The Advantages and Disadvantages of FSBOs

Many home owners think about selling their own home but relatively few attempt it. Why? Because it's an extremely time-consuming and often exhausting process, especially if you're working a full-time job! It's the Realtor who takes this burden off your back.

Nonetheless, I don't discourage you from putting your home on the market and attempting to sell it yourself.
But before you do it, I do encourage you to become extremely knowledgeable about the process and aware of the both advantages and disadvantages of it.

Below, I've provided information on the benefits and drawbacks of doing a "For Sale By Owner" (FSBO) sale. 

Read it carefully and then make your decision!

Advantages of Selling Your Own Home

Of course, the biggest advantage a FSBO is that there's no commission to be paid to a Realtor. You get all the proceeds from the sale, minus any marketing costs you incur.

A second advantage is that you have complete control of the transaction. You don't have to rely on anyone else. You're totally independent.

A third advantage concerns your equity. If it's low, you have the possibility of selling your home without having to write a check.

A fourth advantage is that you don't have to rely on a realtor to schedule showings, answer inquiries, etc.

Disadvantages of Selling Your Own Home

Perhaps the greatest disadvantage is the tremendous amount of time you have to put into the sale.

It's a time-consuming process to do all the paperwork, the marketing and advertising, the showings, etc. by yourself - not to mention the hours it takes to get acquainted with all the legal, financial, and other issues. You must be prepared for this.

A second disadvantage is the costs in terms of marketing and advertising. If you don't exactly what you're doing, this can be very expensive!

A third disadvantage is that you won't have access to the Multiple Listing Service (MLS) unless you pay a fee to have your listing included. If you don't pay that fee, then you'll end up hunting for buyers one at a time, a very inefficient, ineffective, and frustrating process.

The fourth disadvantage relates to your knowledge of the market. If you're not knowledgeable about it, you may not price your house correctly.

That is, you may underprice it or overprice it. If you underprice your home, you lose money. If you overprice it, you lose buyers. By the same token, if you do find a buyer and you're not experienced at negotiation, you could be taken advantage of.

A fifth disadvantage relates to a belief of some buyers. They believe that since you're selling the house by yourself and not paying a commission, then they're the ones who should get the savings instead of you!

My Advice: Do your homework before considering selling your home by yourself! And, if you do decide to go the FSBO route, be fully prepared in all aspects of home sales!

If you'd like more information and advice on selling your own home as well as my real estate services, contact me.

How to Be a Wise House-Shopper in a Great Buyer’s Market!

There’s no doubt about it – there are a great many bargains in the real estate market today if you’re a person looking for a new home.However, I highly recommend that you don’t get dazzled by all the opportunities and make a potentially expensive and poor decision. To that end, I’d like to offer you some common-sense guidelines to follow.

Guideline 1: Pay Attention to Your Budget
Before beginning your search for that new home, sit down and come up with a monthly payment you can handle with ease and then look for the house that fits that budget.

Guideline 2: Save Up for a Down Payment
Due to the “mortgage meltdown,” lenders are currently much more cautious about giving out money. Depending on the situation, they may insist on a minimum down payment of 10% or one that’s all the way up to 25%. So, start saving!

Guideline 3: Improve Your Credit Score
A good credit score is a great way to make the whole process easier when you apply for a loan. Today’s lenders scrutinize such scores more closely today than in the past. If you don’t have a good score, work hard to get it up into an acceptable range. It’ll save you money on interest charges and down payments in the long run!

Guideline 4: Get a Pre-Approved Mortgage Loan
If you’re a first-time home buyer or simply a buyer who wants to make sure you stay within your means, it’s a wise idea to get a pre-approved mortgage.This is simply the process of applying for a mortgage and getting approval for the loan prior to buying a home.

A “pre-approval” is an indication that the lender is ready to extend a mortgage to you once you’ve located the right property.  And it has several benefits. First of all, it saves time and energy. Once you have a pre-approved loan amount, you’re required to stay within the limits of that loan in terms of the price you’ll pay for a house.

First, when working with a realtor, ask him or her to limit the choices to those stated in the loan. This prevents the agent from showing you properties which are out of your range. By the way, they’ll really appreciate those parameters because it’ll help them zero in on properties with the best chance of sale! 

Second, you can spend more time looking at homes you really like and, simultaneously, not wasting time on houses that aren’t within your budget. This allows you to focus on the details of the homes you do like in order to make sure you select the right one; for example, kitchens, baths, garages, etc.

Third, you can bargain more effectively with sellers once they know you’re pre-approved. In the current market, that’s a great relief for many sellers because they realize they have a reasonable certainty of selling their property when working with a pre-approved buyer.

