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

HOW ABOUT A TOWNHOME, built in 1995? Each side has about 1300 square feet, full basement, 2 car garage and the two-family home sits on 3 acres. One side of the duplex has a rec room and the other side has a large garden shed. It sits back off the road – Hwy A/Plank Rd in the township of Burlington. The asking price is $229,900. Both sides are presently owner-occupied. I would guess that the rents would be able to be set at about $900/month. Touch 1-800-201-9295 and touch code 3080 for an instant information sheet.

PAY ATTENTION
To the legislative rule change called Comm 83. The change would allow the new home septic systems to be built on land with six to 24 inches of native soil, areas that now could have only holding tanks. Opponents fear that it will open up 9 million acres of unbuildable land and cause rampant building and development. Proponents argue that it will allow professional septic installers to create systems that work in areas that now render land near useless for building. Supporters contend that farmlands would not be turned into building sites but would be safer from the developer. At present, farmlands are the best land for development. The new rules could open up land presently unbuildable. Amendments are being discussed that would give townships the ability to use the new rules as they see fit. Take some time to look into the pros and cons and talk to your legislators.

INTERESTED IN POLITICS?
I was led to an exceptional web site the other day. It is titled WhiteHouse 2000. It was posted by a semi-retired professor of journalism at Northern Illinois University in DeKalb, IL. The site has received numerous awards and offers serious and not-so-serious insights into the coming presidential campaign. It has links to many other services, including e-mails links to the President, the V-Pres, the senators, etc. WhiteHouse isn't "stuffy", either. It has serious information on political parties, candidates and campaign financing. Many pages are devoted to political humor. Find it at: www.niu.edu/newsplace/. I have also included it as a link from my web site. The link should be working right after Labor Day. Hope you enjoy it. I haven't spent a lot of time there but have enjoyed what I have browsed through.

ANNEXATION
The Summer, 1999, Volume 2 issue of "commonground" magazine is an excellent resource for anyone who is interested in the Issue of Annexation. It covers the Wisconsin Statutes that apply, information on the Front-Line wars regarding annexation. It discusses litigation in progress, the "Dairy Queen Compact" issue, how the need for services drives a lot of annexation requests and an article titled, "The Hatfields and McCoys Reach Common Ground." To view the web site or perhaps obtain a copy of the magazine, go to www.oncommonground.org.

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

WATERFORD IS MOVIN' ON UP…
It was announced in mid August that Aurora Health Care plans to construct a new clinic facility here, slated to open in spring 2000. It will be located in the new business corridor that is at the intersection of Highway 164 and Highway 36. Aurora plans to consolidate its current clinics in Waterford and Wind Lake. The new clinic will encompass approximately 8,000 square feet , in the Cornerstone Crossing development. At present, two physicians and a podiatrist will be on staff. Other specialties may be added later.

DON'T BE AFRAID OF AN ARM!
According to Dataquick, the number of closed adjustable rate mortgages is rising rapidly. In the time that rates have been so low, many of us have forgotten about the benefits of an ARM mortgage. The initial rate and points are usually lower than a fixed mortgage. The initial period can vary from typically one to seven years. As the initial period lengthens, the rate is closer to that of the fixed rate product. Consider an ARM if you think that you will be in the home a short time or if you think interest rates will be going down in the future. Interest rates in the past 12 months reached their lowest levels in almost 20 years. If someone had gotten an ARM several years ago, the rates would have adjusted down instead of up. The ARM also allows a borrower to generally qualify for a larger loan, thereby being able to buy a larger loan.

Comparing a $120,000 1 year ARM at 5.75% with 1.25 points and 2-6 caps and a maximum adjustment the first period and 1% for each period after that to a 7.75% FRM with .55 points – Breakeven point occurs at 3 years I month. Comparing a $120,000 5/1 year ARM at 6.75% with .835 points and 2-6 caps and a maximum adjustment with the first period and 1% for each period after that to a 7.75% FRM with .55 points – Breakeven point occurs at 7 years 9 months. Talk to your favorite loan officer and discuss the possibility of using an ARM to your Advantage before you settle on a loan program. Note: Thanks to the Pat Zaby newsletter for the information used in this segment,

INMAN NEWS SERVICE
Reports that, according to www.bankrate.com, which publishes nightly averages based on its survey of nearly 3,000 banks in 50 states, the 30-year fixed rate average slipped to 7.64% while the 15 year fixed average stuck to 7.31%. The 1 year adjustable stayed at 6.27%. These rates are averages and may not be reflective of local or regional activity. Note: Go to my web site at www.vernacker.com. On the Real Estate page you will find a link for the companies current rates at interest.com.

DID YOU KNOW
That a one bedroom, unfurnished apartment could set you back about $1200 a month in the Melrose area of Los Angeles. That makes our $650 - $1200 rents in Waterford look pretty good! $1200, in our town, usually get you a new construction, 3 bedroom, 2.5 bath, 1500 s.f. condo/townhome with a basement and two car garage.

