The Two For You

We are participating in the Realtor’s® Nationwide Open House Weekend, Saturday, June 4th and Sunday, June 5th, 2011.

Open houses, open doors to buying opportunities. That’s the promise of the 2011 REALTORS® Nationwide Open House Weekend. REALTORS® throughout the Greater Milwaukee area will be participating in the event highlighting the benefits of homeownership, including:

• Historically Low Interest Rates
• Wide Selection on Homes in All Price Ranges
• Low Prices
• Tax Advantages to Ownership

We will hold open houses and be available to have one-on-one conversations regarding the local market with future homeowners. The purpose of the Nationwide Open House is to start a discussion between REALTORS® and the public regarding homeownership, their local community, and what options (buying vs. selling, downsizing, etc.) are right for potential buyers and sellers.

First-time buyers are especially encouraged to take advantage of this event and speak to a REALTOR® as a first step toward homeownership.

Stop-by one of our Open Houses:
Move-in Ready Ranch 6/4/11 1:00-2:30
Spacious Brick Ranch 6/5/11 12:00-1:30
Classic Bungalow with Modern Flair

We look forward to seeing and talking with you.

The results are in for the “Is a Home Inspection Important Poll”.

#1: Always

#2: Important when purchasing an “as is” property.

#3: I had an inspection done on my last purchase.

Thanks for your input.

Also I asked if Donn Anderson of Anderson Home Inspection would like to comment on this topic. Donn has an amazing amount of knowledge, experience and just happens to be a very nice guy.

Enjoy Donn’s comments.

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Some friends of ours bought a home several years ago with the intention of gutting the place and therefore felt that a home inspection was not necessary. They went down to the studs and did a fantastic rehab. The housewarming party was smokin’. Yep, they never checked the fireplace and when they used it the first time, at the party, the house burned to the ground. No one was injured.

A home inspector is required to inspect a fireplace. Not an inspection like you would get from a certified chimney sweep or a member of the National Fireplace Institute, but if they would have asked me to inspect the home prior to purchase, I always recommend following the advise of the National Fireplace Institute and have a level II inspection preformed.

On a less happy note, I was an Expert Witness in a law suit a few weeks ago. The attorney for the injured party contacted me and asked if Home Inspectors were required to inspect hand railings. That was it. I said yes, and wrote a letter to that effect. I was one of the co-authors of the jurisprudence exam for Home Inspectors in WI and even include a copy of our Standard of Practice to everyone of our clients. The person who bought the property decided not to have a home inspection under the impression that the only reason to have an inspection, was to negotiate a better price on the property. Since the property was being purchased from a friend at a good price, the feeling was that it was not necessary to have an inspection. A short time later, a tenent at the property reached for the handrail on the steps and the handrail pulled out of the wall. That person was very seriously injured and will never be able to do many of the things we all take for granted.

Home Inspectors are licensed in WI by the Dept of Regulation and Licensing. We are “required” to report on Material Adverse Facts – something that significantly reduces the functionality or structural integrity of components or systems and something that poses a significant health or safety risk to the occupants. It’s not just about the money, it’s about health and safety too. When I was asked my opinion about not having a home inspection, I said I thought it was foolish. On my drive home I wish I would have said it was irresponsible. I know that sounds strong and opinionated especially coming from someone who earns a living inspecting homes. The comment is not meant to be self serving. Think about that person that was injured, realize that if that person fell and landed in such a way that the worse that could happen, did happen. Now think of that person being the person that you love the most. For the price of a home inspection, lives can be changed forever.

Donn Anderson

Anderson Home Inspection

Poll results-Is this a good time to buy.

Yes-prices are low.

It is no surprise that this question received the most votes. Any one watching prices have seen the down slide. Being in the trenches everyday I see this first hand. So, yes prices are low and it is a good time to buy.  

Yes-interest rates are low.

This question received the second most votes. I asked Shane LaMacchia with PyraMax Bank his take on this. “Another great reason to buy is because of the historically low interest rates.  Many borrowers are saving 25% on their monthly principal and interest payment from where rates were a few years ago”.

Yes-real estate is still a good investment.

A house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Admittedly, in the early years of the mortgage, this is not much. Over time, however, it accelerates.
Second, your home appreciates. Over time, history has shown that owning a home is one of the very best financial investments.
Owning property can also have tax advantages
 
No-lending rules to strict.
No-can not qualify for a loan.

The fewest votes were for these two questions. Again I asked Shane to chime in.

It is true that guidelines are much tighter than 4 years ago, but I wouldn’t anticipate going back to that lending environment anytime soon.  There are plenty of great loan programs out there for first time homebuyers.  WHEDA has an excellent program that allows for 100% financing.  We also have some great community lending programs that can be used in conjunction with grants to buy foreclosed homes.  Another great reason to buy is because of the historically low interest rates.  Many borrowers are saving 25% on their monthly principal and interest payment from where rates were a few years ago.

All things being considered this is a good time to buy.
Give me a call, email or….
Let’s talk, let’s go shopping.

Special thanks to Shane.
Shane LaMacchia
PyraMax Bank
SLamacchia@pyramaxbank.com
414.238.2952