GREETINGS FROM VERNA ACKER
REALTY EXECUTIVES Elite
414.534.7400
FOR YOUR INFORMATION:
Real Estate Information from Western Racine County; Waterford, WI 53185
Vol XXIII October, 1999

DREAMING ABOUT BUYING SOMETHING?
One of my "catch-phrases" in my advertising is "We Turn Dreams to Realty." Every purchase begins with a dream. It can be folly to believe that you can acquire a fantasy lifestyle through a home purchase. Before you buy the dream, it is important to decide if you can live the reality. If you are a busy, two-career family who works long hours and finds little time at home, the purchase of a 5 acre hobby farm may not be the right dream. Mini farms with a pony and a duck and homes with an in-ground pool take time to maintain. Be sure that the life-change in your dream matches the reality of day-to-day living. Do you know anyone who got a puppy and then discovered that they didn't have time to take care of the big dog it became?

Making a sudden "U-turn" in lifestyle is a common error made by homebuyers. Other than following a dream of quiet and solitude in a country setting, personal crisis can prompt people to make quick decisions. Marital changes such as separation, divorce or death can cause a person to make snap decisions. Financial and personal pressures can entice you to make hasty changes. It is often suggested that you wait a year before making radical changes after a loss or major change in your personal life.

Are you looking to buy another home without first selling your current property? The temptation to find the right property to move in to can be overwhelming. You are trying to be certain that you can find what you want out there. What if I sell mine and can't find anything that I like? When you have a home to sell you can be in a bad bargaining position. Poor timing could force you to sell your home at a discount or you risk losing the home that you have chosen to a buyer without property to sell. At the least, you should have your home in good market condition and, if at all possible, on the market.

You should see a mortgage lender before you find a home. Pre-qualification is becoming the industry norm and pre-approval is the best path. A pre-approved buyer can become the best buyer, not just because they have written a good offer, but because the seller has a near "sure-thing" when your offer is lying in front of them. If you are in competition with one or more buyers, often the best buyer can prevail over the highest offer.

When buying a home, look beyond the obvious if you are looking for a good deal. If you find old paint, tired carpeting and dated appliances, you may have found a diamond-in-the- rough. Look for spacious rooms, hardwood floors and structural integrity and a neighborhood and setting that works for you. Then redecorate and rejuvenate. You now have a lovely home, decorated in your style and you probably have a home that is worth far more than your investment.

Once you have chosen a home, bring in a professional inspector. A well-meaning amateur may be well-schooled in some of the home systems. It is unlikely that an amateur will have the knowledge necessary to evaluate the whole property. It is far better to invest in a thorough home inspection from an independent, third party inspector than to rely on the seller, the agent, or your Uncle Louie. The discovery of hidden and unknown problems can be devastating. Trying to save money by passing on a home inspection is false economy. Also, interview the inspector. Find out if they are liable if they miss something. Many inspectors are only liable to the extent of their fee – normally about $300. Not many "missed" defects will cost only $300. HAPPY HUNTING!! Find a competent agent who will assist you and enjoy the process. After all, the place you choose will be the place you call home!

STILL LEARNING
We've been "Wow'd". My assistant and I attended a seminar last weekend and learned some new tools of technology that have really impressed us. These are software programs that will help us get better information to you, faster, in color, and, most of all, they're FREE! One of these programs is called HotSend. It allows us to send our information, whether it be information sheets or MLS printouts, directly to your e-mail, allowing you to download everything you need to view it. We're exploring that possibility to get better information to our AOL users. Another program we learned about will allow us to send the information to a site on the Internet, which will store it for about 10 days, allowing you to go there to view and/or retrieve it. We're still exploring both of these options for ease of use and speed. Let us know if it is easier to get our attachments with these methods—or if you'd like to be a receiver of information.

I cut this out some years back and just ran across it this morning: The house that you looked at today and want to think about until tomorrow is the same house somebody looked at yesterday and will buy today.

