2008 Market results... An overview

As we enter the New Year with hope and optimism; one can’t help but to pause to reflect on 2008. A year that saw a historical Presidential election; almost unprecedented economic turmoil and a housing market spinning out of control, or so the national media would have you believe. Now, I am not suggesting there are not areas of the country that have been hit hard nor am I suggesting our markets were all roses. However, the national outlets would have you believe there is one market, a national market in which cities and regions are inter changeable and that simply is not the case.

Within the Rhinelander area market(1) there are three very distinct markets with distinctly different trends. Homes within the city limits of Rhinelander(2) have remained remarkably consistent over the years with the median home values(3) appreciating a modest 2.8% annually based on the past eight years. This segment of the market however, did not escape the economic turmoil of 2008 completely unscathed; median home values experienced the first decrease in eight years dropping slightly by 3.1% to $82,400.

Off-water country homes(4) have realized an average annual appreciation of 7% resulting in a median home value of $156,500. Unfortunately, after seven straight years of appreciation, the last two being double digit, this segment of our market experienced a decrease in median home values of 25.2% to $117,000.

Water front homes(5) continued to perform well, in spite of the 2008 economy realizing an increase of 19% in median home values to $298,900 by the end of the year. This segment of the market has a significant amount of vacation/investment homes which are owned by a populous relatively unaffected by general economic influences.


For additional information including tables and graphs please contact me at mcfarlandp@firstweber.com.



(1) Rhinelander market, for this article, is defined as; City of Rhinelander; Crescent; Newbold; Pelican; Pine Lake; Stella and Woodboro townships.
(2) City homes include single family detached residence regardless of site influences. Does not include; vacant lots, condos, mobile homes, duplex or other multifamily dwellings.
(3) Median home values; defined as the median sales price of homes in the defined categories
(4) Off-water country homes include single family detached homes located in the above mentioned townships with no frontage on a river or lake. Does not include; vacant land, condos, mobile homes, duplex or other multi-family dwellings
(5) Water front homes include; single family dwellings with direct access frontage to either a lake or river. Does not include; vacant land, condos, mobile homes, duplex or other multi-family dwellings

Flipping Foreclosures (Part 3)

If you haven’t heeded my not so subtle hints about using a Realtor, listen up; Call a Realtor. He or she will walk you through the process of writing the offer and can give you valuable advice and market data that you can’t get anywhere else. Ask about Buyer agency, we will tackle this topic at a later date.

In part 1, I stated that real estate has traditionally been a safe investment and that is true, however the allure of flipping is the relatively quick return on your investment. Real estate, at least in our market, has never been considered a highly liquid investment. As a result; be very cognizant of that if you must finance any part of your project.


The institutional owners of these foreclosed properties do not like to dink around with “cluttered” offers. So what do I mean by cluttered? Offers with contingencies. So, when writing an offer on one of these properties do so with as few contingencies as possible; you should have had any inspections done prior to developing your business plan; if financing be prepared for short time-lines for appraisals and loan commitments.

Congratulations! You are now the proud owner of a house that needs your attention. Now you pray that you did your home work and there are no surprises lurking behind the walls or under the floors. Good Luck!

Remember to give me a call in a couple of months when the work is all done and you are ready to sell.



Pat McFarland
Broker Associate

Flipping Foreclosures (Part 2)

Now that you and your Realtor have identified your target market, it is time to start your search for that perfect prospect. Chances are you will be able to eliminate the majority of listings without leaving the comfort of your Realtor’s office, leaving you with just a few real contenders.

It’s now time to have your Realtor set up showings. Spend time taking a mental inventory of the needed renovations as this will help you further narrow the field. The goal here is to eliminate all but one property. Revisit the property; bring your camera and notebook this time to take detailed notes of the improvements needed. Ask your Realtor what renovations he/she believes will realize the best return on your investment, chances are they have seen your competition.

Ok, play time is over and it’s time to set aside those illusions of grandeur, in other words it is time to develop a business plan with a budget. One of the biggest mistakes I believe novice flippers make is overestimating one’s abilities and underestimating the amount of time needed to complete the project. Let’s be honest… the majority of us can’t draw a straight line let alone cut one. Please seek the advice of a contractor or someone well versed in building trades when developing your business plan.

When all is said and done and the numbers appear to make sense to you ask the advice of a few more people you trust; the old adage “Two heads are better than one”. Next time we will look at the offer phase, if there is ever a time to enlist a Realtor this would be it.

Merry Christmas

Flipping Foreclosures (Part 1)

Fueled by those late night infomercials promising a fool-proof method of making millions and the airing of HDTV’s many diy programs; we have all aspired to reap the limitless rewards of flipping foreclosure properties. I must admit those guys and gals on HGTV make it look so easy, But come on: they are Professionals with years of experience and every tool under the sky.

That doesn’t mean there are not opportunities out there for an above average handyman with access to idle cash and the intestinal fortitude for a potentially risky investment. With that said; Real Estate has traditionally been a very safe investment. However Flipping is not without risks. Over the next couple of weeks we will be looking at the process of “flipping” and ways to reduce the potential risk. Today we are going to look at getting started.

The Number one piece of advice I can give anyone who is considering flipping property; Do Your Homework. You have to know your target market; you have to know what types of properties are selling and the price range for which they are selling; you should know the average Days On Market (DOM) as well. All this information is crucial to the success of your project. I highly recommend enlisting the services of a Realtor as he/she will be able to provide you with this information and provide needed insight into market trends that can not be captured through an MLS database.

I have a knack for stating the obvious, but here we go; target properties with similar characteristics of those with the highest sales volume and enough wiggle room in the price to cover the cost of renovations and any projected profit. It sounds simple doesn’t it? However, I have read numerous stories of flips gone bad, real bad. So, Do Your Home work and use a Realtor. Next time we will look at the process of narrowing down your prospects.