We've learned over the years that some folks can get a little confused about assessments, inspections, and appraisals - and the role each plays as part of the buying and selling process. If you're a little unclear yourself, this short overview will answer a lot of your questions.  

Assessments

An assessment refers to the "value" that the local taxing authority assigns to your property. Your local assessor assigns an assessed value to your property each year, that along with the mill rate, determines the amount of property tax you owe.

As a general rule of thumb you shouldn't use your property's assessed value to approximate how much it can sell for on the open market. That's because in most cases your local assessor has never been to your

It can be easy to watch the market reports, and to obsess over the mortgage rates rising or falling. But Laurie Ellis-McLeod of AERIE Preferred Financial Group, LLC, says the market isn't the most important thing to consider. "Your purchase will ultimately be more dependent on factors you can control, like your credit score, or the amount you've saved for a down payment."

The credit score is key to getting the best rates, and it can be improved. Do you have debts? Do everything you can to pay them off, or develop a plan to do this efficiently. Avoid making large purchases, or opening (or closing) credit card accounts. Your credit score has great impact on the mortgages and other loans for which you can qualify. Do everything you can to pay your bills

You have made an offer to purchase and are going through the property inspection. The inspector finds an issue with the property, and now you, as the buyer, need to determine the next steps. I asked the Mad City Dream Homes team how they handle these situations, and they shared good advice for buyers to consider.

First: Know what matters.

Not every issue raised is worth pursuing with the seller -- especially in a fast-paced market, with low supply. “In some cases, buyers need to have a plan in place for simple repairs. The quick fixes are rarely worth risking the sale, especially when there is a line of buyers behind you, ready to buy the property,” says Tammy Steiner.

Maureen Moran agreed. “You really need to consider, what is a significant

In the current economy, much is being said about rising interest rates. This has home buyers wondering what a mortgage will look like 3 or 6 months down the road. While you may hear conversation about climbing rates, this isn't time to be discouraged. Karen Wedvick, VP and Senior Loan Officer at Johnson Bank, says, "Mortgage rates are at such great levels. It's an excellent time to buy." 

Wedvick understands the fears buyers have about rising rates. She has watched the rates closely, and insists that they are still near historic lows. If you look at rates beginning in the 1970s, and compare them to current years, the evidence is clear. Even so, Wedvick's office has tools available to help bring more certainty to the buying process. Johnson Bank offers

This year is shaping up to be a great year for people who wish to sell their starter home and buy a larger, more expensive property. The reason is the market for starter homes is very hot and very favorable for sellers right now, while the market for higher priced properties is more balanced and a little easier on buyers. 

How the Madison real estate market varies by price range

Take a look at this market data for Madison single family homes. Right now, 60% of all listings priced under $300,000 are under contract with an accepted offer. Above $300,000, only 30% of the listings are under contract. The market clearly favors sellers under the $300,000 price point. Above $300,000, there's less competition for listings, and buyers are having a much

The Madison area real estate market is super competitive right now, especially for buyers seeking an affordable property in a popular location. For example, we were recently involved with one local sale which received over 20 offers to purchase. Below we share a few highlights from this sale which show just how competitive the market can be during the spring real estate season. 

Signs of a competitive real estate market

Here are a few more highlights from this ultra-competitive listing:

• Every offer (except one) was for at or above the full list price. 
• One buyer submitted their earnest money with their offer. 
• Over half of the buyers who wrote an offer also wrote a personal letter to the seller. 
• One-third of the buyers specified

The Mad City Dream Homes team believes local lenders are the most ideal partners to help you with your home purchase. Why? It’s because they often have more flexibility and a quick turnaround time, which can be the keys to a successful real estate purchase in the current, fast-paced market.

The team has worked with all kinds of lenders, and has learned a few things along the way. “I’m always amazed when we have to chase down a loan commitment,” says Chris Venden. This has happened when working with lenders that aren’t local.  They don’t always understand the quick turnaround needed in the Madison area, and they sometimes have multiple layers of red tape that need to be worked through before they can make a commitment. "There is nothing more

Unfortunately, some sellers do misrepresent or "under-represent" property defects on their real estate condition report. And it happens more often than we'd like to see. Based on our experience, failures to disclose are most likely to happen with For Sale By Owner and Limited Service listings. 

One fairly common omission is a seller's failure to disclose previous water intrusions. We know this because some water problems can be easy to detect. Mildew, water stains, soft wood, and elevated moisture readings are all signs of previous problems. When a seller does fail to disclose a water issue, that's a tip-off to be on the look out for other issues, too. 

How to protect yourself from sellers who under-represent

One way you can protect yourself

Thinking of buying a home or condo in the Madison area? We've got three online tools that will help you reach your goals. Learn how to research building permits, research schools, and discover local neighborhoods with these 3 handy tools. 

3 helpful tools for Madison area home buyers

City of Madison building permit database

Have you ever found yourself wondering whether or not a home improvement project was completed properly and up-to-code? The city of Madison has a database that allows you to view the permits pulled for any residential property in the city. When you have questions about an individual property, you can research its permit history by visiting this website:

https://elam.cityofmadison.com/CitizenAccess/

State of Wisconsin

Who you hire as your buyer agent can make all the difference between success and failure in Madison's low inventory real estate market. Here are six ways a skilled buyer agent (or buyer agent team) can help you succeed in the months ahead. 

How a skilled buyer helps you succeed in a competitive market

1) Your buyer agent connects you with a reliable, local lender who goes the extra mile. For example, some local lenders will contact the listing agent and vouch for your financial stability when you're submitting a competing offer. Lenders who deliver personal service like this are worth their weight in gold. 

2) Your agent finds properties before they hit the market. A good buyer agent will identify "coming soon" listings before they hit the