sales under 200,000 2009

Click Here to View Listings Dane County Sales over $200,000 2009

Dane County 2008 September Sales

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$3,000,000	$50,000	$287,881	$229,900	$84,061,477	292
$2,700,000	$55,000	$274,379	$221,443	$80,118,715
484	0	73	54

Total units was up by 48. Average sale price was down almost $35,000 from this time last year.

Overall buyers are starting to see some real values out there compared to 2006-2008.

Brad Koenig, ABR, CRS, GRI, E-PRO and Kati Hatfield Client Care Manager

USDA Rural Development's GRH Loan Program

Brad Koenig (First Weber-Your Local Home Team) — Tue, 06 Oct 2009 10:30:52 -0500

Guaranteed Rural Housing (GRH) financing with a 30 year fixed rate mortgage is available for buyers who do not exceed moderate income limits, have good credit history, and have stable income with...

• No Money Down!

• Low 30 Year Fixed Rate!

• All One Loan!

• No Reserves Needed!

• No Monthly Mortgage Insurance!

• Can Finance Closing Costs!

• No Mortgage Limits!

• Low Monthly Payments!

• Eligible For The $8,000 Tax Credit!

Call Steve Baumann
Fairway Independent Mortgage Corp.
771 Lois Drive, Sun Prairie, WI 53590
608-834-1333 ext 26
608-575-8384 Cell
steveb@fairwaymc.com

www.fairwaymadison.com

$8000 tax credit coming to an end

Brad Koenig (First Weber-Your Local Home Team) — Tue, 06 Oct 2009 10:06:06 -0500

It's My Life... It's Now or Never! The lyrics from Bon Jovi's hit song say it all. This month's edition is all about understanding and taking advantage of opportunities now... before it's too late.

You've probably heard a lot about the $8,000 tax credit for first-time homebuyers. But did you know the $8,000 tax credit is about to end? The first article below provides details about the tax credit that you need to know. Another opportunity you don't want to miss is a low interest rate. Interest rates have dipped near historic lows, but the second article below explains how you can avoid a costly mistake when it comes to rates.

This information is important for anyone who has even thought about purchasing a home or refinancing. So please forward this newsletter to friends, family members, and coworkers who may benefit from this information. And if you need any assistance at this time, just call or email.

$8,000 Tax Credit Nears End

The government is offering an $8,000 tax credit for first-time homebuyers - that is, folks who haven't owned a home during the past three years. According to the plan, first-time homebuyers who purchase a home may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.

However, the program is scheduled to end soon. In fact, the Internal Revenue Service recently reminded potential first-time buyers that they must complete their first-time home purchases before December 1, 2009 to qualify for the special credit, which means the last day to close on a home and qualify for the credit is November 30, 2009. In other words, right now is the time to take advantage of this opportunity.

Here's some information to help you understand what the tax credit benefits are and who qualifies.

Benefits of the Tax Credit

It's important to remember that the $8,000 tax credit is just that... a tax credit. It's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.

Better still, the incentive is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you're liable for $4,000 in income tax, you can offset that $4,000 with half of the tax incentive... and still receive a check for the remaining $4,000!

Who Qualifies?

The $8,000 incentive starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes of $170,000 for couples and $95,000 for single filers. To break down what this phase-out means, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible to reduce the tax liability by $2,800.

Remember, these are general examples. Borrowers should consult a tax advisor to provide guidance relevant to their specific circumstances.

What Type of Home Qualifies?

The tax credit is applicable to any home that will be used as a principal residence. Based on that guideline, qualifying "homes" include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured homes and houseboats used for principal residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.

Avoid This Costly Mistake

If you've been following the financial news, you've probably heard that the Fed's been buying Mortgage Backed Securities. Unfortunately, people have picked up on the news and mistakenly discussed how these purchases will continue to cause rates to drop lower. But is that really what it means? No.

The following information can help set the record straight and help you make smart decisions that lead to a low interest rate for your home loan.

How is the Fed's Bond Purchase Related to Rates?

The Fed has been buying Mortgage Bonds. BUT... more precisely, they're buying a lot of FNMA 30-yr 5.0% and 5.5% Bonds. Many of the mortgages in these pools are outstanding home loans with rates between 6.0% and 6.5%, as the rate that a borrower pays is different than the coupon rate given to an investor buying into that mortgage pool, with the difference being taken by Wall Street firms and government agencies. The loans in these pools are likely to be refinanced and paid - because current rates make it very attractive to refinance a loan over 6.0%. Thus, giving the Fed a quick recoup on some of its investment.

Bottom line: The Fed's purchase of higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.

The Problem Is...

Many consumers are in situations where they can refinance now and save hundreds of dollars a month on their mortgage payments. But if they hear people throwing around teases of lower rates ahead, they may decide to hold off on making the decision to save, in the hopes of gaining a few more dollars of savings per month if a lower rate came their way. Of course, while they're waiting, rates could turn higher - especially when you consider that the Fed is scaling back its purchases of Mortgage Backed Securities - and this window of opportunity could pass them by entirely. Is the Fed Scaling Back? And What Will It Mean to Rates? Last week, the New York Fed began to scale back their Mortgage Backed Security purchase program. The Fed has been buying about $25 Billion worth of Mortgage Backed Securities per week, but the new plan to drag out these purchases over a longer period of time means that they will be reducing both the frequency and amounts of their purchases. This will cause higher levels of volatility, as the Fed will be purchasing less often and less consistently. As a result, rates will probably rise gradually over time.

