Wisconsin is in the process of overhauling their state tax structure to make it fairer for property owners and businesses. A coalition of seven groups including the Wisconsin Realtors are working on the changes. A few initiatives that have been proposed are an economic program to create more jobs, streamlining business growth programs and having a fund for new companies, giving Wisconsin taxpayers incentives to invest one percent of their income a venture capital investment fund run by the state, reducing the reliance on property taxes by consolidating, and converting the interstate highways to toll roads. The state is working hard to raise their ranking in economic development.
With that in mind, investing in Madison, Wisconsin real estate is a good choice. Home sales have increased in the area as a result of the attractive inventory of foreclosed homes and pre-foreclosure homes on the market. According to a report from Trulia, the number of home sales increased 15.2% for the period January 10, 2010 through March 10, 2010. There are approximately 2,590 homes for sale in the Madison area on Trulia, as well as 389 pre-foreclosure, auction or REO (real estate owned) properties. The average listing price was $255,695 for the week ending April 14, 2010, representing an increase of 0.1% compared to the prior week. Hot neighborhoods include Nakoma and Dudgeon-Monroe, where average listing prices are $427,605 and $289,365. Fiserv’s chief economist David Stiff predicts that level growth in residential bubble markets such as Florida, California, Arizona and Nevada will not recover fully until 2025. More reasons why you should invest in the Madison, WI real estate market right now.You can pick up some great deals on foreclosed houses and short sales as well as finding treasures at foreclosure auctions including government foreclosures.
A Few Tips
When you are negotiating with banks for their REO foreclosed homes, don’t low ball your offers. You could miss an opportunity to buy a very good investment. Most foreclosure listings that are offered as REO (real estate owned) properties are selling close to their asking prices. There is also a chance you may get into a multiple offer situation. Since most REO’s are priced at or below market, you will need to decide if you want to bid up the price on an REO home or look for another opportunity such as a short sale. REO foreclosures are more advantageous obviously because you don’t have to wait a very long time to close the transaction as opposed to short sales that take months to close. Keep in mind that banks sell their REO’s in an “as is” condition so you need to get an inspection and decide if the repair costs are within your budget. Madison has some very attractive foreclosure listings available as well. It is recommended that you work with a local Realtor to find foreclosed REO homes because banks list them with Realtors. You will need to make your offer through the Realtor or a buyer’s agent.
Investing in Madison, WI foreclosed houses in a terrific way to build your long term wealth. Right now the demand for rental housing in the area is high due to the proximity to the college. In 2003, Forbes Magazine ranked the city with the highest number of Ph.D.s per capita, and the third highest college graduates per capita. As of 2008, the population was approximately 561,505 and is considered one of the fastest growing areas in the state.