Each season’s weather is unique here in Madison; consequently we have unique concerns during each season that we need to stay on top of as homeowners. In the winter, the snow and cold temperatures can cause ice damning. It is a very common problem among Madison homeowners that has the potential to cause some serious damage to your Madison real estate investment. Ice damning occurs when the accumulated snow stays on the roof for a period of time while the temperatures remain very cold. The heat coming from the home’s roof then melts some of the snow. As this snow melts, it drains down to the soffit where it refreezes. When enough ice gathers at the soffit, a dam is formed preventing the remaining melted snow from draining off the roof. This melted snow, with no where else to go, can then back-up and go under your roof shingles. The water will then enter your Madison home and create plenty of havoc and damage that you will have to deal with in the spring.Some Good Tips to Prevent Ice Damning
1) During large snow storms, remove excess snow from your roof.
2) Eliminate leaks from your home into your attic. This will prevent your attic from getting to warm and decrease the amount of snow that will melt.
3) Make sure that all bathroom and kitchen exhaust fans are vented outside and not into the attic.
Good Luck this winter and please feel free to call me if you have any questions about preserving your Madison real estate investment.
Returning to the Blitz: Suitcases for Kids
Keller Williams Realty West will be taking part in a service project which collects and distributes suitcases, duffel bags, and backpacks for foster children in the Madison area. Last year we had the most suitcases gathered from any single real estate office and we plan to do it again. All donations will be accepted from now until March 13th. Full information for the drive is included below. For more information on how to get involved in this Madison area charity, please give me a call. 608-444-6831. Thank You!!
Returning to the Blitz: Suitcases for Kids
“In 2006, RASCW joined the national service project designed to collect and distribute new and gently used suitcases, duffel bags and backpacks for foster children who are frequently forced to move from home to home. Since that time, we have donated more that 700 suitcases and just under $1,000 to foster care programs throughout Dane, Sauk and Columbia counties. We will once again be collecting donations at Blitz 2008 and distributing them throughout the three counties. Please remember to bring a suitcase to the Blitz on March 13, 2008.” (http://www.rascw.org/)
Any contributions will be greatly appreciated and will be stored at the Keller William West real estate office until March 13th.
Thanks so much in advance on behalf of those without.
Madison Foreclosures
One of the biggest real estate headlines in 2007 was the high rate of foreclosures. RealtyTrac’s most recent foreclosure data was posted in late November with a 94% increase in national foreclosure filings over a 1 year period. Although real estate experts believe that the foreclosure rate likely peaked in 2007, foreclosures will still have an enormous impact on the real estate market in 2008. Through October 2007, Wisconsin was 22nd in the U.S. for total number of foreclosures with 2506. The 22nd ranking only assesses the total number of foreclosures which does present some misleading statistics. When comparing the number of foreclosures per households, Wisconsin is well above the average. The US average is 1 foreclosure for every 555 households, but we are recording 1 foreclosure for every 997 households. We are therefore performing well above the average when looking at defaulted mortgages. The U.S. Department of Housing and Urban Development (HUD) has put together some suggestions for avoiding foreclosure. This article contains some great information, as well as helpful resources that may benefit many home owners in fear of foreclosure in the Madison area. Over the next couple of weeks, I’ll be detailing how foreclosures will impact our Madison area communities; so please stay tuned for more information or please feel free to contact me to inquire how this foreclosure rate may affect you and your real estate plans.
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.
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.