Home Value Depreciation was Inevitable

From 1980 - 2000, home values appreciated at a rate of 26.5% every 5 years. Each 5 year increment was close to that number, ranging only from 25-29%. Then something strange happened after 2000 - home values appreciated 89% in the following 6 year period! This 89% increase in home values was simply unsustainable. The market's recent decline is a move towards stability and a healthier market.

Staging Your House on a Budget

I read a good article about staging a house on a low budget in REALTOR magazine (April 2009 issue). Here's a quick summary:

EXPAND THE CLOSET - Remove the clothes you rarely wear. Try to create some space so the closet doesn't look cluttered

CREATE A BED - If you have a vacant bedroom, you can "create" a bed by putting some empty boxes together and covering it with nice bedding

CLOSE IT UP, EXCEPT SUNLIGHT - Close all the drains, sinks, toilets. Close closet doors. But leave the shades open for sunlight!

GO GREEN - If you have some "green" features already (like energy efficient appliances/mechanicals), then continue the theme throughout the house with strategically placed soy candles, homemade guest soaps, green cleaning products under the sink, etc.

ADD SOME LIFE - Put a large plant in the most visible corner. Silk trees are a good option. Even think about putting a spotlight behind the tree. Also, place fresh flowers in the kitchen for open houses, or if you know you have a couple showings coming up.

SET UP A CHAT ROOM - Position the living room furniture for conversation as well as entertainment.

ADD BATHROOM ELEGANCE - Get some decorative hand towels, tie a sheer ribbon around them, and place them on towel racks in all the bathrooms. Perhaps try doing it with your current towels if you think it looks good enough. For the towels that you use, buy new ones if they don't look new/clean. Buy a nice soap dispenser to go next to the sink.

NIX THOSE PERSONAL PHOTOS - Put most of the personal pictures away. Try to get the buyer to focus on the house, not you!

REDO THE DOGHOUSE - Freshen & consolidate pet areas. Buy new food & water bowls. Choose one place for beds, litter boxes, etc - and try to put them in out-of-the-way places. And clean before all showings!

BRIGHTEN IT UP - Replace the lightbulbs in the home with higher wattage bulbs (remember to stay within the guidelines of your lamps, though!). You want your house to be "Light & Bright."

FRAME A LOCAL SCENE - Put a few pictures up of local scenes. You don't want buyers thinking about other cities or vacations...keep them focused on their mission of buying a home - hopefully your home!

GET THEM AT THE ENTRANCE - Pay attention to the details of the entrance. First impressions are important! Re-stain, paint and/or varnish trim & doors. Make sure the doors open and shut correctly, and knobs aren't loose.

Buyer Agency Explained

I want to quickly tell you about the advantages of Buyer Agency in the State of Wisconsin. The first thing to point out, is about 90% of sellers sign a listing contract with a Realtor. So nearly all Sellers have their own Realtor (the Listing Agent) that is working for them and looking out for their best interest.

Now if you want to buy the Seller's house, you probably do not want to be working with the Listing Agent. Because the Listing Agent is working for the seller. He is trying to get the HIGHEST price possible for the house. This is why you as a Buyer should have your own Realtor - a Buyer's Agent.

One of the great things about having a Buyer's Agent, is that you should not have to pay anything. You might be asking How does this work? Well, when the seller hires a Listing Agent, they agree to pay the Listing Broker a certain commission. And that Listing Broker will typically share the commission with any Buyer's Agent who finds a buyer for that particular house.

So essentially the Seller is paying the commission for both Realtor's involved with the transaction. One important thing to note is that the amount of commission typically does not change, whether or not there is a Buyer's Agent involved. Either the Listing Broker gets the entire commission, or he shares it with the Buyer's Agent.

I should note that you want to be working with a Buyer's Agent at the beginning of your home search. First of all, the Buyer's Agent only gets to share the commission if they are the one bringing you to the house. So it is important that you only contact your Buyer's Agent. For example, if you drive by a house you are interested in, DO NOT call the Realtor who has his name and number on the For Sale sign. That is the Listing Agent, and they are working for the seller. When you are interested in a house, you want to contact your Buyer's Agent, and he can setup a showing or get more information for you.

Here are the bullet points of what a Buyer's Agent will do for you:

*Send property info to you of listings that match what you are looking for. You can get emails as soon as new listings are added to the MLS

*Setup showings for properties that you want to view. They will attend these showings with you and answer any questions you might have

*Always be looking out for your best interest

*Take care of all the necessary paperwork and negotiations when it's time to write an offer

*Oversee the contract to close period. Make sure all contingencies are met and that your best interest is protected

And remember that this should all be FREE for you, because the Buyer's Agent will likely be getting paid from the Listing Agent.

I say "should" be FREE, because there are certain instances when the Listing Agent would not need to share the commission. And there is that 10% of sellers that don't have a Listing Agent. In those situations, there is a chance you would have to pay your Buyer's Agent.

When I sign a Buyer Agency agreement, I guarantee that my buyer will not have to pay a dime.

So, if you are looking to move to or within the Madison area, please call or email me and I would be happy to discuss further with you about Buyer Agency and your house search. You have nothing to lose, and your new house to gain!

If you would like to search homes in the Madison area right now, then click the button below. You will get access to the most current snapshot of ALL listings for sale in the region.

SEARCH HOMES FOR SALE IN THE MADISON AREA

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Real Estate Newsletter - October '09