Here's the Clincher

Even if consumers are ultimately able to time the market perfectly and save another few bucks per month, they could still end up losing. That's because while they delayed, they lost the savings each month they could have gained by taking action sooner. In other words, they may have lost hundreds of dollars for every month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.

I don't want anyone to miss an opportunity by either waiting or misunderstanding the media headlines. Let's talk further on this. Email me, and let's discuss what this might mean for you. The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors. As your Trusted Advisor, I always want to make sure you are clear on all details of the home financing process.

If you or someone you know are interested in purchasing or refinancing a home, give me a call today!

Steve Baumann
Fairway Independent Mortgag
steveb@fairwaymc.com

Pricing your home in todays market

Brad Koenig (First Weber-Your Local Home Team) — Mon, 31 Aug 2009 13:06:39 -0500

There are numerous ways to price your home in today's market. The most popular is the appraisal method. With this method you find 3-6 properties similar to your home that have sold in the last 1-3 months. Some appraisers will go back 3-6 months if they need to. This is a good way to solidify a purchase price. However this is past data.

If you are looking to be competitive and sell in today'smarket you have to look at another option. Put your self in the position of the buyer and look at active listings. How can you compete against the homes that are already on the market. Number one is price but you can also other features that make you more appealing. How much is that worth to a buyer? Remember don't go overboard. Buyers are savvy and will always look at price.

Lets take a look a the two examples. Lets say you have a average 3 bedroom 2 bath ranch in a good size subdivision. If you find 3 properties identical to your home and they all sold within the last 3 months with an average sale price of $245,000. You could list the home for $249,900 and expect offer in the $245,000 price range. Would you agree? There is no guarantee your home will sell for this.

With my method we take active listings. We are still looking at the same 3 sold comps but we are competing against 6 other homes that are on the market from $235,000-$245,000. If you list at the $249,900 you are chasing the market and will only help sell your neighbors home. I am sure they will thank you for that.

If we price the home at the $235,000 we are now leading the market and your neighbor will help sell your home in a quicker time frame. Then you can go thank them.

View an example here.

This is just an estimation. If you are looking to sell you really need to have an experienced agent come through your home.

Brad Koenig
www.YourLocalHomeTeam.com
262-719-7393

adding a facebook fanbox to your website or blog

Brad Koenig (First Weber-Your Local Home Team) — Fri, 28 Aug 2009 13:17:06 -0500

I just added a fanbox to my website. www.YourLocalHomeTeam.com What do you think?

Do you have a business page on facebook? If not these is an easy way to separate personal from business posts. Posts appear on your fans walls giving them up the minute information on the market and current conditions. I have an rss feed built in from my activerain blog. As soon as I post a blog it feeds into twitter, linkedin and facebook.

See my business page

http://www.facebook.com/pages/Delafield-WI/Brad-Koenig-Your-Local-Home-Team-First-Weber/44124017203

or my fan box

Brad Koenig, Your Local Home Team-First Weber on Facebook

I am still looking for a better way to have this on my external blog. www.MyWisconsinRealEstateBlog.com Does anyone have any ideas?

Why would I want to Integrate with Facebook Connect?

With Facebook Connect, you can incorporate your users' true identities as represented on Facebook whenever they visit your site. By integrating their personal, privacy and account information, you can add Facebook's rich social context to the content they create on your site. Likewise, you can publish information to Facebook based on the actions your users take on your site. You can also dynamically show which of your users' Facebook friends already have accounts on your site.

There's no need to build a complete application on Facebook (you only need to configure a basic application to get an API key and provide the callback and canvas page URLs). You simply use your current site and connect to Facebook using Facebook Platform.

The end result is that you'll get distribution on Facebook for the social actions users take on your site. So when a user takes a social action (such as reviewing a book or album, or posting content on your site), it generates a News Feed story on Facebook. Or you can call users.getInfo from the Facebook API and get a user's name and profile picture (or even something like his or her Facebook status) and have that appear for the user on your site.

In summary, Facebook Connect is:

Simple: With a single sign-on process, users can easily log in to your site and Facebook using the same account.
Social: Integrate your users' Facebook social graphs with their social graphs on your site to provide better content with a social context.
Seamless: Publish the actions users take on your site on Facebook.
Synchronized: Keep your users' personal and friend data in sync with Facebook.

Job Loss warranty offered to home buyers

Brad Koenig (First Weber-Your Local Home Team) — Thu, 27 Aug 2009 14:04:26 -0500

A Local home warranty company will be rolling out with a great new service. A job loss protection plan! I am excited about this program. I have many buyers that are concerned about loosing their jobs in the next few years.

"Buyer confidence is what we're missing in the real estate transaction," said James Imhoff III, who is marketing the program to local real estate brokerages through his home warranty company, Universal Home Protection. "If you think of the current market conditions right now, you've got low mortgage rates and high inventory with reduced prices, but this is another step we needed to take to offer value to Wisconsin homeowners."

"It really injects confidence into the whole buying process for a whole lot of buyers who are on the fence, worried about the future," he said. "It's pretty obvious there are a lot of frightened people out there."

