Summer on Wisconsin’s Waterfronts Just Got Better

Pier on Lake Wausau

Summer on the waterfront in Wisconsin can be quite enjoyable. Waterfront owners now have something more to cheer about; aside from the lovely view from their pier.  Since April when Wisconsin modified the rights of waterfront owners.  The new law grandfathers in almost all existing piers and guarantees that waterfront property owners have the right to place a pier even in areas the Wisconsin Department of Natural Resources (DNR) has deemed to be “environmentally significant.”

Existing Piers
Under the new law all existing piers are grandfathered in as long as the pier meets the guidelines below:

  • The pier must have been originally placed prior to February 6, 2004.
  • The width of the pier could be no wider than eight feet.
  • A loading platform or deck was allowed as long as it is located at the lakeward end of the pier and the platform had a surface area no greater than either (a) 200 square feet, which may be any width, or (b) 300 square feet, if the deck/platform is no wider than 10 feet.

Moreover, the new law allows the waterfront owner to relocate or reconfigure the pier as long as the pier is not enlarged.

New Piers
A new pier can now be placed without getting a permit if the following requirements are met:

  • Width: No more than six feet wide.
  • Length: No longer than what is necessary to moor your boat or use a boat lift, or 3-foot water depth, whichever is greater.
  • Number of boats: Two boat slips/lifts for the first 50 feet of water frontage of your property, plus one more boat slip/lift for each additional 50 feet of frontage.
  • Number of personal watercraft: Two personal watercraft for the first 50 feet of water frontage of your property, plus one more personal watercraft for each additional 50 feet of frontage.
  • Loading platforms: A loading platform/deck with a surface area no greater than 200 square feet.

If a waterfront property owner wants to place a pier that exceeds these standards, a permit must be obtained from the DNR.

New Piers in Environmentally Significant Areas
Piers can now be built in areas that are considered by the DNR to be environmentally significant. While you still have to obtain a general permit for building the pier, the DNR can no longer prohibit the construction of a pier. However, the DNR may impose condition on the location, design, construction, and installation of such piers.

Wet Boathouses
You may now maintain your existing boathouse if it was constructed prior to 1979. You may use unlimited resources to maintain the boathouse. However, the boathouse can not be expanded.

When looking at purchasing waterfront property it will be important to discuss with your realtor whether the current property owner has received notice from the DNR that the pier is detrimental to the public interest and if the pier interferes with the rights of other waterfront owners.

Source: “New Pier Grandfathering Legislation Signed Into Law,” The Wisconsin Realtors Association Real Estate Magazine (May 2012).

Interest Rates Are Great – Is It Your Time To Buy?

If you have been thinking about buying real estate, now is a very good time to check in with your lender to find out if:

  • You qualify for financing,
  • How much you qualify for,
  • What timeline you need to close successfully on a home!

Interest rates are as competetive as we have seen them in a long time, which is great news for those that want to buy!

Please let me know if you would like a recommendation of lenders to contact for specifics. Then let’s set a date to get you looking at some homes! Email heidi@glassslipperhomes.com.

Google Introduces Mortgage Search

Many potential homebuyers start their home search by doing research online. If you have been researching financing online, your email inbox may become inundated with mortgage offers and unsolicited messages. Now the search engine giant Google has a new mortgage search feature that can help.  Their new mortgage seach will eliminate the unwanted emails and calls by streamlining your search and making a mortgage match just for you – without the accompanying spam.

Google has recently introduced a similar process for refinance customers and they promise to extend that service to all  mortgage seekers.

Still in Beta mode, the service is only available in 38 states. However you can go to https://www.google.com/comparisonads/mortgages to see lists of lenders and their product portfolios. You can choose the package, along with rates and other costs, that works best for you.  Google also gives you the ability to calculate your monthly payment by inputting variables such as your down payment, credit status and the kind of loan you want.

One of the best features with this search tool is that you can choose to receive an offer from just one lender, and your direct contact info is not readily available. Google also promises that they will hold the lender to the offer made online – as long as basic criteria given in the search are correct and unchanged (such as the appraised value).

