Monday, May 12, 2008

The Milwaukee Journal Sentinel: Buyers – Determined or dilettante?

Are you a buyer or a dreamer? The Milwaukee Journal Sentinel (Sunday Edition, May 4, 2008) offers excellent advice for buyers:

1) Get Pre-Approved Before You Begin Shopping. Let your mortgage provider guide you as you determine your purchase price. Most buyers guess what they can afford. The mortgage markets have become very conservative with their lending policies and many buyers are shocked when they find out that they can’t afford their price.

2) Know Your Credit Score. In this market, you must know your credit score and how this number plays a significant role in determining your interest rate and purchase price.

3) Know The Difference Between The Pre-Approved Amount And What You Want To Spend

4) Know What You Need Versus What You Want. If the market allows it, you might actually find a home that takes care of both lists. But, don’t be surprised if you have to negotiate and weigh all of your options. The key phrase in this market: Be realistic. Just because it is a buyers' market, doesn’t mean that the Taj Mahal will be in your price range.

5) Don’t Love Every House You See. If you do, then you don’t know what you want. If this is the case, go back to the drawing board and re-focus on your needs and wants.

6) Don’t Be Too Critical of Every House You See. Again, be realistic. You might have to lower your expectations.

7) Don’t Fool Yourself To Believe You Are In Control In This Buyers' Market. There are certain submarkets in Milwaukee that have yet to feel the effects of the sluggish housing market. Know the submarket in which you are shopping. If the house appeals to you, it will most likely appeal to other buyers too. Bidding wars are still seen in today’s market.


Milwaukee Journal Sentinel: The Clock Is Ticking – Agents tell buyers, sellers to be efficient (Joanne Cleaver)

This article focuses on a couple that has seen their friends make lots of mistakes when shopping for a home. They decided to take a more efficient approach.

Before contacting an agent, they visited open houses to determine the state of the real estate market. By visiting open houses, they were able to establish their expectations for what they can realistically afford. Also, they were able to determine their wants and needs as well as what they liked and didn’t like. They determined their preferred neighborhood location. They determined the style and age of the house. They were able to do all of this before hiring an agent to represent them in the transaction.

Many buyers, like this couple, prefer to do as much work as possible before speaking to an agent. When asked about this process, many of these buyers feel that they would be wasting an agent's time if an agent was involved from the very beginning of their search. However, if you know the name of the agent you will ultimately hire to represent you during your purchase, please let the open house agent know that you are working with an agent. Your agent will thank you for your assistance.

Although it is a buyers' market, that doesn’t mean that buyers have time to waste. This article suggests that buyers should not waste time by looking at several dozen properties before deciding on their home. The article also suggests that buyers should not waste time by submitting offers which they don’t think will stand a chance of being countered, at a minimum. The wife featured in this article said, “You’re always taking a chance that you might get a better deal, but while you’re worrying about that, you might lose something you love.”

Another reason to be efficient with your search has to do with the new lending practices of mortgage providers. These days, lenders are offering pre-approval letters with a much smaller window. Lenders are forcing time pressures on buyers. According to the article, “the tighter the time frame of prequalifying, making an offer and closing, the better the chances that the deal will hold together.”

Joanne Cleaver, writer for the Milwaukee Journal Sentinel writes more about the importance of being an efficient buyer in this marketplace. For more house hunting tips and suggestions, click here to read the entire article titled, “The clock is ticking: Agents tell buyers, sellers to be efficient”>>>



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posted by David Ray @ 7:42 AM 0 comments

Sunday, May 11, 2008

The Milwaukee Journal Sentinel: Sellers – Serious or spurious?

Are you a seller or a tester? The Milwaukee Journal Sentinel (Sunday Edition, May 4, 2008) offers excellent advice for sellers:

1) Know If You Owe More On Your House Than What You Will Walk Away With. Most sellers are still able to walk away with a profit. However, I’m seeing an increase in the number of sellers that will need to bring money to the table to sell their homes. If you believe that this is true for you, then you might not be able to afford to sell.

2) Know What’s Important To You – Selling Your Home Or Making A Profit. If you focus too much on the profit piece, then you will find that the market doesn’t see the value of your home. If the desired result is to sell your home, then by pricing your home to meet the value the market assigns will reflect in a successful sale.

3) Know That The Market Doesn’t Care What You Spent On Improvements. I tend to use accounting terms to describe this statement. The price you paid for your home and the price you paid for improving your home are “sunk costs.” Therefore, when you price your home, don’t reflect on the money you spent on maintaining your home. Buyers and the market simply don’t care. The Journal Sentinel suggests that if you “over-improved, you may have to relinquish expectations of getting back what you spent.” For more on the topic of appropriate pricing techniques, see the section that follows this list.

