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!

Adding Value To Your Home Through the Garage

By nature, garages are places where we store many things we don’t want or need in the house. They’re also places where oil and gasoline are spilled due to cars, mowers, snow blowers, roto-tillers, etc.

Garages tend to store toys, mementos and many other items that, at one time, we thought vitally important. Then, when we go through them, we wonder why in the world we thought they were so important in the first place!

Well, as you can guess, all those boxes, stains, smells, unorganized tools, etc., can add up to an unsightly mess in the eyes of potential buyers. So, that means it’s time for a cleanup and, just as important, a rigorous re-organization of the garage to make it “shine” in the eyes of buyers.

First:  
Go through all those boxes in your garage and sort out the items. Be ruthless and toss out anything that no longer has any use or meaning. Even better, donate items that are still useful to your favorite charity. You’ll feel great and make somebody else happy at the same time. By clearing out all the clutter, you’ll make it easier to take the next step.

Second:
Clean the garage as thoroughly as possible. Get rid of dust and dirt anywhere you find it. If you have minor oil/gas stains on the floor, you may be able to pressure wash them away.

However, if they’re large and/or long-standing, then you’ll need to find a cleanser like TSP (trisodium phosphate) or specially-made cleansers like “Gunk,” “Swab,” etc. that can be found at paint/automotive stores or in sections of “big box” stores like Wal-Mart.

Third:
Consider a “garage organization” system. Usually, the cheapest ones consist of storage bins and wall hooks. But, if you want to spend the money, there are also ones available with wall panels and flooring. Depending on your needs, an organization system can range from approximately $40 to thousands.

Simply google “garage organization systems,” and you’ll find plenty of links to companies selling these products.No matter what system you choose, it will definitely give your garage a clean and professional look.

I can’t stress how impressive it is to potential buyers to have a well-organized garage.

This tells them that you’re a person who takes care of every detail of your home and property. And that, in turn, lets them know that buying your home will be a great investment on their part
and well worth the asking price.

Need more hints on how to spruce up your garage or any other part of your home and property? If so, contact me today at teresa@teamelliott.net or 402.690.1573. Maybe you can provide me with some useful tips as well!

3 Major Factors Working Against the Housing Market in the Second Quarter of 2010

What I’m going to outline for you now is how this will impact us and why it is so urgent for your sellers and prospective seller to act NOW.

1.Climbing interest rates
2.Worsening lending guidelines
3. Expiring tax credits

Rates:
Interest rates have been at their historic low point (5%-5.5%) for so long now, most people have forgotten that the average 30 year rate is somewhere between 7% and 7.5%.

On March 30th, the Federal Reserve will cease buying all the low rate mortgage bonds. This means buyers will qualify for “less” house since interest rates will likely be around 6%-6.5% by June and probably in the 6.5%-7% range by the end of the year. This is the optimistic forecast. If inflation shows up we’ll see rates spike sooner.

Worsening Lending Guidelines: 
Buyers will qualify for “less” house because lending guidelines continue to become more restrictive. The pendulum is not done swinging. We can currently qualify buyers at 50% of their gross income. This will fall to 41%-45% by mid year and we are unlikely to see any improvement until we’ve had a few years where loans stop defaulting. Also, the minimum credit score required to purchase FHA is about to move from 620 to 640.

Looking at those three factors we can see less demand, tougher qualifying through higher rates, and tougher qualifying through lower debt standards. These three combined will put another layer of significant pricing pressure on housing over and above some of the REO pressure that exists already.

Tax Credits Expire: 
Buyers will no longer be provided incentives by the government to purchase houses. You probably have some decent statistics about what % of sales over 100K are 1st time or move up homebuyers. This will put a significant dent in demand.


Here is a tangible example of what I'm talking about:
Today Sally Seller sells her 200K home to Billy Buyer. Billy gets a 200K loan at 5.5% and qualifies for the $1135 payment…everyone is happy. Months from now Sally Seller tries to sell her home to Billy Buyer for 200K but the market is at 6.5%. Billy can't qualify for the extra $130 per month. For Billy to qualify for that $1135 payment when rates are 6.5%, Sally has to sell her 200K house for 180K.

