The Market Is Heating Up

Don't think for a second that you're going to get a steal of a deal when trying to buy in the Omaha market. It's heating up out there. Just this week we have lost two offers in multiple offer situations and another offer turned down. Buying low and selling high sounds good on TV but it's not working around here.
And it's working the same way nationwide, too. This article shows that most markets are picking up.

Why is all this happening? There are several factors in play, most notably:

• The number of foreclosures and short sales are shrinking.
• Large investor groups are scooping up properties because it's a great time to buy.
• Home builders are building fewer houses, scared of the so-called "fiscal cliff."
• In the Omaha market particularly, the number of houses for sale has declined while the number of houses sold has increased. And they're selling in less time.

When the market tightens up like this, houses don't stay on the market as long and they go for higher amounts. Compared to this last January, houses have gone from being on the market for 75 days to 66 days last month. And they went from selling for 96% of the asking price to 98%. Although I don't think it's a seller's market here yet, I think sellers are tired of being kicked around. Things are looking up in their favor.

Christmas Safety Tips

Don't you just love all the Christmas lights this time of year? We keep them up around our house and already have the tree decorated and shining bright through the front window. Lots of people do, and this sometimes leads to house fires and some pretty tough times for everyone.

Here are some ideas for keeping that tree beautiful and smoke-free:

• Don't use any string of lights with worn, frayed or broken cords or loose bulb connections.
• Always unplug Christmas tree lights before leaving home or going to sleep.
• Don't use lit candles to decorate a tree, and place them well away from tree branches.
• Keep live trees as moist as possible by giving them plenty of water daily. Don't purchase a tree that is dry or dropping needles.
• Choose a sturdy tree stand designed not to tip over.
• Use only artificial trees labeled as fire-retardant.
• Make sure the tree is at least three feet away from any heat source and try to position it near an outlet so that cords aren't running long distances.
• Don't place the tree where it may block exits.
• Get rid of the tree when it begins dropping needles. Dried-out trees are highly flammable and should not be left in a house or garage, or placed against the house.

In addition to the tree, here are some other tips to keep your Christmas a joyous time:

• Unattended cooking is the leading cause of home fires in the U.S. Keep an eye on the stove!
• Provide plenty of large, deep ashtrays for guests who smoke and check them frequently. Or ask them to smoke outside.
• After a party, always check on, between and under upholstery and cushions and inside trashcans for cigarette butts that may be smoldering.
• Keep matches and lighters up high, out of sight and reach of children. When smokers visit your home, ask that they keep smoking materials with them.

And how can we forget the fireplace? If you have a wood-burning fireplace, keep this in mind:

• Use care with "fire salts," which produce colored flames when thrown on wood fires. They contain heavy metals that can cause intense gastrointestinal irritation and vomiting if eaten. Keep them away from children.
• Don't burn wrapping papers in the fireplace. That stuff ignites quickly and burns intensely.
• Remove all greens, boughs, papers, and other decorations from fireplace area before lighting a fire. Check to see that the flue is open.

Christmas is a wonderful time of year. Don't ruin it for you and your family with a fire or tragedy. Leave a comment if you have any other suggestions or tips to make Christmas a safe time of year.

Christmas in Omaha 2012

We all love Christmas, with the lights, hot chocolate, beautiful music and the wonderful memories of Chrstmases gone past. I know we all get a little frustrated with the din and all the headaches of preparing, so it helps to relax with some activities and maybe we can start feeling like we did when we were kids. Here are some Christmas activity ideas for you in the Omaha metro:

Where	When	Activity
Henry Doorly Zoo	Dec. 8, 15 and 24 at 10:15 a.m.	Christmas characters diving in the Scott Aquarium. Regular zoo admission.
Henry Doorly Zoo	Dec. 20th through Dec. 23rd from 6 p.m. to 8 p.m.	Supper with Santa. Regular zoo admission plus $15 for zoo members or $20 for non-members. Pre-registration is required.
Downtown	Each night at dark through Jan. 6th	The downtown is lit up with Christmas lights. Free!
Con Agra campus, downtown	Sun - Thurs from 1 p.m. - 10 p.m. Fri - Sat 1 p.m. - midnight Christmas Eve and New Year's Eve, 1 p.m - 5 p.m. Closed Christmas Day and New Year's Day	Ice skating in the rink. $5 admission includes skate rental. Canned donations are also encouraged.
Lauritzen Gardens	1 p.m. - 5 p.m., Dec. 1st - Dec. 31st.	Poinsettia show with a 20-foot poinsettia tree. Admission is $6 for adults and $3 for kids six to twelve. Garden members get in free.
Stuhr Museum	Dec. 7th and 8th, 6 p.m. - 9 p.m.; Dec. 9th from 2 p.m. - 5 p.m.	Lamp lit tour of Railroad Town, cooking, crafts and gorgeous decorations through Railroad Town, live music and the sights, sounds and smells...and the spirit of Christmas. Normal museum admission.
Stuhr Museum	Dec. 16th, 12 p.m - 4 p.m.	Fantasy of Trees exhibit reception. See over 100 lavishly decorated trees. Food and drink provided; normal museum charge.

Do you have any activities you'd like to let others know about? Leave a comment with the information!

Ten Home Safety Tips

10 Tips to Safeguard Your Home

We all know the basics of home security – strong locks, keep the bushes trimmed out front, have neighbors watch over the place, and so on. HouseLogic put together a list of 10 items that burglars don’t want homeowners to know.

Things To Do and Not To Do

1. Alarm your second floor and keep ladders locked up.   Don’t give thieves a chance to get into the upper floor because it’s less likely it will have an alarm.
2. Break down the boxes your new toys came in.   Throwing out the boxes so they can be easily seen is just advertising to the wrong people. Break down the boxes and put them in the recycle bins, or put them in trash bags.
3. Trim up around the house.   Untrimmed bushes can give thieves a place to work without being seen. Keep the bushes trimmed, or plant something with thorns.
4. Make the doors more difficult.   Use steel or reinforced doors and use deadbolts on hardened frames. Make the thief work for it or find a different way in – preferably one the neighbors can see.
5. Reflections.   Don’t position mirrors so the alarm panel can be seen from the door or the outside.
6. Mow the lawn and pick up.   Not keeping up with the grass, letting the newspapers pile up and so forth are just advertising that no one is home. Ask a neighbor to pick up the newspaper and hold the mail with the post office. Make sure someone is mowing the lawn so it looks like someone is home.
7. Don’t keep valuables in something that can be easily carried.   Invest in a wall safe or find somewhere else to put valuables.
8. Don’t talk about vacations until you’re back.   Don’t alert your social networks know you’ll be gone. That gives thieves a leisurely time to ransack your house.
9. Don’t broadcast your whereabouts.   Using geotagging in social applications just lets people know you’re not home and not likely to catch them.
10. Don’t invite trouble.   Inviting people over to see something you’re selling gives would-be thieves a chance to see how your house is set up – alarm, easy access, etc.

More Information

For more information on these tips, you can find the original article here.

Omaha's Creepy Crawlies

It’s a Bad Summer for Spiders

We have spiders in Omaha – lots of them. The place isn’t exactly crawling with them but they are worse this summer. The news says it’s probably because of the mild winter and really warm summer we’ve had.

Spiders in Omaha

Wolf spiders are pretty common in Omaha. They’re big but beneficial. They don’t build webs; instead, they go out and hunt insects. They love crickets.
Brown recluses are the ones really growing around here. They are not aggressive but do have a nasty bite. It’s rarely fatal but does cause big red spots at bite area.
Black widows can also be found around here. Like the brown recluse, the black widow’s bite is rarely fatal but does cause nasty sores.

Dealing with Spiders

Spiders are really creepy and you don’t want them around. I can relate. Here are some steps for controlling them:

• Get rid of other insects. Don’t just kill them. Get rid of them because the brown recluse favors dead insects.
• Vacuum the corners of the house.
• Reduce the clutter in the house.
• Use glue traps with bait.
• Remove litter around the house, inside and outside.
• Repair holes in the screens.

A Little More Information

You can check out the Brown Recluse Spider site. It covers all kinds of spiders, not just brown recluses.

