Marc Frisco

What better time to start this new Blog, then the 4th of July Holiday weekend.  Sun is shining, boats are in the water and Summerfest is in full swing.  I hope to ad helpful content here as a resource to real esate in Southeastern Wisconsin as well as Northern IL.  As a licensed REALTOR in both IL and WI, I am ready to help with any of your needs.

 With the real estate market changing on a somewhat daily basis, now more than ever a dedicated REALTOR with an understanding of these aspects is essential.  The days of planting a “For Sale” sign in the yard and receiving multiple offers by the time we drove back to the office are gone.  Marketing, exposure and patience are the mainstays of selling a home in today’s changing economy.

The hard part today, is that some homeowners find that “Selling” their home today could require them to actually bring money to the closing!  This is a hard pill to swallow for most, but some of my sellers have looked at it as just a technicallity, as they are able to buy a little more home than they expected on the other side.  Many builders that speculated on the market in the past couple years, are sitting on inventory that is slow moving.  Cutting prices and increased incentives are common for most builders with existing homes to sell.  A recent seller sold a home they were only in for two years for just a few dollars over what they paid, but were able to purchase a new construction home for over $80,000 less than what it was listed for just over a year ago.

I have a few friends that have said they are not ready to buy now…they want to wait for the market to get better.  What a mistake.  THIS is the time to buy.  Our Midwest region has seen very respectable gains in the past 6-10 years, unlike our friends in Las Vegas, Arizona, California and Florida.  These gains have lost a little footing in some areas, but the opportunities have expolded.  When I first started in Real Estate, I would get at least 4-5 calls a week, asking me how they could buy a foreclosure property.  Back then, unless you had an inside track with an attorney, a bank, or the county, you were pretty much out of luck.  Today, unfortunately, you can practically drive down almost any street and take your pick.  For the flexible buyer, this has created a wealth of opportunity.

Consider this.  Most of these opportunities have come about from preditory lending and or mis informed buyers.  The expectation a couple few years ago, was that the property would increase 10-12% a year, so in two years they would have their 20% equity to refinance or sell and drop the equity into the next property.  Now what they weren’t told is that if the market stays flat, they are still at a zero or worse a negitive basis on the home….add to that the expense of a REALTOR, taxes, increased interest rates and this is a recipie for disaster.

These folks that have fallen victim to a foreclosure are not able to purchase another home, so they are forced back into the rental pool.  While a foreclosure does not make for a healthy credit score, they are still perfectly viable consumers with a very large strike against them.  As an investor, this should send huge alert signals everywhere.  With decent homes in decent areas are available often for penny’s on the dollar, now is the time to buy single family and make them available to this ever increasing pool of renters.  While some investors like to keep a portfolio of multi-family buildings, consider several single family homes.  Keep in mind that these former home owners have grown used to a garage, back yard, maybe even a pool and really do not want to have to go back into a “Apartment building”.  As I mentioned, if it wasn’t for a few unfortunate circumstances, they would have had their 20% equity and would have been upstanding homeowners.  These are ideal tenants! 

One of the subdivisions that I have had seveal listings - even owned a few homes over the years - is at historic lows yet the homes offer a wealth of value.  These are ideal for rentals.  Schools, ease of commuting and convenitent ammenites are things that will always be in demand.  While we have seen several foreclosures here in just the past few months, I’m confident that these sellers would love to stay in the community if the opportunity was there.

What is a bad market for some, does not need to be for all.  Eventhough the lending process has tightened up somewhat, there are still flexible programs for buyers looking to get into the market.  Wether it be as an investor or a first time buyer, options are still available.  While a buyer needs to have a job and half way decent credit score, we have options to purchase with very little, or no money for a down payment.

So like I said, now more than ever, a knowledgeable real estate professional is essential to succeding in this market.  Wether it is from a buying or selling position, a knowledgeable REALTOR can turn a very negitave situation into an incredible opportunity.