Category: Real Estate Tips

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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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A Madison Buyer’s Real Estate Update

I recently put up a post about whether it was better to rent or buy here in Madison.  The Freddie Mac site I had recommended targeted both personal and financial reasons to consider one option over the other.  As a follow-up, I want to share a mortgage calculator that compares the financial impact of renting versus buying.  I found some interesting information when using the calculator with average Madison costs.  Assuming you were renting an average priced 2 bedroom apartment in Madison (data provided by ApartmentRatings.com), you would be spending $825/month.  After inputting the monthly expenditure of $825, the current average 30 year fixed interest rate of 6.1%, and a $5000 down payment, the calculator estimates that one would have the following after 30 years.

If you were spending $825/month on a mortgage:

You would own a $396,150.27 house

You would have saved $45,040.86 in income taxes on interest payments of $160,860.21.

If had rented a property for the $845:

Instead your $5000 down payment would have grown into $57,791.26

This calculator, which takes into consideration long term inflation, investment return, and tax rates, shows that Madison home ownership makes great sense.  Trulia is reporting that the average sale price for a 2 bedroom property in Madison is only $165,000 with many Madison area properties on the market for much lower.  With higher inventories and great negotiating power in Madison, now is the perfect time for buyers to step into the real estate market.  If you are considering Madison home ownership and have questions about the market or how to proceed, please feel free to contact me.

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Ready for WI Homeownership?

There is no doubt that we have entered a buyer’s market here in the Madison area.  This market, although great for all buyers, is especially great for the first time Madison area home buyer.  With plenty of mortgage options available and still amazingly low 30 year fixed rates available, people with adequate credit and stable income have enormous buying power in this Madison market.  Despite the fact that buying property in Madison continues to prove as a solid investment, buying a home is a huge decision and it is important that each person ensure that it is right for them.  I found some great tips on the Freddie Mac site that I thought potential first time home buyers may find helpful.  It lists some of the great pros to home ownership, like having your OWN place and the potential for fixed monthly payments for the next 30 years, as well as some risks of homeownership that you may not have considered.  I would urge everyone to take a look at this site and then let me know if you are interested in making a real estate purchase here in the Madison area.

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The Importance of Staging

Despite the slower paced real estate market here in Wisconsin, there are still many viable home buyers available.  A major difference between today’s market and that of a couple of years ago, is that the property inventory levels in the Madison and Middleton areas are high.  This means that prospective buyers have plenty of choices.  Madison area buyers are therefore looking at a large number of properties before deciding to make an offer.  If you want your home to be well remembered and stay on top of their list, then the first impression is crucial. 

In order to make a strong first impression, you need to properly stage your home before making it available for showings to all the Madison and Middleton area prospective buyers.  A few key staging items are in the bathroom and kitchen.  In the bathroom, be sure to avoid having grimy walls or shower doors.  Also, if you have any outdated tiles, find a paint that is appropriate for tile and add some modern colors to the room.  This, along with replacing an outdated vanity with a pedestal sink, will give the bathroom a fresh face at a low cost.  In the kitchen, consider making low cost updates by staining old cabinets instead of painting them.  Newer appliances are also key as they scream clean!!  Buyers look for clean kitchen and bathrooms, so keep those rooms show ready at all times in order to make the best impression possible.  The HGTV site has even more great staging techniques.  I would encourage you to take a look for ideas and to call me in for some suggestions.  I have great experience and success staging homes, and I work with Madison and Middleton area buyers on a regular basis.  I therefore have firsthand knowledge to many of their likes and dislikes.  So don’t hesitate any longer, give me a call and I’ll gladly come by to help you get your home show ready!!

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Timing Your Real Estate Purchase

I know it is difficult to sort out all the real estate headlines that hit the press on a daily basis.  Foreclosures, dropping prices, and daily decreases in sales volume!  Many people are asking themselves, “is it ok to buy a home with all of this swirling?”  Absolutely!!  With the shift that has occurred in this real estate market, we are definitely in the midst of a buyer’s market.  There are greater prices today than what we have seen in years, and these prices are paired up with fantastically low-rate mortgages.  Many speculators believe the Federal Reserve will cut the rate again by another quarter point at the end of this month.  This potentially means even better interest rates during a time when buyers have great negotiating ability.  My recommendation is to get a head start on your property search so that you are ready to take advantage of these great rate offerings.  This is a perfect time to step into home ownership and investment opportunities.