Real Estate Information

The crack of the bat, a whiff of popcorn, the roar of the crowd when their favorite team makes a hit - it’s College World Series time in Omaha again. Omaha is hopping with out-of-town ball players and their fans.  It’s been steaming hot the last couple of days but the weatherman promises a bit cooler temps.  The festivities run through June 24, so buy a ticket and join the fun.

Summer is really and truly here in the Big O and the good news keeps coming.  Business Week named Omaha as one of the top 5 cities in the nation to make a new start.  The article cited location of new technology businesses in Omaha as well as the lively arts scene as the particular draws.  Reasonable housing prices were also mentioned as well as low unemployment (5% compared to 9+% nationwide) as reasons to relocate. 

Housing values in Omaha grew .4% in Omaha from a year ago.  That may not be much but most areas measured had negative values.  In fact, the national housing values fell by more than 6%.

If you’re considering relocating to Omaha metro area then give me a heads up.  I will send you a relocation package from CBSHOME Real Estate that’s really great.  I can send you information on area schools and even give you a tour of our great city.   Omaha is growing and it’s on the go.  Come join us and we’ll get you into a great home.

The house is listed with the Realtor of your choice.  All photographs of family and friends and precious collectables have been packed away.  The stager has been there and the house is ready for potential Buyers.  The call comes from the Realtor to schedule the first showing.  Is there anything more the Seller can do to facilitate the showing.  Yes.  Here is a checklist to complete before leaving the house:

1. Turn on all the lights; even in the daytime.  Lighting will make everything look brighter and better.

2. No pets.  Take the pets for a walk, place them in the car, leave them with a neighbor or kennel them.  Make certain items such as kitty litter are whisked away.  No pet food dishes in the kitchen.

3. Don’t leave dirty laundry on the floor.  Put it in baskets and stack them in a corner.

4. Don’t leave dirty dishes in the sink.  Make certain the countertops are cleared and wiped down.

5. Remove all prescription medicines from the medicine cabinets.  There have been warnings from law enforcement officials stating that these items are easily stolen.

6. Don’t lock any rooms or closets.  It is okay to lock furniture such as desks, cabinets, etc. 

7. Some people like to have soft music playing to make the home seem more welcoming. 

8. Make certain the house smells fresh and clean.  Nothing turns off Buyers more quickly than a funny or unpleasant odor.

In the Omaha real estate market we tell our Sellers to expect Buyers to use the bathroom.  Make certain there are guest towels and toilet paper.  Buyers many times will bring their children to a showing.  The Realtor can’t follow everyone if there is more than one person.  Don’t have knick-knacks out, put them away.

If the Seller has new carpet or the weather is wet or snowy, ask the Realtor to have Buyers remove their shoes before tracking through the house.  Ask the Realtor to make a sign asking people to remove their shoes.

A Seller needs showings if the house is going to sell.  It is an inconvenient time but please stay focused on the objective – to get the house sold.  Please don’t hesitate to call me if you have questions about showings or any other real estate matter.  I’m here to help at 402-967-4251 or email me at Marie.Otis@cbshome.com.

You are about to sell one of the biggest investments in your lifetime.  You’ve put several improvements into your property every year.  For some it’s more than a few years, it may be more like 10 or 20 years.  Why would you consider hiring anything but the best to market and sell your home? 

The National Association of Realtors reports that 80% of Realtors leave the industry within the first year on the job; another 80% leave within 5 years.  The average Realtor makes $12,000 a year; only completes 4 to 6 transactions a year and only work part-time.  It’s the top percentage of Realtors who get the job done.

You want to get the best.  Here’s what I recommend for the Omaha Metro Area real estate market.  Contact 3 top Realtors in your area.  Listen to their marketing presentations before making your decision.  Here are 8 specific things to look for during that interview:

1. Does the Realtor explain how “Agency” laws work in your State?  This is crucial to know.  You already know the Agent will represent you but what about other Agents who show your house?

2. Has the Agent prepared a report on houses like yours in the area and the final closing price?  The houses they compare to yours should be like your home.  If you live in a 2-Story you don’t want to know what Ranches are selling for in your area.  This report is critical in assisting you and your Realtor on arriving at a list price for your home.

