Real Estate Information Archive

When showing houses to prospective Buyers one the most frequently asked question is, “What is an SID? The acronym stands for Sanitary and Improvement District and is defined as an alternative land development method.

When a land developer wants to build a subdivision outside of the city limits he/she finds that in order to built streets, sewers, commons grounds, etc. it is imperative to borrow the funds to do so. The developer also borrows money for short-term expenses. As the lots and homes are sold the developer recoups the money to pay back creditors.

An SID is a public body which is governed by the residents of the subdivision and is responsible for seeing that the costs of the improvements and operations are repaid by principal and interest payments. The money is initially raised by the developer by selling municipal bonds and warrants.

A planning board governs the SID and is responsible for the financial well-being of the subdivision. The board is also responsible for planning and setting the tax rate. Any resident of the subdivision may run for a two year term on the board and each resident has one vote. The board elects a chairman and a clerk. All meeting s are open to the public.

When the city annexes the subdivision then the SID ceases to exist. When buying a home it is important to know if the subdivision you’re considering has an SID. It is therefore important to have an expert in real estate to explain alternative methods such as SIDs. I am that expert and I’m looking forward to assisting you in finding the right home for you. Give me a call at 402-670-8775 or email me at Marie.Otis@cbshome.com

While Omaha was spared much of the housing bubble and resulting recession, we have felt a bit of a sting nonetheless.  The housing market looked good during March and April of this year but the rise in home sales during those months can be attributed to $8,000 stimulus tax credit.  While interest rates are at a record low, many residents are not choosing to buy homes right now.

The Fed’s announcement earlier this week has sparked fears of a potential double dip economic recession. That would spook anyone. If Omahans fear they won’t be able to get a job or if they’re fearful of losing the job they already have then they don’t feel comfortable buying a new home.

Sellers are not giving their homes away for a ridiculous price either. Although it was reported in a Trulia poll that 32 percent of Sellers in Omaha have cut their initial price, the bottom line is that Sellers will generally choose not to sell if the offer is too low and ride out this market instead.

However, there are still people who are moving in and out of Omaha, or who have the money and good credit to buy, so homes are moving. We are slowing but steadily climbing to what we in the industry call “back to normal.” What that new normal will be, well, nobody knows yet.

Omahans are historically conservative by nature. I believe if the job market improves and stabilizes then the housing market will surpass expectations. In the meantime, the new normal may just be more modest growth and activity than anticipated.

If you’re ready to jump into the Omaha market, whether to buy or sell then give me a call at 402-670-8775 or email me at Marie.Otis@cbshome.com.  I will be most happy to provide you with superior service and the expertise you expect and deserve.

As little as three years ago hardly anyone sought an FHA loan. That has changed dramatically because today 87% of Buyers are applying for one. Nevertheless, people still have a lot of misconceptions about FHA. To be clear – FHA loans are mortgages issued by qualified lenders and the mortgages are insured by the Federal Housing Administration (FHA).

Myth One – FHA Loans are Only for Low-Income Buyers: This one is not true. There is no maximum income limit for an FHA loan. Obviously, you have to qualify for the loan and you need to prove your ability to pay to the lender.

Myth Two – FHA Loans are Only for First-Time Homebuyers: Again. This is not true. It doesn’t make any difference how many times you’ve purchased a home before.

Myth Three – FHA loans are just for small loans: Well, I guess this just depends on what you consider “small.” In the five surrounding counties in Nebraska (Douglas, Sarpy, Cass, Washington & Saunders) the FHA loan limit is $271,050 for a single family home.

It’s also important to remember that FHA loans are often more affordable than conventional loans. The interest rates are the usually the same but a borrower only needs a down payment as low as 3.5 percent for an FHA loan.

If you are thinking of buying a home then consider an FHA loan. There is a general unwillingness with lenders in today’s economic climate to extend credit with conventional loans. FHA is a better bet for them too. It’s easier to lend money when FHA assures them of repayment.

Give me a call at 402-670-8775 or email me at Marie.Otis@cbshome.com and I’ll help you navigate the home-buying labyrinth. You need a pro on your side.

A hot July afternoon is the perfect time to find a cool place to dream. Well, the Metro Omaha Builders Association (MOBA) wants you to find that cool spot in one of their featured, custom homes on the 2010 Street of Dreams.  The 26^th Annual home dreaming event is located in Elk Ridge at 192 Street, just North of Dodge.

