Real Estate Information

It’s nearly springtime. If your yard is like mine the grass is brown with green splashes but still lined with snow. The shrubs are looking a bit out of shape and with the stark bare branches don’t have a hint of color. When you house is on the market these things can turn potential buyers away. Now is the time to get the outside of your home in shape.

The first thing to do is take a good look at your driveway and sidewalks. If there are cracks or uneven patches it is time to get them repaired. You may be able to do the work yourself or it may be worth it to hire a professional. If your cement is stained and discolored only then it may be a good idea to invest in a can of concrete stain. Stain can make tired concrete look new and inviting. It is best to choose a color that will complement the color of your home.

Speaking of color, you can add a bit of pizzazz to your home by painting the front door. If you have a white house you can paint the door any primary color and it will look great. The best thing about paint is that if you don’t like the color you can always change it.

I know it’s still a bit cool but you can put out potted plants that will give your house another bright pop of color. Granted you may have to take them into the garage during the night if the temps are below freezing. Even some annuals are hardy enough for planting if you cover them when it’s cold at night. A huge tip for making your yard look well tended is to add . I’ve included a great video below from DYI which will tell you all about mulch. It’s worth watching.

The last thing you can do is trim or shape shrubs and trees. Planting should add a frame or border to your home. It looks unsightly when shrubs grow too large or tree branches brush the house. You can tackle some of these tasks yourself or hire a professional to spruce things up. Improving curb appeal has shown to increase not only your property's value, but also the property values of your entire neighborhood.

If your home has been on the market a while or even if you are getting ready to list your home take my advice and take a good long look at your home from the curb. It’s time to jump into spring. If I can assist you in selling your home please give me a call at 402-697-4251 or email me at Marie.Otis@cbshome.com.

Is it time to upgrade your HVAC system? Last year, some $300 million in stimulus funding was allocated from the American Recovery and Reinvestment Act of 2009 to be passed out by individual states as means to encourage consumers to trade in their old appliances and upgrade to new energy efficiency energy star rated ones. Here is a website that will tell you what rebates are available in Nebraska at dsireusa.org.

I went to the website and here’s what I found: “Omaha Public Power District (OPPD) offers energy credit refunds to its residential customers for installing high-efficiency heat pumps through their Energy Conservation Program. For high-efficiency electric heat pumps larger than 1.5 tons with a SEER rating of 13 or greater, OPPD will pay between $300 - $650 (depending on SEER). OPPD will also provide $50 per unit for heat pumps 1.5 tons and smaller.  
 
The rebate is available to any customer who either purchases and installs a new high-efficiency heat pump in a new residential structure, or replaces their existing standard air conditioner with a heat pump and is using natural gas or propane for supplemental heating. Customers who install a heat pump are also eligible to receive the special Energy Conservation Rate, which is the same as the standard residential rate except for a lower last rate block during the winter billing period (October through May). To qualify, the electric heat pump must supply at least 50 percent of the space conditioning requirements for the structure and have an outdoor thermostat setting of 20° F or lower.  
 
Existing all-electric homeowners who replace their standard A/C with a heat pump qualify for the lower winter electric rate only, they do not qualify for the energy credit refund. Not all heat pumps qualify for this program. To determine which heat pumps qualify, customers can call their heating contractor or OPPD's HVAC Technology Department at (402) 636-3753 or 1-800-648-2658.” 

The “Metropolitan Utilities District of Omaha (MUD) offers $100 rebates to their residential gas customers who replace existing natural gas furnaces and water heaters with new, high efficiency models. Dual fuel or heat pump systems are not eligible. New furnaces must have an energy rating of at least 95% to qualify for the rebate. High efficiency natural gas water heaters must have an Energy Factor of 0.82 or higher to receive rebate. Interested customers should submit a signed and completed rebate form, along with a copy of proof of purchase to the utility.”  