This is JUST due to interest rate pressure, we’re not even considering Billy’s debt ratio or the fact that because the tax incentives are long gone, there will be fewer of Billy.

Your sellers have no idea what waiting means in this market.
They believe waiting means give it a year and the REO will be out of the way and we'll be fine. The reality is as interest rates climb on a 200K house they will lose 20K in sales price for every 1% increase to rates. We're at 5%-5.25% now and we're headed into the 7%-7.5% range. You can do the math quickly.

Your sellers must take advantage of this opportunity to sell NOW.
Your listing appointments must understand what,"waiting out the market" means. Some people will feel they don’t want to "give away" their house. But the reality is, they can cash out for significantly more value in the first half of this year, especially in the first quarter, than they will in the next 2-3 years.

Remind them that when the REO is off the market, their competition to sell is then everyone who bought an REO or undervalued home. And they will sell for significantly less. Do not let your sellers and prospects lose tens of thousands of dollars chasing a market that will take 10 years to recover.

While not my usual, “roses and sunshine,” I nevertheless hope you have found this information as useful, actionable and urgent as I feel it is for you. These timelines are very real, but unfortunately no one is talking or being educated about it properly.

My hope is you can help your clients realize and capitalize on this valuable information.

As A Buyer, How Can I Use the Principle of Conformity to My Advantage?

Ever go into a neighborhood and notice one or two homes that stuck out like sore thumbs?

One might be whole a lot fancier than the houses surrounding it while the other might be a "dump" in comparison to neighboring properties. This scenario illustrates the real estate principle of "conformity." The primary idea behind this principle is that a house is more likely to appreciate in value if age, size, condition and style are similar to, or conform to, other houses in the neighborhood.

But this principle also extends to buyers. By that I mean that if you make your property a lot "fancier" than others in your neighborhood, you end up limiting potential buyers.

Of course, the opposite is also true. Don't take care of your property, and you'll definitely have fewer buyers looking at it.

Conformity is closely related to two other principles - progression and regression.

In plain English, regression means that high-valued properties often tend to suffer when located close to lower-valued homes.

Progression, on the other, means that lower-valued homes will often see increased value when found amongst higher-valued properties.

This formal principle leads the informal maxim, "Buy the cheapest property on the block!” The higher value of the homes around it will, in turn, make it more valuable.

As A Buyer, How Can I Use the Principle of Conformity to My Advantage?

I've already mentioned one method - buy the least expensive house in the neighborhood! Once you do that, improve it, and you'll get most bang for the buck on your improvements.

Of course, look at such a property carefully first (often called "due diligence"). Spend the money on a real estate appraiser so you get an objective evaluation.

Of course, avoid any homes that need major fixes such as roofs, foundations, siding, plumbing, electrical work etc. The last thing you need is a "money pit" into which you keep throwing dollars and get little or nothing in return.

Be sure to seek out sound properties, ones needing only minor fixes such as painting, cleaning, landscaping, carpets, new appliances, etc.

If you're a buyer interested in real estate investment, purchase a home in a neighborhood that's just beginning a revitalization cycle. That way you can be sure values will appreciate. 

You can also look for under-improved properties such as single family homes which can be converted to residential income or commercial use, especially if such properties lie in the "path of progress;" that is, areas experiencing good growth.

As A Seller, How Can I Use the Principle of Conformity to My Advantage?

As a seller, simply make sure that you maintain your home and lot in line with surrounding properties.

Of course, if you've already done that, then invest in low-cost improvements such as new paint inside and out, landscaping, a professional cleaning job, etc.

If they're in bad shape, you might also want to add new carpets and/or new appliances. 

All these actions will improve the value of the home in the eyes of buyers. 

If you're an experienced do-it-yourselfer, you may want to tackle some improvement projects since they can cost less than half of what professional contractors charge.

However, notice that I emphasized experienced! An amateurish job on, say, cabinets or roofs can actually reduce the value of your home. So, unless you're really, really good at it, leave major home remodeling projects to the professionals.