VA MPRs

VA Loan Property Requirements

Around here in Bellevue and in Sarpy County, we see a lot of VA loans because of Offutt Air Force Base and the large military community. VA loans are great loans for our military members to use when buying homes. And like FHA loans, VA will have some things to say about properties it guarantees. It wants to make sure the property meets basic safety, sanitary and structural integrity standards.

The Loan Process

The lender will schedule an appraisal with the VA. The VA will send out one of its inspectors to look over the property and make recommendations. These items will need to be remedied in order for the loan to proceed. Some items can be appealed but not if they relate to structural integrity or safety.

What Are Some of the Things the Appraiser Looks At?

The appraiser wants to make sure the house meets local codes. The VA will want any items not in line with local code to be fixed. The house cannot be under power lines. The heating and air conditioning units need to be big enough to service the house. The house must be accessible from a public or private street and not go through another property – i.e., it’s not landlocked.

The Specific Guidelines

The guidelines are several pages long and are a bit much for a blog post. However, you can find a Word document from the VA here. It’s called “Chapter 12, Minimum Property Requirements.”

You can also see VA’s website.

FHA Repair Requirements

Sellers used to be loath to approve a sale to an FHA buyer because FHA required so many expensive repairs to property before approving the loan, and it was the sellers who had to pay for the repairs. But FHA softened their rules in 2006 and now dealing with them is less painful. They concentrate on the three Ss: Safety, Security and Soundness. Basically, it has to be a safe home to live in and get out of.

The New Guidelines

While there are no hard and fast rules about which items will be required, here are some ideas:

• Occupants can’t safely get from the bedrooms to the outside of the house.
• Peeling paint in a house built before 1978.
• Roofs that may have less than two years of life left, or that are leaking.
• Excessive settling and/or cracks in the foundation.
• Leaky pipes or water connections.
• Wood rot
• Exposed wires, open electrical boxes.

Repairs

Either the buyer or the seller can repair these items. However, in most cases, these will need to be done before closing. If the repairs have to be put off until a later date (such as something outside during the winter), funds will be escrowed. If a repair is simple enough that a homeowner can do it, HUD considers it a minor repair. Other repairs will need qualified workers and completed HUD forms to verify the work has been done.

Find Out More

FHA has some good information here.
HUD has a page you can find here that talks about this.
Rural Development has a PDF here that lists items.

Remodeling Cost Surprises

Remodeling Your Omaha Home

While we have talked before about remodeling your home and the costs involved, keep an eye out for some surprises that can jump out and bite you.

• Higher Property Taxes.   Nebraska is well known -- or, should we say, infamous -- for its property taxes.  The contractors will pull permits and this lets the assessor know your house is now more valuable.
• Unwanted Critters.  You could uncover termites, ants and more.  You could also uncover improper wiring, mold or asbestos.  While it's good to know these problems exist, it will cost you to fix them.
• Storage.  You'll need somewhere to store all your stuff.  You might be able to find someone with extra room but if you can't, renting a storage unit will cost you over and above the renovation cost.
• Building Codes.  Make sure the city won't want you to change something because you're changing the house.  Those pesky permits will alert them to changes to your house and they could request changes in smoke detectors or something else.
• Utility Bills.  Who's paying for all the electricity and water your contractors are using?
• Eating Out.  Even McDonald's is expensive these days.  Multiply that by several weeks of eating out and you have a chunk of change the size of your cholesterol numbers.
• Pet Boarding.  Fido might need a place to stay.
• Dumpsters and Portable Toilets.  These kind of explain themselves, don't they?

The original article can be found here.

RiverFest 2012

RiverFest 2012 in Bellevue

We all love a good festival. It’s a chance to get out, see some people, have some good food and take part in lots of different activities. RiverFest is going on again this year and after a few years in an alternate location, this year it’s back at the riverfront.

Where and When

While it used to be at Haworth Park, this year it’s at Kramer Park (just north of Haworth on Highway 370). It takes place starting Friday night at 6 p.m. and goes through Saturday night around midnight.
There is a $1 admission charge.

Activities

Activities include Red, White and Que – the Nebraska State Barbecue Championship and Music Festival. Musical acts include Trixie and the Nooners, Ditchin Kathy, Impulsive and Grand Theft Girlfriend. Over seventy competitors will be in the barbecue competition. Do you love some good barbecue? Then this is the place to be this weekend.

But Wait, There’s More!

Other activities include:

• An Iron Chef competition.
• Kids’ BBQ Contest.
• Car show.
• Beer garden.
• The Pancake Man. Who doesn’t love pancakes and watching him work his magic?
• KidZone.

Where Can I Find More Information?

You can find a complete schedule of events here.

Omaha Market Report for June 2012

Market Report for Omaha for June 2012

The numbers are in for June and things continue their upward trend. The total number of homes listed for sale in June was 4,733. 1,066 of those were placed under contract.

As you can see, the number of houses on the market are up over last month, the number of houses placed under contract are down slightly over last month and the number of houses closed are down slightly. The absorption rate for last month was 4.1, which means it would take 4.1 months to sell all the houses available at the current rate. That's slightly looser than in May, where it was 4 months.

While the number of houses that have gone under contract have gone down over last month, they have increased over this time last year. What this chart doesn't show is that while the average home price has hovered at around $210,000 for the last three months, the average selling price has increased from $162,000 to $183,000. The days on market has gone down from 71 days on market to 62 over those same three months.

Overall, the market is neutral right now. It's not an advantage to either the buyer or the seller.

Eh, What's Up Doc?

• 

  (New!)

  How to Stop Rabbits from Eating Your Plants

  Nothing’s more frustrating than watching rabbits treat your vegetable garden like their private salad bar. Here’s a novel way to protect your greens. Read

Visit houselogic.com for more articles like this.

Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

Fireworks Safety

Have a Safe and Fun Independence Day

Along with barbecues, parades and music, July 4th brings out everyone’s favorite activity: fireworks. Learning how to properly handle them will make a big difference in your enjoyment. It’s kind of hard to enjoy them with a finger missing. From the National Council of Fireworks Safety, here are some tips:

• Use fireworks outdoors only.
• Obey the local laws. If they’re illegal, don’t use them.
• Have water nearby – a hose or a bucket.
• Don’t try to alter fireworks. Use them as they were designed.
• Don’t re-light a dud. Wait twenty minutes and then soak it in water.
• Use common sense.
• Don’t mix fireworks and drinking alcohol. Make sure the person handling the fireworks isn’t drinking. Everyone else can drink all they want.
• Don’t let anyone under 12 handle sparklers.
• Don’t make your own fireworks. Just don’t do it.

One Last Tip

Probably the most important tip we can offer you is to run for the hills if someone says “Hey y’all, watch this!"

The original article can be found here.

July 4th Activities in Omaha

Celebrating the 4th in Omaha

We sure do love Independence Day here in Omaha. Everywhere you go there are plenty of activities – and certainly lots of fireworks. Check out some of these activities in and around town this week:

• The City of Ashland will have a fireworks show at 10 p.m. in the football field at 10th and Clay.
• The City of Blair will shoot off fireworks at 10 p.m. at 715 Grant.
• The Red, White & Blue Fireworks Celebration will be Tuesday at the Base Lake in Bellevue. They’ll have kids’ games from 4 p.m. to 7 p.m., with family entertainment afterwards and a concert at 8 p.m. by the Heartland of America Band group Raptor. Fireworks will start at dusk.
• Boys Town will have a fireworks display at 9:45 p.m.
• Cass County’s Fourth of July fireworks will begin at 10 p.m. at Young Memorial Park in the town of Murray. Activities begin at 10 a.m. in the park. They include games, contests, food, a 7 p.m. parade and 9 a.m. coronation of Miss Murray. Fireworks will be the 7th if they get rained out on the 4th.
• Champions Run will shoot off fireworks from its driving range at 10 p.m. Champions Run, 13800 Eagle Run Drive in Omaha.
• The Field Club Homeowners League will have a Fourth of July parade beginning at 10:30 a.m. on Woolworth Avenue between Turner Boulevard and 36th Street.
• The City of Fremont will have a fireworks show at 10 p.m. Tuesday at Christiansen Field.
• The City of Fullerton will have a Fourth of July Festival and Fireworks Show from 5 p.m. to 9:30 p.m. at the Fullerton High School Stadium. Admission is free, but some activities may have a nominal cost. Fireworks will begin at 9 p.m., accompanied by live music.
• The City of Geneva will have activities all day Tuesday and Wednesday. Tuesday will include volleyball and basketball competitions, live music and 9 p.m. to 1 a.m. free street dance. Wednesday’s events will include various fundraisers, flea market, craft fair, art show, 10 a.m. parade, fire truck and train rides, free swimming pool admission, live music and after-dark fireworks at the Fillmore County Fairgrounds.
• Harrah’s Council Bluffs will put on its fireworks show at 10 p.m.
• The Henry Doorly Zoo celebrates Independence Day with Red, White and Zoo! from 9 a.m. to 3 p.m. Wednesday through Friday. Look for wild entertainment and special animal presentations. Free to members or with paid admission.
• The 62nd annual J.E. George Boulevard Parade will begin at 10 a.m. where Nicholas Street intersects the boulevard. The Police Mounted Patrol will lead the parade, which includes children with decorated bikes, the J.E. George Navy Band, politicians and more. The parade moves south along the boulevard into Memorial Park, where prizes will be awarded. Willy Theisen will be the grand marshal and Patricia Addision, who has lived the longest on the boulevard, will be the honored guest.
• The City of Lincoln will have a fireworks show at 10 p.m. Tuesday at Oak Lake Park.
• The Old-Fashioned Independence Day Celebration in Malvern, Iowa, will be July 7. Day-long events will include a parade, 5K run/walk, bounce houses, water slide, fishing contest, carnival games, pedal tractor pull, auto push ball and more. Fireworks will begin at 10 p.m. Admission to the fairgrounds activities, which includes the fireworks show, will be $5 for adults and $3 for ages 5 to 12.
• The City of Murdock has a day full of events planned. The parade will start at 11 a.m. followed by fun on Main Street with free watermelon, a bounce house, kids games and more.
• The Omaha Storm Chasers will provide fireworks at 10 p.m. Monday and Tuesday after the baseball games at Werner Park in Papillion.
• Ralston’s 52nd annual Independence Day celebration will be a co-celebration of the town’s 100th anniversary. Tuesday activities will include 5:30 p.m. to 7:30 p.m. picnic, live music, and ice cream and pie social in Ralston Park; 8 p.m. to 10 p.m. square dance; and 7 p.m. to 11 p.m. family street dance. These events are among those scheduled Wednesday: 10 a.m. children’s parade, 1 p.m. Independence Day parade and 9:30 p.m. fireworks at 72nd and Q Streets, synchronized to music over KAT 103 (103.7 FM).
• The City of Seward is having the 144th annual Old-Fashioned, Small Town Fourth of July Celebration which will include the 10 p.m. fireworks at the city’s Plum Creek Park. Other activities throughout the day will include a parade, live music, book talk, craft show, freedom run, holiday lights and more.
• Tiburon Golf Course in Gretna will shoot off fireworks at 10 p.m.
• The bells on the University of Nebraska at Omaha campus will sound at 9 a.m. with a “Let Freedom Ring” outdoor carillon concert. UNO carillonneur James Johnson will perform a 40-minute concert of patriotic and American folk music. Attendees are invited to bring lawn chairs and sit on the grassy area between Criss Library and the Strauss Performing Arts Center. The concert will occur rain or shine.

If you want a complete list of fireworks displays in the state, the State Fire Marshall has a PDF.

There’s no excuse not to have a good time in Omaha/Council Bluffs this Independence Day. We hope to see you out there!

Giving It Up

Sacrifice Now for a Better Life Later

If you don't already own a home and want to later, have you considered what you will give up to save the money necessary? If you're not already making progress on saving for things like an earnest deposit, home inspection and down payment, it's time to consider making changes to make your goal.

Small Sacrifices

Century 21 did their annual Buyer/Seller Survey and here is what buyers said they would give up in order to save up for a home:

• Half would give up dining out.
• Nearly half would give up shopping on things like clothing, gadgets and accessories.
• Nearly half would give up things like trips to the salon and cable packages.
• 39% would cut back on vacations.
• 10% would contribute less to their 401Ks.

Now You're Making Cents

Find some areas to trim and figure out how much you're saving. Set up an automated transfer from your checking account each payday to a savings account. Consider putting any windfalls into that account, too, instead of spending the money. You'll be ready in no time.

We Can Help

We can put you in touch with lenders that will help you repair your credit if necesary, give you a plan on which bills to pay and how much, and who will be with you every step of the way. We can also give you an idea of what your costs will be to close on a home. If you want to own a home, start taking steps today. Get in touch with us and we can put you on the path to home ownership.

You can find the original article here.

Light It Up

Lighting Options

Lighting has gone far beyond the stndard light bulb above and lamps all around. New bulbs are out, new lighting fixtures are available and a homeowner's options are much better now.

Socket To Me

Fixtures range from new lamps and new covers to track lighting and LED lights under cabinets. Dimmers can help you set a mood in a dining room or library.

Seeing the Light

If you're selling, this is a good chance to make a home look updated and to highlight what you think are selling features. Got a really nice mantle on the fireplace? How about some spot lighting on it to highlight it. Or set up some task lighting to help with the kitchen island and spotlight it to potential buyers.

But I'm Not Selling Right Now

This is a good chance to improve your home's value and utility. Swap out outdated fixtures, add track lighting and improve visibility in areas like craft rooms and the kitchen. Since lighting accounts for approximately 12% of a home's electricity use, install some dimmer switches to help keep down the bill. You can also install new bulbs, like halogens, that will increase light and use less electricity. LEDs work well but cost a bundle right now.

Final Thoughts

Like real estate, lighting is all about location. Consider the right spots to put lamps and lighting fixtures. Consult a lighting store and ask for the factory catalog. Consider hiring someone to plan placement to get the most bang for your buck.

You can find the original article here.

5 Common Mistakes Home Buyers Make

Don't Make These Mistakes When Buying a Home

Buyers typically want to put their best foot forward when buying a home but wind up making some mistakes. Good intentions can often lead to bad consequences. Keep these points in mind when getting ready to buy a home:

1. Trying to Clean Up Your Credit Score.   You definitely want to have a good debt to income ratio. However, don't use up all your cash when paying down debts. You'll need money for an earnest deposit, home inspection and closing costs. Consult a lender to come up with a good strategy before investing a lot of money. If you don't know a good lender we know several who are great at helping people repair their credit and plan ahead.
2. Not Thinking Far Enough Ahead.   You truly make your money when you buy the house. You can't change location, which can be a big factor later when selling. We can help you get an idea of which subdivisions sell well. Don't forget to factor in if you want kids later. How long do you plan on staying in the home? You could get a different mortgage that can help maximize your payments -- and profits -- later.
3. Not Getting Prequalified.   We've talked before about being prequalified. You need to know ahead of time how much house you can afford, what the interest and fees will be and what mortgage options you have available.
4. Taking the good faith estimate as gospel.   The estimates can vary from lender to lender. Your closing costs can be anywhere from 3% to 5% of the loan. We can negotiate with the sellers to help pay some of them and will fill out an estimated cost sheet when you submit an offer.
5. Failing to budget for home expenses.   Things will go wrong when you own a house. There is quarterly maintenance you need to do on any home. These are things you weren't responsible for as tenants but now that you're king of the castle you get to pay the bills.

Buying a home is serious business. We're professionals who work with buyers every day to repair credit, plan for the purchase, negotiate the contract and close the deal. We have a team of lenders, title personnel, and home warranty companies that can make your new home purchase a much easier experience.

Ten Staging Tips

Staging for Success

Ever wonder if empty houses sell better than full ones? Wonder no more, good readers. Experience has shown that a well staged home will sell better than either one. Sellers want some furniture that hints at a room's purpose but not so much that it's hard to navigate. Neutral colors will always work better than harder ones because they go with most furniture. Here are some tips to help you.