4) Get Your Home Ready To Show Before Entering The Market. I always advise my sellers to do the following before we launch our marketing campaign: (1) Declutter, (2) Depersonalize, (3) Neutralize, and (4) Pack and Clean. My advice for sellers is to walk through the home as if they were a critical buyer in this market. When they enter a room, what do they see? Do they like what they see? Are there any distractions in the room which will leave the buyer questioning any aspect of the room? First impressions are key – not only for the outside curb appeal, but with every single room of the home. As soon as a seller has done the four steps above, then I return to the home to take pictures and launch the campaign. In today’s market, buyers won’t see a home unless there are pictures included on the internet. I want to make sure that every picture looks its very best before I include it on the property’s website.

5) Get Prepared To Negotiate Low-Ball Offers. Usually, the first offer received is the best offer. However, in this buyers' market, the first offer is usually a low-ball offer. If your ultimate goal is to sell, then don’t be too quick to reject the offer. In today’s market, buyers are looking to steal a home off the market. They realize that sellers don’t have to accept what’s given them. Sellers have four choices with every offer: accept the offer as is, counter the offer and negotiate, reject the offer, or simply ignoring that the offer exists. The deal will die over the passage of time.


Milwaukee Journal Sentinel: Some Pointers For Pricing A Home (Contributed by the Washington Post)

Here are some dos and don’ts for pricing your home

DON’T base the price on you paid. We touched on this in the previous section. Again, the price you paid is a “sunk” cost. Therefore, this amount should be not be used to determine the fair value that today’s market demands.

DON’T base your price for what your neighbor received for his home that sold a few years ago. The market is constantly changing. However…

DO analyze the market and examine comparable homes in your neighborhood that sold during the past three to six months.

DON’T pick an agent simply because he suggested the highest list price. There are some agents in our industry who will tell you a high price just to get your listing. When your home doesn’t sell, you will find that you’re upset with the agent for misinforming you for your business. However…

DO choose an agent who offers a thoughtful explanation for the suggested price. An agent who does his homework and provides a thorough explanation of the marketplace is looking out for you and your best interests (success in selling your home for the most money, in the shortest amount of time, and for the least amount of inconvenience to you and your family).

DON’T go overboard with remodeling as you prepare your home for the marketplace. Rarely will the benefits outweigh the costs of remodeling. However…

DO incur the costs of making minor repairs and improvements so your home is in move-in condition and appears to be more valuable to a buyer than your competition.

DON’T be stubborn. If weeks go by without any showings or offers, the price most likely doesn’t reflect the value of the home. Your home has the greatest chance of selling in the first three weeks upon entering the market. If it isn’t priced correctly, your home will be often overlooked. After the third week, you will soon be entering the next stage in the selling process, called “Reacting to the Market.” Buyers usually ask three questions while visiting a home: (1) How much are the sellers asking, (2) How long has the sellers been on the market, and (3) What’s wrong with the seller’s home (if the home has been on the market for a period of time)? You never want a buyer asking what’s wrong with your home. However…

DO be patient. It’s a buyers' market and buyers have many options to choose from. In addition, we’re working with a smaller number of buyers this year as mortgage providers have tightened their lending policies. It seems that buyers with perfect credit are able to obtain a loan. You may have to wait longer for buyers to pull their money together as a result of these new lending practices.


According to the article titled “The Clock Is Ticking” (Milwaukee Journal Sentinel, Sunday Edition, May 4, 2008), “every house gets only one shot at being brand-new on the market, and sellers gamble with buyers’ attention and patience if they set the price too high.”

Joanne Cleaver, writer for the Milwaukee Journal Sentinel writes more about the importance of being a proactive seller in this marketplace. For more house selling tips and suggestions, click here to read the entire article titled, “The clock is ticking: Agents tell buyers, sellers to be efficient”>>>


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posted by David Ray @ 6:44 PM 0 comments

JSOnline: Plans to redevelop buildings dropped - Economic conditions lead to withdrawal of hotel, condo projects

Recently, two real estate developers have cancelled proposals in the downtown area due to the volatile state of the mortgage industry. The mortgage crisis, which came about the fallout from the subprime mortgage markets, has not only complicated residential transactions, but has also made financing larger commercial projects difficult. Nearly every mortgage provider has reorganized their lending policies, making it more difficult for real estate purchasers and real estate developers from obtaining the necessary financing. In addition, many real estate developers have postponed their developments due to the challenging economic conditions.

Tanesay Development LLC, a Denver firm that specializes in redeveloping former industrial properties, has dropped its proposal for redeveloping the former Gallun Tannery site. Tanesay was planning to develop housing and retail space on this former tannery’s site.

Gabaldon Properties LLC is also not proceeding with plans to convert the seven-story Posner Building into a 160-room Holiday Inn Hotel & Suites. The Posner Building is located on the corner of Wisconsin Avenue and First Streets. Mo’s Irish Pub is one of the largest tenants of the Posner Building.

