Knowing the fair market value of your Wisconsin home can be a great first step to consider when planning to begin the selling process. Many home owners like to check the assessed values every couple of years in order to have a good picture of their current financial situation in light of how much money they owe on their mortgage, how much cash could be provided via a home equity loan etc. There's just comfort in knowing where your family sits when considering your overall financial picture and it is effected by the status of your mortgage.
As you know, real estate as a whole has been on a bit of a roller coaster ride over the last 10 or so years. This has made valuations more of a challenge. Neighborhoods where home prices were steady or rising for several years have seen drastic peaks and valleys. Foreclosures in certain areas, and the selling of foreclosed properties at well below market pricing has caused the overall worth of nearby houses to flounder in some cases.
For example the exact same house sitting in Dane County may be worth considerably more money than if it was in Sauk or Columbia County simply because Dane county has higher overall property costs.
The rapid growth of home mortgage transactions in every location will most likely require a home appraisal. Achieving a healthy home appraisal is very important when entering into a mortgage lending process, while a negative appraisal can have negative impact on the sale, a positive one can really help the situation and provide the lending institution with confidence. And when a bank is confident in a sales situation, it can mean an offer of lower interest rates which in term saves the homeowner money over the term of the mortgage.
Home appraisals generally have a cost range of $340 to $400. However, a huge house or a multi unit property can be much higher. It typically differs depending on the property type, its location and total land area.
Keep in mind that an official appraisal is different then what a home value estimator provides. Appraisals are considered "official" and are used by the lending institution to decide on factors like APR, mortgage terms etc.
The fair market value of home and properties in Wisconsin is something that many good realtors can ballpark by investigating the neighborhood the house is in, looking at past home sales and the price that they sold for, factoring in the age of other homes in the area etc.
In WI, the median home values up to $154,000. Over the past few years, there has been a significant decline of 1%. However, home appraisers have forecast that there will be a 1.8% increase within the next year. To be more specific, the cost of area per square foot is approximately $105 in the median home list. The housing market has become more and more stable in recent months as shown by real estate value estimates in 2015.
Rising of mortgage rates
Although the economy seems to be on an upward swing, mortgage rates will still continue to rise. Although, most home economists know that the price range today is cheaper compared to the previous years, the rates this year will still be on the rise for both first time home buyers and those looking to refinance existing real estate.
Home price increases will minimize, while affordability will also have an impact
This year, real estate price increases may see a decline, but the price will still be more expensive compared to the past years, which is a sign that the market continues to recover from the rather brutal downswing the recession caused a few years back when the banks went down the tubes and had to be bailed out by the feds.
Buying frenzy will slow down
The frenzied buying of homes and real estate properties will begin to level off some. This is due to many factors, such as the significant exit of many investors and "house-flippers" who buy homes - mostly foreclosures - to fix up and sell at a profit. Rents will outpace home value. Forecasters predict that many will also resort into home renting, especially for parents who are still beginning to build a family. They would rather save, than pay for a tantamount price for down payment. Nevertheless, fixed mortgage payments will entice other home renters into the world of house markets.
More home investors build cheaper homes
Before, real estate investors opted to build fewer but more expensive types of homes. However, in 2015 more home investors will build cheaper homes because these types of builds mean less financial risk and allows the investors to spread the risk out over a wide variety of assets.