Through last week, Imhoff had signed up and provided online training in the program for agents at five real estate companies -- Restaino & Associates, First Weber, Stark, Century 21 Affiliated and Bunbury, with others likely to sign up soon, Imhoff said.

"They're really excited," Imhoff said about the companies, which must pay $50 a month for each office in the firm to help fund the program. "It's so new that a lot of (agents) are still trying to get trained. You're going to see it soon on all of their Web sites and in signs and ads."

The job-loss protection benefit is a program of the Rainy Day Foundation, a Washington, D.C.-based, non-profit 501(c)3 organization supported by donations from large builders and lenders and other housing industry organizations and individuals.

It says its mission is to create and maintain responsible homeownership through programs offering financial counseling before and after a home purchase and through its HELP -- Homeowner Education and Loan Protection -- program, which includes the job-loss protection benefit.

Here are the basics. The program would cover your payments for up to 6 months and up to $1800 per month. You are only covered if you are laid off and not if you quit or are fired.

I would like to hear your thoughts on this new program. I will start offering this as part of my marketing package on all my new listings.

New 3 bedroom ranch in Lake Mills for $150,000.

Brad Koenig (First Weber-Your Local Home Team) — Wed, 19 Aug 2009 07:57:59 -0500

This home may be small in size but it is big in features. Newer roof, windows, hardwood floors, new bathroom and new kitchen. You can move right into this home and wont have to worry. Home is located on city line. Cheaper taxes of township but convenience of living in the city. Call today. This home is in great condition.

New kitchen!

Call Brad at 262-719-7393 for a showing

July Home Sales report

Brad Koenig (First Weber-Your Local Home Team) — Wed, 05 Aug 2009 10:17:37 -0500

Many of you ask us "What is going on in my local housing market?"
We will continue to update this on a monthly basis so bookmark this page and visit often...

...or sign up for a monthly email report that is specific to your neighborhood!

Below you will find sales data for Waukesha, Jefferson and Dane Counties.
These sales are single family homes only. If you would like to see postings on Condos, land or any other county let us know.
Compare 2008 vs 2009 notice the Days On Market as well as the average sale price difference.
This is a good time to buy your first home or move up in size. If you are curious on the value of your home visit www.YourLocalHomeValue.com

Waukesha County 2009 SOLD July under $250,000	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg

This Search (164 Matches)
Average	$208,888	$203,053	$195,979	113	$-13,670	-6.39%
Median	$214,900	$209,900	$200,000	56	$-10,000	-4.6%
Low	$59,900	$59,900	$64,000	0	$-44,350	-24.07%
High	$289,900	$275,000	$265,000	788	$900	0.37%
	164 w/Orig. Pr.	164	164 sold	164	70 changed price

Click to view listings sold in Waukesha county for July 2009 under $250,000 (may take a minute to load)

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
Waukesha County 2009 SOLD July over $250,000	$249,900	$250,000	$232,500	76	$100	0.04%
This Search (190 Matches)
Average	$425,781	$409,620	$388,694	185	$-30,419	-5.98%
Median	$362,400	$349,900	$335,000	113	$-20,000	-5.14%
Low	$33,900	$250,000	$224,900	-32	$-401,000	-39.08%
High	$2,100,000	$1,699,000	$1,550,000	885	$80,000	29.64%
	190 w/Orig. Pr.	190	190 sold	190	111 changed price

Click to view listings sold in Waukesha county for July 2009 over $250,000 (may take a minute to load)

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
Waukesha County 2008 SOLD July under $250,000	$129,900	$74,900	$70,000	92	$-55,000	-42.34%
This Search (140 Matches)
Average	$212,168	$207,923	$201,911	84	$-14,150	-5.94%
Median	$219,900	$214,950	$211,000	57	$-10,000	-5%
Low	$21,900	$74,900	$70,000	1	$-70,000	-42.34%
High	$313,950	$250,000	$261,500	468	$90,000	56.29%
	140 w/Orig. Pr.	140	140 sold	140	56 changed price

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
Waukesha County 2008 SOLD July over $250,000	$275,000	$250,000	$235,550	76	$-25,000	-9.09%
This Search (201 Matches)
Average	$425,670	$416,104	$399,577	135	$-23,164	-4.35%
Median	$369,000	$350,000	$350,000	92	$-15,400	-3.85%
Low	$166,800	$250,000	$200,000	3	$-205,000	-26.89%
High	$1,399,313	$1,399,313	$1,300,000	628	$100,000	59.95%
	201 w/Orig. Pr.	201	201 sold	201	83 changed price

Jefferson County

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
Jefferson County 39 SOLD July 2009	$75,000	$42,800	$40,000	163	$-32,200	-42.93%
This Search (39 Matches)
Average	$193,920	$184,418	$175,112	180	$-17,648	-10.27%
Median	$176,000	$172,500	$167,500	120	$-10,900	-7.65%
Low	$75,000	$42,800	$40,000	8	$-50,000	-42.93%
High	$435,000	$399,900	$370,000	655	$-1,500	-0.76%
	39 w/Orig. Pr.	39	39 sold	39	21 changed price

Click to view listings sold in Jefferson county for July 2009 (may take a minute to load)