3. Does the Realtor have a prepared marketing plan?  The plan must contain more than getting your home listed on the MLS and getting a sign place in the yard.  You want to look for a strong blend of colorful flyers with descriptions that make potential Buyers clamor to see your home, effective internet marketing, marketing to a wide pool of area Realtors (regardless of the Company they work for) and networking.

4. What is the Realtor’s area of expertise?  If you are selling a condo/townhome then ask to see the Agent’s success with selling on condos.  Perhaps the Realtor is an expert on your part of town.  Perhaps the Realtor is very sensitive to your culture and will make you feel at ease.  Find out if their strengths match your needs.

5. The Realtor should prepare a statement showing you what your expenses will be (including the commission) in selling your home for a specific price.  A great Realtor will have the tools handy during the interview so they can prepare several of the statements if you haven’t settled on a final price.

6. The Realtor should present a Communication Plan to you.  Do they promise to send you a weekly or monthly activity report?  Do they promise to call you after every showing to discuss the Buyer’s reactions, likes and dislikes.  Will the Realtor promise to return phone calls?  Does the Realtor have an email address they check at least once a day? 

7. Being a Realtor is an expensive proposition.  The Realtor pays for all the marketing they present to you in their plan.  Still many effective Realtors offer other important services such as Staging Experts. 

8. Finally, the Realtor should act enthusiastically about the opportunity to market your home.  Enthusiasm is so important.  If your Realtor is not eager to get a positive message about your home to the market then don’t hire them.

A lot of Realtors don’t want you to have this checklist because they fall short of the mark.  Don’t you make that mistake.  You’re risking a lot and you need the best choice.  When you make the appointments I hope I’ll be privileged to make a presentation to you.

So you've received your home's valuation and you don't like what you see.  You feel like your assessed value should be lower.  Now what do you do.  "A Guide to home valuation protest" was in the Omaha World-Herald in today.  Here is a link for the entire article http://budurl.com/protestvaluation. 

There are three areas to consider when you are going to file a protest.

1.  Condition of Your Home.  If your home's condition would cause your home's value to be less that the counties assessed value you will need to provide evidence in the form of photos or repair estimates.

2.  Your Home Valuation is Higher Than Your Neighbors.  Look at similar homes in your neighborhood and compare their valuations to yours.  You will need to provide evidence in the form of a purchase agreement or private appraisal.  You may also provide information about recent sales in your neighborhood of similar homes.

3.  Inaccurate County Records.  If the county records for your home are wrong provide evidence in the form of photos, a purchase agreement or private appraisal.

There are important dates to remember.  During the month of June you can protest your valuation by completing a form which must be postmarked by June 30th.  The county board will vote on protest recommendations during the month of July.

For a property valuation protest form or for a list of comparable sales in your neighborhood please contact me and I will be happy to provide you with information that may assist you in lowering your property valuation.

Cindy, my client, gave me a frank look and said, “Look, Marie, the stager gave us some great ideas for improving our home but I won’t rearrange the furniture in my family room.  We want that big chair in front of the T.V. It’s where Jim sits when he comes home from work and he won’t like it if I move it.”

I gave Cindy and Jim a frank look and asked, “Are you interested in selling your home?” Yes? Then move the chair.”  A stager is not criticizing your decorating taste or trying to cramp your comfort.  A good stager will turn your property into “a product that will appeal to general public.”  A home owner has to understand that until it sells a home must be turned into a “product for sale.”  Your home literally stops being a reflection of your personality for the duration of its time on the market.

Your home must be neutralized, de-personalized and hugely uncluttered with furniture, clothes and possessions.  I believe this so strongly that I hire a stager to come in and work with my clients for up to 3 hours.  Here in Omaha, real estate inventories are still high so I hire the best stager in Omaha, Tori Ross.  Your home must appeal to the majority of Buyers if it is going to sell in a reasonable amount of time. 

I can’t emphasize strongly enough that you must put away all your photos, trophies and collections.  Strip away anything that identifies you and your family.  You should be packing things anyway so hire a storage locker and start putting your filled moving boxes in it.  Pack and store all the clothes you are will not wear in the next 2 weeks.  Closets should be as empty as possible.  Don’t store moving boxes in the garage or basement.  Such clutter blinds a potential Buyer to your home.