Fourth, you can close faster with a pre-approved loan because there’s no time lost in the usual processing period for loans. For example, an appraisal can be ordered right away, and you have the potential to cut a 30-day closing to two or three weeks.

Finally, the seller will prefer to deal with you, particularly if he or she needs to move quickly.

Now, you have some common-sense guidelines to follow when seeking a new home in today’s market! You can learn even more by contacting me today a 402.690.1573.

Ride the Magic Carpet of Increased Home Value!

Your carpet. Maybe it's full of dirt tracked in by the kids and pets. Maybe you're exasperated because it's hard to maintain. Don't despair! You just need to realize that your carpet is… FULL OF MONEY!

No, I'm not kidding; it really it is! And here's the simple "magical" proof - when you clean your carpet or replace an old one, you can increase the value of your home by as much as 10%! How can that be? Well, you know the old saying, "You only get one chance to make a good impression?" That's doubly true when buyers come to look at your home!

When they see a dirty or worn carpet, they think, "Oh, wow, there's an expense I don't need. What else is wrong with this place?" Ouch! With one 10-second glance, your home's value has fallen off a cliff! It's not fair, is it? But, the good news is that you can "magically" get things headed in the opposite direction of increased value by taking one of two simple steps!

Clean the Carpet!

Okay, you have two choices here. You can shampoo/steam clean/dry clean that magic carpet of yours by yourself. There are all kinds of rental systems available to you. The dry system (Oreck, for example) dries almost immediately and kills almost all mold and bacteria. These methods are cheap because you supply all the labor.

The second choice is to hire a professional carpet cleaning service (Stanley Steemer, etc.). If your carpet has a lot of bad stains, we recommend you use one of these professionals. They're experts at it, and their equipment is much more high powered than anything you can rent. It'll be more expensive, but the results will be worth it! Like magic, your carpet will look like new and have a great impact on visitors!

Replace the Carpet!

I know, I know - your first reaction is, "Wow, that's going to be expensive!" Yes, but this initial outlay has the potential to make you money in the long run. How can that be?

Well, let's assume you want to sell your home in the future. A $4,000 investment in new carpet can make a $10,000 difference in the sale price! In other words, by investing $4,000 in a new carpet, you may end up adding $6,000 to the value of your home! Now that's some financial magic that makes you look at your carpet in a whole new way, isn't it?!

So, what are you waiting for? Clean or replace that carpet right now and let your house soar upward with increased value!

For any questions or concerns about cashing in on carpet care, contact me at 402.690.1573 or Email me anytime at teresa@teamelliott.net!

P.S. If you've never called anyone on the carpet, now's the time to do so!

How To Increase the Value of Your Home Through Landscaping!

For the sake of argument, let’s assume you have a home that’s valued at $1,000,000 and you could add 15% to the sale price. That’s an additional $150,000 in your pocket, minus expenses!

I’d say that’s a good deal, wouldn’t you? Even better, you can gain that value cheaply through landscaping!

Remember, the first thing potential buyers for your property see is the exterior of the house and the yard itself. The old rule that "you have 10 seconds to make a first impression" applies here.

If buyers see a well-maintained exterior and a well-groomed yard, well, then you’re one step closer to making a sale at a price you want! If they see a poorly maintained home and yard, well, your chances of a sale plummet badly.

So, let’s talk about landscaping and what you can do to add value to your home cheaply! Below, I provide you with some common-sense tips.

Tip 1: Clean Up the Clutter

I know this can be hard if you have kids, but you want to create the impression of neatness on potential buyers. Things like bicycles, toys, creaky old lawn furniture, overstuffed garbage cans, etc. create a negative “vibe” that can be hard to overcome.

Tip 2: Care for Your Lawn the Correct Way

Of course, fertilize your lawn a minimum of once a year and, ideally, three times. Use a slow-release nitrogen fertilizer. Here’s another important point – don’t cut the grass too short. By “scalping” your lawn, you can end up creating unsightly bare spots.

Instead, be sure to mow only one third of the height of lawn each time you get the mower out. This helps the grass develop strong roots and fend off pests and weeds.

Tip 3: Trim and Edge!

Trimming and edging give your lawn the finishing touch, making it look as neat and well cared for as possible.So, edge the main lawn areas and trim around patios, flowerbeds, decks, and other landscape features. Use the trimmer correctly and don’t let it cut into trees or “scalp off” grass at the ground level.

Tip 4: Remove Bad Planting Choices

If some unfortunate planting choices were made by the previous owner (or you put some in that you don’t like now,) either trim them or get rid of them.