WHO DO YOU KNOW WANTS TO BUY A TOWNHOME?
I HAVE AN EXTRAORDINARY TWO FAMILY home on 3 acres listed. Asking price is $229,900. Built in 1995. Call for details.

HAVE YOU MISSED MY WATERFRONT LISTINGS?
I have a very nice home with a panoramic sunset view for $149,900. It has a full basement, a brick fireplace, 1992 exterior upgrades, 1993 furnace and air, a garage AND a boathouse.

And, we just got a new listing for $139,900 with an outstanding interior and sunset views, too. Two car garage, air and many more amenities.

DO YOU HAVE A TOPIC THAT YOU WOULD LIKE TO HAVE ME COVER?
Let me know what it is and I will do my best to get information.

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

HOME IMPROVEMENTS: A SMART INVESTMENT
Do you want to make your home more appealing to sell, or just want to spruce it up? Deciding how much time, effort, and money to invest in making improvements requires careful consideration before you start hiring contractors or doing the work yourself.

An improvement is anything that enhances the value of your home, prolongs its life, or adapts it to new uses. As a Realtor, I'm familiar with the homes in my market place and their market value. I can be a resource for determining what improvements could be the most advantageous, especially if you are planning to sell. If you are reading this from another market area, choose the Realtor who sells the most in your neighborhood and ask him/her to consult with you.

If you make too many costly improvements, your home could become overpriced for the neighborhood – you won't get a return on your investment and instead may lose money. If you choose colors and designs based strictly on your own preferences rather than those that are neutral for mass appeal, your improvement may become a deterrent for buyers. You could do too much – or too little.

A CAPITAL EXPENDITURE is the cost of an improvement. The money you spend can be added to your original cost basis. If you sell the home at a profit, these costs could reduce the capital gains tax you might owe. NOTE: The IRS has new, more generous exclusions from tax on capital gain when you sell your home. Since tax laws are subject to change, keep your invoices and canceled checks. IRS-approved improvements include additions, central air conditioning, deck, finishing a basement, landscaping, new furnace, new roof, and new siding. Go to my web site (www.vernacker.com) for more on the tax laws. On the Seller's Guide there is a report. On "Public Service" there is a link to the IRS.

QUESTION: WHAT IS PITI?
Principal, interest, taxes, and insurance (PITI) are the four components of a monthly mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance. Typically, the lender will want your PITI ratio to be about 28% of your monthly gross income.

ONLINE RESOURCES FOR HOME OWNERS
Home improvement information is at your fingertips via the internet. Check out these websites for decorating ideas, gardening and landscaping tips, maintenance checklists and much more! www.allabouthome.com, www.hometime.com, www.doityourself.com, www.housenet.com, www.homeideas.com, www.naturalhandyman.com, www.improvenet.com, www.soundhome.com. Also, go to my website at www.vernacker.com. Go to the Real Estate Menu. There are several other links that may be helpful, such as Bob Vila, Jim Dulley, Building, and other.

DID YOU KNOW that choosing a real estate agent because of the fee they charge or the asking price they put on your home are the WORST possible reasons. Would you, knowingly, hire the worst agent in town because they bid the lowest fee and the highest asking price? That can be the worst possible situation for you if you want to sell your property. Always choose the agent FIRST. Choose by credentials and history of success in your neighborhood. If the agent has sold a lot of homes, be sure to ask WHERE? Homes sold on another part of the map don't matter when you are selling YOUR home. The agent should have a success record in your area, not somewhere miles away. If the fee is lowered to get your business, you must ask yourself "WHY?" Agents should be able to compete for business by performance rather than by fee reduction. An agent who will be good at negotiating the best possible price for you should also be able to earn your confidence without cutting their own fee. Agent's fees are, of course, negotiable. A good agent will have a fee schedule, based upon established criteria. A reduced fee may include reduced services. Be sure you compare the agent AND the services, along with their average days on the market for their listings and the percentage of sale price vs. asking price. How many price reductions were made before the sale actually occurred? You must establish the importance of the services that are not part of your agreement with the Realtor. The fee you pay isn't important if your home doesn't sell or if it sells later than it should have. No sale – No fee. A later than-should-be closing date can cost you money, too. Your holding costs and the buyer's lower perception of your home's value can cost you on your bottom line. A buyer is prone to "low-ball" a home that has been on the market too long. Your asking price should be predicated on documented, recent solds in your neighborhood. An agent should provide the information and help with the interpretation, as it pertains to your property. Asking price should not be based simply upon what you would like to get or what the agent "bids" to get your listing. The savvy buyer is aware of the market in the area. By beginning with the wrong numbers and/or the wrong agent, you may only accomplish reducing your home's value in the eye of the buyer, and ultimately reducing your final proceeds.

When a seller prices their home competitively and chooses the best agent in the area, the home usually sells quicker and at, or very near, to the asking price. The best buyers look first. The best buyers write the best offers. The best agents market to bring the best buyers. Everyone wins. Whether you are reading this from California or from Waterford, WI, the theory is the same. Go to my web site for more information, www.vernacker.com. The Seller's Guide" will lead you through the agent interview process, the pricing process and much more information that will be helpful.