Gwenn Tanvas - Wisconsin Mortgage Expert - FHA Loans - VA Loans - USDA Rural -

I doesn't take a rocket scientists to realize that real estate across most of the country is not appreciating as fast as it was at one time. This isn't necessarily a bad thing, unless of course you purchased last year and are selling now. People who have owned a property for several years are still generally well ahead in the game. While we cannot predict what 2009 will bring, most markets have slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, however today's sales may not be as prosperous as they would have been in 2006. All homeowners want to get the highest possible profits; The questions is . . How does one go about this? There are 10 negotiating steps that a seller can follow to assure that their home gets the best price and is sold quickly.

Step 1: Use A Local Realtor.When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real Estate Brokers, National Association of Realtors statistics show that 85% of buyers count on real estate brokers for their home selections, while the Internet accounts for 80%. That being the case; Who creates all of those on-line real estate postings? The Answer, local Realtors right in your neighborhood. .

Step 2: Familiarize Yourself With The Entire Sales Agreement. Nearly all jurisdictions have standardized real estate contracts which have become lengthy and complex over the years. It is important that you read it carefully and be aware of what you are agreeing to and become familiar with every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The Realtor will be able to assist you in the process to assure are protected and in compliance with law of your State or local municipality.

Step 3: Become Familiar With The Current Real Estate Market. When it comes time for negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete detail of the transaction. As an example, two houses might have both sold for $300,000. One home in the area may have sold for $350,000 while the other went for $300,000. One owner negotiated with the buyer and agreed to a 6 percent seller credit for a new roof and appliances. In this example, the 6% would equal $18,000. Local Realtors who are familiar with the details of recent sales are able to provide the best negotiation advice.

Step 4: Understand All Of The Terms You Are Willing To Offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well. Another popular strategy is to offer the buyer an incentive in the form of a credit to buy down their interest rate, therefore making it more affordable on a monthly basis.

Step 5: Request A Smaller Deposit.In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has a mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.

Step 6: Sweeten The Pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.

Step 7: MLS Photos Must Be Up To Date. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your Realtor posts recent photographs.

Step 8: Fully Understand The Marketing Plan. The realtor's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.

Step 9: Check Out Open Houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.

Step 10: Keep Everything In Context. Don't worry about nickels and dimes when your main goal is to get the house sold.

As an example, we were just about 1 week away from settlement when I was advised by the Realtor that the buyer (my client) was requesting an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so rather than loose the deal, the seller agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. The seller thought it was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Of course the seller would have preferred to save that $600; However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price and worse no sale at all.

Finally, as you work with your Realtor, make sure you set a fair and realistic price. Even a 2-3 month delay in selling your home could cost you $10-20,000. They know the market and what is selling. Don't get attached to a set sales price and remember, you will be getting a great deal on the new home you are purchasing.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

In the past few days, I have had the opportunity to speak to several local Realtors in the Appleton market about their feeling on the Presidents new tax credit for first-time home buyers; More specifically, how they viewed this new home buying incentive and their ability to attract more buyers, make offers and get to the settlement table.

The response was mixed. Some were very enthusiastic and optimistic, while others were guarded and concerned. Regardless of the reaction to the questions, one thing was constant. How is the new buyer going to come up with the down payment and closing costs? The Realtors I spoke with are working with an average purchase price of $135k - $150k - This would put the down payment on a FHA loan (3.5%) at $4725 and 5250 respectfully.

This got my head working overtime to come up with a strategy to utilize with first-time buyers.

I am ready to rock and roll . . . are you?

Here is the strategy - PLEASE USE IT AND ABUSE IT!

1.The Tax Credit allows prospective home buyers to adjust their income tax tax withholding up to the qualified tax credit. Oh Yes - By reducing their tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

On another note - here is more interesting news from the plan:

Additional rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

I have been upable to confirm anything here in the state of Wisconsin. I would suggest that you keep an eye on your state and local news for any updates on tax-exempt bonds - If I run acroos anything, I will be sure to provide you with an update. note: tax law detail was provided by NHBA

Also, be sure the take a peak at this post . . .it is quite insightful.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Housing and Mortgage Industries Benefit from the 2009 Economic Stimulus Plan

Signed . . . Sealed . . . Delivered . . .Tax cuts and spending programs are the target to revive the US Economy. Yes the $787 Billion Economic Stimulus Plan is signed sealed and delivered to the American people. Scaled down from nearly $1 Trillion (with a BIG T), the plan will stand as the largest anti-recession effort in the U.S. since the great World War II.