1. Freshen up that paint.   Cover up rough spots on the walls or redo them all in neutral colors.
2. No empty rooms.   Leave something in there that hints at the room's purpose.
3. Use that expensive TV.   Make it the focal point of the living room. Hook up a laptop and run a slide show of nature scenes or turn it to the music channel to softly play music.
4. Add something to the walls.   Take down the personal pictures and put up pics of nature, pets, etc. Since you're going to be packing up those photos anyway, cut out some nice pictures from magazines and put them in front of the photographs, inside the frames.
5. Add window treatments.   Window treatments spice up a house and frame the window.
6. Maintain that yard.   Make sure it's cut, watered and trimmed. Add some flowers and consider lining the driveway with some paving stones to make a nice transition from concrete to grass.
7. Add some flowers to the house.   Flowers add a natural fragrance to the home without being overpowering. They also add some color.
8. Straighten the books.   Straighten them and add some bookends. Take off dust covers so the bare books add some atmosphere.
9. Keep the bedrooms neutral.   Avoid gender-specific elements in the master bedroom. Use white bedding to keep the rom feeling and looking fresh.
10. Declutter the house.   Kitchens are the worst for this. Keep most things off the counters to make the room feel bigger. Tidy up the closets so they don't look so small.

Staged homes sell for more money in less time. Professional home stagers will charge a fee but you can this yourself. If you decide you want a stager, your real estate agent can send you to a trusted one. The original article can be found here.

Market Report for May 2012

Market Report for Omaha for May 2012

The numbers are in for May and things continue their upward trend. The total number of homes listed for sale in May was 4,616. 1,162 of those were placed under contract.

As you can see, the number of houses on the market are up over last month, the number of houses placed under contract are down slightly over last month and the number of houses closed are slightly up. The absorption rate for last month was 4, which means it would take 4 months to sell all the houses available at the current rate. That's slightly tighter than in April, where it was 5 months.

While the number of houses that have gone under contract have gone down over last month, they have increased over this time last year. What this chart doesn't show is that while the average home price has hovered at around $210,000 for the last three months, the average selling price has increased from $164,000 to $174,000. The days on market has gone down from 76 days on market to 62 over those same three months.

Overall, the market is neutral right now. It's not an advantage to either the buyer or the seller.

Feeling the Love

Moving on Up

Gallup polls the public annually to determine how people feel about various professions. This year, 20% of respondents rated Realtors' honest and ethics as high or very high. Fifty-seven percent rated them as average.

Top Dogs

Nurses, pharmacists and doctors ranked tops in the survey. These professions are always rated high. Nurses have been number one every year except for 2001 when firefighters were included.

Bottom of the Barrel

Members of Congress and lobbyists came out at the bottom. Now there's a shock. Only 7% of people rated them as high or very high on ethics. That's the lowest Congress has been rated since Gallup started doing the polling in 1976.

You can find the original article here.

Home Valuations

Tax Assessments on Homes

It's that time of year. The counties are assessing house values for tax purposes.

County Assessors

The local county tax assessor sites are Douglas County, Sarpy County and Cass County.

How Are Values Determined?

Around here, the assessors adjust valuations based on the sales in the neighborhoods. If purchase prices have trended up, valuations will probably go up. And if they go down, valuations go down. Adjustments are made for improvements done to the houses, too.

What if I Don't Like the Valuation?

You can always protest the valuation. In Douglas County, see the Board of Equalization for the procedures. For Sarpy County, see the Board of Equalization there. Contact Cass County for their Board of Equalization.

Appraising the Situation

What Is An Appraisal

When buying a home, you don't want to pay more than the home is worth. Your real estate agent can do a comparative market analysis (CMA) on it to determine the approximate market value. And just like you don't want to pay more than the house is worth, the bank doesn't want to loan more on it than it's worth.

The Appraisal

In comes the appraisal. It is ordered by the lender and they bring in their own people. The appraiser is licensed by the state and, like a CMA, uses recently sold properties to determine if the house is worth at least what the loan amount is for. And, like a home inspector, this person will look at the condition of the home. Adjustments are made to the house's value based on the condition.

Can I Order My Own Appraisal

Yes, and it will cost several hundred dollars. However, the bank probably will not take it. They want a disinterested third party, not someone with a stake. They have their own appraisers and will more than likely ignore yours to do their own. Save your moeny for that new carpet you're wanting to put in the living room.

What If the House Doesn't Appraise?

The buyer and seller will need to renegotiate the price. The buyer can put more money down to get the loan amount down to the appraised value. Or, if the contract was written with the right clause, the buyer can walk but may have to forfeit the earnest deposit.

Know Your Numbers

An appraisal shouldn't be a surprise. If you and your Realtor have done your homework, you'll know the approximate market value. If the appraisal comes in low, it won't be by very much. You can protest the valuation from the appraiser with solid numbers.

Add Some Curb Appeal

You Never Looked So Good

Curb appeal is an incredibly important part of selling a home. It demonstrates care and attention to detail. You can have the best home on the market but if the outside looks ratty, most buyers will pass it on by. Even if you're not selling, these tips can help you have the best looking house on the block. Here are some things you can do to help the outside appearance of your home.

1. Replace old hardware.   Look at things like the lock, the light, house numbers, etc. Make sure they work together and the finish looks right. Brass for older homes, brushed nickel for newer ones.
2. Dress up the front door.   Give it some color to make it pop. Clean up the handle and around it. Make sure no dirty spots are on it.
3. Make a grand entrance.   Add molding to the front entry to set it apart from the rest of the house.
4. Makeover the mailbox.   Paint or stain it to match the house and trim. Build a structure around it to set it apart.
5. Install outdoor lighting.   Use lights to accent the house and provide a little more evening security.
6. Create a garden.   Buy some ready-made planters or create your own. Use it to set off the front entry.
7. Renew planter beds.   Prune the plants, take out the weeds, add new mulch. Do all those things you've been meaning to do to make it look better.
8. Create a new planter bed.   Look at locatinos like the front corners of the yard, along the driveway and immediately in front of the house. Mix up the plant sizes and colors and line it with stones or precast concrete.
9. Install window boxes.   Paint the boxes to match your house's trim and choose plants with complementary colors.
10. Add arbors or fence panels.   Get arbors, short sections of fence and garden gates. Paint them to match the trim on the house.
11. Add outdoor pieces.   Look for items like bird baths, wind chimes and water fountains.
12. Add shutters or accent trim.  
13. Replace gutters and down spouts.   If your gutters have seen better days, replace them. Make sure the drainage is at least three feet away from the foundation. Clean the gutters, too, while you're up there.
14. Tile your door step.   Tile or paint a design that contrasts with the front floor or stoop.
15. Spiff up the driveway.   Get rid of the weeds, fill the cracks and give it a good power wash. Consider lining it with stones or pavers.
16. Build a walk way.   You can color the concrete you have and edge it with stones, or rip it up and lay down pavers.
17. Upgrade the railings.   Look for good wood or metal components and make sure they match your home's color and design.
18. Renew the paint, siding and trim.   Consider new paint, siding or trim. Maybe replace them with some colorful options.
19. Add stone veneer.   Use it to accent columns and concrete foundations. You can look at natural stone or manufactured stone.

You can find the original article from Better Homes and Gardens here.

Sand in the City

Sand in the City 2012

Combining 375 tons of sand, 20 corporate and community teams, professional sand sculptors, interactive Kid Zone, live entertainment and much more, Sand in the City is a perfect way to spend part of your weekend.

Why All the Excitement About Sand?

Sand in the City is a fundraiser for Nebraska Children’s Home Society, which provides safe and loving care to children of all ages through statewide pregnancy, parenting, adoption, foster care, community and neighborhood based services and early childhood programs.

Schedule

Sand in the City takes place Friday, June 1st through Sunday, June 3rd. Although it starts on Friday, the exhibit doesn’t open late Friday. The sculptors will be building Friday and judging takes place late Friday afternoon. Winners will be announced at 4:30 Friday and then the public is welcome to tour.

Where To Find It

Sand in the City will be held in the CenturyLink Center’s Lot G, 455 North 10th Street, Omaha. You can see a map here. Although the event is free but you may have to pay for parking in a nearby lot if you can’t find some street parking. Donations are welcome.

Last Year’s Winners

1st Place - Millard Drywall Service
2nd Place - Kiewit Engineering Co.
3rd Place - Kiewit Underground District
Rookie Team of the Year - Baird Holm LLP
Team Designer of the Year - Jon Kathol from the Westside High School Theater team
People's Choice Award - Lund Company

Learn More

They’re also providing some live entertainment and other activities. You can learn more and even vote online for your favorite sand sculpting team. Just go to Sand in the City’s page!