Always kennel pets – many Buyers are afraid of them. No pet food should be out in the kitchen.  Keep things clean and fresh.  Make certain your home doesn’t smell stale or of cigarette smoke, pets or mildew. 

Finally, as I stated above, please listen to and act on the advice of your stager.  The minute you decided to sign a contract to sell your home it stopped being yours.  It is now a product on the shelf to be sold. 

There was an article in the Sunday World-Herald this week about home valuations.  Here is the link for the entire article: http://budurl.com/HomeValuation

Assessed values of homes is a topic that often comes up when working with buyers and sellers.  The question I get most often is "Why is the list price for the home so much higher than the assessed value?"  The answer I provide is not a easy one.  The assessed value of the home is not the same as market value. 

The assessed value is supposed to be 92 to 100 percent of market value.  The county does the best they can with assigning assessed values to each home but it is a daunting task and it is not perfect.

The article in the Sunday World-Herald states that home valuations may not drop as much as homeowners are expecting.  During the month of June you can protest your valuation to your county board. If you believe your assessed value is too high, contact me.  I will be happy to provide you with information you can take to your county board.

http://budurl.com/HomeValuation

I tell my Buyers that Title Insurance is the best insurance policy you can buy. You only pay for it once and it protects you from a wide variety of possible ills. 

1. Property Titles: First, Title Insurance protects you from human error.  Titles to property were kept in book form for most of the history of the United States.  The grantors were in one set of books and the grantees in another set.  To trace back a title to its source, a human being had to haul out big dusty books.  Although most title information is now on computers there is still a lot of room for error because a title search has so many components.

2. Re-conveyances: These are proof that liens and encumbrances are paid off. These can be placed on a home by a variety of entities.  You want to make certain everything is settled and paid off before closing.

3. Easements and Right-of-ways that may exist on any given property.  These can be from the local public utility companies but can also be private entities. 

4. CC&R: stands for “Covenants, Conditions and Restrictions.  These can be put on a property by the developer, the builder or a neighborhood association. 

5. Title searches also examine marriage records, death certificates and tax sales. 

6. They also look for fraud, forgeries, and missing or incorrect signatures.

7. They look for defective record-keeping. 

8. Judgments against the property or owners of a property.  This comes into play most often when people have judgments regarding alimony or child support.  This affects judgments against Buyers as well as Sellers.

These are reasons to buy Title Insurance.  It protects you from, or identifies for you, all sorts of issues as stated above.  It’s best to buy extended title insurance.  It can be extended beyond the 2 year limit and it’s your best protection against human error.  In Omaha real estate, we at CBSHOME trust Nebraska Land, Title & Abstract (NLTA) for title work.  They get you to the closing table on time, accurately and work closely with agents and clients to get the job done.

An escrow officer is someone who handles all the money, which makes certain the title of the home is clear and gets you to the closing table on time. It is vital that the Buyer chooses a great escrow company.  Here are three things to consider when making your selection:

1. Reputation/Reliability: The escrow officer is the person who makes certain you get to the closing table successfully. There must be a very good relationship between your Realtor and the escrow company. In other words, the escrow company must have a proven record or success, cooperation and communication.  A good Realtor will check with the escrow officer frequently to make certain everything is happening on schedule. The escrow company will issue a document of instructions that you and your Realtor must review carefully. Make an outline of all the events, documents etc. that must be satisfied and get the escrow officer what is needed as quickly as possible.
2. Location: As I mentioned earlier, lots of contact with the escrow officer is critical to the process. It will be easier if your Realtor or you can meet face-to-face with the escrow officer when necessary. The Realtor’s access to the escrow officer is not to be taken lightly. A good Realtor has identified a “go to” escrow company they can depend on. Pay attention to who they recommend. 
3. Costs/Fees: Many fees are mandated by State law and are not negotiable.  However, there are fees which can be discussed and compared. Make certain you understand all the fees the escrow company will charge. If an escrow officer is reliable and the fees are reasonable when compared to other companies, then you have a winner.