To apply, you'll need to print forms off the Web and mail them in with qualifying proof of purchase. Keep the original receipt for the new appliance, this may be requested. It’s best to contact either OPPD and/or MUD before you purchase anything.  They will be happy to guide you so that you get the rebate to which you’re entitled. It would also be a good thing to ask them when you will receive the rebate. If it will be several weeks then you need to take that into consideration when formulating your purchasing plan.

Also ask about how to dispose of your old furnace or air-conditioner. They may have incentives for you if you dispose of it in an environmentally safe way.

Remember, the federal energy efficiency tax credit, in effect through this year, which gives a 30% credit up to $1,500 for the purchase of certain heating, cooling and ventilation appliances, among other things. Be certain to ask your tax advisor how it works in your specific situation.

If you have any additional questions or when you’re ready to put your home on the market please give me a call at 402-967-4251 or email me at MarieOtis@cbshome.com.

Take a tip from Warren Buffett: the old investment adage has been buy low – sell high has never been quite like this moment in real estate. Real Estate prices have been falling and according to Moody’s the Omaha/Council Bluffs area is projected to see another half a percent fall in housing prices within the next 6 months. Also, to qualify for the $8,000 credit, homebuyers must sign a contract before April 30 and close by June 30. That’s certainly another reason to buy a home now.

There are plenty of listings on the market from which to choose. Mortgage rates are beginning to rise and are predicted to go even higher after March 31 when the Fed bows out of the mortgage-buying market. If you’ve been waiting for the optimum time to buy then wait no more.

If you want to get into a new home then give me a call at 402-697-4251 or email me at Marie.Otis@cbshome.com.  I’m ready to help you take every advantage you can and make a good investment in you and your family’s future.

If you are seriously considering a fixer-upper for your new home here is a loan program you should consider. FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. To qualify the structure must be a single-family house, more than a year old with one to four bedrooms. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.

Although you must discuss exact requirements with your qualified lender, a detailed home inspection and/or energy audit must be completed by a qualified professional. The professional must be approved by the lender. Based on the report, the homebuyer can choose which improvements to make.  However, installation of smoke detectors and the upgrading of the heating and cooling system to a more efficient level may also be required.

Then the homebuyer must get bids for the work and establish a firm price with the contractors. The work must meet all FHA standards and requirements. The work must begin within 30 days of execution of the Agreement. The work must not cease prior to completion for more than 30 consecutive days. The work is to be completed within the time period shown in the Agreement (not to exceed six months); the lender should not allow a time period longer than that required to complete the work. The lender will add the repairs amount to the loan.

When the closing is completed, the lender sets up an escrow account for the money to be disbursed to the contractor when all the work in completed. The mortgage payment may be slightly higher, but the energy savings from the improvements usually offsets the difference.

As with all government programs, the 203k program has many rules, regulations and requirements. However, it may be just what you need to get into good housing. As your realtor I can make certain you get with the right lender(s) and make your dream a reality. Give me a call at 402-694-4251 or email me at Marie.Otis@cbshome.com.

Last week I talked about the International Builders Show in Las Vegas. I discussed how the Boomers are leading the way on changes in home architecture and features. Homebuyers are looking for authenticity instead of “ostentatious-ness.” They are looking for useful spaces instead of a lot of formal rooms. They want their homes to be green with energy efficient windows, insulation, water heaters, appliances and budget-conscious kitchens with a heavy emphasis on style and universal design.

One of the speakers at the conference was Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of home-buyer preferences. He said there are 10 "must" features in new homes.

1. Large kitchens with islands. The islands must serve some use such as a sink, large workspace or stove top.

2. Energy-efficient appliances, high-efficiency insulation and high window efficiency. Of all the green items offered these were the ones most wanted by home buyers.

3. Home office/study. Consumers want a home office space for many reasons but statistics show that more and more people are working out of their homes.

4. Main-floor master suite. This is Boomer feature. Boomers are also called the “sandwich” generation because they may still have kids at home as well as elderly parents.