If you decide on new plantings, talk to your local nursery expert about the correct choices and how much care they’ll require.

Tip 5: Create a Point of Emphasis

By this, I mean that you can plant a flowering tree that stands out…line your walkway with flowering plants….frame the front door with annual flowers of bright color…and so forth. With these plantings, you emphasize the beauty of your home and make that home stand out in the neighborhood.

Most of these items are inexpensive and provide a great return in terms of increased home value. Plus, there’s a bonus – it can be great fun to do all these plantings!

Need more suggestions on how use to use landscaping to increase the value of your home? Contact me today at teresa@teamelliot.net, and we’ll have a wonderful time discussing one of my favorite subjects!

Clinch the Deal with Curb Appeal!

Believe me, great curb appeal is everything when it comes to getting potential buyers into your home! Plus, outstanding curb appeal can not only make the sale but increase your profit from that sale as well!

The benefits don’t stop there. Curb appeal can actually be achieved with very little money (depending on the size and condition of the home, of course). So, don’t think of it as cash spent; it’s actually an investment in more profit!

Below, I provide you some very low-cost and sensible methods for making your home “shine!”

Clean – Then Clean Again!

I don’t know about you but when I see dirt and grime in a house, it’s a turn off because, as a buyer, I certainly don’t want to end up cleaning it all out! 

But, there’s another negative to a messy house – it tells potential buyers, “The owner doesn’t seem to care about his property, so why should I care?” Granted, this is not always a fair conclusion, but, remember, we’re dealing with the “emotional” side of the buyer. What they see is what forms their opinion of a property.

So, don’t risk the possibility of a negative opinion! From top to bottom, clean your home or have it cleaned by a professional service. Especially pay attention to getting rid of any odors!Unpleasant smells have a particularly negative impact upon potential buyers since odors create an immediate impact upon the most primitive and powerful part of the brain.

Get Out the Paint Brush…Roller…Sprayer!

The big temptation here is to go with the cheapest paint possible. Don’t give in to this urge. Go with good quality paint for both the interior and exterior! It simply looks better and emphasizes the quality of care you’ve put into your home. Buyers will notice that!

Roll Out the “Red” Carpet!

If your present carpet is at all worn or threadbare, consider replacing it with new carpet. I know, I know, it can be expensive, but new carpet can also add several thousand dollars to the final sale price! Once again, think of it as an investment, not as an expense. 

At a minimum, if your current carpet is in good shape, have it professionally cleaned to make it look even better.

Repair All the Little Things!

By themselves, a missing knob, a crooked gutter, an ill-fitting door, etc., don’t have much of a negative impact upon a buyer’s perceptions. However, when they see all these things together, they definitely get a sour attitude very quickly. So, repair all the little things to enhance exterior and interior curb appeal. Replace/repair gutters, rotted wood, broken door latches, leaky faucets, etc.

Manicure That Lawn!

A mowed and edged lawn really enhances the curb appeal of your home and shows potential buyers that you take good care of your place. To really put the “icing” on the curb appeal “cake,” add plantings like flowers, bushes, etc. They add color and delightful smells.

If you really want to make your home stand out in terms of terms of exterior and interior, consider hiring an accredited, professional “home stager” (ASP).

What’s a Home Stager?

Home stagers work with the “flow” of a home. Think of them as similar to set designers for plays and movies. They know how to “set the stage” in exactly the right way to impress any potential buyer visiting your home.

Overall, they eliminate clutter, arrange furniture, and help you enhance interior/exterior curb appeal in every way possible. Their charges may be on an hourly basis or a flat fee.

For information on home staging professionals, google “Home Staging Professionals” to see who’s available in your area. Or, check out these sources on the Internet:

STAGEDHOMES.COM  and The Real Estate Staging Association

If you’d like more information on home staging or any other methods of increasing your home’s curb appeal, contact me today at teresa@teamelliott.net or 402.690.1573.

2010 Spring Parade of Homes: Opportunities are Blossoming

Looking to buy a home? Looking to remodel your own? Looking for some fantastic houses to tour in your free time? The Omaha Spring Parade of Homes is fast approaching! I will be showing a home in West Omaha and I welcome and encourage you to attend. In addition, you will get to see the beautiful Silverleaf Estates neighborhood, which includes houses designed by ADC, Inc., a design-build company that has quite a presence in the Omaha area.

So mark your calendar! The 2010 Spring Parade of Homes will take place May 9-16. This exhibition provides an extraordinary opportunity to tour top-of-the-line homes around the greater Omaha area.

Why Should You Go?