Tasting Omaha

Taste of Omaha 2012

Omaha has tons of restaurants and if you’ve ever wanted to get a good idea of what’s available, you should check out Taste of Omaha. You not only see the vendors, you get to taste the food. And you get to listen to some awesome music while you do it, too.

How Does It Work?

The festival itself is free. If you want to taste the food, though, you will need to buy tickets. You take the tickets to the vendors and redeem them for food. They will encourage you to eat as much or as little as you like – but save room because there’s always the next booth down. It isn’t just main courses; it’s desserts, wines, ice cream and even a beer tent.

It Isn’t Just Food

While food is the focus, it goes great with music. And they have it on multiple stages. The music is just as diverse as the food with acts doing classic rock, country, Polish, Crotaian, Irish, salsa and more. The music is free, too. There is plenty for the kids to do with face painting, balloons, rides, magic acts and more.

Where To Find It

Taste of Omaha is held at the Lewis and Clark Landing in Heartland of America Park, downtown. It’s an easily accessible and very pretty area.

Bank of America Is Offering Relocation Assistance

Bank of America Wants to Help You Move

Well, not everyone. Just those people who are underwater on their mortgages and who are candidates for a short sale. The bank has to approve the short sale, the sale must begin by the end of 2012 and it has to close by September 26, 2013.

How Much?

Bank of America will pay between $2,500 and $30,000 to help home owners move. Just how much will depend on the loan balance, the value of the home and other considerations known only to the bank.

Why Would They Do This?

Banks have typically favored foreclosures over short sales but have come to realize they lose less money through short sales. Foreclosures are in rougher shape, are empty by the time the bank gets them and sell for less than short sales. The short sale houses usually still have the homewoners in them to keep up the exterior, make repairs and care for the house until it is sold.

Bank of America Short Sales

If you have a Bank of America loan and are considering a short sale, you can consult their short sale page. You can also contact us and we will help guide you with the short sale process and answer any questions you have.

Bank of America's announcement can be found here. The original article can be found here and CBS News covered it here.

Conservation Easements

Easements usually allow one party access to another party's land. For example, a homeowner has a house that cannot be reached from the street except by going through another person's property. An easement is created so that the landlocked owner can access his property.

Conservation Easements

In the case of a conservation easement, a landowner grants the land to a federal entity or non-profit. The easement is recorded in public records and "runs with the land". That means it transfers with the property whenever it is sold or leased

Why Grant a Conservation Easement?

A land donor could grant the easement for habitat conservation or preservation of a forest or farm land.

What Are the Benefits?

Land donors continue to own the land and receive federal tax credits if the easement is perpetual -- i.e., forever. State tax credits can apply as well. You will need to look it up for your specific state. It also does not grant access to the land to anyone, including the agency holding the easement. The benefits to the government are that it keeps the property in private hands and usually raises the value of properties around it.

What's the Catch?

An easement generally reduces the value of the land. That's why the tax credits were put in place. The easement also runs with the land so it's always there. It limits the use of the land and the government must use eminent domain to take the land and do away with the easement.

Final Thoughts

If you would like to learn more about conservation easements, you can look at the Wikipedia article. Here is another article about conservation easements.

Downtown Living Omaha

Downtown Living Tour

The Downtown Living Tour showcases homes available for sale in downtown Omaha. It focuses on developments in River Front, the Old Market and Midtown.

Riverfront's Tower II Is On the Tour This Weekend

Riverfront's Tower II is now open for tours. You can tour today from 11 to 4 and tomorrow from 12 to 4. And especially for tomorrow, a 2,000 square foot home available on the 9th floor of Tower I will be on display.

Getting Around

You can pick up a trolley at any one of the stops and ride for just $1. Click here for a map and details on all of the locations available.

You can see the release about this weekend's tour here. Downtown Omaha Living's page is here.

Contact us if you'd like to see any of the places. We'd love to help you find your next home!

Camping Around Omaha

It’s time to get out and enjoy nature now that the weather is getting nicer. Grab a tent or hook up the RV and head out for the weekend. Get away from the bustle and noise of town and do a little fishing, take a nap and decompress for a weekend. Here are some places to consider when getting away around here.

Mahoney State Park

This is the largest park around Omaha and it has plenty to do: a water park, a ball field, driving range, fishing and so much more. There is plenty to do but it keeps busy so call ahead to make sure there’s room. They offer 30- and 50-Amp service and are pet friendly. You don’t even need a tent or RV. They have cabins and lodges available for rent. See the website for details. And if you want to get away from the park a while, go next door to the Strategic Air and Space Museum or to the Henry Doorly Zoo’s Safari.

West Omaha KOA

This campground is outside Gretna, between Omaha and Lincoln on the interstate. They have 50-Amp service, cable TV, propane and wi-fi. Activities include swimming, miniature golf, a jumping pillow and bicycle rentals.

Glenn Cunningham Lake

This 390-acre lake is surrounded by more than 1,000 acres of land. Activities include windsurfing, boating, hiking and biking. It has electric and non-electric sites and supports RVs and tent camping. See the city’s website for details.

Memphis State Recreational Area

This requires traveling some state highways but it’s quiet and out of the way. It has non-pad campsites and does not offer electricity. But it does offer fishing, hiking, wildlife viewing and stargazing. You can see the website for details.

There are plenty of other activities to get out and enjoy the weather. We also have some parks that don’t support camping but do offer some great views. Where do you like to go out here?

Market Report for April 2012

Market Report for Omaha for April 2012

The numbers are in for April and things are looking up over the three months previous. The total number of homes listed for sale in April was 4,509. 1,198 of those were placed under contract. 896 of the homes that had been under contract before closed.

As you can see, the number of houses on the market are up over last month, the number of houses placed under contract are down slightly over last month and the number of houses closed are slightly down. The absorption rate for last month was 5, which means it would take 5 months to sell all the houses available at the current rate. That's slightly tighter than in March, where it was 5.1 months.

Overall, the market is neutral right now. It's not an advantage to either the buyer or the seller.

Credit Reports

Keeping Up with Your Credit Scores

If you are serious about buying a home, having a good credit score is vital. Not only will it determine if you get a loan in the first place, it will determine what kind of interest rate you get. Better scores indicate better credit risks, so they get lower rates. That could save you THOUSANDS over the life of the loan.

The Devil Is In the Details

Each service figures the score differently. Looking at your credit report can find false information, like where someone reported a payment as late when it wasn't. Look over the reports you find and dispute anything that isn't accurate.

Find That Score

Everyone knows about FreeCreditScore.com. It requires you to sign up for a service. Outside of the cute commercials, I don't think that's worth paying for. There are other places out there but they have the same game: get you to sign up for a monthly service.

You're Entitled to a Free Credit Report Each Year

The government says you're entitled to a free credit report each year from each of the three major reporting bureaus. So don't pay a service for your report when you can get it for free just for asking. Go to annualcreditreport.com and get a copy of your report. There's just one small hitch to this, though: it gives you the report but you still have to pay for the score. But the fee is small and you don't have to sign up for a service.

Keep On Top of Things

Now that you know about it, set a reminder in your calendar to repeat each year. Tell yourself to get a report from one of the three bureaus. Set another reminder in 4 months to get a report from another bureau. Then set another reminder to get a report from the third bureau. By keeping on top of things, and doing it now, you can walk into a lender's office with confidence that you won't have much problem getting a loan and a good rate.

The Changing Game of Home Buying

The Times, They Are A'Changing

The market mess we have been through for the last few years has been hard on sellers and pretty easy on buyers. Foreclosures brought market prices way down and there was so much inventory that buyers could beat up on sellers for lower prices, concessions on closing costs and more. But now that we are seeing the bottom of the market, things are leveling out. Buyers no longer have the power they used to have.

Don't Lowball It

With a buyer's market, buyers could send in whatever offer they wanted and sellers would be at their mercy. A lot of times the sellers would take whatever came along and take a loss so they wouldn't be stuck with a house. But now that foreclosure prices are going up due to investors bidding and inventory shrinking, the advantage the buyers have is fading fast.

Get Preapproved

This has always been a smart move and any Realtor worth his salt will insist on a client being preapproved before submitting an offer. No one wants to go through the purchase contract back and forth, just to find out that the buyer can't buy the house. Being preapproved shows the seller you are qualified and serious.