5. Outdoor Living Room. People are looking for more than a barbeque area or swing set. People want to spend more and more time outdoors and they wish to do it in comfort.

6. Ceiling fans. Decorators on T.V. may detest ceiling fans but consumers love them for air circulation and comfort.

7. Master suite soaker tubs. These have dropped in popularity and large, walk-in showers are moving up the rankings.

8. Stone and brick exteriors. Consumers want low-maintenance but still want style.

9. Community landscaping, with walking paths and playgrounds. Forget the golf courses, swimming pools, etc. Consumers are looking for walking and hiking areas with lush vegetation.

10. Two-car garages.

It’s important to know before you build or buy to identify what features are most important to you. You must also weigh upfront costs vs. payback costs. Once you have a list of your most important features give me a call at 402-694-4251 or email me at Marie.Otis@cbshome.com. Together we can find the perfect property or builder for you.

The International Builders Show was held last week and it was so interesting to see how the economy is affecting building trends and what consumers are asking for in new homes. Many are crediting the Baby Boomers for trends such as “green” architecture, building locations with health services and recreational areas nearby and with smaller homes. Yes, smaller homes. The average square footage in homes built in 2009 was 2,480 as compared to 2,520 in 2008. This is the first downward shift in square footage since 1982.

Another interesting trend is the demand for a Master Suite on the first floor. This is obviously important to Boomers. However, many are demanding a second Master Suite on the second floor. These spaces may be converted to offices or additional bedrooms but they are very appealing to Boomers who may have aging parents for which to care.

Formerly formal spaces built to impress such as Living Rooms, Dining Rooms and Foyers are being eliminated and compressed into open communal living spaces. Kitchens usually open to these new areas and are filled with energy-efficient appliances. Designers recommend that if you have extra design dollars to spend that it be here in the Kitchen. Consumers want sizable Kitchens with center islands and granite countertops.

Finally, basic green features are becoming more and more important to consumers. They are looking for high efficiency insulation and high performance windows. tankless water heaters and high efficiency heating and cooling are in high demand. Although consumers still prefer brick and stone exteriors, many are considering low maintenance fibre cement siding.

I’ll report on more trends in my next blog. It is always exciting to see how consumer demands can have a positive affect on the building industry. If you would like to discuss these trends or find out more detail please contact me at Marie.Otis@cbshome.com or just pick up the phone and give me a call at 402-964-4251.

If you are in the market for a new home in the Omaha area you are probably considering an FHA insured loan.  You are not alone. FHA insured loans make up around 30 percent of new mortgage loans. But FHA has had to make changes which will affect you and which you should know about in advance. As you can see from its popularity FHA has to stay healthy and to do so its standards are now a little tougher.

The good news is that FHA loans only require down payments of 3.5 percent of the purchase price. That has not changed. But because of the necessity of bringing more revenue into the agency here are the rule changes:

1. The upfront mortgage insurance premium will increase from its current level of 1.75 to 2.25 percent of the total loan amount. Those fees can still be a part of the total fees covered. Here is an example given by the agency: If the mortgage borrowers take out a $200,000 mortgage they will now pay a fee of $4,500 instead of the current fee of $3,500.

2. The borrowers need a credit score of at least 580 to qualify for an FHA loan. If you have a score lower than 580 you will need to come up with a down payment of at least 10 percent of the purchase price of the home.

Don’t be confused by the new rules. Make certain you are working with a reputable lender. If you need the names of such people be certain to give me a call at 402-670-8775 or email me at Marie.Otis@cbshome.com. I’m here to guide you through the maze of options the home buying process entails. You need a friend you can trust; let me help.

So many people want to qualify for a mortgage but they sabotage their credit rating without even realizing what they are doing wrong. Here are a few tips on what not to do if you are applying for a mortgage.

1. Cancel your credit cards. Yes, pay off the balances but don’t cancel the card. Mortgage lenders are interested in how much credit you have available. Keep your credit card balances under 30% of your approved credit level.