Current Listing	Original Price	List Price	Sale Price	CDOM	Price Chg	% Price Chg
Jefferson County 54 SOLD July 2009	$108,000	$59,000	$56,500	309	$-49,000	-45.37%
This Search (54 Matches)
Average	$280,794	$231,428	$221,166	172	$-35,717	-9.71%
Median	$209,495	$179,700	$183,250	113	$-13,100	-5.86%
Low	$74,900	$59,000	$44,500	9	$-400,500	-45.37%
High	$1,799,900	$999,500	$999,500	647	$3,000	1.17%
	54 w/Orig. Pr.	54	54 sold	54	29 changed price

Dane County under $250,000 Sales July 2009

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$279,900	$49,900	$194,652	$199,700	$73,968,049	380
$250,000	$45,000	$188,479	$192,000	$71,622,319
555	0	69	38

Dane County over $250,000 Sales July 2009

LIST PRICE:

SOLD PRICE:

DOM:

HIGH	LOW	AVERAGE	MEDIAN	TOTAL PRICE	LISTING COUNT
$1,289,000	$229,900	$396,707	$337,450	$72,994,124	184
$1,200,000	$250,000	$381,623	$325,000	$70,218,636
537	0	78	48

Federal do not call list, be sure to add your number to the list

Brad Koenig (First Weber-Your Local Home Team) — Wed, 29 Jul 2009 09:40:02 -0500

Cell Phone Numbers Go Public this month. REMINDER.... all cell phone numbers are being released to telemarketing companies and you will start to receive sales calls. ..... YOU WILL BE CHARGED FOR THESE CALLS To prevent this , call the following number from your cell phone: 888-382-1222. It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call fro m a different phone number.

You can also go to www.Donotcall.gov to register 3 numbers at a time

Great new pewaukee ranch for sale

Brad Koenig (First Weber-Your Local Home Team) — Tue, 28 Jul 2009 14:14:37 -0500

W220N2794 Maplewood, Pewaukee

$240,000

The inviting, open concept living room features a natural fireplace. Step into the sunny eat-in kitchen with dinette and it includes the stove, refrigerator, dishwasher and disposal. Enjoy some time with your loved ones in the basement rec room or replax on the patio. Many new updates inlcuding roof and applainces. All you have to do is move in and enjoy!

Schedule your private showing of this home today - call 262-719-7393!

Living room with fireplace

Kitchen with all appliances

Dinette

Master bedroom with walk in closet and private bathroom

Second bedroom

Third bedroom

Second bathroom

Rec Room in basement

Patio with private tree lined backyard

Call for a private showing. Your Local Home Team
262-719-7393

If this home doesn't fit your needs, please click here to view more available homes in the area that might work for you!

W8259 Bridle Path, Lake Mills

Brad Koenig (First Weber-Your Local Home Team) — Fri, 24 Jul 2009 08:20:42 -0500

This new home on the edge of lovely Lake Mills awaits you! Built in 2009,home welcomes you with soaring cathedral ceilings and lots of windows to let the light in.

Large deck offers a nice view of your tree lined private back yard. The large open concept kitchen with cherry cabinets overlooks the living room with fireplace. Master bathroom has a whirlpool tub, shower and walk in closet. Finished bonus room above the garage would make a great play room or office.

For photos go to http://www.lakemillshomesforsale.com/8259bridlepath

Call today to schedule a private showing of this home!

Brad Koenig
Your Local Home Team
262-719-393

5 acre farmette 15 min from Oconomowoc

Brad Koenig (First Weber-Your Local Home Team) — Mon, 15 Jun 2009 13:28:45 -0500

Welcome to the country!

This lovely farmhouse has all the upgrades that you will ever need. This 3 bedroom, 3 full bath home is all ready to move into. Enjoy the peaceful country nights on the large deck, or enjoy a nice movie in the finished basement. The open concept kitchen and living room are perfect for entertaining.

New stucco outside completes the look. With 5 acres and 2 barns you have enough room for horses or your toys.

5 acre with barns, all ready for horses

Relax after work on the large deck

Historic brick barn

Large eat in kitchen

Living room with cathedral ceilings

Dining room with custom plaster finish

Lower level walkout family room

Main floor laundry

Master bath with shower

For a personal tour please call us at 262-719-7393

We hope this home is right for you! If not, please click here to view other homes in the Oconomowoc area that might fit your search criteria!

Tax Credit Info

Brad Koenig (First Weber-Your Local Home Team) — Wed, 10 Jun 2009 13:15:54 -0500

Man what a week (or three) in the real estate market.

To summarize:

Rates are up big (more on that later)

What's the deal with this tax credit??

Well as with anything the government gets involved in - confusion is sure to follow - as I have found in talking to some of you.

Everyone has heard that the $8000 tax credit can be used for the down payment.

Here are the facts as of now:

1. You can amend your return to claim the $8000 shortly after buying. Have your clients consult with a tax advisor to make sure this is the best move- you don't want to be thrown into a higher tax bracket as a result.

2. As the $8000 pertains to FHA loans as of now in the state of Wisconsin you cannot use this towards a down payment. See below:

In accordance with ML09-15, here's the deal so far:

Government entities and instrumentalities of government may provide a second mortgage. Currently, as far as we know, 10 state housing finance agencies offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. These states are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee.