GREETINGS FROM VERNA ACKER
REALTY EXECUTIVES Elite
414.534.7400
FOR YOUR INFORMATION:
Real Estate Information from Western Racine County; Waterford, WI 53185 Vol XXIV October, 1999

HOMEOWNER'S PROTECTION ACT
This act officially became Law on July 29th, yet many homeowners may still not know about it, according to Inman News. The new law protects homeowners from overpaying private mortgage insurance. The PMI Act let homeowners with new loans originated after July 29, 1999 and who meet specified requirements to have their PMI canceled. Under the new PMI laws, individual lenders determine value, and requirements and procedures must be disclosed when the home loan requiring PMI is initiated. Before the Homeowners Protection Act was passed into law, lenders were not required to tell people when they were eligible to stop paying the insurance premium. If your loan is older than July 29,1999 and it was originated at less than a 20% down payment, you likely have PMI. It would be a good idea to check with your lender to find out the procedure for eliminating PMI if you believe that your present loan to value ratio meets the 80/20 requirement. Check with your lender for further information.

HAVE YOU HEARD ABOUT THE 125% LOANS?
It is possible to borrow 125% of your home's appraised value. It is a risky loan and should only be entered into under the best advice from a good advisor. According to the Department of Financial Institutions, these types of mortgages were relatively popular six to eight months ago, but since that time, the market for these types of loans has dried up. Problems arise when an inflated appraisal is given to a homeowner. The Department of Regulation and Licensing regulates appraisers, and an inflated appraisal is illegal. The need for mortgage loans at 125% has been left to the demand of the marketplace, which is not very strong right now. This information has been provided by Scott Gunderson, our 83rd District Assemblyman. It is my experience that inflated appraisals are not uncommon. More than a couple of times, I have seen a homeowner with a mortgage that is far greater than the possible sale price of the home. A home that has a mortgage of more than the expected market value is virtually unsaleable. In order to sell a property you must be capable of paying off all outstanding liens before the title is passed. If you do not have the additional cash to cover all the mortgages the closing cannot occur. I urge caution if this 125% mortgage seems to be a solution for a money situation. There is an old adage: "If it sounds too good to be true, it probably is." If you are refinancing for an ordinary mortgage or looking at the "more than appraisal" mortgage, use good judgment when you see the appraised value of your property. You should have a good idea what a logical number is. If you don't, a local real estate agent can give you some assistance.

ACCORDING TO FREDDIE MAC
The fourth quarter of 1999 should see 3 percent economic growth and 2.5% in 2000, while job-growth is growing about 2% annually. Inflation is expected to be about 2.5% into the fourth-quarter of 1999. Interest rates are expected to stick to between 7.5% to 8%, leading to record sales and production in 1999 on the national level. Freddie Mac predicts that housing starts will taper off some in 2000.

DID YOU KNOW
That sellers have the power to revoke a listing contract at any time. This is because an agency contract, such as a listing, is a personal service contract based upon agency relationship with the broker. It may be revoked by verbal notice, by written letter or notice, or by amendment to the listing contract. The power to revoke, however, is not a right to do so. Canceling a listing contract may violate the broker's rights under the contract. Go to my web site at http://www.vernacker.com for the complete explanation. Go to the Seller's Guide and go to "The Listing Contract" button. The complete explanation, as provided by the Wisconsin Realtor's Association legal counsel, is available to you. As always, you are advised to seek legal counsel in matters of contract and law.

ATTACHMENTS
We have included an attachment for your information.
NOTE: Attachments not archived.
The first part is all the new listings in Western Racine County and a portion of Walworth County since the last newsletter. The second part is everything, in the same area, that has sold since the last newsletter. If you'd like more information on any of these, please e-mail me, and we can send the full information to you. If by some chance you can't open the attachment, we have other means to get what you want to you. We can send the printout, including pictures, in another format. If you don't handle attachments very well, we can even place your search request as a file on the web and send you instructions as to how to view and/or print it from there. Let us know if you'd like your own personal search for any type of property and we'll do our best to quickly get it back to you in a form you can read.