2. Not checking all three credit reports and your FICO score. This is a big one folks. It is so important to check all three of your credit reports so you can correct errors.

3. Buy furniture for the house. Whatever you do if you qualify for a loan make no major purchases until after the closing. Then you can celebrate the closing by visiting your favorite store or car dealership if you wish.

4. Spend over 30 days shopping for a mortgage. Your credit rating loses 5 points every time a creditor checks your credit rating after the 30 day period. Most of us can’t afford to lose any points.

5. Ask your creditor to lower your credit level. People do this in an effort to help themselves spend less on credit cards. A mortgage officer is looking at your “available” credit when considering approval. Control yourself and get your spending under control.

6. Use one credit card to pay off another. Mortgage lenders believe this to be a trick. Don’t do it. Pay off the credit card with the highest interest first and then get your other balances to under 30% of your credit availability.

Here’s what you can do to help yourself get a mortgage loan:

1. Pay your bills on time.

2. Keep your credit card balances under 30% of the approved credit level.

3. If you have one late payment when you have always been on time before ask the creditor to remove the mark against your credit. It is worth talking the time to ask. Most will remove it if you are a good payer.

Unless you have the cash you are going to have to get a mortgage loan to buy a home. Follow these rules and get your financial life back under your control.  When you’re ready to buy a home then call and I will help you get into the home of your dreams. You can reach me at 402-964-4251 or email me at Marie.Otis@cbshome.com.

Year-end numbers are in and it’s now official.  According to the Omaha Board of Realtors the Omaha real estate market did better in 2009 than the previously year on the closing of residential properties.  In fact, the sale of existing residential homes was year-to-date 12% higher than last year.  That’s great news for Omaha.

And the market is already heating up.  The $8,000 tax credit is in effect until Spring, mortgage rates are still low, there are plenty of homes on the market and if you qualify for a housing loan then you are in a terrific position.  Whether you are buying your first home or “moving up” to a better home, the time to get serious about buying is right now.

The perfect place to begin your journey to a new home is with me.  I can direct you to several reputable mortgage lenders as well as show you any house for sale in Omaha and the surrounding communities.  You need a champion to make certain you get every advantage to which you’re entitled.  I’m here to work for you.  Give me a call at 402-967-4251 or email me at Marie.Otis@cbshome.com. 

Stephanie and Melanie met for lunch downtown in the Old Market. Stephanie eagerly asked Melanie about her appointment last night with a home stager. Because Melanie is selling her house, her realtor had set up the appointment with the best home stager in town.

“How did it go?” asked Stephanie.

“She wanted me to change everything!” Melanie fumed. She said I had too much furniture, too many knick-knacks and I needed to replace my wallpaper with paint. Aunt Bess left me those antiques and you know I spent years finding the right 1890’s wallpaper set them against. And to top it off she told me to take down all the pictures of my family!”

Stephanie patted Melanie’s hand and inquired gently, “Why do you think she said those things?”

“She obviously didn’t like my decorating taste,” Melanie huffed.

Stephanie smiled and said, “No, she’s doing her best to turn your home into a model home. Do you remember the model homes we saw last summer? Those homes where decorated in neutral colors with colorful accent pieces. They had very little furniture and it was arranged so well the rooms looked really big. We could easily imagine moving in right away. That’s what the stager is trying to do to your home. Your house has become a product and to sell quickly it must appeal to all people.”

Stephanie is right. People are listing their homes because the economy is improving and late winter and early spring are the most active times in real estate. There is lots of competition out there. If a person is serious about selling their house and getting on with their lives then they must depersonalize the house and think of it as a product to sell. 

I’ve found a great video on home staging I want you to watch.  Susan Botticelli has lots of good ideas and she presents them well in the video with before and after pictures. Take a look and let me know when you want to list your home. Give me a call at 402-697-4251 or email me at Marie.Otis@cbshome.com. Together we’ll get the job done and done right!