Whether you are a homeowner or looking to purchase a house, the Parade of Homes is a chance to gain exceptional insight, tips and home design ideas. The event, sponsored by the Metro Omaha Builders Association, is free and will run from noon to 6 p.m. on weekends, and 5 p.m. to 8 p.m. on weekdays. This is an opportune time to consider home ownership considering the current low mortgage rates, competitive home prices and tax credit for first-time homeowners, so this event should not be passed up!

Stop By and See Me in Silverleaf Estates!

Be sure to stop by 1426 N 191st Avenue, located in the in the beautifully secluded Silverleaf Estates in West Omaha. Located at 192nd and Old Lincoln Highway, Silverleaf Estates offers breathtaking landscape and an old world charm that is unlike any other Omaha development. It is part of the Elkhorn school district and only minutes away from Village Pointe shopping center and easily accessible from the interstate.

Silverleaf, which was the 2009 pick for Omaha's annual "Street of Dreams" event, is the perfect place to build your next luxury home. Be sure to visit this location during the Parade of Homes to see some of the most magnificent homes in Omaha.

Who Built It?

This house in Silverleaf Estates was designed by Advanced Design & Construction, Inc. It perfectly highlights all the exceptional features that ADC incorporates into every building project. They offer superior design and efficiency while still keeping your budget in mind. ADC continues to create unique residential spaces that incorporate functionality, affordability and individual style. The perfect blend of engineering, design and construction is evident in this home, but you will have to come and see for yourself!

So hop in the car and take time to tour all of the fabulous homes being featured May 9-16. You can come and go as you please and it can even turn into a fun family outing. I will be at 1426 N 191st Avenue throughout the week of the Parade and I can't wait for you to stop by! And don't forget, if you come you can sample some of my delicious homemade meatballs!

Be Un-Emotional When Buying a Home In Order to Get the Best Value!

Want to break your heart and your bank account at the same time? Then buy a new home based on the fact that you've fallen in love with it!  Needless to say, you should never do this! 

In some cases, when you fall in love with the "pretty face" of a house, you fail to look underneath and find problems like bad wiring, leaky roofs, bad foundations, etc. This is an extremely expensive way to buy a home!
  
A funny and sad example of this is shown in the 1986 film, The Money Pit, starring Tom Hanks and Shelley Long. They make the mistake of falling in love with a home and think they're getting a $1,000,000 property for only $200,000. 

Once they get into the home, they find out it'll cost a million to repair it! It's got wood rot, a bad roof, bad plumbing, bad electricity, even bad raccoons!

Well, that's Hollywood exaggeration, of course. After all, The Money Pit was a comedy. But, when things like that happen to you, it's no joke. Repairs can cost you a lot of money and heartache, not to mention dangerously rising blood pressure!

So, again, never ever fall in love with a house at first sight! Easier said than done, you say? How do you avoid this tendency? Below, I offer some solutions to the problem!

Solution 1: Get Cold Hard Facts about the Home!

When I talk about "cold, hard facts," I'm talking about getting the house evaluated by a certified home inspector.

It's well worth the money to have this job done because the inspector will cast the objective eye you lack on the property. He or she will evaluate every aspect of a house - roof, plumbing, wiring, foundation, etc.

And then, that inspector will provide you with a written report that may range anywhere from 20 to 50 pages. It will give you a point-by-point summary of what needs to be corrected.

The cost of a home inspection varies with the region of the country. Nationally, they range from $200 to $400. But, for the investment of, say, $200, you prevent yourself from losing thousands of dollars in repairs in two ways. One, you can simply walk away from the deal. Or, two, you can require that seller fix all items before you sign a contract!

Bonus: Often, you can ask that the seller pay for the home inspection!

Solution 2: Cool Off and Take Your Time!

Infatuation with a home is fun and exciting, and you can have the overwhelming temptation to buy an attractive home practically "on the spot." My advice - walk away and come back several days later, especially after you've viewed other properties! By then, it's likely you'll have a more objective eye.

Solution 3: Keep It Simple!

By this I mean that you should stick within your price range. Youwant the best house at the best price within your means! So, if you see an outwardly gorgeous house at, say, $10,000 above your price limit, say, "I love you, but you're way too pricey for me!" and walk away from the temptation!

Solution 4: Rely on Your Realtor!


At heart, I and other professional Realtors like me, want you to have a house that meets your needs in the best way possible. That means preventing you from buying a home that's not in the greatest shape and/or beyond your means.

To be perfectly blunt about it, I rely on great word of mouth from satisfied customers to make the most of my real estate career. So, you have my promise that I'll do my absolute best to get you into the house of your affordable dreams!

Need that objective eye to help you make a smart home-buying decision? Contact me at teresa@teamelliott.net! or call 402.690.1573 today!