December 20, 2010 at 12:16 PM · Posted under Glenn Hanon
Yesterday, I was showing homes to a couple who wants to cash in on the REO (Real Estate Owned-homes that have been foreclosed on and now the bank owns them) market and the Short Sale Market. Like most buyers, they thought that these two types of distressed properties would bring a windfall of potential profit to them. “We could buy a $350,000 home for $250,000 what a deal…” is the thought pattern of most buyers.
Let’s take the first house as an example. It has been vacant for over a year, no heat, running water or electricity on for over a year. Just imagine the condition of the home. The wood floors were cupped, some carpet had been torn out by the previous owner, a leak had developed in the kitchen skylights and the list goes on. I estimate that it would cost $50,000-$65,000 to bring this house back to a good working order. And that figure is just what I could see. Was the house worth $350,000 at one time? Maybe. In addition to making the necessary repairs the new owner of this property may want to bring some items, like appliances and fixtures, into the current decade—more expenses. What about the landscaping and painting the exterior peeling façade? Still more expenses. Pretty soon the buyer realized that the REO sale was not that good of an idea.
I am not saying that buyers should not purchase REO homes. What I am suggesting is that interested parties need to employ, BUYER BEWARE before making a purchase. If you are an experience renovator, then REO’s may be a good option. If you have never ventured into renovation, then be careful.
What do you do? What is your profession? What is your line of work? Sound familiar? I get this question all the time. When I respond that I am a realtor, the next questions asked are, “Is anything selling?,” “Are you making any money?,”and my favorite one, “Why would you want to be a realtor right now?,” and the other day I was told I “kinda” have a job. Since hearing that the profession I choose to work in is no more than “kinda” a job, it has made me wonder just what is a “full” or “real” job.
I have not come up with an answer, but maybe it is based on how much money you make. If so, is a person who works everyday for minimum wage not really working? Is the receptionist of an office who works 40-plus hours a week earning between twenty and thirty thousand a year not working either? How about the stay at home parent who works evenings and weekends?
Maybe it’s based on the amount of hours you work a week. I do not keep track of how many hours I work, but I can tell you I work on average 5-6 days a week. If a person has a job where they are on call and only works the days they are called for, is this job considered “real” or is this a “kinda” as well?
My personal thought is that there are no “kinda” jobs. EVERY job has a purpose and reason.
I love the fact that I have the flexibility in my schedule to spend days with my family as I wish. I love the fact that every day is different and allows me to meet different people and help them with one of the biggest decisions in their life. Are homes selling? Of course! No matter what the economy is like, people are selling and buying homes. We live in a world where people are mobile. Employers and family issues force people to move on a regular basis. College graduates and newlyweds are looking for their first homes, retirees are looking to down size, and growing families are looking for more space. All of these scenarios happen no matter what the economy is like.
Being a realtor is what I do! I am a father, husband, and a realtor, and I would not have it any other way. Real estate is a difficult and challenging profession. It was even when the economy was booming. You may not understand why I am a realtor, but at the same time I may not understand why you work where you do. I just hope you love your career as much as I love mine!
April 03, 2010 at 01:21 PM · Posted under Glenn Hanon
New rules on lead based paint removal take effect this coming April. If you are a homeowner and your home was built prior to 1978 then remodeling your home replacing windows, scraping old windows etc will need the services of an expert. The Federal Government has enacted tougher more stringent lead based paint rules that now affect us all. The regulation will affect millions of single family homes across the United States. The EPA banned lead in paint in 1978 and it is estimated that more than 38 million homes have some type of lead paint on or in their home. In the past you could strip the paint yourself, but now with the new guidelines you will need to have a professional EPA accredited firms to remove lead paint. The new rule takes effect on April 22 of this year. When you sell your home you are required to fill out a Real Estate Condition Report (RECR). Currently the RECR does not have any questions on it that ask if you removed the lead paint from your home. It asks if you are aware of any lead paint on your property. All Real Estate transactions require that a Lead Paint Addendum be attached if the home was constructed prior to 1978. I would imagine that the RECR will be changed shortly to ask the seller of an older home if they have done any lead removal on the property. As with all new rules there were be lots of confusion. For more information on Lead Based Paint and the potential problems you can visit the EPA site for lead at http://www.epa.gov/lead/
March 29, 2010 at 06:41 PM · Posted under Glenn Hanon
For those of you sitting on the sidelines wondering if now is the time to buy that first house or trade up I would suggest that NOW is the time to get moving. (Sorry for the pun) The Fed has targeted this Wednesday as the deadline for their overwhelming involvement in purchasing mortgages. Currently the Fed is buying over 99% of every mortgage written, compared to a normal level of about 60%. The Fed desperately wants the private sector to reemerge as the principal purchaser of these mortgages. But at a 5% return it seems unlikely that the private investor will be lining up to buy these instruments. Perhaps at a return of 6%-7% they might find mortgages appealing. Well if you are a buyer and are waiting for the “bottom” of the market stop trying to time the market and get in. Here is why; let’s say you are looking at a $250,000 home. You think it is a good deal now but feel as though the price could drop another 5%-8%. Your friends even suggest that you might shave another 10% off the price. For the sake of the argument let us assume that your friends are correct. The payment for the $250,000 home with 5% down is $1,247.00 per month for principal & interest. Now if the house lost an additional 10% the value is $225,000.00 and if rates go up to just 6.5% the payment with the same 5% down is now $1,351! So while some are waiting for the so called bottom of the market they lose all that benefit from the bottom by the higher interest rates. I always encourage my clients to look at the entire picture. If you are buying strictly for one reason, that is your choice but it make not make the best fiscal sense.
