Wisconsin Rapids Real Estate – Wisconsin Rapids Homes For Sale

…or how long it will take to sell all the homes currently for sale in Wisconsin Rapids…

I don’t like to make predictions. At some point in every listing presentation, usually after we start to discuss a listing price, a home owner will ask how long it will take to sell their home. And that’s an answer I really don’t have.

I could guess. But I always feel conflicted because in the end, the buyer will control how long the home is for sale.

I know what you’re thinking… I bet it’s something along the line of: Really?!?! The buyer has the last say in how long a home is for sale… I know, I know.

How about if I take out ‘buyer’ and insert ‘market’:

The market controls how long a home is for sale.

Does that make more sense?

But if I had to give you one piece of data to help answer your “how long” question, it would be the Absorption Rate. Remember, data never lies…

What exactly is the Absorption Rate?

The absorption rate is the calculation of how long it will take for all homes on the market in Wisconsin Rapids to be sold, or absorbed, at the current rate of sales.

Below you will find the activity for Wisconsin Rapids during the past 9 quarters:

As you can see the number of homes sold in the second half of 2009 was considerably higher than 2008.

You can guess why, right? (Hint: it was some type of tax credit)

And remember, the First-Time Home Buyer Credit has been extended AND they’ve also added a new tax credit for home owners who’ve lived in their home for at least 5 years. So if I had to predict (ignore, for a second, that I said I dislike predictions ) I’d bet money that more homes will be sold during the first quarter of 2010 compared to 2009 as well.

Months of Inventory

Realtors generally agree that 6 months of inventory is the magic number. Below 6 months of inventory you have a sellers market. Anything above you have a buyers market. As you can see its been a buyers market for awhile.

But, as more and more buyers hit the market, the the number has been pushing itself back towards the magical 6 months of inventory. And when the number is close to six everyone wins. Why? Because a seller knows they should be able to sell in a reasonable amount of time and a buyer knows they still have choices and time to find the right home.

Personally, I know the market is active. In the past month I’ll have added 3 new listings. In the past two days I’ve fielded calls from three different prospective buyers.

And I know I can tell them all that it’s a good time to be buying or selling a Wisconsin Rapids home…

Question: How much time, energy, research, and conversation will you put into choosing your Realtor?

Continue to ponder that answer as you continue reading…

First, I heart Seth Godin. You know Seth, the author of some really cool books like: Purple Cow, The Dip, Meatball Sundae, and Tribes. Click here the rest of his very cool and very thought provoking books.

Not only have I read all his books but I read Seth’s blog everyday as well. Why? I guess it boils down to his ‘perspective’ on all things.

Recently he wrote an article titled “The First Transaction.” His point being:

Why should a business expect a person who just walked into their store for the first time, or just found their website, or just met them at a Chamber of Commerce event to make a purchase that very moment?

What do you know about their business? About them? Do they create quality products? How do they treat you if it breaks and you need to return it? What are their current customers saying about them? Will they purchase from them again?

You’re not in the business of throwing your money away…

The digital world is making finding these answers easier and easier. Twitter, Facebook, Google search, blogs…

The internet makes it easy for us “to connect, transfer knowledge, engage in a way that builds trust” so that way one day you’ll “trust me enough to send some money my way.”

Or in my case, you’ll trust me enough to buy or sell your home with me.

Lets back-up to my original question: How much time, energy, research, and conversation will you put into choosing your Realtor?

First, if you’re selling your home, how much will you pay in commission fees to your Realtor?

If you’ve only just met, or you’ve only heard about your Realtor… Are you comfortable having your first transaction with this person being worth a few thousand dollars?

I bring this up because even if we’ve never met IRL (in real life) you’re able to know me by my 18+ months of writing about Wisconsin Rapids real estate here on this site. Or my 10 months writing on GoRapids.com. Or by following me on Twitter. Or Facebook. Or by Googling me.

By reading my articles you can see my ideas. You can know what’s important to me. You’ll know what to expect when we meet face to face.

I’m trying to make it easy for you to trust me… To make you feel comfortable…

How have I done?

Following are many of the most popular questions about changes made to the Homebuyer Tax Credit.

Remember, homeowners who’ve lived in the home for 5 out of the past 8 years now are eligible for a tax credit up to $6500… Have you called yet to get your home on the market? It’s free money…

Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit:

Question: Existing homeowner credit: Must the new home cost more than my old home?

