Greater Madison Wi Real Estate Blog

 

Oct. 21, 2019

The Latest Real Estate Numbers for Our Market



The latest numbers are in, and it’s time to go over where our local real estate market is headed.

Selling a home? Click here to check out our step-by-step home selling process.

 

I’m back today with your 3rd quarter real estate market update. Here are the latest real estate numbers that you need to know.

 

 In the DeForest/Windsor area, we saw:

 

  • 93 sales this quarter, which is up 15% from last year
  • The average home value increased by 13% from last year to $349,000 at the end of the 3rd quarter
  • The average days on the market was up 40% to 52 days

 

In the Sun Prairie area we saw:

 

  • 237 sales, which is flat from last year
  • A 4% rise in the average home value to $300,000
  • A 23% rise in days on market to 35 days.

 

In Waunakee, we saw:

 

  • A 17% decrease in sales
  • A 5% drop in the average value
  • A 20% increase in days on market

 

Madison East Side:

 

  • A 3% increase in sales
  • A 6% increase in average price
  • 21 days on market average, which is flat from 2018

 

If you have any specific questions about any of these numbers or anything else related to real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Posted in Market Update
Oct. 18, 2019

Personal Liability Coverage

 

Selling a home? Click here to check out our step-by-step home selling process.

 

This is part three of our Homeowners Insurance video series:

I’m here with Paul Stokes from American Family Insurance. Personal liability coverage comes with all homeowners' policies. However, it’s often overlooked, and unfortunately, many agents don’t do a great job of having a conversation about the amount of liability coverage someone should have. We advise people to have five times their household income, or their net worth, whichever number is larger. 

This protects you from many things, but a worst-case scenario and a common one you hear about is a slip-and-fall: Someone slips and falls and they hold you liable. They’re injured for the rest of their life, and you get sued. We want to protect your income, your assets, and prevent you from going broke. Make sure you’re covered!

If you need anything real estate related you can email or call me, I’d love to help you. 

Oct. 7, 2019

What You Need to Know About Dwelling Coverage




Homeowners: Here’s what you need to know about dwelling coverage. 


Selling a home? Click here to check out our step-by-step home selling process.

 

Welcome to part two of my video series about homeowners insurance. For today’s message, I’m once again joined by Paul Stokes of American Family Insurance, and this time we’ll focus on dwelling coverage—or the amount of coverage you need to rebuild your house in case disaster strikes. Insurance companies refer to this amount as a “bucket of money,” and it’s coverage “A” on your home insurance policy. It should be based on the local materials and labor costs it would take to rebuild your home. A lot of companies add a little cushion inside their policy when it comes to this, and a lot of good policies have inflation riders too. It’s important to check in with your agent every once in a while to make sure your dwelling coverage correlates with changes in building costs over time. If you have any more questions about dwelling coverage, feel free to give Paul a call at (608) 274-9702. If you have any other questions for me, don’t hesitate to give me a call as well. I’d love to help you. 

 

Sept. 20, 2019

What Homeowners Insurance Will (And Won’t) Cover




Selling a home? Click here to check out our step-by-step home selling process.

 

If you’re on the verge of homeownership and thinking of buying homeowners insurance, today’s message is simple: Home insurance isn’t a home maintenance policy—it’s an insurance policy for cause of loss. I’ve brought on Paul Stokes of American Family Insurance to explain the difference. For example, a tree falling in your yard is a home maintenance issue—not an insurance claim. If the tree fell on top of your house, though, that’s something you could claim. A leaky pipe is another example of something that’s a home maintenance issue. However, if that same pipe freezes over the winter and then bursts and causes water damage, that can be covered by homeowners insurance. If you have any questions about this or any other topic related to homeowners insurance, give Paul a call at (608) 274-9702. If you have any real estate questions for me, feel free to reach out to me as well. I’d love to help you. 

 

Sept. 9, 2019

How to Sell Your Home in a Slow Fall Market

 

It’s September and fall is finally here. The market has been pretty slow here for the last few months, so I wanted to give you a quick update on how to sell a home successfully in a market like this. 

If you plan to sell in the next few months, know that there will be a little bit more competition than there has been in the past. The market three months ago is not the market we have now, so you can’t base the value of your home off those prior three months, which is typically how we do things. This means that you need to lead the market down by being the best-priced home in your price market. 


Shooting for the moon in this market will only delay the process.



Coming in a little bit below the top price shows that your home has the best value and will get you a heck of a lot more offers than you would if you shoot for the moon.
Shooting for the moon will only delay the process.

If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Posted in Home Selling Tips
Aug. 20, 2019

A Quick Lesson on Calculating Absorption Rate

 

We all know that we’re currently in a seller’s market and have been for a number of years now. Most people rely on the media and voices in the industry such as myself to keep them current on the trends and developments that define the current market. 

But how can you tell what kind of market we’re in at any given time? 

It starts with a major buzzword you hear in real estate: absorption rate. Absorption rate determines how many homes are on the market and how long it would take to sell them if no new listings came on the market. 

Let me explain this further by using an example. Between January and the end of July this year, we had 229 total sales in DeForest-Windsor. Divide that number by the seven-month time frame I mentioned and you’ll get 32.714—the total number of homes sold each of those seven months. Then, you’ll divide that by the 119 active homes on the market now and that produces our absorption rate: 28%.  