One of Tanesay’s principal said, “Demand for housing near downtown remains strong, but there are enough nearby units under construction to meet that demand for the foreseeable future.”

Tom Daykin, writer for the Milwaukee Journal Sentinel, writes more about another real estate development that was hit hard by recent economic conditions and mortgage fallout, First Place on the River. For months I have blogged about First Place on the River. This month, I decided to give this development a rest. However, plenty of articles have been posted on this topic since last month. The good news for investors at First Place is that Barry Mandel of The Mandel Group is taking over operations of this site and will continue to sell off any remaining condominium units. Click here to read the latest regarding Gallun and Posner Building>>>


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posted by David Ray @ 6:33 PM 0 comments

JSOnline: Target takes aim downtown - Discount chain looking at 3 sites

Despite the doom and gloom you are reading about regarding stores closing (e.g. Linens & Things, Home Depot, etc.), it’s refreshing to read stories about stores considering a move into the area, like Target.

However, this isn’t the first time Target has been shopping for a downtown presence. Although they seemed serious about this location in the past, they later backed off and basically said they were not interested in downtown Milwaukee.

The current economic slowdown would likely delay this national chain from moving forward in the downtown community; at least until the national retail climate improves.

For now, it seems that Target is showing preliminary interest in opening a store in downtown Milwaukee.

Although a company spokesman for Target has declined to comment on this topic, it appears that Target is considering three locations (according to people familiar with the process). The possible locations include:

1) Three-acre parking lot south of Michigan Street, between Plankinton and Second Street, across the street from the Shops of Grand Avenue.

2) Two-acre parking lot, owned by the city, located south of Wisconsin Avenue, between Fourth and Fifth Streets, across the street from the Midwest Airlines Center.

3) Six acres located north of the Bradley Center and south of Juneau Avenue, between Fourth and Sixth Streets where the former Park East Freeway once stood.

Tom Daykin, writer for The Milwaukee Journal Sentinel, writes more about Target’s future in downtown Milwaukee. Click here to read the entire article>>>

In a similar article posted on OnMilwaukee.com (titled “Kohl’s Chair: “Not enough going on downtown””), writer Andrew Wagner, criticized Kohl's Department Stores chairman Larry Montgomery’s response about the possibility of building a store in the Downtown area. According to Wagner, Montgomery not only flat-out dismissed the notion; he also made one ridiculous comment: "There's not enough going on downtown for us to put a store there.” As you can imagine, Wagner, who lives downtown, spends the remaining part of the article to defend all there is to do in downtown and compares the downtown lifestyle to the Menomonee Falls lifestyle (where Kohl’s Corporation is located). Click here to read Wagner’s argument regarding our home-town store>>>


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posted by David Ray @ 6:20 PM 0 comments

Current Listings!

New Listing! The Bowman Lofts #205 - Price: $185,000

Bowman Lofts combines 19th-century charm with modern conveniences and is located along one of the most exciting streets of downtown Milwaukee, Milwaukee Street. Shops, restaurants, nightlife, galleries, and museums are located within a short walk from the front door of this historic condominium. Although close to the action, the owner of this two-bedroom loft appreciates the quiet atmosphere of her building. Bowman Lofts is an intimate 10-unit condominium association. This warehouse loft faces west and experiences a great deal of afternoon sunlight through the eight oversized windows. This loft features 10-foot ceilings and spacious rooms. One deeded parking space is included. Click here to read more about this warehouse-lofted condo>>>



New Price! Riverbridge #401 - $204,900

Enjoy the afternoon sun and the Milwaukee River views in the sunroom of this top-floor condominium. This spacious, one-bedroom condominium features one indoor heated parking space and has been updated throughout: Granite countertops, stainless-steel appliances, convenient pull-out kitchen cabinet drawers, maple hardwood floors, and high-end window treatments. Click here to read more about this top-floor, riverfront condo>>>




New Listing! Western Leather Lofts #109 - $280,000

Are you looking for a truly, urban experience? Then look no further than this spacious, two-story warehouse-lofted condo. This amazing unit features exposed Cream-City brick, original wood post/beam construction, concrete-heated floors (dues include heat!). Structural steel open staircase & suspended catwalk adds even more living space to live & entertain. Second floor addition creates enough space for a second bedroom or home office. Sunlight floods the entire condo through its six oversized windows. Stainless-steel appliances, custom cabinets, large island with breakfast bar complete the well-thought-out kitchen. Other conveniences include in-unit laundry & one indoor parking space. Click here to read more about this warehouse-lofted condo>>>