February 01, 2010 at 04:46 PM · Posted under Glenn Hanon
This quick video gives some reasons why walking away from your home may not be a good idea. The financial impact of a foreclosure decision can negatively impact your credit for the next 5-7 years. Short sales are longer and can be more difficult routes, however the negative impact can be as little as 2 years on your credit. Take a look at the video and decide for yourself. If you find yourself in this situation feel free to call me and we can discuss your options.
December 30, 2009 at 02:44 PM · Posted under Glenn Hanon
Robert Shiller, of the Case Shiller Index is interviewed in this video by the WSJ. The outlook is not that great, but there is good news. First our area has not been affected as severely as other parts of the country. We see that the first quarter of 2010 and perhaps into the second quarter the activity will be stronger than 2009. The threat of rising interest rates should be of concern to sellers and buyers. So while the saying sounds overused, NOW is the time to sell for two main reasons. First as a seller you can take advantage of the opportunity while the homebuyer tax credit is still available. Buyers must be under contract by April 30, 2010. The second reason is that most economists believe that interest rates will have to rise in 2010. If rates go up from 5% to 6% this decreases the buyer’s top price by 10% if the buyer is payment sensitive—which almost all are today. If you would like more information about our local real estate economy or the value of your home feel free to call me.
November 09, 2009 at 04:14 PM · Posted under Glenn Hanon
If you are thinking of selling your home some may suggest that you should save the commission and sell the home yourself. This route requires time to; manage the paperwork, take care of all the showings, pre-qualify the buyers managing the inspections and much more. With the upcoming changes in the offer to purchase—now 9 pages in length vs. the current 5 pages, you may want to consider talking with a professional who will walk you through these complex and at times difficult situations. With the changes in the appraisal rules this alone can cause any Realtor® headaches not to mention a homeowner who is going at this for the first time. If you would like to see what a professional offers prior to committing to an agent, feel free to contact me and ask for my Marketing Plan in writing. I explain in detail everything that will take place if you choose to use the services of a professional. Today, the home is still the single largest investment most people have and after 20 years of successfully assisting families I can honestly say that I have saved the would be For Sale By Owner, money, time and headaches. Get all the facts before you decide to sell on your own.
April 22, 2009 at 03:39 PM · Posted under Glenn Hanon
You have decided to sell the home and wonder to yourself, “What do I have to do to make sure my home sells quickly?” Here are five quick tips to make sure your home does not become ‘stagnant’ in the market.
Clean and organize your home. Remove all the clutter. If you need assistance with what is ‘clutter’ I can assist you with this. A clean home, even if it is dated, is more attractive than an updated home that is messy.
Air fresheners, scented candles and plug-in’s are not to be used when showing a home. Many buyers are either allergic to these products or find them offensive. Almost all buyers think you are hiding a noxious odor. The reaction I have seen over the past 22 years of selling does not warrant their use. If you have a pet odor that you are trying to eliminate plug-ins are not the answer.
Make sure all maintenance issues are resolved before you actively market your home. Buyers will determine how well you take care of your home by how well you take care of the little things. Issues like loose caulking around a tub, dirty furnace filters, broken doorbells, scratched front doors, windows that need cleaning,–you get the idea, are turnoffs for a buyer.
