Milwaukee Real Estate Podcast With Joe Richardson

Recently, I received questions from a lot of people, so today we’re going to answer those in a quick Q&A session. Q: How do I make an offer? A: In the state of Wisconsin, you would use a state-approved offer to purchase form. There’s usually an addendum that goes with it, and an attorney or a real estate agent can help you draft it. It’s possible to do it on your own, but there are a lot of contingencies and other items that you would want to be educated about before you try it alone. Q: How many homes should I consider before choosing one? A: The answer here is subjective. It depends on the type of home you want, and how many homes are available. If your offer on a house that you love is accepted, you’re probably not going to be looking at too many homes. However, there are situations that may warrant looking at several homes, sometimes as many as 20. Searching for the right home is a process, not an event. “Searching for the right home is a process, not an event.” Q: How does purchasing a home compare with renting? A: I always tell people that a house is essentially a bank account. Why not live in a place that you love and pay your own mortgage instead of your landlord’s? One thing to consider is a “stress test,” where you make sure that your house would be worth enough in a market that’s inferior, so you can sell it in the future. Nine times out of 10, owning a home is going to be way more beneficial than renting. Q: Is it worth getting a home warranty when I’m buying a house? A: If there are old appliances that may need to be replaced, then yes, and hopefully you can get that paid for by the seller. If everything is new in the house, it’s probably less important, because the chances of those appliances failing are much lower. If you have any other questions, please keep posting them, and I’ll be happy to answer them for you.

What is the difference between a home appraisal and a home inspection? In short, a home appraisal proves value while an inspection proves condition. A home appraisal proves value specifically to the lender, who will come into the home and take a few measurements.  From the information they gather, the lender will then compare your home to others in order to determine its value. A home appraisal allows the lender to be sure that the home is worth the collateral they need to give you a loan. “A home appraisal proves value while an inspection proves condition.” A home inspection is a different story altogether. Home inspections are done to prove the condition of the property for a current or future homeowner. Inspectors will carefully examine every part of the home, from its roof to its electrical systems, to uncover potential issues. This will enlighten the inspector, and therefore the homeowner, to any potential repairs or costs that may come up. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

There are many different loan types, including conventional, FHA, rehab, VA loans, and many more. We’re only going to talk about a couple of those loan types today, but you will choose your loan based on your situation and on the house that you want to buy. If you’re buying a standard, move-in ready home and you’re a first-time buyer, your credit history, employment history, down payment, and long-term goals will all factor into the type of loan that you want to apply for. I always say, “The more down, the merrier.” If you can put 20% down on your home, you can avoid things like private mortgage insurance, but for most people that’s just not an option. FHA loans are popular because they allow you to put less down and allow you to keep more money in your pocket. “The more down, the merrier.” The interest rates have been so low lately that it really creates an environment where borrowing money is a smart move. Again, it really depends on the type of home that you want to buy. For example, a rehab loan might be a good option if you’re buying and renovating a home. If you want more information on the types of loans you can choose from or you’re looking to buy or sell a home, give us a call. We look forward to working with you.

One question I’ve been getting a lot lately is, “When I list my home, should I do a major renovation project or am I better off doing some minor remodeling?” The answer I give to 99% of the people I meet with is to do a minor type of remodeling or upgrade, as this will bring you a better return on your investment. Don’t get me wrong—a brand-new kitchen or bathroom will help your home sell hand over fist, but by the time you get done with that type of project, there’s usually a lot of unanticipated costs that can also cost you time and prevent you from getting top dollar for your home sale. “Buyers are drawn to things like curb appeal and attractive landscaping.” Research indicates you should start your upgrades outside. Buyers are drawn to things like curb appeal and attractive landscaping. Avoid getting too customized with your renovations, though. Not everybody likes a certain color or style, so you’re better off maintaining neutrality. Lastly, do some decluttering. It’s an often-overlooked task, but it’s an easy one to accomplish. I understand if you have things you appreciate lying around the house, but clutter can become distracting to a potential buyer. If you have any questions about which minor upgrades you can make to increase your home’s value and saleability, don’t hesitate to give me a call or shoot me an email. I’d be glad to help.

The Zestimate is Zillow’s tool for calculating home values. It gives you an instant home value based on a complex algorithm, but the accuracy can be spotty. If you’re in a neighborhood, for example, that has a lot of recent sales of similar homes, your Zestimate can be pretty accurate. However, if you’re in an area that has a new subdivision nearby or your house is a little older or a little newer than the most recently sold homes, the estimate probably isn’t very accurate. “The accuracy can be pretty spotty.” No matter what, you should talk to a real estate professional if you want an accurate valuation. Only an expert in the market will be able to understand what your home’s value truly is based on current market conditions and the most recent comparable sales data. If you need a professional opinion on your home’s value or if you just have any questions, you can always give me a call or send me an email. I look forward to hearing from you soon.

One question I’ve been getting a lot lately is, “When I list my home, should I do a major renovation project or am I better off doing some minor remodeling?” “Buyers are drawn to things like curb appeal and attractive landscaping.” The answer I give to 99% of the people I meet with is to do a minor type of remodeling or upgrade, as this will bring you a better return on your investment.Don’t get me wrong—a brand-new kitchen or bathroom will help your home sell hand over fist, but by the time you get done with that type of project, there’s usually a lot of unanticipated costs that can also cost you time and prevent you from getting top dollar for your home sale. Research indicates you should start your upgrades outside. Buyers are drawn to things like curb appeal and attractive landscaping. Avoid getting too customized with your renovations, though. Not everybody likes a certain color or style, so you’re better off maintaining neutrality. Lastly, do some decluttering. It’s an often-overlooked task, but it’s an easy one to accomplish. I understand if you have things you appreciate lying around the house, but clutter can become distracting to a potential buyer. If you have any questions about which minor upgrades you can make to increase your home’s value and sale-ability, don’t hesitate to give me a call or shoot me an email. I’d be glad to help.