Want to learn more about buying a home at best value or selling it at maximum value? Then, call me at 402.690.1573 right now or email me at teresa@teamelliott.net!

Why Use the Services of a Real Estate Agent?

This question is often asked, especially by homeowners who consider selling their homes by themselves.

The fundamental first answer to this question is that an experienced realtor is an expert at what he or she does. Through hard work and education, they’ve acquired a set of skills that make the process of home buying and selling a lot easier than it would be by doing it yourself.

So, what are the skills in the set I’m talking about?

Well, for one thing, we have the skill of being the go-between. We’re the people who handle people and calls and separate the “wheat” (real buyers) from the “chaff” (non-buyers) without you ever having to deal with such situations. In Internet terms, we make sure you’re not “spammed” with worthless offers and target real deals for you.We’re also the ones who save you a lot of time by making sure you’re looking at appropriate properties and neighborhoods right from the get-go.

And, speaking of neighborhoods, an experienced realtor will know them inside-out or will know how to find the latest information on them. That means he or she can get you into neighborhoods where the crime rate is low or non-existent, find you ones with great school systems, rising property values, etc.

By the same token, an experienced agent will steer you away from neighborhoods where the trends are downward; that is, rising crime, falling property values, and so forth.

And what about the prices of homes? Well, some people believe that we select them for our clients. Not true! We have no way of setting prices. They’re set by the market! However, we can guide you toward properties that fit your individual needs and are comfortably within your price range. Frankly, it’s not in our best interests to put you into a home beyond your means or that’s not right for you. When that happens, we lose clients and money!

So, we’ll do our best to work within your price range and, based on current information (market supply, demand, etc.), we’ll come up with the best negotiation strategy possible. Current information can include cost-per-square-foot of homes, ratios of list-to-sold prices, knowledge of the buyer/seller, etc. All this information is gathered by the agent and used to formulate solid offers.

Another important skill experienced Realtors possess is objectivity. We have the ability to stay out of the emotional process that often occurs with the buying and selling of a home. Instead, we present your case in the best light possible, all the while holding your information confidential from any competing interests.

One realtor skill that’s often not apparent is our ability to network with other service providers (housing inspectors, title companies, etc.) Professionally, we can’t recommend one specific vendor over another. However, we do keep lists of vendors with excellent reputations as well provide references for the vendors. This service allows you to choose the best provides for your particular situation.

Now, here’s one realtor skill that everyone truly appreciates – the ability to handle tons of paperwork! Today, purchase agreements can run 10+ pages, and that doesn’t even include all the state and federal disclosure statements that are required in the current market! Heck, a real estate file can end up being 2-3 inches thick with paperwork these days!

And it’s not only the heavy paperwork handled by realtors; it’s also the attention to detail within that paperwork. It’s their job (or a lawyer’s, depending on the state) to make sure all the information is correct because if it isn’t, it can end up costing the client hundreds of dollars.

So, as you can see, there are many reasons why it’s wise to use an experienced Realtor for the purchase or sale of a home! To find out about the services I haven’t mentioned in this article, contact me today at teresa@teamelliott.net.

Why Interest Rates lncrease Very Soon

Buy That Home Now – Before Mortgage Interest Rates Go Up!

Here's a very important article I'd like to pass on for you.

Jeremy Siegel, Professor of Finance at the Wharton School of Business, and one of the foremost experts on the economy, predicts that “historically rates will move toward normal” in 2010.

Translation: If you want to borrow money to buy a new or existing home later this year, you’re going to pay more! Professor Siegel says that, overall, 2010 will actually be a good year economically – unless you’re a borrower!

The reason is that he believes the Federal Reserve will be forced to raise interest rates because of the improved economy and increased profitability. This action will be taken to keep inflation at an acceptable level.

So, there you have it! By buying now, you can save yourself a heckuva lot of money on a mortgage.

Plus, don’t forget – you can save even more through the government’s Home Buyer Credit Program – up to $8,000 if you’re a first-time home buyer and up go $6,500 if you’re a long-time homeowner buying a new principal home!

P.S. The Homebuyer Credit Program is scheduled to end April 30, so ACT NOW!