New Price! River Court #207 - $309,900

Are you looking for something different? This Vetter Denk designed riverfront condominium features Brazilian Cherry hardwood floors in the living room, dining room, kitchen, gallery, and home office. Entertain guests on two spacious balconies which overlook the Milwaukee River. You will be impressed with the great room and its three walls of expansive, floor-to-ceiling windows which offer sunrise, midday, and sunset views of the river and Riverwalk. The kitchen features granite countertops, stainless-steel appliances, under-mounted stainless-steel sink, and spacious breakfast bar. The bathrooms are even more incredible: granite countertops, double vanity in master, under-mounted stainless-steel sinks, and limestone flooring and tub surround. Click here to read more about this amazing riverfront condo>>>



New Price! Western Leather Lofts #403 - $315,000

This warehouse-condominium features two bedrooms, den, great room, and two-full bathrooms. For the past six years, the owners have enjoyed their southwest corner, sundrenced condominium that features 11-oversized windows overlooking the city’s skyline. If they sell, they will sadly miss walking out their front door and visiting their Brady Street neighbors, ethnic restaurants, and boutiques. Other unique features include exposed Cream-City brick, exposed beam and post construction, polished concrete-heated floors, and two deeded parking spaces. Click here to read more about this warehouse-lofted condo>>>



For more information about these properties, please contact me at (414) 412-7980 or e-mail at dray@shorewest.com.



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posted by David Ray @ 4:24 PM 0 comments

Downtown Events: May-June 2008

Downtown Dining Week – May 29 – June 5, 2008

Save the date and your appetite! Milwaukee Downtown, BID #21 is dishing out a second helping of Downtown Dining Week. No passes, coupons or cards. Simply dine at one of 30 participating restaurants and select from a special three-course menu. At just $10 for lunch and $20 for dinner, it's one delectable deal that's easy on the wallet. Plus, we're giving away $750 in downtown dining gift certificates to two lucky diners. Just fill out a comment card at a participating restaurant during Downtown Dining Week. The more you dine, the greater your chance to win. Happy Dining! Click here for a complete listing of participating restaurants>>>


Other Early Summer Events

PrideFest – June 6-8 – Henry Maier Festival Park
Locust Street Festival – June 8 – Locust Street in Riverwest
32nd Annual Riverwest Beer Run or Walk – June 8 – Riverwest Neighborhood
Bead & Button Show 2008 – June 8-10 – Midwest Airlines Center
Lakefront Festival of Arts – June 20-22 – Milwaukee Art Museum
Polish Fest – June 20-22 - Henry Maier Festival Park
Summerfest – June 26 – July 6 - Henry Maier Festival Park
Fireworks Kite Festival – July 3 – Milwaukee Lakefront
U.S. Bank Fireworks – July 3 – Veterans Park



Summer-Long Events – All Events Start in June


East Town Farmer’s Market – Every Saturday – Cathedral Square Park

Visit the Market every Saturday and find everything on your list and more. Pick up your coffee, stay for lunch, shop, and listen to live music or watch a chef competition. Make the East Town Market your first stop Saturday mornings. Over 80 Wisconsin farmers, craftsmen, bakers and chefs offer seasonal, fresh and unique items. Everything is made or grown locally! Click here for a listing of participating vendors>>>


Jazz In The Park – Every Thursday Evening @ 6:30PM - Cathedral Square Park

Jazz in the Park is Milwaukee's favorite summer outdoor music series. Thursday evenings the streets surrounding Cathedral Square Park are alive with people, before, during and after the performance. Jazz in the Park starts June 5, 2008. Jazz in the Park features diverse entertainment with acts originating from the Milwaukee area, the region, and across the nation. The series is free to the public and showcases everything from straight-a-head Jazz to Latin jazz and everything in between. Click here for a complete schedule for this summer-long musical event>>>


Westown Farmer’s Market – Every Wednesday - Zeidler Union Square

The Westown Farmer's Market features more than forty vendors selling Wisconsin-grown produce, prepared food items and handmade artwork. Every Wednesday, the vendors come together in Zeidler Union Square to create a vibrant and diverse marketplace in the heart of Downtown Milwaukee. The Westown Association offers free, live music every Wednesday in the Zeidler Union Square gazebo from 11:45 am-1:45 pm. The lively tunes provide a musical backdrop for shoppers and the downtown lunch crowd. The local musicians perform a cross-section of musical types including swinging jazz, foot-stomping blue grass and exotic calypso. Click here for a listing of participating vendors>>>


River Rhythms – Every Wednesday Evenings @ 6:30PM – Pere Marquette Park

River Rhythms will electrify Pere Marquette Park each Wednesday, June 4th - August 27th, 2008, including a bonus performance on Saturday, August 30, 2008 in conjunction with Harley Davidson's 105th Anniversary events. Click here for a complete schedule for this summer-long musical event>>>


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posted by David Ray @ 3:37 PM 0 comments