Archive for tag Steve bauman
February 25, 2010 at 02:40 PM · Posted under Steve Bauman
The Bitterberg Group is growing. James Riccaboni is joining the group as a licensed assistant.
James is a full-time realtor and joined Shorewest Realtors several months ago after spending about five years serving in Law Enforcement where he was a field training officer and an instructor for in-service training sessions.
James has demonstrated a willingness to learn and has proven through his early success to possess the abilities and qualities we want representing our group.
A native of Philadelphia, James graduated from Drexel University, with a degree in Business Administration. He then went on to Marquette University and earned a Master’s Degree in Public Service as well as a Graduate Certificate in Leadership and Management while working full-time for Marquette University. He and his wife, Angela, reside in Brookfield.
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December 21, 2009 at 02:32 PM · Posted under Steve Bauman
If Paul Revere were alive today, he’d be shouting from his saddle (OK, maybe he’d Twitter from his Lazy Boy), “Higher interest rates are coming. Higher interest rates are coming.”
For much of 2009 the Federal Reserve has been buying mortgage-backed securities to the tune of more than $1 trillion. This aggressive buying program has helped keep mortgage interest rates hovering around 5 percent for 30-year money.
The Fed has set aside another $163 billion for purchases between now and the end of March. This pace of purchases is substantially less than earlier in the year. Once March 30, 2010 arrives, the buying by the Fed is scheduled to stop.
Everything I’ve been reading says to expect rates to start creeping up after the first of the year. Many experts are predicting 30-year mortgage rates of about 6 percent by April.
What does that mean to you as a home purchaser? Say you are buying a $300,000 home with 20 percent down. Monthly principal and interest at 4.875 percent on a 30 year mortgage is $1,270.10. That same loan at 6 percent will cost $1,438.92 per month.
Looking at it from a different angle, that $168 per month savings actually increases your buying power by almost $32,000.
So, the big question is, “what are you waiting for?”
Inventory of available homes is good and Uncle Sam is willing to chip in tax credits of $6,500 to $8,000. Housing prices are down but appear to be stabilizing and interest rates are incredibly low with most predicting an increase on the horizon. I’d say now is the time to buy that new home.
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December 18, 2009 at 12:39 PM · Posted under Steve Bauman
Short sales can mean big savings to savvy consumers. They also can result in frustration and failure. Pull up a chair for a story about one very disappointing short sale non-transaction.
A builder was facing foreclosure on an expensive spec home that he had had on the market for three-plus years. There were two mortgages on the property held by the same bank and totaling about $1 million.
In June, we were able to cobble together an offer from a very qualified buyer for about $150,000 less than the amount owed on the property. The offer, Seller’s financials and everything else initially required by the lender was promptly forwarded to the lender.
For almost two months we heard absolutely nothing from the lender, despite repeated calls and emails. Finally, we were notified that the file had been assigned to a “negotiator.”
Just when progress was being made, we were informed the FDIC had taken over the file for the second mortgage and they had assigned the note to a collection agency. This is nearly three months into the process and the Buyer was growing impatient.
We begin the negotiations anew with the collection agency with the same sort of mind-numbing multiple requests for already provided documents. After a series of back-and-forths (the collection agency refused to speak directly to the first mortgage negotiator, so we had to serve as intermediary for all communication) the first and second mortgage holders were a few thousand dollars apart on a settlement.
We were at a standoff. And a ridiculous one at that. The second mortgage holder stood to receive absolutely nothing if the property went to a sheriff’s sale, yet its representatives would not reduce their demand. The first faced additional expenses of a sheriff’s sale and holding the property but would not up their offer to the second. Meanwhile, the Buyers had grown weary of the entire process and had found another home.
The Buyers gave notice that they would be withdrawing their offer unless a resolution between the mortgage company and collection agency could be reached in short order. Again, there was no movement by either party.
You guessed it…the Buyers walked.
Two more months have passed and the house now sits vacant, deteriorating from a lack of heat and electricity. And no sheriff’s sale has been scheduled.
I can’t imagine a worse outcome. Eventually, the first mortgage holder will take over the property. It will either have to hire someone to restore the home or sell it at a steep discount. Remember, this is a house that had been marketed for more than three years without attracting an offer, so a quick sale is highly unlikely.
Meanwhile, the second mortgage holder (a.k.a. you and me, Mr. and Mrs. Taxpayer) will lose about $200,000. Municipal taxes go uncollected. A neighborhood of expensive homes suffers because of the neglected property and its eventual sale at an extreme discount.
The FDIC’s representative however took it all in stride. When informed the deal was falling apart, his response: “Oh well, that’s one less file on my desk.”
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December 15, 2009 at 11:19 AM · Posted under Steve Bauman
Christmas is about 10 days away and already I’m thinking about shopping.
If you or someone on your gift list loves photographic prints I’d suggest you take a look at neilrongstadphotography.com.
Neil is a Milwaukee-based photographer who specializes in high-contrast black and white urban landscapes. Much of his work is shot at night and the images are truly striking. Neil’s stunning pictures of the Calatrava are worthy of an exhibit there.
