Taking it from a “Good” to “Great” Process When Building a New Home

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There’s no doubt that the experience of building your own home is probably one of the most endearing experiences you will ever have in your lifetime. A chance to be able to customize your space, design and choose the elements both structurally as well as aesthetically – with the ultimate advantage of having exactly what you had in mind all along.

Unlike the resale process where homeowners are bound to the inventory of homes that is currently on the market when they go out to search the perfect home, building your own domain is the perfect alternative that allows you all the freedoms you could ever want. Here are some key things to keep in mind when embarking on this exciting journey – designed to make the entire experience an enjoyable and highly successful one.

Choose Wisely and Carefully – Consider All Possible Factors In Selecting a Location

As with any home purchase or move, it is a good idea to consider all possible factors in deciding the general vicinity of your home. What aspects are important to you and your family? Do you have a certain school district within which you want to remain? Must your home be near freeways and have easy access to certain parts of the city? What type of neighborhood do you prefer? Are area shopping and other networks important for you to be nearby and easily accessible? Are tighter knit communities a priority for you or would you prefer a remote area with homes built further apart from each other? List all the things that each family member wants so you have a wish list ready from which you can shop for which area to move to.

Identify Your Financial Ceiling and Know the Scope of Your Price Range

Depending on how you will be financing the home, it is important to know your maximum spending range with the cost of the home and also other related expenses that inadvertently can pop up during the process of building and moving in to your new home. This is especially important for homebuyers moving into a home being built custom, as they can then be aware of their options. There will be many choices, combinations, upgrades and packages to choose from – all of which will be easier to manage if you are clear on your spending power to begin with.

Select a Good Lot To Build On

There is a lot involved in finding the perfect building site and this step in the process should not be taken lightly. Selecting the right lot is essential for a home to be set right on the property. It will involve a good amount of investigation, lots of time in visiting and visualizing your new home and the help of an experienced professional who recognizes the important factors to look for when choosing a lot. One very important thing to consider is drainage. Make sure that water would not pool in the backyard and that there would not be any water running toward the home. Proper drainage to begin with will spare you many headaches in the future. The second very important thing to evaluate is the value of homes and properties in the immediate vicinity. You want to be situated in a neighborhood where your home is at least the same value among others with other homes being of greater value (leaving their room for appreciation).

Plan Ahead – Create a Building Schedule That Works For You

By going with a project start date of early Fall, you are in the perfect time range to have a turnkey home ready to move in by middle to late Spring. Ideal for moving in, the Spring season allows you to take care of many aspects of moving into your new home in warmer weather. Also, with schools out just a few months down the road it provides the perfect beginning to a great summer in your new house.

Focus on the Experience – Enjoy All Aspects of the Process

Rely on a qualified, trusted builder so that you can relax and remain stress-free throughout the process. For most homebuyers working with a developer to build their home, the process if very enjoyable and hardly stressful. The importance of having a quality, experienced developer is paramount at this level so that the focus can remain on the fun parts rather than worrying about the basics like proper foundation and solid structure, quality workmanship and high-end materials.
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As with anything as major as building a home, there is a lot of importance of having quality contractors on your side, experienced professional who know their work well and have a long-standing positive rapport with the community.

Shop Around Until Interest Rates Drop when Buying a Home

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A special thanks to Alana Hallaert from First Mortgage Company for helping me out on this video. Give her a call with questions at 402-431-4316 or shoot her an email at ahallaert@firstmortgageco.com.

When you're in the market for a home, I'm here to help you find the best mortgage terms around. But I also want you to be a fully-informed consumer! 

As you already know, buying a home may be the largest purchase of your life so you should go into it with eyes wide open! In this article, I'd like to provide you some proven and common-sense guidelines that can save you time, money and hassle during the mortgage-hunting process. 

Guideline 1: Look Beneath the Surface of the Interest Rate! 

If you're like most prospective home buyers, you call lenders or use the Internet to shop for the best interest rates. That's a good first step, no doubt about it! But, the mistake many buyers make is that they stop there and don't consider the fees that may be added on to the loan later by the cheapest lender. 

In other words, it's the lenders' game, and they may want you to play by the rules you're not even aware of. The answer, of course, is to know those rules ahead of time so you know exactly what you're getting when you buy that mortgage. More on this subject later! 