A little research is always a safe bet. This is a big step for a Buyer and one you want to make with confidence. CBSHOME works with an in-house Title and Escrow Company with an A-one reputation. When it comes to Omaha real estate you can’t go wrong with our Team.

“My Uncle is in construction and I want him to do our home inspection.  We’re watching our up-front expenses and he won’t charge us.”  If I had a nickel for every time a Buyer said that to me I’d be a rich woman.  I can’t emphasize enough the importance of hiring a professional home inspector when considering a home. 

Here are some important tips when considering a home inspector:

• Is the inspector ASHI Certified (American Society of Home Inspectors)?  ASHI is the largest and oldest North American organization of professional home inspectors.  They have a rigorous certification process that can be trusted.
• How many home inspections has the inspector performed?  This is probably the single biggest investment of your life.  Don’t entrust the job to a newbie.
• Ask to look at an inspection report.  It should be detailed. It should have colored pictures or detailed drawings of problem areas.  An average report is at least 20 pages or more – many are much longer.  The inspection report should cover all the systems of the home, i.e. heating, cooling, electrical, structural, plumbing, roof, etc.
• Ask if the inspector charges for a re-inspection.  If the inspector has identified needed repairs and the seller has agreed to get them fixed then he should come out later to see if the repairs have been completed satisfactorily.  Most reputable inspectors do not charge for a re-inspection.

4 more reasons why a professional home inspector is so important:

1. A home inspection should last approximately 3 hours.  You may not have to be there the entire time but it is vital you be there at least 30 minutes with the inspector for a “walk-thru.”  A good inspector will take you through the house showing you what was inspected and what he has found. 
2.  A good inspector will also show you how things work in the house.  He will explain things such as types and installation of furnace filters, water shut-off valves, etc. 
3.  A good inspector will recommend you employ other inspectors if he finds something that is suspect such as roofs, heating and air conditioning, etc.
4.  A good inspector will tell you which repair items are major and which are minor.  This is critical when you are deciding on asking the seller for repairs. 

In Omaha, we at CBSHOME Real Estate are adamant that Buyers have good home inspectors.  Do not hesitate to email me at Marie.Otis@cbshome.com or just give me a call at 402-697-4251.

You have found a house you really want. Now it’s time to make an offer. Good for you! But heed this warning: Be sure you’re serious – it will cost you plenty!  Here are 7 things you should consider before submitting an offer to a Seller.

1. Ask your Realtor to make an analysis of what “like” houses are selling in that particular neighborhood. You don’t want to pay more than market value for the house. 

1. Figure in all your costs. Your mortgage lender can take the amount you are going to offer (and all the other variables you have already discussed and agree on) and plug the figures into a software program that will spit out a Good Faith Estimate (GFE). It will show all the costs you will be responsible for and how much your monthly payments will be.

1. The only time you may want to make your offer the highest you can afford is when the market is really hot and you have competition for the house. Then you want to make your offer as sweet as possible for the Seller. In today’s market, know your upper limit and base your bid not on the most you can afford but select a lower figure. This way you have room to negotiate. 

1. Expect to negotiate. If you are lucky the Seller may accept the first offer.  Experience has shown me that there is usually at least one counteroffer.

1. Serious offers come with an earnest deposit. I’m often asked how much the earnest deposit should be. There is no set amount but over the years I’ve learned the rule of thumb is 1% of the amount offered.

1. Be specific – put everything in writing. Don’t count on the goodness of others or assume items will be included. Have your Realtor include all items in the offer that are vital to you.

1. If your offer is accepted remember you must pay up front for all inspections.  Inspections usually have to be completed within 5 business days after acceptance of the contract and both parties have signed. Remember, the payments for all inspections are due the day the inspections are performed. If the inspection is unsatisfactory you don’t have to buy the house but you still have to pay the inspector(s).

 Research has proven that buying a home is an emotional experience. If you keep that fact in mind, then make certain you are smart and cover all your bases. Follow the steps above and you will usually come out a winner with your dream house.

CBSHOME has an in house lending program for Omaha home buyers.  Give me a call at 402-697-4251 or email me at Marie.Otis@CBSHOME.com and I’ll get you in contact with a mortgage officer.