States like California and Florida have been dealing with a slumping real estate market.

But should Lake Country’s potential homeowners be worried?

Under appreciated

Mike Dolan of Realty Executives in Hartland does not see Lake Country’s real estate values sliding as far as those on the coasts. “The good news is that prices have stayed relatively stable the past couple years,” he said. “We are down 19 percent in sales, but that is compared to the previous all-time highs.”

First Weber Executive Vice President Roger Rushman estimates that Lake Country homes had experienced five to six years of “tremendous highs” but now might be suffering from a lack of appreciation. “Three to four years ago, if you bought a lakefront property, you knew it would appreciate,” he said. “Now, it has bottomed out. You don’t see the properties appreciating like they were.”

Because homes have not been jumping in value, buyers may be getting better deals. “We’re in a window where buyers are getting better deals because homeowners are very motivated to sell,” Rushman said. “The market has tightened, but when it turns around, the appreciation rates may bounce back.”

Dolan also sees the Lake Country area as a buyer’s market.

“The market has tremendous opportunities for both sellers and buyers, but it’s more a great time to buy a house,” he said.

Credit problems

The issue of credit has caused the most trouble for potential buyers and sellers. While buyers have to worry about obtaining credit, the seller must wait for the most-qualified buyer, which can mean a long wait, considering the number of listings for properties of similar size, quality and location.

“A year ago, there were creditors giving out zero down payments to applicants,” Dolan said. “Those with credit scores in the 600s were qualifying for the very best rates. Now you need 5- to 20-percent down payments and a 720 credit score to get the best rates.”

The credit situation is especially hurting first-time buyers, Dolan says, because they often cannot save up the amount of money needed for a down payment now. “However, there is a lot of grant money in Waukesha County for buyers who need assistance,” he said. “I just helped a woman in her 50s buying her first home. She has a good job but needed help with the down payment. She received $9,000 in grant money.”

Home builders are also feeling the pain from credit problems.

“There has been a fair amount of builders who have had to leave the business because of credit problems and bankruptcy issues,” Dolan said.

This issue can be attributed to a lack of need for spec homes, or homes built by crews who plan to sell more homes than their initial demand warrants. Many builders cannot receive the lines of credit needed before the buyers take over the mortgages and taxes. “There are still homes being built, though. The companies just need to wait and make sure they will have financial backing before they start building,” Dolan said.

Selling homes

For homeowners wanting to sell, sometimes the waiting can be more difficult than anything. “The homes whose prices have dropped have been on the market for a while,” Dolan said. “Usually those homes were initially priced too high, or the home was not in move-in condition.”

Move-in condition, according to Dolan, means there are no major replacements or handiwork needed before a new family can move in.

“If it is priced competitively – not cheap – and it is in move-in condition, it can sell.”

Rushman has noticed that although sellers with large homes offer many amenities, “They’re pretty much getting what they paid for them a few years ago.”

However, he does not believe that one area of Lake Country has been hit harder than others.

“It may seem bad because houses that were bought for $2 million may be selling for $1.8 million, but if you look at the percentage difference, it’s not that far from lesser-priced homes. The large amount of money just makes it seem worse,” Rushman said.

Even in a buyer’s market, sellers should not worry. “When there is an excess in home choices on the market, homes aren’t always sold as easily,” Dolan said. “But from a seller’s standpoint, that doesn’t mean you have to remodel your home. As long as the houses are in good condition, they will sell.”

One easy way to help the home-selling process go smoothly is to work with professionals. “Now there needs to be a marketing perspective. Who is going to want to live in your house? If it is close to a school, market to young families or schoolteachers,” said Dolan. Lake Country homeowners may feel as though they are in for a struggle but with a move-in-ready home, a competitive price, a creative marketing angle and a helpful broker, Waukesha County will be able to keep its real-estate head above the high waters of credit problems and home-selling headaches.