Make sure your curb appeal is appealing. Poorly maintained lawns, heaving sidewalks, overgrown bushes don’t give the prospective new homeowner a real warm fuzzy feeling as they make their way to the front door.
Price your home according to the market. This is probably the number one reason why homes do not sell today. The sellers expectation of “what they want” or “need” compared to the market value are often times significantly different. My job as a professional is to give you the market data and guidance as to what price your home is realistically worth in today’s economy.
If you have further questions or would like a personal evaluation of your home feel free to call me at 1-888-HEY GLEN or email me at ghanon@shorewest.com
April 16, 2009 at 08:37 PM · Posted under Glenn Hanon
2009 marks the 50th year of The Hanon Family and their involvement in Real Estate. In 1959 Sy Hanon started his own company called Sy Hanon Real Estate—“We Buy, Sell or Trade” was the motto then. When WWII came to an end Sy started a grocery store in downtown Delafield, aptly named “Hanon’s Supermarket. Business was good back then and Sy, Maryon (my grandmother) and their son Dwayne, lived upstairs in the “penthouse” as Grandma would call it. The penthouse was really just a small apartment. Times began to change after the war and larger grocery stores started to emerge. As the story goes, one day Grandpa was picking up some fresh produce and he stopped in front of a large Milwaukee grocery store and commented to my Grandmother, “Well Maryon, I think our days as a small grocer are over” With that Sy began his Real Estate career. Sy Hanon Real Estate quickly became, Hanon Inc. Realtors with the addition of their son Dwayne. Fast forward to the late 80’s and Real Estate was changing quite fast. Dwayne joined with Shorewest Realtors (Wauwatosa Realtors) and soon Glenn followed in 1991. As the number one agent in the Oconomowoc Office I look back on all the great lessons I learned from Dad and Grandpa and I can honestly say, “I love my job!” Recently Don Horning placed the 50 year pin as recognition of our family’s longevity in Real Estate. I can think of no better company to work for and that is Shorewest Realtors! If you are looking for a professional REALTOR® in the greater Lake Country Area then put Glenn Hanon to work for you today!
Realtors all over Metro-Milwaukee are telling you that NOW is a great time to buy. Believe it or not, it is not because they are starving and need a sale. Historically, real estate is not a get rich quick investment, contrary to all the speculators in the marketplace going into 2005! Even in a market of falling prices, there is money to be made over the long term. Perhaps I can help you understand how wealth is created in today’s market, based on a podcast I recently listened to by Steve Harney, a well known real estate economist.
Perhaps you spent $400,000 for your home at the height of the market. You would really like to move into a larger, more expensive home costing $600,000, but are concerned that you will lose too much in the sale of your current home to justify the move. Check out the illustration below - you will see that over the long term, you will actually GAIN WEALTH by making the move now:
Price you paid: $400,000
Price will sell today (-15%): 340,000
You lose $60,000 by selling now, right? Ouch! Consider, however, that the larger home you are purchasing has also depreciated in value.
Value of new home at height: $706,000
Price in today’s market(-15%) 600,000
You gain $106,000 by buying the larger home in this depressed market - thus you end up with a net gain in wealth of $46,000 RIGHT AWAY. ($106,000 devaluation in purchased home less $60,000 devaluation in home you sold = gain in value of $46,000.)
t helps me to put it another way: think cash. In the old market, the new house would have cost you $706,000 - 400,000 (proceeds of sale of your home) = $306,000 cash to buy the new house. To make the same move today, it will only cost you $600,000 - 340,000 (sale proceeds) = $260,000 cash - you save $46,000 CASH by moving now!!!
There’s more! Look into the future; think long term. If you stay put, your home will not appreciate as fast as the home you want to buy:
Value of current home: 340,000
Increase 5-7 yrs (+15%) 391,000
If your home appreciates 15% over a 5-7 year period, your wealth will increase by $51,000. However, look what happens to the larger home:
Purchase now 600,000
5-7 years from now (+15%) 690,000
Your net worth has increased by $90,000. $90,000 if you move, - $51,000 gain if you stay = $39,000. Therefore, it actually costs you $39,000 in lost wealth to stay put!
If you decide to make the move today, in 5-7 years your overall wealth has increased by the $46,000 that it would have cost you for the same home in a good market, plus, the larger appreciation in value of the new home of $39,000, for an overall wealth building amount of $85,000!!! Now that’s wealth building the real estate way…
Since its origin in 1946, Shorewest, REALTORS® has always been a family-owned company dedicated to helping other families in Wisconsin. We’ve grown from a one-person office in Wauwatosa to 27 sales offices covering a twelve-county area. And the Shorewest “family” now includes over 1,700 people as committed to Wisconsin as the day John A. Horning started the company out of his home over 60 years ago.