The Street of Dreams runs from July 10-25. Tickets are $12 ($1 of which will be donated to the Habitat for Humanity. $11 discount tickets can be purchased in advance at any Hy Vee Store in Omaha and Council Bluffs. Tickets for children 6-12 years old are only $6 and ages 5 and under are free. The hours are Monday-Thursday from 3-7 pm and Friday-Sunday from 11 am to 7 pm. Special features this year include an Outdoor Home Show, a beautiful Playhouse and a unique playground.

Elk Ridge emphasizes a park environment, custom landscaping, the Elk Ridge Clubhouse and a 65 acre recreational lake.  Residents will be able to enjoy fishing, sail boating, canoeing as well as exploring the walking trails throughout the development. There will be 136 Vista, Estate and Villa lots. There are golf-course lots, lake view lots and walk-out lots.

Four builders are featured at this year’s Street of Dreams including Choice Homes, LLC, Ideal Designs Custom Homes, Inc., Pohlad Custom Homes, Inc. and Thomas David Builders. Real Estate Agents got a preview this week and my impression is dark colors, dark, rich woods, granite etc.  With only four houses on tour you will have an opportunity to dream, dream dream.

When you’re ready to buy give me a call at 402-670-8775 or email me at Marie.Otis@cbshome.com.

I recently read in a national publication about how digital photos and internet videos have been a “godsend” for agents and the real estate industry. While I agree wholeheartedly I was disturbed by the rest of the article. The writer asserted that some unscrupulous agents were using Photoshop to enhance pictures of a property.

For example, the national writer claimed that guilty agents used Photoshop to make the grass greener, or they added landscaping with digital wizardry. Some even included kitchen appliances that weren’t really there or made the outside of the home look freshly painted when the real house was a mess of peeling paint.

Here at CBSHOME Real Estate we have a professional service that takes photos of properties both inside and out. Most agents here do not take their own photos. We do not manipulate videos or photos to make houses look better. If you suspect photos you find on local websites are doctored then you should report it to the Omaha Board of Realtors or the State of Nebraska Real Estate Board.

Such practices should not be tolerated. At CBSHOME Real Estate we pay for pictures of houses that list in the winter with snow on the ground. Then in the spring we have the pictures taken again so they can show off their greenery. But we don’t use software to change the reality.

I love that I can post pictures on many websites for my Buyers and Sellers. It’s wonderful to post videos of the home’s interior on the web.  It really helps sell the houses. I won’t give it up. But I’m asking you to beware of pictures and videos on the web.

If you’re thinking of buying of selling any time soon please give me a call at 402-697-4251 or email me at Marie.Otis@cbshome.com.

It has been a while since I urged buyers who are seriously considering buying a house to get pre-approved by their lender before looking at a single house. Bill and Janie wanted a home. They loved going to Open Houses all over Omaha and finally found exactly what they were looking for. It was modern with lots of big windows and just exuded sophistication and glamour. They couldn’t help themselves. They lingered over dinner dreaming of entertaining and living in their wonderful discovery.

That Monday they headed to their lenders office and told the mortgage officer all about the home they wanted to buy. The officer was delighted and began the usual credit check and underwriting review. Much to their mutual dismay to soon became obvious that Bill and Janie simply could not afford such a home. They mourned about it for a bit but being young they soon bounced back and began to look again.

Bill and Janie then looked for homes in their price range. Unfortunately, they compared everything they saw to their original choice and so, of course, nothing measured up. Soon they became discouraged and gave up the search.

Don’t let this happen to you. Go to your lender first to determine how much you can spend and even more importantly what you will be comfortable paying out each month. Then it time to meet with your Realtor. When you find the right house you got a distinct advantage over other house hunters. When they know you’ve been pre-approved they know you have the financial backing to make a deal.

When you’re ready give me a call and I will give you the names of several reputable lenders. Pre-approval from these lenders will give you the power you need to seal the deal when we find your dream home. You can reach me at 402-697-4251 or email me at Maire.Otis@cbshome.com. Let’s work together.

The national headlines scream that new home sales plunge by 11 percent in November. Here in Omaha new home sales in November 2009 increased by nearly 58.5 percent over last November.  Year-to-date the increase in new home sales is nearly 12 percent.

It’s good news for existing home sales as well.  Sales are up 47 percent this November compared to November 2008.  Year-to-date numbers are good too with 2009 coming in at 12 percent over last year at this same time.

For new construction homes the average time on the market before selling was 125 days in 2008 and in 2009 was reduced to 123 days.  For existing homes the average market time in 2008 was 65 days and in 2009 year-to-date is 59 days.