Answer: No. If you move from a high cost area to a lower cost area you still meet the eligibility requirements for the $6,500 credit. 

Question: I’m an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I’ve lived in my current home for more than 5 consecutive years and am within the new income limits. I went to closing on November 20. I accepted the offer before the bill was signed, but my closing happened after the signing took place. Do I still qualify for the new $6,500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of closing.

Question:I’m a first-time homebuyer, but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I’ll be covered, however, by the new income limits. Because the new rules will have been signed into law by the time I close on my home, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, with is the closing date.

Question:I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6,500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question:I owned my home for 10 years, but sold it two years ago and have been renting since. If I purchase a home, will I be eligible for the $6,500 tax credit if I meet all the eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you’ll qualify for the $6,500 credit. For example, say Cathy and her husband bought a home in 2000 and lived there until 2008 when they divorced. Whether Cathy has been renting or bought in the interim, she WOULD INDEED be eligible for the credit because she owned a home and occupied it as her principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as she lived in that home for 5 years straight what she’s done since doesn’t impact her eligibility.

Question:I’m an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Did I have to go to closing before December 1? How does the extension affect me?

Answer: You did not have to close before December 1. Once the legislation was signed, it was as if the November 30 date never existed. Therefore, as long as the contract settles before April 30, 2010 (or July 1, worst case), the purchaser will be eligible for the credit.

Photo Credit

Foreclosures, the hottest new trend in real estate. Everyone envisions purchasing a foreclosure for pennies on the dollar. Instantly gaining thousands of dollars in equity.

On paper it sounds like the perfect way to purchase your next home.

But there’s a problem. It can become quite expensive… Here’s how:

In a normal real estate transaction every seller fills out a Property Disclosure form. This is a bunch of questions asking the homeowner if they are aware of any major problems with their home. Water leaks, electrical issues etc. It behooves the homeowner to be honest in answering these questions because if it becomes apparent that they lied there can be repercussions for the homeowner.

Obviously with a foreclosure that homeowner does not own the home anymore, the bank does. And because the bank has not lived in the home they do not complete a Property Disclosure form.

That’s a hassle but not a deal breaker. It just means you have no background information as you begin your due diligence…

Next, as a Realtor I’m not allowed to do many things. One of which is to give legal advice. Another of which is to give advice on the status of the mechanicals of the home. The plumbing, electrical etc. I’m not a professional electrician or plumber. Nor did I sleep at a Holiday Inn last night… My role is to handle the negotiations and contracts. The closing and legal transfer of title is then handled through your lender and a lawyer.

Lets back up for one second. In a normal situation the homeowner will do everything in their power to make sure the home is in the best possible condition to sell. In a foreclosure, the homeowner is beyond upset about losing their home and in many cases will damage and leave the home in worse condition than when they lived there. Often times the damage will go unnoticed by you and your real estate agent.

This leads you to hire a property inspector to thoroughly inspect the property from top to bottom looking for issues and things that need to be repaired.

So, the property inspector does their thing and finds a problem(s). One major issue is the electrical is not up to code. You get an estimate and find out that it will cost you upwards of $1000. And this is on top of you having to paint because many walls have scuff marks because the previous homeowners moved as fast as they could with no regard to damaging the home. Plus there’s a hole in the wall that needs to be fixed. You get the idea.

All of this adds up. Property Inspection + Electrical Upgrade + Other Fixes = More money than you’re comfortable paying out.

So you decide to pass on this home, but you’re now out the money you spent to have the property inspection and you’re no closer to finding your next home.

And that is how purchasing a foreclosure can become expensive.

This is a continuation of my discussion on First Weber’s new multi-media program Front Runner. You can read the original article as well as the follow up on the text messaging component.

Today you get to see ’stuff’ that’s automatically created when your home is listed. This insures that everything associated with your home is of the highest quality. Plus it allows me to save time, thereby allowing me to do my job, which is to get your home sold.

I’m able to easily send these links to any interested person. They click on it and they can see a flyer, a video, a map where the home is located, my contact information… Everything.

I use these in emails to buyers, in your Craigslist ads, and on the website I create for you. Plus buyers have access to this information when they view your home on FirstWeber.com.

I’ve always said that you don’t know where the buyer for your home will come from so the more arrows you have in your quiver the faster you’ll end up selling your home.

Without further ado, check out the following links:

• Flyer
• Tour
• Video

The embeddable video is below. It’s used in websites (like this one)…