Today, the Shorewest family of companies includes Wisconsin Mortgage Corporation, Heritage Title Services, Shorewest Real Estate Institute and Shorewest Insurance Associates, plus Home Closing, Marketing, Information Technology, Home Services, Career Development and Relocation Center divisions.
Staying true to our mission and values.
Midwestern values like hard work, dedication and a family-first philosophy are deeply ingrained in the people of Shorewest. As a family-owned company since 1946, all of us are driven every day by the following mission statement, adopted October 1986:
We are a team…
Proudly independent;
Dedicated to serving the housing needs of Wisconsin;
Committed to unsurpassed customer service;
Pledged to share our talents for mutual growth and prosperity.
statement decoration
Steady leadership for the road ahead.
Joe and John Horning
Joe and John P. Horning represent the third generation of leadership at Shorewest, having taken the reins in 2002. Joe (President) and John P. (Executive Vice President) joined Shorewest after college and have since proven themselves as accomplished business leaders.
The people who make it all happen.
You don’t become Wisconsin’s Largest Home Seller™ without an exceptional sales staff. At Shorewest, our 1,300-plus associates know the market and are driven to put your needs first. With 27 offices located throughout Wisconsin—each with a full-time manager for support—you’ll get the responsiveness you need whether you’re buying or selling a home. We train our people to be the best, so the service you receive is nothing short of just that.
Glenn Hanon
Tim Wright
With the upcoming changes in the offer to purchase—now 9 pages in length vs. the current 5 pages, you may want to consider talking with a professional who will walk you through these complex and at times difficult situations. With the changes in the appraisal rules this alone can cause any Realtor® headaches not to mention a homeowner who is going at this for the first time. If you would like to see what a professional offers prior to committing to an agent, feel free to contact me and ask for my Marketing Plan in writing. I explain in detail everything that will take place if you choose to use the services of a professional. Today, the home is still the single largest investment most people have and after 20 years of successfully assisting families I can honestly say that I have saved the would be For Sale By Owner, money, time and headaches. Get all the facts before you decide to sell on your own.
Clean and organize your home. Remove all the clutter. If you need assistance with what is ‘clutter’ I can assist you with this. A clean home, even if it is dated, is more attractive than an updated home that is messy.
Many buyers are either allergic to these products or find them offensive. Almost all buyers think you are hiding a noxious odor. The reaction I have seen over the past 22 years of selling does not warrant their use. If you have a pet odor that you are trying to eliminate plug-ins are not the answer.
Make sure your curb appeal is appealing. Poorly maintained lawns, heaving sidewalks, overgrown bushes don’t give the prospective new homeowner a real warm fuzzy feeling as they make their way to the front door. 
2009 marks the 50th year of The Hanon Family and their involvement in Real Estate. In 1959 Sy Hanon started his own company called Sy Hanon Real Estate—“We Buy, Sell or Trade” was the motto then. When WWII came to an end Sy started a grocery store in downtown Delafield, aptly named “Hanon’s Supermarket. Business was good back then and Sy, Maryon (my grandmother) and their son Dwayne, lived upstairs in the “penthouse” as Grandma would call it. The penthouse was really just a small apartment. Times began to change after the war and larger grocery stores started to emerge. As the story goes, one day Grandpa was picking up some fresh produce and he stopped in front of a large Milwaukee grocery store and commented to my Grandmother, “Well Maryon, I think our days as a small grocer are over” With that Sy began his Real Estate career. Sy Hanon Real Estate quickly became, Hanon Inc. Realtors with the 
addition of their son Dwayne. Fast forward to the late 80’s and Real Estate was changing quite fast. Dwayne joined with Shorewest Realtors (Wauwatosa Realtors) and soon Glenn followed in 1991. As the number one agent in the Oconomowoc Office I look back on all the great lessons I learned from Dad and Grandpa and I can honestly say, “I love my job!” Recently Don Horning placed the 50 year pin as recognition of our family’s longevity in Real Estate. I can think of no better company to work for and that is Shorewest Realtors! If you are looking for a professional REALTOR® in the greater Lake Country Area then put Glenn Hanon to work for you today!
Cathy Butschke