Even if you could use as a down pay, the buyer still has to come up with the 3.5% of their own money. (per the same Mortgagee Letter) HUD is NOT going to budge on this because they have determined that buyers that put their own money down the default rate of those buyers declines.

3. The credit ends 12/1 period. There is no talk of extension. Buyers should not be told otherwise. Buyers should be encouraged to act quickly right now. There is plenty of inventory as you know.

Closing dates are going to fill very quickly in November which leaves only 5 months to find, finance and close on their home.

Rates - what the heck is going on and how does this effect buyers?

They have jumped .75-1.00% in the last 2 weeks!

Rates, are historically excellent, but it lowers buyers purchasing power by $5k to 10k or more.

The cause - Increased supply of bonds hitting the market as a result of all the refis that have taken place along with the Fed being unable to keep up with the buying of those bonds. Ironic isn't it.

This increased supply has lowered the price of bonds and driven up the yield. ie rate.

Where do we go from here:

I can't say for sure the worst is behind us. However economic reports due out in the coming weeks are likely to be dismal (which is generally good news for rates) and the Fed is going to be picking up the pace on buying bonds to diminsh the supply which would cause prices to rise and yields/rates to drop.

So if you have clients that are closing in the next 45-60 days and they have not locked a rate yet, I would wait and see what the next several weeks bring. Should the closing be less than that I would recommend locking early next week to avoid any potential increases.

In this market we cannot afford to lose a deal. I have heard many stories of lenders declining tranactions for a variety of reasons - low score, appraisals, lenders even counter offering to different programs the client does not want. It's tough out there and I want to let you know that Fairway and I have been saving those transactions and getting them closed! It may not close when it was originally scheduled but it WILL close and get you paid.

I had a client that was working with another lender and they could not lock a rate for 3 months - lender was too busy. They where referred to me and we locked right away before the rate increases and are closing in less than 30 days.

Call me with any questions and scenarios that are starting to look iffy.

Steve Baumann
Fairway Mortgage
608.575.8384
steveb@fairwaymc.com

Do's and Don'ts During the Loan Process (Your Credit Score Part 6)

Brad Koenig (First Weber-Your Local Home Team) — Tue, 09 Jun 2009 10:21:57 -0500

Do's and Don'ts During the Loan Process

When you fill out a credit appli- cation, we run a credit report for the underwriter. Each lender and each loan program has different guidelines they must follow. You should not do anything that will have an adverse affect on your credit score while your loan is in process. We know it's tempting...If you're moving into a new home, you might be thinking about purchasing new appliances or furniture, but this is really not the right time to go shopping with your credit cards. You'll want to remain in a stable position until the loan closes and give us the opportunity to help you lock in the best interest rate we can possibly get for you.

Here is a handy list of do's and don'ts that you should adhere to after your loan application has been submitted to the lender.*

DON'T APPLY FOR NEW CREDIT OF ANY KIND - If you receive invitations to apply for new lines of credit, don't respond. If you do, that company will pull your credit report and this will have an adverse effect on your credit score. Likewise, don't establish new lines of credit for furniture, appliances, computers, etc.

DON'T PAY OFF COLLECTIONS OR CHARGE-OFFS - Once your loan application has been submitted, don't pay off collections unless the lender specifically asks you to in order to secure the loan. Generally, paying off old collections causes a drop in the credit score. The lender is only looking at the last two years of activity.

DON'T CLOSE CREDIT CARD ACCOUNTS - If you close a credit card account, it can affect your ratio of debt to available credit which has a 30% impact on your credit score. If you really want to close an account, do it after you close your mortgage loan.

DON'T MAX OUT OR OVER CHARGE EXISTING CREDIT CARDS - Running up your credit cards is the fastest way to bring your score down, and it could drop up to 100 points overnight. Once you are engaged in the loan process, try to keep your credit cards below 30% of the available credit limit.

DON'T CONSOLIDATE DEBT TO ONE OR TWO CARDS - Once again, we don't want you to change your ratio of debt to available credit. Likewise, you want to keep beneficial credit history on the books.

DON'T RAISE RED FLAGS TO THE UNDERWRITER - Don't co-sign on another person's loan, or change your name and address. The less activity that occurs while your loan is in process, the better it is for you.

DO JOIN A CREDIT WATCH PROGRAM - Your bank, credit union or credit card company may be able to provide you with a free credit watch program that can alert you to any changes in your credit report. This can be a safeguard to help you intervene before the underwriter sees a problem.

DO STAY CURRENT ON EXISTING ACCOUNTS - Late payments on your existing mortgage, car payment, or anything else that can be reported to a CRA can cost you dearly. One 30-day late payment can cost anywhere from 30 to 75 points on your credit score.

DO CONTINUE TO USE YOUR CREDIT AS YOU NORMALLY WOULD - Red flags are easily raised within the scoring system. If it appears you are diverting from your normal spending patterns, it could cause your score to go down. For example, if you've had a monthly service for Internet access billed to the same credit card for the past three years, there's really no reason to drop it now. Again, make your changes after the loan funds.

DO CALL YOUR LOAN CONSULTANT - If you receive notification from a collection agency or creditor that could potentially have an adverse affect on your credit score, call us so we can try to direct you to the right resources and prevent any derogatory reporting to credit bureaus.