Tune Into the Market

Get to know the market prices. These vary from town to town and even from neighborhood to neighborhood. Make sure to look at items specifically in your price range and only from houses that have sold in the last six months. Realtors can get you a list of houses that have sold and break it down by price range, house style and neighborhood.

Expect Competition

We have seen an increase in market activity. Though it still isn't a seller's market, it's not the buyer's market it used to be. It's closer to neutral and will eventually slip back into a seller's market. We are seeing multiple offers put in on some competitively priced houses.

Do Your Homework

This is really just a summary of the previous points: get preapproved, get to know the market for the neighborhoods and houses you're interested in and stay on top of things. You can't tune out for a month and come back in. In addition, make sure you have the money needed to close.

Bottom of the Market?

Could We Be at the Bottom of the Market?

Home prices have been down quite a bit for the last few years, foreclosures have been up and everyone has been wondering if the end is in sight.

Foreclosure Crisis Is Coming to an End

That's not to say there won't be any more foreclosures. There will be another spike in foreclosures as houses come through from the robosigning scandal. Banks have settled with the state governments so houses should start moving through the foreclosure pipeline now. Investors are snapping up foreclosures as rental properties so prices on the foreclosures are coming up and not dragging down the market price of other homes.

Rental Rates are High

With so many people renting, prices have gotten higher. It's once again cheaper to own than rent.

Interest Rates Are Expected to Rise

Doug Ledba, CEO of Lending Tree, says rates will move higher. The Mortgage Bankers Association is predicting that rates will move to 4.5% by the end of the year.

While it won't happen overnight, we could be coming out of the housing mess. People can see the light at the end of the tunnel, and for once it doesn't feel like it's an oncoming train. The original article can be found here.

Quarterly Maintenance

Take care of your home and it will be a lot easier to live in. You won't have too many of those nasty surprises. Below are some tips for the interior of your house. Do these on a regular basis to keep the gremlins away.

• Wood cabinets and trim. Apply a wood protectant if necessary.
• Interior doors. Lubricate hinges.
• Garage door. Lubricate hardware and inspect the mechanism for free travel.
• Window and door tracks. Check to see if the weep holes are open. Clean out dirt and dust. Lubricate the rollers and latches.
• Basement or crawl space. Check for cracks or any sign of dampness or leaks. Check for any evidence of termites or wood-eating insects.
• Ceramic tile. Check and clean grout.

Do these few steps once every 3 months and hopefully you won't have any big problems. You will see them coming.

5 Ways to Sell Quickly

5 Ways to Sell Quickly and For More Money

Some homeowners are usually motivated to sell a house so they can move on to the next big adventure. They will fix up a house for a year before putting it on the market and make sure every last detail is taken care of. Others will do some light touch-up and call it good. Realtors, of course, want to sell it quickly.

Let Me Count the Ways

1. Give the home "web appeal". Most home buyers these days are starting their searches online. Pictures are key. Take professional pictures. Make sure the toilet seats are down. Make sure the house isn't cluttered and there is plenty of light. Look at the listing online like a buyer would and see if you can change the presentation of the house.
2. Talk about energy efficiency. This is a big one with younger buyers. Note if the appliances and HVAC have been replaced with energy efficient ones. Make note if you've changed out the windows.
3. Pay attention to curb appeal. You don't want to do all that work on presentation if they are too scared to stop in front. Take care of the landscaping. Paint if necessary. Curb appeal is huge in selling a house.
4. Make it move-in ready. Buyers these days don't want to do a lot to a house. If you repaint, do it with neutral colors. Take care of the little things like broken outlet covers. The less they have to do when moving in, the better.
5. Set the right price. This all ties in to the price. Houses that look nice and show well will sell for more than junkers. Take care of the investment you have and others will see value in it. A comparative market analysis (CMA) will tell you the market price.

Final Thoughts

If your house has been on the market a while, see our tips about that. Sit down and have a frank discussion with your Realtor about the price, location and condition of the house. A house will sell quicker and for more money if it is priced according to its location and condition.

18 Ways to Protect an Empty House

Houses are big investments but sometimes as we buy and sell them, one remains empty. Maybe we have to move away before it is sold, or maybe it's some investment property that needs work before it's rented out. If you're a homeowner who has an empty house, a Realtor with an empty listing, or an investor waiting to rent out a place, these tips are for you.

1. Always keep garage doors closed and locked. Add additional padlocks if necessary.
2. Close the blinds unless it's being shown. Don't give potential bad guys a chance to scope out the place.
3. Put the mail on hold or forward it. You can also make weekly stops to pick it up, which gives you a chance to look over the property.
4. Change the locks each time a contractor changes, Realtors change, etc.
5. Supress signs unless it's up for sale or rent. If you're an investor, don't put up signs while the contractors are doing work. Wait until it is ready. Signs just advertise nobody is home.
6. Use Realtor locks. The electronic ones keep logs of who open them so you know who the last person to open the house was.
7. Monitor news and reports of burglaries. Check your local police force's website, too. Some of them keep pages that shows the types and frequencies of property crimes.
8. Befriend the neighbors. If you've owned the house this is already done. If you're a Realtor or investor, though, this is a good chance to ring up new clients as well as help protect your property. Hand them a business card and ask them to call if anything suspicious is happening.
9. Verify insurance. Make sure the insurance covers empty houses.
10. Light timers. They just aren't for Christmas any more.
11. Give neighbors permission to park there.
12. Put up "Beware of Dog" signs. Would-be thieves hate noise because it attracts attention. If there's a chance of a dog to make noise, they may move on to easier targets.
13. Security signs and window signs. Like a dog sign, this places a little doubt in the robber's mind.
14. Dog barking devices, fake cameras or real cameras. A little more high tech than the signs, dog barking devices and fake cameras add a little realism to the illusion. Get a tech-savvy friend to help you set up a real webcam outside the door or inside the house and stream the feed. This will require a computer and internet connection at the empty house, though.
15. Winterize the pipes. You don't want pipes to freeze and get water all through the house. That's a mess. Winterizing the pipes is a lot cheaper than cleaning up a soaking house.
16. Keep up on the landscaping and external maintenance. Nothing screams nobody's home like unattended landscaping.
17. Shrubs should never block the view of doors and windows. It's way easy for someone to hide in the bushes. You can remove shrubs blocking the windows and doors and add some nicer landscaping. This also increases the curb appeal of the house.
18. Run the water once in a while. If it isn't winterized, at least. Exercise the shut-off valves in the basement if you can find them.

Do you have any other ideas or tricks you've used to protect an empty house? Comment below and let us know!

Reminder: Quarterly Maintenance

Quarterly Maintenance

Owning a home is a big investment of time and money. Make sure you take care of that investment. See our tips on how to do that.

Foreclosure Settlement with the Banks

One Huge Settlement

The Players

The attorneys general of 49 states recently settled for $26,000,000,000 (yes, twenty-six billion dollars) with Ally/GMC, Bank of America, Citi, JP Morgan Chase and Wells Fargo. These five banks alone account for 60% of the loans serviced in America. The only state that did not participate was Oklahoma. That means that homeowners in all states except Oklahoma can particpate in the programs agreed to in the settlement.

Relief, Sweet Relief

Homeowners can get relief in one of three ways:

• Loan Modifications. This includes principal reduction for first and second mortgages. The banks must provide up to $17 billion in principal reduction and other loan modifications.
• Homeowners who are current but upside-down in equity. These homeowners can refinance at current rates. The banks must provide up to $3 billion for this.
• Borrowers who lost homes to foreclosure. At an estimated $2,000 per household, up to $1.5 billion will go to 750,000 homeowners who lost homes due to foreclosure. And the homeowners will not be required to release any claims currently against the banks. They can continue action against the lenders.

Who Is Eligible

Only loans that are currently being serviced or owned by one of the five banks above are eligible. Loans owned by Fannie Mae or Freddie Mac are not eligible.

Banks will be contacting the homeowners directly. Beware of scams!

The Timeline

It should take 30 to 60 days to select administrators who will oversee the settlement, handle the logistics and monitor compliance. Then it should take another six to nine months to identify the homeowners. It should take three years to finish up.

The original articles can be found here and here.