An ever-expanding portfolio features many Milwaukee landmarks and Neil recently has added pieces from New York, Chicago and Madison.
I met Neil a couple of years ago when I sold his downtown Milwaukee condo. The buyer was so impressed with his work that his offer to purchase included several of Neil’s prints. At the closing, Neil graciously gave me a couple of prints as a gift.
Be sure to check out Neil’s website. Milwaukee has never looked so good.
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October 23, 2009 at 01:29 PM · Posted under Steve Bauman
Many Realtors® dread working with first-time buyers. These agents often say they find the experience too time consuming. Or, some fear that the opinions of well-intended parents undermine or even destroy the agent’s hard work. Personally, I take great pleasure in helping these types of buyers. It’s invigorating to see their excitement. And, being the father of a soon-to-be college grad, I empathize with the protective parents. Best of all is when you see results like this.
Click Here
Who couldn’t get excited about a job knowing you played some part in this story and having kind words like these expressed.
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August 31, 2009 at 09:14 AM · Posted under Brookfield, Steve Bauman
Back in the day, Buyers who based an offer on assessed value had the credibility of the local weather forecaster. Their chances of hitting the mark were slim.
This was particularly true for Brookfield properties. Generally, assessments were 10 to 20 percent below market values. However, as market conditions have changed I thought it might be interesting to see if an argument could be made for connecting purchase prices and assessed values.
I compared the sale price to the assessed value for all homes sold in Brookfield in July 2006 and July 2009. I used 2006 as a benchmark because Brookfield did a citywide reassessment then and the assessor certainly did an exceptional job.
Sales prices for the month of July 2006 on average were 102 percent of assessed value. There were 43 sales for the month and 27 sold for more than the assessed value. Sale prices ranged from 88 percent of assessed value to 119 percent.
For July 2009 the number of sales was surprisingly higher, while the average price to assess value difference was considerably lower. There were 52 sales in 2009, yet only 15 were at or above assessed value. The average difference between sale price and assessed value was 91 percent. The differential ranged from 79 percent to 114 percent.
One point of interest is the impact on houses assessed for more than $500,000. In July 2009 there were seven such homes sold and only one of those sold for more than the assessed value. The differential represented the extremes for the year, 79% and 114%.
In July 2006, there were nine sales in this category and only three sold for less than assessed value. The range between sale and assessed value was tight…99% to 103%.
I’m not prepared to say your Brookfield home assessed for $400,000 would have sold for $408,000 in 2006 and is now worth $364,000. However, I am now more inclined to work with a buyer who bases an offering price tied to assessed value than, say, carry an umbrella the next time I hear rain in the forecast.
Hope this chart helps.
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August 05, 2009 at 03:09 PM · Posted under Steve Bauman
No, this is not some late-summer horror flick. I’m talking about adjustable rate mortgages and how they are now an attractive alternative to fixed rate mortgages.
If you are thinking about buying or refinancing, you owe it to yourself to take a look at an ARM. The interest rate on a 5-year ARM is currently about 4 percent. Four percent! That is incredibly cheap money.
In fact, I don’t recall ARM rates ever being this low.
The savings can really add up quickly or you can use the lower rate to increase your buying power. Current 30 year fixed rate home mortgages are running around 5.375 percent. On a $200,000 mortgage, that’s a savings of about $165 per month.
Or, use that $165 per month for a larger mortgage. That translates into more than $34,000 of additional borrowing power. So, your $240,000 search ceiling becomes $274,000.
If it’s likely you will move again within the next five years then you have no need to worry about a rate hike at the end of the initial rate term and you are saving almost $2,000 per year in principal and interest payments.
That’s a much better ending than any summer horror film.
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May 18, 2009 at 11:33 AM · Posted under Steve Bauman
The year 2008 was not kind to Brookfield, Wisconsin, home sellers.
Multiple Listing Service data show that the average price of homes sold in Brookfield in 2008 was down almost 10 percent compared to the average sale price in 2007. If you prefer to use median prices for comparison, there was about an 8 percent drop in values 2007 to 2008. (As an aside, to preserve my college GPA I avoided any statistics course. I really don’t know which method better reflects market conditions so I researched and included both.)
The number of homes sold in 2008 was down a whopping 26 percent compared to 2007. The total of 330 houses sold through MLS in 2008 was down 35 percent from the 2005 high water mark of 508.
As you can see from the chart below, the drop in value in 2008 virtually wipes out nearly five years of steady, but not spectacular, appreciation. It is interesting to note that even in 2007 Brookfield prices were holding their own (actually gaining on the average side), even as much of the rest of the country was already sliding down the slippery slope of devaluation.
Now might be the time to take advantage of these reduced prices. I’m sensing more activity in the marketplace and some renewed optimism. If you have been waiting for this real estate market to hit bottom, we may be there right now.
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April 09, 2009 at 03:06 PM · Posted under Steve Bauman
It’s Masters time and that had me thinking about all the fabulous golf courses in metro Milwaukee.