Key provisions in the plan are Tax Credits for first-time home buyers, tax incentives to jump start energy savings, repair public housing and expand housing assistance to promote neighborhood stabilization.

Keep your eye open in the coming weeks for an expanded plan to assist struggling homeowners before they are faced with foreclosure. Birds flying around Washington are reporting that the Obama Administration is looking to spend an additional $50 billion in direct assistance to homeowners struggling to keep afloat.

Below are more details of the plan in simple terms. It is my intent to help you understand the plan and provide assistance in any way.

Tax Credit for Home Buyers

First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

For a really great comparison and more information, please visit Larry Bettag's post.

Home Buyer Credit is Passed By Congress!!! All you need to know!!!

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing-This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance-This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That's because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

The Economic Stimulus Plan is huge, and impacts a number of industries. I've highlighted some of the major provisions that may impact you now and in the future.

I truly hope that this information has been of benefit -

As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Happy Friday! I just love this thought and I hear it more and more these days from both sides. A day does not go by with out hearing the jingle from that well known radio station WFMW or WIIFM (What's in it For Me).

"Successful people are always looking for opportunities
to help others. Unsuccessful people are always
asking, 'What's in it for me?'"

by Brian Tracy, author, speaker, consultant

All of the money you'll ever make in your entire life currently belongs to someone else. You can ask for it; you can beg for it, you can even trick someone into giving it to you. But you'll never get it UNLESS you give them something of value that they want or something they need. The second you help them, they'll gladly open their wallets and give freely.

Make it a Fabulous Friday!

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

This story, RANTshould bring it right home for the good people of Wisconsin - I am quite sure that this is happening all over this great land. This is a personal opinion from a professional mortgage planner who is tired of the snide comments and back lashing we have endured over the course of the past 12 months. I am a professional and have practiced ethically and with my client's best interest in mind. No one is throwing a party for me and my colleagues. And by the way . . . where is my reward for being good and showing a profit? - wheeeew - now I feel better:)

Oh Not So Fast - More RANT- We have been thrown in the pit to defend our industry and our livelihoods as the result of the bad loans originated in the minds of the greedy sitting in Ivory Towers. I did not dream that our local trusted Bank (so highly respected with in the Community) would act so foolishly. After all this is the conservative Mid-West, or is it simply a case of monkey see, monkey do?

Now perhaps the trips were planned prior to this hitting the air waves, but what concerns me is that they took the money even though they do not need it with no plan to stimulate the local economy that supports them. How about extending a line of credit to Mr. Local Business. After all they have been a loyal customer who has always paid their bills for many years now.

OK - I am done RANTING now - Here are the links to the story - They are asking for comments, so please endulge - I am done....

Hot Off The Press Are Two Local Articles

"Associated Bank plans its own fiesta after bailout party" - Posted: Feb. 11, 2009 by Daniel Bice - Milwaukee Journal Sentinel

Associated Bank is moving from the welfare line to the conga line.

Just three months ago, the state's second-largest bank joined scores of other troubled lenders when it cashed a check for $525 million from the federal government to prop up its bottom line.

Today, Associated is preparing to drop tens of thousands of dollars - and maybe more - to send about 100 employees to a posh Puerto Rican resort as a reward for a job well done.

Making the trip will be everyone from backroom workers to the CEO, Paul Beideman.

CLICK HERE for the rest of the story!!

Associated Bank takes $525M in bailout money, plans Caribbean trip for 100 by reporter Nathan Phelps - Green Bay Press Gazette .

Wisconsin's second-largest bank is sending about 100 employees to a Puerto Rican resort, nearly three months after its parent company accepted more than half a billion dollars in taxpayer bailout money.

Top employees at Associated Bank have earned the trip, chief executive Paul Beideman said, particularly because the bank is profitable and accepted bailout funds only as a precaution, not as a result of mismanagement.

"How are our associates going to react to it if we willy-nilly cancel the trip because of some issues people are having with other companies," he told the Milwaukee Journal Sentinel on Wednesday. "Given the set of facts that we have, canceling the trip and disappointing these high performers really just wasn't warranted."

CLICK HERE for the rest of the story

Thanks for letting me ramble! Wow I went from fun to furry!

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net