Buyer Beware

Foreclosure Scams Up 60%

The Homeownership Preservation Foundation, a nonprofit that helps homewoners navigate financial challenges and avoid foreclosure, announced on April 11th that foreclosure scams have jumped nearly 60%.

Two Types of Scams

There are two types of scams these deadbeats will try to run on you: advance-fee loan modification and sale-leaseback. In the advance-fee loan modification scam, the scammer will ask the target to pay ahead of time for a promised guaranteed loan modification. In the sale-leaseback, the scammer convinces the target to turn over the home's title in a promise to rent the house and buy it back in a few years.

Warning Signs Your'e Being Scammed

• A person asks for a fee in advance to work with your lender to modify, refinance, or reinstate your mortgage. In addition to such fees being prohibited by the FTC, the person asking for one will likely take your money without performing any of the services.
• A person guarantees he or she can stop a foreclosure or get your loan modified. No one other than your lender can guarantee he can stop foreclosure or modify your loan.
• A person advises you to stop paying your mortgage company and pay him or her instead. Under no circumstance should you ever send a mortgage payment to anyone other than your mortgage lender.
• A person pressures you to sign over the title to your home or sign any paperwork that you haven’t read or don’t fully understand. A legitimate housing advisor will not pressure you to sign a document of any kind. Remember, surrendering the title to your home is one of the two primary ways people get scammed every day!
• A person claims to offer “government-approved” or “official government” loan modifications. Scam artists often pretend to be affiliated with the federal government. Be sure to check any third party’s credentials by contacting your mortgage lender.
• A person you don’t know asks you to release personal financial information. Always confirm that you are speaking with a legitimate person by contacting your mortgage lender directly.

Be cautious if you are looking to make a loan modification. Work directly with your lender and be suspicious of any calls or emails trying to dupe you into either one of the scams. Ask for credentials and make sure you are working with just your lender.

The original articles can be found here and here.

Disputing Collection Accounts for FHA Loans

New Rule for FHA loans

FHA guarantees its loan to the lenders but their emergency fund to back up bad mortgages was running low. To stem the tide of red ink, FHA announced an increase in the funding fee and changes that will keep those with poorer credit histories from getting FHA loans. Part of the loan process is the preapproval, where banks dig into a borrower's history and pull his or her credit reports. It is done one more time before closing to make sure nothing has changed. This can trip up some buyers.

Pay Off That Amount

Now, buyers with $1,000 or more on file in collection accounts will be denied a loan if they cannot pay off the delinquent amount or prove they have set up a payment plan. This excludes accounts that are more than two years old or are related to theft.

Exception to the Rule

FHA also says borrowers can be exempted if the debt is part of a "life event." That means it has to be tied to a divorce, death, loss of employment or medical bills.

The original articles can be found here and here.

Omaha Ranks Again

Best Places to Live, Number Seven

Forbes recently ranked cities for the best place to raise a family and Omaha came in 7th. They ranked cities according to seven categories: median income, overall cost of living, housing affordability, commuting delays, percentage of families owning homes, crime rate and education quality.

The Top 10

1. Grand Rapids, Michigan
2. Boise, Idaho
3. Provo, Utah
4. Youngstown, Ohio
5. Raleigh, North Carolina
6. Poughkeepsie, New York
7. Omaha, Nebraska
8. Ogden, Utah
9. Cincinnati, Ohio
10. Worcester, Massachusetts

This is a great list, but then we already know Omaha is one of the best places in America. The original article can be found here.

Not Closing On a Property

Not Closing Escrow

You've found the perfect house and put in an offer. Now is not the time to hope everything goes well. You and your real estate agent should have everything lined up by now. Make sure you've been preapproved, not prequalified, before you put in the offer. And then don't do anything to endanger your eligibility. The following are some reasons people fail to close on their dream homes:

They Weren't Really Approved After All

The people were so excited to look at homes they forgot to talk to a loan officer. A prequalification goes quickly, with some questions over the phone. The loan officer makes a best guess given the information. But that's not the same thing as a preapproval. That is where the lender pulls a credit report and verifies the information. Things to look out for are previous bankruptcies, late payments, wage garnishments and so forth.

Now is Not the Time To Use the Credit Cards

Assuming you have been prequalified, don't rock the boat. Now is not the time to buy a new car, new furniture or new boat. Now is not the time to run up your credit cards or apply for new ones, either. Don't even pay off a bill early without talking to your lender. The lender will pull another credit report before closing and if your credit score has changed, you could be out of a loan.

The House Just Isn't Worth It

Eager buyers, especially those in a bidding war, may win to find the house doesn't appraise for the price they agreed to pay. In this case, if the contract has the right wording in it, the buyers can get out of it. If not, they will have to come up with the difference.

In the case of a flipped house, where the owner bought it and rehabbed it, some banks won't finance without two independent appraisals. And if the appraisals don't agree, the bank will refuse to make a loan.

If the buyer is going after a condo, there are strict guidelines on the building itself before a loan is issued. The building has to be FHA approved if you are trying out for an FHA loan. Half of the units must be occupied by owners and not rentals. No litigation can be in process against the HOA and less than 15% of the units can be late on their payments.

Do It Right and There Will Be No Surprises

Take your time and don't just jump in. Talk to a loan officer. If you don't have one in mind, talk to your Realtor. Get preapproved and then watch your step. When you find a home, ask the Realtor to do a CMA on it to make sure it's worth what is being asked. Then you can close in peace and enjoy your new home.

When Your House Sits on the Market

Some houses get on the market and are snapped up in a day or two, while others sit for months or never sell. We have all seen houses like that. If yours is one of them, you need to consider having a heart-to-heart with your agent. You have a stale listing and some things need to change if you want some action.

Houses fail to sell for one of three reasons: price, condition and location. Let's take a look at each of these so you can address them.

Price

Price is probably the biggest problem to overcome. Even the junkiest houses will sell to investors because the price is right. Look at the comparables with your real estate agent and ask for a competitive market analysis. This will give you a price range where your home should be priced. Also, pick up a list of the houses currently on the market in your subdivision or MLS area. This is your competition.

Has your agent been talking to you about price? It's time to listen.

Condition

Condition is how the house looks, from the outside to the details inside. It says a house has been taken care of.

Curb appeal is incredibly important. Make sure leaves are raked, grass is mowed, bare spots are covered with new grass. If a house looks haunted at dusk the buyers won't even want to look at the rest. The curb appeal is what homeowners present as a public face. If this is dirty, what will it look like inside where no one is looking?

Is the carpet stained, worn or torn? Is the caulking done around the faucets? Is there any broken tile? You don't have to recarpet and repaint, unless the place needs it. If you do paint and recarpet, do it in neutral colors. Reduce the clutter on the walls, the floors and the kitchen. You want the buyers to focus on the house, not the belongings.

A home stager can be invaluable for this. They are experts at moving things around, reducing the clutter and making the most of what you have. Stagers can be fantastic for empty houses, too. They can put in just enough furniture to help buyers envision themselves in the house, but not enough to get in the way.

Location

This is the one thing you can't change now. It was set when you bought the house. You have to make the best of where the house is located. Stress the benefits, like easy access to major roads or close to shopping.

Final Words

You want to sell the house and your agent wants to sell it. Sit down and have a calm and rational discussion about the house's attributes and its pricing. The longer you wait until it's sold, the more you are paying in payments, insurance and taxes. Look at it from a numbers perspective and treat it like the investment it is.

Market Report for March 2012

Market Report for Omaha for March 2012

The numbers are in for March and things are looking up over the three months previous. The total number of homes listed for sale in March was 4,331. 1,193 of those were placed under contract. 847 of the homes that had been under contract before closed.

As you can see, the number of houses on the market are up over last month, the number of houses placed under contract are up over last month and the number of houses closed are up. The absorption rate for last month was 5.1, which means it would take 5.1 months to sell all the houses available at the current rate. That's tighter than in February, where it was 7 months.

Overall, the market is neutral right now. It's not an advantage to either the buyer or the seller.

Competitive Market Analysis (CMA)

The Competitive Market Analysis

The Competitive Market Analysis is sometimes caled the Comparative Market Analysis. For commercial properties, it's called the Broker Price Opinion (BPO). This is a tool that real estate agents use to determine the market value of a property. The CMA is done differently from the BPO so we are only going to concentrate on the CMA.