* SOURCE: Based on The Top 10 Credit Do's and Don'ts During the Loan Process, provided by Credit Resource Corp. http://www.creditresourcecorp.com

For more information on your credit call or email

Jason Schiller
Waukesha State Bank
262-244-0303 (Business)
414-659-6347 (Mobile)
jschiller@waukeshabank.com

Brad Koenig
Your Local Home Team-First Weber
http://www.yourlocalhometeam.com/
262-719-7393

If you are one one my business associates and want to contribute to my blog, please give me a call or email me.

Your Credit Score Part 5 Dealing with Credit Challenges

Brad Koenig (First Weber-Your Local Home Team) — Mon, 08 Jun 2009 11:23:34 -0500

Dealing with Credit Challenges

Unfortunately, a person with a bad credit score is often in this position because he or she lacks the discipline to pay bills on time. Of course, there are exceptions where unforeseen circumstances come into play, such as health complications, or loss of employment. There are a few things that may be able to bring your score up so that you can secure a better interest rate on your mortgage loan.

Example 1: Distribute debt from revolving credit.

Our borrower, Mr. Jones, has a credit score of 664. He has five credit cards, but his Visa account is almost maxed out. His other four credit cards have relatively low balances. Mr. Jones moves the part of the debt from the Visa account to the other major credit card accounts, thus distributing the debt more evenly over the five cards. This changes the ratio of debt to available credit (which has a 30% impact on the overall credit score), and Mr. Jones successfully raises his credit score by 20 points with very little effort.

Example 2: Transfer outstanding balances to new accounts.

Our borrower, Mr. Smith, has only two credit cards, but both are pushing the limit of available credit. Mr. Smith opens two new credit card accounts, each with a credit limit of $5,000. He transfers part of his existing balances to the new accounts. While he has acquired two new cards that have no established history, the greater impact is the change in the ratio of debt to available credit.

Ultimately, experts say that it is best to have two to five credit cards, and no more than that. You should keep your balances as low as possible. If you have a credit account with a zero balance, do not close the account.

Instead, make a small purchase so the card shows up as an active account on your credit report, and you will be awarded points for your long-term credit history.

These are just a few tips to consider as you seek to obtain mortgage financing. But you should always know that as your loan originator, my job is just beginning when you close your loan with me.

As soon as you begin to make mortgage payments on time and in full, your credit standing will begin to improve. My team and I will continue to monitor rates on your behalf and alert you to the opportunity to refinance into a loan program with a lower interest rate as soon as possible. Our long-term goal is to help you build a strong financial future.

For more information on your credit call or email

Jason Schiller
Waukesha State Bank
262-244-0303 (Business)
414-659-6347 (Mobile)
jschiller@waukeshabank.com

Brad Koenig
Your Local Home Team-First Weber
http://www.yourlocalhometeam.com/
262-719-7393

The Delafield Block Party

Brad Koenig (First Weber-Your Local Home Team) — Mon, 08 Jun 2009 10:23:41 -0500

The Delafield Block Party is slated for Friday and Saturday, June 19-20. This community celebration, sponsored by the Delafield Area Chamber of Commerce, promises two days of family fun and festivities.

Festivities begin at 5 p.m. Friday with Delafield Chamber member restaurants providing a specialty food court on Milwaukee Street, beer tents (including a new specialty beer tent - the HofBräuhaus), and Main Stage entertainment, including the Brandon James Band from 5 to 7:30 p.m. and Chasin' Mason from 7 to 11:45 p.m. The Main Stage is in the city parking lot on the corner of Main and Dopkins. Additional live music will fill the Family Stage at 5:30 p.m. as festivalgoers enjoy dinner.

On Saturday, after the Farmers Market from 7 a.m. to 1 p.m. at the city parking lot there will be free tours of Hawks Inn from 1 to 4 p.m.

From noon to 4:30 p.m. Saturday on the Family Stage are a variety of family and community activities, including a rock-climbing wall, performances by dancers from To The Pointe and Fred Astaire studios and an interactive magic show by Glen Gerard.

The Delafield 5K Run/Walk and Kids' Fun Run will kick off at 3 p.m. at Highway C and Dopkins Street. Rain or shine, the twilight 5K race begins at 5 p.m.

Saturday evening entertainment includes Crazy Man's Basement from 5:30 to 8:30on the Family Stage and The Pink Flamingoes from 4 to 7 p.m. on the Main Stage, followed by the Love Monkeys playing for the street dance from 8 to midnight.

For more information, call the Delafield Chamber of Commerce at (262) 646-8100 or visit delafield.org.

Your Credit Score Part 4 Disputing Errors On the Credit Report

Brad Koenig (First Weber-Your Local Home Team) — Fri, 05 Jun 2009 12:05:33 -0500

Disputing Errors On the Credit Report

If you are in the process of reviewing your credit reports, the first thing to do is make sure that the information contained within the reports is correct. In June 2004, The U.S. Public Interest Research Group published the results of a survey it conducted involving 200 adults in 30 states to test the validity of credit reporting. Their findings were as follows.

Twenty-five percent (25%) of the credit reports contained errors serious enough to result in the denial of credit;

Seventy-nine percent (79%) of the credit reports contained mistakes of some kind;

Fifty-four percent (54%) of the credit reports contained personal demographic information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect;

Thirty percent (30%) of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open.