Google has not been able to attract major lenders, so the list of companies may be a little obscure to the average buyer. Even though, this new search tool is excellent for helping consumers shop for competitive mortgages online, without the hassles of overeager sales people and email overload.

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Closing Costs For Buyers and Sellers

If you have bought or sold a home, the final step in finalizing that sale is when you close. There will be alot of paperwork to complete and the closing costs will be indicated at this time. Most homebuyers are aware that their will be closing costs but many sellers are surprised to find that they are responsible for closing costs as well. 

Closing costs refer to all of the taxes, fees and costs required to close a real estate transaction. The amount and who will be responsible can vary from state to state.

If you are sellling your home, it is important to ask your agent for a breakdown of what you are expected to pay in closing costs as well what the buyer will pay. In most states the buyer and seller split closing costs but some states consider the buyer to be responsible or both parties can be required to pay the costs. 

The real estate market can have an impact on on who will be responsible for paying closing costs. For example in a market that is plentiful, the seller could have more of a chance in having the buyer pay the majority of the closing costs. But in a market that is struggling such as now, buyers tend to have the upper hand and many sellers will pay the majority of the closing costs in order to complete the sale.

Below are some of the common closing costs faced by sellers and buyers:

Escrow/attorney fees: Some states require third-party escrow companies handle real estate closings, while others dictate attorneys perform the function. Title companies, title agents, lenders, brokers and even real estate agents are allowed to handle closings and/or escrows depending on the state. These fees are usually split between the buyer and seller.
Title insurance: There are usually two types of
title insurance that must be purchased – the lenders’ policy and the owners’ policy. Usually either a title company or in some states a lawyer will research the title to make sure there are no liens against the property or unidentified owners. These policies protect the lender and new owner for the full value of the property. Usually, the seller pays for the owner’s policy and the buyer pays for the lender’s policy. This is often referred to as clearing title.
Transfer or documentary taxes: These are paid either to the state, county, city or a combination depending on the state. This is where the government agency gets their share of the transaction. This is also known as a reconveyance tax.
Recording fee: Usually paid to the county for recording the deed, which shows ownership of the property.
Mortgage tax: This is an additional tax collected by some states. Alabama, Florida, Georgia, Hawaii, Kansas, Maryland, Minnesota, New York, Oklahoma, Tennessee and Virginia are the states that collect this tax.
Brokerage commission: The fee you contractually agreed to pay for the selling of your home.

Aside from these costs, the seller may be responsible for costs such as any credits that were promised to the buyer for repairs or home warranties. Don’t forget that Federal law requires that sellers and buyers receive a copy of a HUD-1 form outlining all charges in a real estate transaction.

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Residential Appraisal Components and Misconceptions

One of the requirements that mortgage lenders will request during the home buying process is a real estate appraisal. For many first time buyers, there may be some misconceptions as to exactly what this is.  A real estate appraisal is a detailed report that is created by a licensed appraiser in your state and establishes the market value of a residential property. This is a very important aspect and several different considerations go into an official appraisal, and it forms the basis of the bank’s determination of the loan value. While appraisals do consider market comparisons, the actual appraisal value comes from much more than a market analysis.

Here are the components of a residential appraisal:

  • Property details
  • Comparisons  to at least three similar properties
  • Evaluation of the market conditions in the area
  • Environmental conditions that could decrease the property’s value
  • Structural issues that could decrease the property’s value
  • Estimate of time on the market
  • Status of the home site – new development, established neighborhood, acreage

Common misconceptions

  1. Appraisals aren’t the same as home inspections
  2. Appraisals are owned by the lender and not the buyer
  3. Assessed values don’t necessarily match market value
  4. Realtors do not provide appraisals
  5. Consumers do have the right to question appraisal facts and contest them

Understanding the neighborhood and ‘comps’ are an important part of your buying experience, but you are also bound to the official appraisal given to the lender. Work with your realtor, lender AND appraiser to make sure you understand all the details in the appraisal report of your new home.

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