One of the best courses and clubhouses in the Greater Milwaukee area is the Legend at Brandybrook in Wales, WI. The Legend offers a challenging 7,006-yard course, great amenities and one of the most beautiful settings in all of Waukesha County. The castle-like clubhouse offers spectacular views of the course and the nearby rolling terrain.
This private club offers three membership levels and boasts superb casual dining, banquet facilities, two swimming pools, and fitness center. It is one of the few country clubs that offers a refundable initiation fee for golf memberships.
The best way to describe the Legend is “youthful.” The course has been open for about six years and its staff claims to have the youngest membership of any country club in the area, with a median age of 45.
Beautifully integrated into the course is a residential living community that rivals virtually any neighborhood in the area. Most of the homes are less than five years old and vary in price from about $700,000 to more than $2 million.
We currently have four homes available for sale in the Legend. Each offers something different and exciting from the fantastic vistas of 373 Legend View Court to the over-the-top quality and condition found at 260 Legend Heights Court. The other two properties, 103 Legend Way and 114 Legend Way are right on the course.
You can check out all the great things the Legend has to offer at (www.thelegendatbrandybrook.com)
Additional information about the homes available in the Legend is available at (www.bitterberg.shorewest.com) or call me at 262 786-4001, ext. 103.
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April 08, 2009 at 04:04 PM · Posted under Steve Bauman
Everybody is looking for a deal in this challenging real estate market. Short sale and foreclosure properties offer certain financial advantages but often come with some risks and many headaches.
One often overlooked source for a good deal is the relocation property. Relocation properties are homes where a Seller has been transferred and the employer now is paying the insurance, utilities and mortgage. The employer also is paying to have the snow plowed and the lawn mowed and all those other fun homeowner duties. Relocation companies are brought in by the employer to oversee these properties and negotiate a sale on their behalf.
Both the relocation company and the employer are anxious to sell the home quickly and often price them to do so. This presents a wonderful opportunity for the home buyer.
Besides value, relocation properties have other advantages. Unlike foreclosure properties, relocation properties typically are clean, well-cared-for homes. Typically, they have not been neglected nor damaged by the prior owners. These properties also are vacant and available for quick occupancy.
Offers are timely presented and responded to quickly by relocation companies unlike banks in short sale or foreclosure situations that sometimes take days or weeks to respond.
There are some quirks with dealing with relocation properties:
- No home sale contingencies. Offers contingent upon you selling your existing home will be rejected by the relocation company. However, if you have an accepted offer on your home, the relocation company will consider an offer that is written contingent upon its successful closing.
- Your offer must be in writing. Only written offers will be considered. However, counter offers are made verbally until agreement is reached.
- Pre-approval letter. A pre-approval letter for the amount to be borrowed must accompany any offer.
- Corporate client review. Even though you have reached a verbal understanding with the relocation company, your offer is still subject to review by the employer.
- Signature delay. Once the employer has agreed, it still may take a few days for the relocation company to sign and return the Offer. Contingency deadlines do not begin until the signed documents have been delivered from the relocation company so there is no need to conduct your home inspection or order an appraisal until after you receive a copy of the signed offer.
- “As is” clause. Virtually all relocation addenda include a clause that absolves the relocation company from any liability from the transaction. The relocation company is not making any representations as to the condition of the home. It is imperative that you have a reliable home inspector evaluate the property.
- Repair credits. If issues arise from the home inspection, most relocation companies will offer credit to offset the cost of repair.
Relocation properties are an attractive avenue to explore if you have been searching for a well-cared-for home at below market value.
We currently have a fantastic home at 2 Fox Run, Oconomowoc Lake, WI, that really illustrates the savings available with relocation properties. This well-cared-for four bedroom, four bath ranch on 3-plus acres is currently listed for $798,731. The list price is a whopping 44 percent less than the village’s estimated fair market value of $1.41 million. The house is located in a subdivision, the Ponds of Pabst Farm, full of million dollar plus homes.
How do we know so much about relocation homes? The three agents who make up the Bitterberg Group have more than 70 years of combined real estate experience, with career sales of almost $800 million. Each year about 60 percent of our business is relocation.
We have a list of all relocation properties available through Shorewest and would be more than happy to see if any of these are a fit for you. Just call me at 262 786-4001, ext. 103 or email me at bitterberggroup@shorewest.com and let’s see if we can help you find a sharp relocation property that meets your needs.
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April 02, 2009 at 12:53 PM · Posted under Steve Bauman
Shorewest - Brookfield/Waukesha
2212 East Moreland Boulevard
Waukesha, WI 53186
Contact me
Office: 262.786.4000
Direct Line: 262.786.4001 X103
Email:
bitterberggroup@shorewest.com
Website:
bitterberg.shorewest.com
View Steve's Posted Articles
Wisconsin and Shorewest Realtors ® Number One Choice
Performance Counts!
$73 Million Sold In 2007-2008
Relocation Specialists
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