So, don’t let the national news discourage you. Things continue to improve here in Omaha.  It’s going to be a great 2010 and a great decade.  When you’re ready to put your home on the market or if you’re ready to buy a new home now, give me call at 402-697-4251 or email me at Marie.Otis@cbshome.com. 

Happy New Year!

To All My Dear Friends,

I wish all of you a very Merry Christmas. I pray you are with your family and friends staying warm, cozy and happy.  Look out the window and see all the rain, snow and whatever and be glad we’re having a White Christmas.

Here’s a little song just for you.  It even has the lyrics so you can sing along.

Although it is legal in Nebraska for a real estate agent to represent both the seller and buyer in a transaction I won’t do it.  A buyer needs their own Agent, one who places the Buyer’s interests first.  So often I hear of people who use the Seller’s Agent as their own because they believe it saves them money.  This is baloney.  If you are well represented by your own agent you will get the best deal and the most house for your money.

Real estate can be quite complicated and laws change from state to state.  When you choose your agent make certain they are experienced buying and selling in the location that’s important to you.  Knowledge is so important when you are making one of the biggest investments of your life.  You want a knowledgeable Agent who is well equipped to give you confidence in your buying decisions. Remember to ask questions but also remember to listen carefully to the answers. In this instance, knowledge is power and money.

You want someone who will negotiate for you.  Not someone who is looking out for the interest of the Seller. There’s not just price of the house to negotiate on.  There are many conditions of a purchase that can help you financially at the negotiation stage and at the closing table.  Your real estate professional has the knowledge to tell them to you and to negotiate these for you. 

 Finally, your agent will help you secure a mortgage broker and will help you understand all the monies, fees and costs you will need to bring to the transaction.  A good real estate professional can be with you for the rest of your buying lifetime.  This is the time to forge a relationship of trust.  You will most likely buy several properties in your lifetime and you want a team of professionals with the knowledge to protect you and help you gain financial advantage and attain your housing goals throughout the years.

 If you are interested in purchasing a home come talk to me.  Call me at 402-697-4251 or email me at Marie.Otis@cbshome.com.  I look forward to a long-term relationship with you.

One of the most exciting new features to the Homebuyer Tax Credit is that a person who has recently owned or currently owns a house for can be eligible for the $6.500 tax credit. If you meet the income guidelines and have lived in a home for more than 5 consecutive years out of the last 8 years you may be eligible.

The National Association of Homeowners (NAR) has put together a very helpful question and answer sheet (Q&A) that will aid people in figuring out whether or not they are eligible.  I though it might be helpful to Omaha homeowners to review some of the NAR Q&As here.

1. “In order to qualify for the homeowner credit must the new house cost

more than the old house? 

Answer: No. Thus, for example, individuals who move from a high cost

area to a lower cost area who meet all eligibility requirements will qualify

for the $6,500 credit.

2. I am an existing home.  On October 25, 2009, I signed a contract to

purchase a new home.  I have lived in my current home for more than 5

consecutive years and am within the new income limits. I will go into

settlement on November 20.  If President Obama has signed the bill by

the time I go to settlement, will I qualify for the new $6,500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for

purchases after the date of the new credit. The provision looks solely to

the date of purchase, which is generally the date of settlement.

3. I am an eligible existing homeowner. I have a fair amount of equity in

my home.  I have found a home with a non-negotiable price of $825,000.

Will I be able to use any of the $6,500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm

at $800,000. Any amount above $800,000 make the home ineligible for

any portion of the credit. The $800,000 is an absolute ceiling.

4. I owned my home for 10 years, but sold it two years ago and have been

renting since. If I purchase a home, will I be eligible for the $6,500 tax

credit if I need all the other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive

years of the previous 8, you will qualify for the $6,500 credit. For example,

say John and his wife bought a home in 2000 and loved there until 2008

when he got a divorce. Whether John has been renting or bought in the

interim, he would indeed by eligible for the credit because he owned a home

and occupied it as his principal residence for 5 consecutive years out of the

last 8 years. The keyword here is “consecutive.” As long as he lived in that

house for 5 years straight what he did since 3 years doesn’t impact eligibility.”

The income limits for the homeowner tax credit is $125,000 for a single person and $225,000 for a married couple. As long has you have a signed, binding contract to purchase a home by April 30, 2010 you will qualify for the tax credit if you close before July 1, 2010. 

I’m certain you have lots a other questions you’d like answers to so please give me a call at 402-697-4251 or email me at Marie.Otis@cbshome.com. I’m most eager to help you get all you are entitled to receive with your new home.