Most Frequently Asked Questions in Real Estate

Sellers 

Should I order a home inspection?

It is never a bad idea to order a pre-sale inspection. This will provide you with a comprehensive understanding of your property's condition, allowing you to disclose any issues to potential buyers and address them proactively. By conducting an inspection, you gain negotiation power, save time and costs, increase buyer confidence, and comply with Wisconsin laws regarding disclosure. Ultimately, a home inspection can contribute to a smoother and more successful selling process while ensuring transparency and peace of mind for both you and potential buyers.

How long will it take to sell my home?

The time it takes to sell a home can vary based on market conditions and various other factors. Generally, it may take around four to six weeks, but in a hot market, a house can be sold within a week and even receive multiple offers. Conversely, if there is a lull in the market or challenges arise during the selling process, the property may remain on the market for several months. Recently, there has been lots of demand and competition in the market. I am seeing homes receive 6–10 offers on average, but I've seen some properties in the past 2 months get 18–30 offers, which is insane! Crazy enough, I had a buyer miss out on a property because they wanted to think about the terms of their offer on their 2-hour drive home. That same buyer ended up getting their offer accepted on a listing that had been on the market for only 2 days. Now is a great time to sell. 

What is the selling price of my home?

Determining the selling price of a home involves considering several factors. Neighborhoods and recent sales of similar-sized houses are key indicators. Additionally, factors like the age and condition of the property play a role. Major repairs or renovations may affect the price. However, it's important to note that home prices are influenced by market dynamics such as supply and demand. To get an accurate assessment, I offer a free market analysis for any property you own in Wisconsin. By evaluating these factors and market trends, I can provide you with an informed estimate of your home's selling price. Reach out to me today to discuss your property and schedule a market analysis. Not interested in selling but still want to know the market value of your property? Still reach out; I am here to spread knowledge! 

Is there a reason my home’s assessed value differs from the market value?

The assessed value and market value of a home often differ for various reasons. The assessed value is determined by a public tax assessor, typically on an annual basis, for taxation purposes. It represents the value used to calculate property taxes. On the other hand, the market value is the price agreed upon between a willing buyer and seller in the open market. The assessed value may not always accurately reflect current market conditions or the true worth of the property. Homeowners should be aware that an increase in assessed value could result in higher annual taxes. However, when selling a house, a higher assessed value can potentially enhance its market value, appealing to potential buyers. 

Are real estate prices negotiable?

Yes, real estate prices are typically negotiable. In fact, negotiation is a common aspect of real estate transactions. The list price of a home often differs from the actual selling price. The extent of negotiation depends on the current state of the market. If there is more supply than demand, buyers may have more leverage to negotiate a lower purchase price. Conversely, in a seller's market with high demand, the selling price may be closer to or even exceed the list price. However, it's important to note that market conditions can vary, and there may be instances where competing buyers offer the exact asking price to secure a property. Your Realtor can and should help navigate negotiations and guide you through the process to achieve the best possible outcome.

Buyers 

What is the first step in buying a home?

The first step in buying a home is to get pre-approved for a mortgage. This is a crucial step because it determines your financial eligibility and helps you understand how much you can afford to borrow. Without mortgage pre-approval, it can be quite challenging, if not impossible, to proceed with purchasing a new home. So, I highly recommend starting the process by going through a tenant screening to assess your financial readiness. Once that's done, your Realtor can connect you with a reputable mortgage corporation and advisor whom they trust. They will guide you through the mortgage application process and help you secure the best financing options available to you. By taking this important first step, we'll be setting a solid foundation for your home-buying journey.

Should I sell my current property before buying a new one?

When considering whether to sell your current property before buying a new one, it's essential to evaluate your financial situation and the availability of temporary housing. If you require additional equity to purchase your next home or meet the requirements of your mortgage plan, it is generally advisable to sell your current home first. This approach allows you to leverage the proceeds from the sale towards your new purchase. However, it's important to plan for temporary housing during the transition. This could involve staying with friends or relatives or arranging a short-term rental elsewhere. 

Should I do a home inspection?

I highly recommend conducting a home inspection when purchasing a property. It is a crucial step in the home-buying process. A professional home inspector has the expertise to carefully assess the condition of the property and provide valuable insights. They will evaluate the structural integrity, identify potential cosmetic and maintenance issues, and highlight any local code compliance concerns. A thorough home inspection helps you make an informed decision about the property and ensures that you are aware of any potential issues before finalizing the purchase. It also helps in determining the true value of the home. Your Realtor can help you connect with reputable home inspectors or guide you through the process of scheduling an inspection. 