SOURCE: U.S. Public Interest Group Research; One In Four Credit Reports Contains Errors Serious Enough To Wreak Havoc For Consumers, US PIRG Press release, 06/17/04 http://uspirg.org/uspirgnewsroom.asp?id2=13650om

If you find that you have errors on your credit report, follow this procedure to correct those errors.

1. Make a copy of the report and circle the items you are questioning. Keep your original copy for your own records.

2. Prepare a letter to the CRA that provided you with the report in question, and request to have the erroneous item(s) removed. If you have proof of payment for an item in question, include a copy of that documentation.

3. Prepare a letter to the creditor reporting the problem, especially if you feel you are a victim of fraud or identity theft. Inform the creditor that you are disputing an error reported to the CRA, state why the claim is inaccurate, and include any relevant documentation to prove your point.

4. Send your correspondence via certified mail.

You should receive a response from the CRA within 30 to 45 days. If the error has been corrected, they will send you a fresh copy of your credit report at no charge to show you that the item has been removed. They will also send a corrected report to any entity that received a report that contained errors within the last six months. If you cannot have a disputed item removed, you have the right to include your side of the story on the credit report. Your statement should be a concise explanation (100 words or less) as to why you are challenging the item in question. From that point on, this notation will be included in your credit report as long as the item in question remains on your report.

Credit Remediation

If you feel you would prefer to work with a credit repair service rather than try to tackle credit repair issues on your own, please give us a call so we can help you sort through your options. We will do our best to refer you to a reputable credit remediation service and guide you in the right direction once we have the opportunity to review your credit report with you.

The Federal Trade Commission (FTC) regulates credit repair services and provides free information to help consumers spot, stop and avoid doing business with credit repair companies that are not reputable. Their web site is located at http://www.ftc.gov/

You can also write to the FTC to request a copy of their free brochure titled Credit Repair: Self Help May Be Best, which includes information about credit clinics. The address to write to is:

If you have any complaints regarding your credit report or credit remediation services that you wish to report to the FTC, contact them at:

Federal Trade Commission
Sixth and Pennsylvania Avenues
NW Washington, DC 20004

Federal Trade Commission
Consumer Response Center, Room 130
600 Pennsylvania Avenue
NW Washington, DC 20580

For more information on your credit call or email

Jason Schiller
Waukesha State Bank
262-244-0303 (Business)
414-659-6347 (Mobile)
jschiller@waukeshabank.com

Brad Koenig
Your Local Home Team-First Weber
http://www.yourlocalhometeam.com/
262-719-7393

Your Credit Score Part 3 How Does a Low Credit Score Affect My Interest Rate?

Brad Koenig (First Weber-Your Local Home Team) — Thu, 04 Jun 2009 08:56:03 -0500

How Does a Low Credit Score Affect My Interest Rate?

Lenders estimate your ability to pay back money based on your credit score. The risk factor they take on is built-in to your interest rate as a financing fee. Therefore, a low credit score results in a higher interest rate, higher monthly fees, and a higher amount of interest being paid over the total life of the loan.

Referring back to our chart, a borrower with a credit score of 620 would be questionable to an underwriter. While the lender may agree to provide financing, the increased interest rate is factored into the monthly payment. The following chart illustrates the difference in the amount of interest paid over the life of the same loan with three different credit score scenarios.

A borrower who increases his or her credit score from 620 to 720+ can potentially save $601 per month on mortgage payments, $7,214 per year, and approximately $216,432 over the life of the 30-year loan.

30-Year Fixed Rate with a Principal Loan Amount of $250,000
FICO SCORE	APR	MONTHLY PAYMENT	INTEREST PAID
Above 720	5.71%	$1,453	$272,928
620 to 719	5.796% to7.84%	$1,466 to $1,807	$277,845 to$400,381
Below 620	8.452% to 9.234%	$1,914 to $2,054	$438,957 to $489,365

SOURCE: Credit Resource Corp., How Much Does a Low Score Cost You? http://www.creditresourcecorp.com

How Does the Underwriter View My Score?

If you are considering a home purchase, it is in your best interest to make every effort to increase your credit score, especially if you know you have issues you should be dealing with. It is often the case that people are not aware of badmarks on their credit record until they apply for financing for a major purchase, such as a home.

As part of the loan process, we run a credit report for you. But you can take advantage of the opportunity to get a free credit report from each of the three main CRAs: Equifax, Experian and TransUnion. As a sidebar, you can choose to get the free report from all three bureaus at the same time, so you are aware of what information each bureau has collected. Another option is to pull your credit report from one agency, and reserve the right to get your free reports from the other two CRAs as you work on improving your credit standing.

We believe it is best to have the full overview up front. Different CRAs have different methods of calculating these scores, and may also have different information contained within their findings. Consider the adage, "Why jump over nickels to pick up pennies?" If additional reports are needed within a 12-month period from any of the three CRAs, the cost is extremely minimal compared to the potential savings that can be realized by an improved credit score, and if you run a credit report on yourself it will not affect your own score as an inquiry.

The underwriter who is making the decision as to whether or not you should get the loan you are asking for will generally look at the scores generated from all three CRAs. Typically, the score will not be the same from all three reports, and the underwriter will consider the middle score as a barometer.

