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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).

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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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What You Should Know About The Home Seller Disclosure

Home seller disclosures are mandatory in many states and are becoming more common regardless of the state or federal requirements. A home seller disclosure is statement signed by both the home seller and the buyer listing all the pre-existing conditions of a home that could potentially affect the property value or future ability to sell.

A home disclosure is the responsibility of the seller – not the realtor or listing agent. While guidelines and disclosure forms can vary state to state, a federal disclosure for lead-based paint is required if the home was built prior to 1978. In fact, most disclosure guidelines are directed at older or existing homes, rather than new construction.

Material Facts are an important part of seller disclosures. A material fact can be any defect or situation that can impact the buyer’s decision to move forward on the purchase or the price and terms of the property sale. Here are some examples:

  • Structural defects
  • Property taxes
  • Fire or flood damage
  • Death in the home

Personal situations such as divorce, separation, job loss and other intimate matters are NOT material fact and do not have to be disclosed.

In new subdivisions, builders may choose to give additional disclosures such as future land use plans for new roads, new commercial projects, transportation intrusions (like air or rail traffic noise) and other issues that could impact a person’s decision to choose a certain neighborhood. While these disclosures may not be mandatory, current trends lean toward over disclosure to avoid possible litigation down the road.

Home seller disclosures are another piece of the home buying puzzle, but with a little due diligence, you can make them fit. Know your rights, and know what you are buying, and all the pieces will fall into place.

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The Closing Process

You have searched for homes for weeks, visited several open houses and now you have finally found the pefect home.  The final part of the buying process is called closing. For firstime homebuyers, this final step can  be confusing and may leave the buyer with many questions. Below are a few clarifications.

What exactly is closing?

Closing  is an arrangement in which a disinterested third party, called an escrow holder, holds legal documents and funds on behalf of a buyer and selle. They then distribute them according to the buyer’s and seller’s instructions. The escrow becomes the depository for all monies, instructions and documents pertaining to the purchase of your home.

How does the closing process work?

When you close, all monies, instructions and documents necessary for the purchase of the home, including funds for the down payment, lender’s funds and documents for the new loan are held in escrow. The duties of an escrow holder include: following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and/or documents in accordance with instructions; paying all bills as authorized; closing the escrow only when all terms and conditions have been met; and, distributing the funds in accordance with instructions.

What information will I have to provide?

Typically you will be asked to complete a statement of identity as part of the necessary paperwork. Because many people have the same name, the statement of identity is pucused to identify the specific person in the transaction through such information as date of birth, social security number, etc. This information is kept confidential.

How long is the closing process?

The length of closing is determined by the terms of the purchase agreement and can range from a few days to several months. Typically it can take  an average time of 30 to 45 days.

Who is responsible for the closing costs?

How the charges for the services performed during closing  can vary.  The fees and service charges to be divided might include, the title insurance policy premium, escrow fee, and any transfer taxes. Unless there is some special agreement between the buyer and seller as to how these charges are to be paid, local custom will generally be followed in drafting the instructions to the escrow holder as to how they are to be divided.
 

When does the closing process end?

The closing process ends when all funds are transferred accordingly, when all documents are signed, and when you get the keys to your new home.

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How To Have A Successful Negotiation

When it comes time to sell your home or if you are buying a new home , you will come to a point in the transaction where you will need to have a negotiation.  The negotiation process can be both complex and confusing for both sides. Of course the seller wants to get the highest amount they can and the buyer also needs to feel they have achieved the best deal. If  this is your first  negotiation or even if you are seasoned at this process, below are some tips to help you get the most from the negotiation transaction.

1. The current real estate status is a “buyers” market, where most sellers are very motivated to sell, this can give a buyer the upper hand. On the other side, in a “sellers” market, or a market where housing supply and demand are roughly equal might give the seller an advantage. If possible, you want to be in the market at a time when it favors your position as a buyer or seller. 

2. Always pay attention to the details. Buyers and seller pay a lot of attention to the actual transaction price. Don’t overlook the  other perks or benefits that can add to the overall worth. For example, if you negotiate that the roof be replaced or perhaps having the seller pay some of the closing costs this can sweeten the deal. Don’t be stuck with the idea that the purchase prince is the only financial gain to the transaction.

3. Don’t forget about financing. Keep in mind that there are several factors that can impact the final sale:

 • Has the buyer been pre-qualified or pre-approved by a lender? Having buyers that are “pre-qualified” or “pre-approved” are more likely to pose less risk than a buyer who has never met with a lender. This also shows the seller that they are serious about the offer and will give the seller more confidence. that they are a qualified buyer.

 •If there is a low interest rate, then there will be a larger selection of potential buyers. More buyers equal more potential demand, which is good news for sellers. On the downside, high interest rates will cause buyers to be more selective or cause them to withdrawal from the market all together.

 •The traditional 20% downpayment is not standard anymore. If the buyer has good credit, loans with 5 percent down or less are now widely available. Many loans where 100 percent financing are still available, although not as much as a few years back.

 Negotiation is an important tool of the real estate transaction. To be a successful home seller or buyer you should have a basic understanding of negotiation methods, knowing the motivation of the other party and adapting to their style.