Should I do a final walk-through?

I strongly recommend conducting a final walk-through before closing on a property. While it may not be mandatory, it provides you with the opportunity to ensure that everything is in order and as expected. During the final walk-through, you can verify that there have been no significant changes since your initial inspection or previous visits. It allows you to check that any agreed-upon repairs or requested improvements have been completed satisfactorily, as outlined in the purchase agreement. This visit ensures that the property meets the agreed-upon conditions before the closing takes place. It provides peace of mind and allows for any last-minute adjustments if needed. 

How does earnest money work?

When it comes to earnest money, think of it as a deposit that demonstrates your serious intent to purchase the property. As your Realtor, I would typically request earnest money from you in the form of a check or cash. The amount is usually around 1-2% of the selling price, although this can vary. By submitting earnest money, you show the seller that your offer is genuine and committed. It also provides you with additional time to conduct necessary due diligence, such as a title search, inspection, appraisal, and securing financing. Essentially, earnest money helps secure the property and shows your commitment to the transaction. The earnest money would then go towards your down payment and closing costs at closing time. 

How many homes should I view before purchasing one?

The number of houses you should view before making a purchase can vary based on your individual preferences and needs. As your Realtor, my goal is to help you find the perfect home that meets your criteria. It's important to strike a balance between exploring enough options to make an informed decision and avoiding overwhelming yourself with too many choices. Typically, buyers view several properties to get a sense of what's available on the market and to compare different features, neighborhoods, and prices. I recommend visiting enough homes to gain a comprehensive understanding of what you're looking for. But on the flip side, I wouldn't say it's a bad thing to purchase the very first property if it's exactly what you want and love. 

What happens if I decide to back out of buying a house? 

I understand that making a decision about purchasing a home is a significant commitment, and circumstances may change along the way. If you find yourself considering backing out of buying a house, it's essential to review the terms and conditions outlined in the contract. If you have contingencies in place, such as a financing or inspection contingency, you may have the option to terminate the contract without significant consequences. However, it's crucial to note that if you breach the contract without valid reasons, you may risk losing the earnest money, typically around 1-2% of the purchase price. The specifics of the situation and any potential repercussions can be negotiated between the buyer and seller.

Other

What are the current real estate market trends in Wisconsin?

The current markets in SE Wisconsin have been quite dynamic and competitive, with high demand and limited inventory. Home prices have been steadily increasing, and we have seen multiple offers on many properties. It's crucial to act quickly and make competitive offers in this market. To stay updated on the latest market trends, make sure to check out the Resource Center!

How much down payment is required to purchase a home in Wisconsin?

The down payment required to purchase a home in Wisconsin can vary based on several factors, including the type of mortgage loan you qualify for and your personal financial situation. Typically, conventional loans may require a down payment of 5% to 20% of the home's purchase price. However, there are other loan options available that may require a lower down payment, such as FHA loans that can require as little as 3.5% down. Additionally, there are down payment assistance programs and grants available for eligible buyers, which can help reduce the upfront costs. As your Realtor, I can provide you with detailed information on various loan options and down payment requirements and guide you through the home buying process. It's important to consult with a mortgage lender to determine the specific down payment amount based on your individual circumstances.  

Are there any first-time homebuyer programs or incentives available in Wisconsin?

Yes, there are several first-time homebuyer programs and incentives available in Wisconsin. These programs are designed to assist and support individuals or families purchasing their first home. One popular program is the Wisconsin Housing and Economic Development Authority (WHEDA), which offers low-interest mortgage loans, down payment assistance, and homebuyer education programs. Additionally, there are federal programs such as FHA loans and VA loans that provide favorable terms for first-time homebuyers. Furthermore, local municipalities and organizations may offer their own incentives, grants, or tax credits to help with down payments or closing costs. Contact me today so I can get you in contact with one of my trusted lenders who offers these programs! 

What are the popular neighborhoods or cities to consider for buying a home in Wisconsin?

Southeast Wisconsin offers a range of popular neighborhoods and cities that are worth considering for buying a home. Milwaukee, the largest city in the region, offers diverse neighborhoods such as the Historic Third Ward, East Side, and Bay View, known for their vibrant atmosphere and proximity to amenities. Waukesha, a suburb of Milwaukee, provides a blend of suburban comfort and a thriving community. Other cities like Racine, Kenosha, and Oak Creek offer a mix of suburban and waterfront living options. If you prefer a more rural setting, areas like Lake Country and Delafield provide picturesque landscapes and a peaceful environment. Check out my guide for the Top 10 Neighborhoods in SE Wisconsin!