The Setup

Let's say your house is a 1,600 square foot ranch house in the Wow Factor subdivision. It has a two-car garage, three bedrooms and two full baths upstairs. It has a partial walk-out basement with a half bath and all the space there is finished. The finished square footage downstairs adds another 800 square feet.

How It's Done

Let's say you call Sally Sellum to ask about your home's value. She pulls a list of similar houses that have sold in the last 90 days in your subdivision or MLS area and finds three other ranch homes. They are all a little different in square footage, amenities, age, etc. Sally uses only houses that have closed and not those that are currently on the market or are pending. She doesn't use the houses that are on the market now because they probably won't sell for the asking price. Using these numbers will inflate the estimate. She can't use pending houses because the final price is confidential until closing.

Using numbers from the real estate industry and the National Association of Homebuilders, Sally puts together a side-by-side comparison of the homes and makes adjustments for the differences. Sally is looking at items like finished square footage, type of siding, fireplaces, fencing, decks, updated kitchens and baths, etc. These adjustments are added to or subtracted from the final sales price. Averaging the sales prices will give you an idea of the approximate market value of your home.

Why the Numbers May Be Different From Your Tax Valuation

Appraisers don't look in houses so they sometimes don't know about additional square footage from newly finished basements, additional baths, etc. They each have a different way of figuring value. Around here, they see how sale prices are trending and adjust last year's estimate. If house prices are trending up, your valuation might go up.

Numbers will vary from agent to agent, as well. They can use different houses, different time frames (say, 6 months out), or different adjustments. A CMA is an estimate, after all.

Why Would You Do a CMA

Even if you are not looking to sell your house, there are a couple of legitimate reasons to do a CMA. You will want to know the approximate market value of your home so you know if you have enough insurance on it. You can also use a CMA to protest property valuations. And last, you can use a CMA to calculate your net worth.

Give Us a Call

We can do a CMA, no charge. We can tell you what the market value of your house is. If you're looking to sell or refinance, this will give you an idea of what your house is worth.

FHA Raises Funding Fees

FHA is increasing the insurance premium charged on all their FHA-insured mortgages. The increase is going from 1 percent to 1.75 percent, effective April 9th. The annual FHA mortgage insurance premiums have also risen by one-tenth of a percent.

Your payments will increase by about $24 a month if you take out a $200,000 mortgage -- assuming you include the upfront charge in the financed amount. A fee increase for jumbo loans and some 15-year loans is coming in June.

This is the fourth fee increase in the last three years. HUD says it should increase FHA's reserves by more than $1 billion through the year 2013.

You can find the original article here.

Return On Your Home Improvements

We all want to make improvements to our house and we often know we will improve the value of our home. But just how much will improvements to the kitchen, bathroom or siding give us? While you will never recover the entire cost of your renovations, you can at least improve your home's value. And that can make the difference between a good sale and a poor one.

Remodeling magazine printed up this year's list of return on investment for various home improvement projects.

Improvement	Cost	Resale Value	% Recouped
Siding Replacement	$13,461	$10,493	78.0%
Entry Door Replacement	$1,238	$903	73.0%
Attic Bedroom Addition	$50,148	$36,346	72.5%
Kitchen, Minor Remodel	$19,588	$14,120	72.1%
Garage Door Replacement	$1,512	$1,087	71.9%

At best, you can get a 78% return on your investment if you replace the siding.   You can see the entire list here.

Renting Your Home

Renting Out Your Home

Homeowners sometimes figure if they can't sell their house they will rent it out. They think all they need is to cover the payment and they are good to go. Allstate came out with an article this week where the author described her experience renting her house and gave some advice on renting out your own.

While the article has some general points and some good information, don't make the mistake of thinking this is all you need when renting your home. There are many fine points about being a landlord and treating the house like a rental property which, if not taken into account, could cause a lot of trouble or land you in trouble. Here are some pointers:

Make Sure You Can Cover Expenses

Covering your rent is not enough. You need to put some aside to cover the payment when the current renters move out. You also need to have money set aside to repaint, repair and clean carpets. Don't think the security deposit will cover all of it. You also need to have some money set aside to cover repairs while they are in there. A broken pipe, busted air conditioner or any one of many problems can derail your finances.
You will probably need property insurance for the house and that will be different from homeowner's insurance. Talk to your insurance agent. Will you be keeping any personal property on the premises while you are away? Be sure to mention that to your agent as well.

Taking Care of the Place

Will you be in town and on call the whole time the house is rented? If you're going to be out of town and have to have a property management company take care of the place, just be careful to take their fees into account. They will take some off the top of the rent, and usually charge extra for any time they have to do anything besides collect the rent. Interview property managers and ask plenty of questions.
And don't forget about utilities. You will want to talk to the utility companies about moving the bills back to you when the renters move out. You don't want the heat shut off in the winter and stopping by to see busted pipes and a flooded home.
In the same vein, keep tabs on the place. Drive by once in a while to make sure the tenants haven't moved out in the middle of the night, haven't brought extra people to the house to live, and to make sure the place hasn't burned down.

Keep a Paper Trail

When interviewing tenants, keep a standard checklist for things like credit, payment history, employment history, etc. Treat everyone the same and document it. Keep a set of policies for late rents, damages, new people added to the lease and so forth. If a person is late on the rent, send a letter certified and keep the stub for your records. Do this for everyone and charge a late fee no matter what story you hear. As soon as you treat someone different or can't prove you treated someone the same, you could be in trouble. CYA.

Know the Law

Every state's laws vary on landlords and tenants. You need to talk to a lawyer or someone involved with landlord/tenant laws. Do this before you begin interviewing tenants so you know you're compliant from the start.

Summary

Renting a home is not difficult but it does come with its own unique rules. Do plenty of research and be diligent in your record keeping. You could be entering a profitable business but only if you know the pitfalls.

Understanding Agency

When discussing real estate, you sometimes hear discussions about agency. An agent can be a buyer's agent, a seller's agent or a dual agent. Basically, agency means whose best interests the agent has. The agent has a fiduciary responsibility to the principal.

Seller Agency

Agents who represent a seller should have the seller's best interests at heart. These agents have an obligation to get the best price for the house and while they have to disclose material facts, they don't have to disclose personal information. Reasons for moving, waht the seller's bottom line is, etc., stay in confidence unless the agent has written permission to release it.

You might hear something about seller sub-agency. It used to be that all agents were sub-agents of the seller's agent and all had a duty to get the best price for the seller. No one represented the buyer. That has changed in Nebraska and now the default agency is buyer agency.

Buyer Agency

Agents who represent the buyer should have the buyer's best interests at heart. The agent can give advice on making offers and has to receive the best possible deal for the buyer. A buyer's agent is the friend of the buyer only, not the seller. Like a seller agent, the buyer agent has to keep confidential information private unless told he can release it.

There is a term thrown about sometimes and that is exclusive buyer agent. That means the agent is a buyer's agent only and does not accept listings.

Dual Agency

As you can imagine, if a seller agent has to do the best possible job for the seller and a buyer agent has to do the same for the buyer, dual agency is like walking a tightrope. This isn't a comfortable situation for an agent and some refuse to do it. If an agent is a dual agent, both the buyer and seller need to sign an agreement acknowledging the agent is diong his best for both. Confidential information about the buyer and seller remains confidential and the agent has to be careful about negotiating advice.

Summary

Any real estate agent you talk to can explain agency to you. If you list a house or talk to an agent about buying a house, one of the first things explained is that of agency. Who has your best interests at heart? Give us a call and we can help you sell a house, buy a house or just explain things for you.

Quarterly Maintenance

Doing maintenance on your house helps keep it in good shape and helps to reduce the surprises when things go wrong. Taking a few minutes to do this every month will make you feel better about the future.

Drains

Clean these with baking soda.
Pour water down any unused or rarely used drains.

Faucets and shower heads

Check interior and exterior faucets for leaks.
Clean aerators. They unscrew easily. Once it's off, just turn the aerator over and run water through it.
Replace washers if necessary. You will know if you need to replace washers if you have a slow leak through the faucet.

Kitchen and bathroom cabinets

Check under and around them for leaks.

Toilets

Check for stability and leaks.
Tighten the bolts holding the seat if they are loose.

Water heater

Check area around water heater for leaks.
If you have hard water, drain 1 - 2 gallons of water from it.