When you flip those numbers around and divide active listings (119) by the per-month figure (32.714), it’ll come out to 3.63 months, which is how long it would take to sell off all our current inventory. 

Given that anything less than six months’ worth of inventory constitutes a seller’s market, 3.63 months of inventory means we’re very much in a seller’s market. Conversely, if we were in a buyer’s market, it would mean we had more than six months’ worth of inventory. And if we were at an even six months, the market would be balanced. 

Let’s take a look at another example. In Madison’s market, 2,652 homes sold over the last seven months, and the math says they sold 378.86 homes per month. Divide that number by the 1,020 active listings in their market, which equals a 37% absorption rate or 2.69 months’ worth of inventory—and you'll have an indicator of a fast market. Put another way, Madison is 10% more of a seller’s market than DeForest-Windsor. 

It’s good to know these numbers whether you’re buying or selling your home. If you have any questions, feel free to reach out to us anytime. We’re always happy to help! 

July 26, 2019

Local Real Estate Trends in Q2 2019 vs. Q2 2018

 

The second quarter of our 2019 real estate market has just come to an end, so let’s compare how this year’s numbers stack up against those from that same period in 2018.

In DeForest/Windsor, there were 117 closed sales during Q2 of 2019. This is a 7% increase year over year. The average price in that same area, which was $344,000 this year, rose 3% since Q2 of 2018. 


Most local markets are seeing fairly similar developments.



Homes sold in this area during Q2 of 2019 took an average of 56 days on the market to sell, which is 17% higher than during that same period last year. 

In Sun Prairie, Bristol, and Burke, sales volume was down 3%, while the average sales price ($296,000) was exactly the same year over year. The average days on market for those areas was 43 days, which constitutes a 34% increase since 2018. 

Sales were also flat in Waunakee, Westport, and Vienna, but the average days on market is up 10% to 34 days in those areas. 

Finally, in Madison, there were 1,384 sales during Q2 of 2019. This is down 6% year over year. The average sales price, though, was up 8% to $384,000, and the average days on market remained flat. 

All in all, most local markets are seeing fairly similar developments. Yet the numbers we’ve discussed today are just generalizations. If you want to learn more about your specific area, feel free to give me or my team a call, send us an email, or visit www.bradbret.com

And, as always, if you have any other questions or would like more information, please reach out. We look forward to hearing from you soon.

 

Posted in Market Update
July 12, 2019

Here’s the Best Time to Buy in Our Market



Selling a home? Click here to check out our step-by-step home selling process.

 

When’s the best time to buy a home? 

You might be thinking that, during a seller’s market, there’s never a good time to buy, but you’d be wrong—July is a great time to buy. 

You see, the market typically goes heavy from the beginning of February to the end of May before tailing off in June. Then, right around the Fourth of July, things get really slow. I’ve been telling buyers this for years, and every year this same scenario plays out. 

So if you’re looking to buy, now’s the time to do it. If you’d like to get started on the home buying process or you have any other real estate questions for me, don’t hesitate to give me a call or send me an email. I’d love to help you. 

 

Posted in Home Buying Tips
June 20, 2019

Should Homeowners Do Their Own DIY Projects?


Selling a home? Click here to check out our step-by-step home selling process.

There’s nothing wrong with doing some DIY projects to your home if you’re skilled. If you’re not skilled, however, it can be a big problem. We run into it constantly when we go through houses. Some stuff looks really good, but there always tends to be a lot of unfinished jobs simply because the homeowners doing them aren’t professionals. You might not notice the imperfections, but we do, and the buyer’s agent probably will too.

Make sure that if you’re going to do some upgrades or improvements to your home before you sell it, it’s done right. There’s nothing wrong with doing things yourself, but make sure you finish it and that it looks good. If it’s done improperly, you’re much less likely to get a return on your investment.

I’m a DIY guy myself and I can tell you right now that I’ve learned a lot of things and can tell you about some of my imperfections as well. Make sure you’ve got it all done and it looks right.

If you have any questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

June 6, 2019

How Buyer Agency Applies to Homebuyers

 

Buyer agency is when you sign an agreement with your agent that gives them the right to represent you. There are a couple of things to remember about this agreement, though.

Selling a home? Click here to check out our step-by-step home selling process.

 

What is buyer agency?

Buyer agency is a free service in which your agent’s commission is paid by the seller. Basically, you sign an agreement with your agent that gives them the right to represent you and look out for your best interests.

There are a couple of things to be cautious of before you agree to buyer agency, though.

First, make sure any agreement you sign has a cancelation clause so that you can opt out of it if you want. Oftentimes, buyers sign an agency agreement for six or 12 months only to find out a week later that their agent isn’t very good. This is why all of our agency agreements feature a cancelation clause. We feel that we need to earn your business and build your trust, and that doesn’t happen in a week.

Next, don’t hire the first agent you run into at an open house. Do some research before picking one. Find out how long they’ve been in the business, what areas they work in, and what their reviews say. You might get along with them great, but that doesn’t mean they know what they’re doing.

In addition to being competent, you need an agent who’s highly responsive. Homes are flying off the shelves these days, and you need to be aware of listings the day they hit the market. I’ve gotten many calls from buyers asking me to show them a home because their own agent is unavailable. If your agent doesn’t have someone to cover for them if they’re on vacation, you got the wrong agent.

If you have any questions about this topic or you’d like to know your home’s value, feel free to give us a call or send us an email. I’d be happy to help you.

Posted in Home Buying Tips