JEFFERSON, Wis. -- The man accused of killing a Cambridge-area real estate agent was formally charged and appeared in court on Thursday, one day after the 71-year-old woman was found dead in a home that she was showing

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James Hole, 34, of Brookfield, Ill., was charged with first-degree intentional homicide, arson and burglary in the death of Ann Nelson, of Cambridge. Hole is accused of killing her on Tuesday while she was showing him a house in the Town of Oakland.

During Thursday's court proceedings, the judge set bond for the ex-convict at $1 million. He's currently being held in the Jefferson County Jail.

A visibly upset Hole wiped tears from his eyes during the hearing. He tearfully replied that he understood the charges against him, WISC-TV reported.

The criminal complaint said that Hole met with Nelson initially to see some nearby property which, unbeknownst to him, was a lot with unimproved land. It said the agent then offered to show him nearby property with a home on it.

Nelson was apparently showing the vacant house on Poplar Avenue, which was up for sale by her realty firm. Nelson was a broker assistant for Re/Max Community Realty, based in Lake Mills.

According to court documents, Hole at first denied that he'd done anything to Nelson when questioned by investigators. However, he later changed his story, they said.

Hole told authorities that he became upset with Nelson when they discussed the price of the house and she asked why he was looking at a house that he wouldn't buy, according to the complaint.

He told investigators he strangled Nelson with her scarf and hit her on the head with a long metal object, believed to be a fireplace poker. He said that he hit her not to kill her, but to knock her out so she'd stop screaming.

He said that he then left the building but realized that he might have left fingerprints behind. He then returned to set fire to Kleenex box to destroy the evidence and steal from her purse, the complaint said.

He said at that point, he saw Nelson was still conscious and thought she'd be able to get out.

Nelson's family members knew that she had a showing at 4:30 p.m. and when she didn't come home, they called the Jefferson County Sheriff's Department. When officers were called to check on the property, they saw smoke coming from the house. The deputies and members of Nelson's family broke into the smoke-filled house and, upon entering, discovered a smoldering mattress in a bedroom and Nelson's body on the floor.

An autopsy showed she died of smoke inhalation but also had head wounds.

On Thursday, Jefferson County District Attorney David Wambach said that he thought Hole intended to kill Nelson.

"It's the state's position based on what's alleged in the criminal complaint that the defendant intended to take the life of Ann Nelson," Wambach said. "And in Wisconsin, as you know, that intent can be formed even an instant before the offense, and that's sufficient."

Hole's defense attorney argued for less bail, saying that he has a history of depression and bipolar disorder and has no money, family or permanent address.

Jefferson County Circuit Judge William Hue scheduled a preliminary hearing for April 4.

The sheriff's department said that a woman accompanying Hole when he was taken into custody at a Cambridge motel has been released. Hole's lawyer said Hole was on the way to Wausau with his girlfriend prior to the incident.

Hole has a prior criminal record. Hole served more than eight years in prison in Illinois for aggravated criminal sexual assault before his release in January of 2006.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.