For more information on your credit call or email

Jason Schiller
Waukesha State Bank
262-244-0303 (Business)
414-659-6347 (Mobile)
jschiller@waukeshabank.com

Brad Koenig
Your Local Home Team-First Weber
www.YourLocalHomeTeam.com
262-719-7393

In the next few posts We will be addressing the following topics.

Disputing Errors On the Credit Report
The History of Credit Scoring
How Does the Underwriter View My Score?
Dealing with Credit Challenges
Do's and Don'ts During the Loan Process
Credit Remediation

Your Credit Score Part 2 The Five Factors of Credit Scoring

Brad Koenig (First Weber-Your Local Home Team) — Wed, 03 Jun 2009 14:23:44 -0500

Why Your Credit Score is So Important

The credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future. Credit scores can range between a low score of 350 and a high score of 850. The higher the score, the better it is for the consumer, because a high credit score translates into a low interest rate. This can save literally thousands of dollars in financing fees over the life of the loan.

Only one out of 1,300 people in the United States have a credit score above 800. These are people with a stellar credit rating that get the best interest rates. On the other hand, one out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loan they want because they have a score falling between 500 and 600.

The following chart illustrates how an underwriter interprets the credit score in terms of risk, and how the interest rate is affected as a result. Mortgage lenders consider a score of 700 or above to be very good.

The Five Factors of Credit Scoring

Credit scores are comprised of five factors. Points are awarded for each component, and a high score is most favorable. The factors are listed below in order of importance.

1. PAYMENT HISTORY - 35% IMPACT

Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.

2. OUTSTANDING CREDIT BALANCES -

30% IMPACT

This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.

3. CREDIT HISTORY - 15% IMPACT

This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.

4. TYPE OF CREDIT - 10% IMPACT

A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.

5. INQUIRIES - 10% IMPACT

This percentage of the credit score quantifies the number of inquiries made on a consumer's credit within a six-month period. Each hard inquiry can cost from two to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. In other words, 11 or more inquiries within a six-month period will have no further impact on the borrower's credit score. Note that if you run a credit report on yourself, it will have no affect on your score.

Remember that the credit score is a computerized calculation. Personal factors are not taken into consideration when a credit report is generated. It is merely a snapshot of today's credit profile for any given borrower, and it can fluctuate dramatically within the course of a week.

For more information on your credit call or email

Jason Schiller
Waukesha State Bank
262-244-0303 (Business)
414-659-6347 (Mobile)
jschiller@waukeshabank.com

In my next few posts I will be addressing the following topics.

How Does a Low Credit Score Affect My
Interest Rate?
Disputing Errors On the Credit Report
The History of Credit Scoring
How Does the Underwriter View My Score?
Dealing with Credit Challenges
Do's and Don'ts During the Loan Process
Credit Remediation

Your Credit Score- What It Means to You as a Prospective Home Buyer

Brad Koenig (First Weber-Your Local Home Team) — Tue, 02 Jun 2009 11:24:39 -0500

Your Credit Score

What It Means to You as a Prospective Home Buyer.

Introduction

The subject of credit scoring has become an increasingly hot topic, and for good reason. For many years, the general public only associated the concept of credit scoring with the need to purchase high-ticket items such as a new car or a home. Today, credit scoring goes much further. Your credit score can affect your ability to get a good rate on commodities such as car insurance, cell phones, or even

determine whether or not you get the job that you want. Indeed, the financial snapshot provided by the credit score has also become a gauge for many employers, especially those who seek to place employees in a position of financial responsibility.

The credit score system used today has evolved since the

1960s. It was originally designed to provide lenders with financial profiles on consumers who wished to borrow money. The lenders' biggest concern was whether or not an individual had the ability to repay a loan, and establish what percentage of risk might be involved.

Congress passed the Fair Credit Reporting Act in 1971 to establish guidelines for fair practices in regard to the use of credit scoring. This law was designed to promote accuracy in reporting and protect the privacy of consumers. In light of the increased use of credit scoring and a growing fear of identity theft, recent legislation has been passed to further protect Americans and improve consumer awareness.

The Fair and Accurate Credit Transactions Act of 2003 (sometimes referred to as The FACT ACT or FACTA) was signed by President George W. Bush on December 4, 2003. This amends the Fair Credit Reporting Act, and provides each American the ability to obtain one free credit report every 12 months from each of the three main credit reporting agencies (CRAs); Equifax, Experian and TransUnion. Those bureaus have created a central web site, http://www.annualcreditreport.com/ to accommodate Americans who wish to obtain copies of their credit report. Phase in of access to free credit reports from West Coast to East Coast nationwide will be complete as of September 1, 2005. See http://www.annualcreditreport.com/m for a zoning map.

For more information on your credit call or email

Jason Schiller
Waukesha State Bank
262-244-0303 (Business)
414-659-6347 (Mobile)
jschiller@waukeshabank.com

In my next few posts I will be addressing the following topics.

How Does a Low Credit Score Affect My Interest Rate?
Disputing Errors On the Credit Report
The Five Factors of Credit Scoring
The History of Credit Scoring
How Does the Underwriter View My Score?
Dealing with Credit Challenges
Do's and Don'ts During the Loan Process
Credit Remediation