Guideline 2: Chose the Type of Lender That Works Best for You! 

There are several different sources of lenders - banks, credit unions, mortgage brokers, etc. They all have their advantages and disadvantages in terms of the rates and services they can offer you. For example, credit unions often provide the best value and service, but, of course, you have to belong to one in order to receive their services. 

Regular banks and "big lenders" (Bank of America, Citigroup, etc.) also provide competitive rates and services. Of course, they only offer products their companies provide. You can also use a mortgage broker. This person is a "wholesaler" who uses several lenders to give service to their customers. The advantage of a broker is that he or she offers a greater selection of rates and products. However, they also tend to be more expensive than regular banks and big lenders. 

Brokers make money in two ways. One is origination fees ("yield spread" or "rebate"). Essentially, the origination fee is a commission paid by the bank to the brokers to encourage them to use their firm. The second way is by selling a higher interest rate to you. This means there's room for you to negotiate that interest rate down! 

When a broker quotes you an interest rate, ask him or her to tell you what the origination fee, rebate or yield spread on that rate is. For a broker, a reasonable amount would be a total of 1% of the loan amount from yield spread, origination or combination of the two. Most brokers usually want to make at least 2%. 

Tip: Don't pay an origination fee unless the broker informs you that he or she isn't getting anything on the back end of the deal. 

The bottom line: you can (and should) shop among all these lenders to find the lowest rate. It can save you thousands of dollars over the life of the mortgage. 


Guideline 3: Review the Good Faith Estimate with an Eagle Eye! 

By law, lenders are required to provide you with a Good Faith Estimate or GFE. In essence, the GFE gives you a general summary of all the costs and expenses you'll incur at the time you close on your new home. The document should cover closing costs and the amount of cash you need to close on the agreement. It should also spell out which if any prepaid expenses must be handled and the average monthly payment you'll have to make in order to keep up with the loan. 

Most lenders provide complete and straight-forward information on these forms; however, there's no reason for you to accept the GFE at face value. Comb through the information and if you don't understand a particular item or fee, ask for an explanation. If you still don't understand them, you may want a lawyer to review them for you so you have complete understanding. 

Remember: A GFE is only an estimate. Changes may occur through no fault of the lender. A reputable lender will let you know if fees are going up substantially. In general, however, if those fees go up by more than approximately 16%, then a red flag should go up in your mind. 

Guideline 4: Negotiate, Negotiate, Negotiate! 

When confronted with the expertise and "prestige" of banks, we all have a tendency to think they know best, and we should, therefore, agree to their terms. Never think this way! Banks are like any business; you can and should negotiate with them! 

Want more information on banks and other lenders? Contact me today!

5 Great Ways to Search Local Real Estate in Your Neighborhood

The thrill of buying a new home has no comparison and the very first thing many prospective buyers want to do is search listings and see what is out there.  But the many national home listings websites and resources do not offer the same kind of one-on-one benefit that comes from working with a professional who is familiar with your locale and most likely a member of the same community.  Here are five great ways to search real estate in your local neighborhood or those where you will be moving, so that you can get the best home possible in the most perfect neighborhood.

Subscribe to Neighborhood Real Estate Reports

Better Realtors take the time to prepare detailed reports that outline relevant factors to deciding on a neighborhood or community.  These reports usually contain information about properties sold, pending and active as well as any price changes on existing listings.  Reports put together by agents who are long familiar with the area have far more meaning and relevance than the online giants that have general information.  Though online real estate resources are useful for a quick look or basic idea, the specifics come in handy when really scrutinizing a potential neighborhood. 

Search By School District

Everyone knows that a good school district usually signifies a strong community and solid neighborhood.  So, regardless of whether you have school age children or not, searching properties by school district will indeed provide a far better insight to the area.  Important aspects of the community will also be readily available when measured against the school district, such as the number of registered sex offenders in the area, or area crime rate.

Map Searches Provide Ample Perspective

If you are searching on an online resource for home and property listings, one excellent tool that can easily be overlooked is the map search tool.  Performing a search in this way provides a good overall perspective on the area, the region and beyond.  Many sites quantify certain details based on your parameters, allowing you to customize your search in a visual way.  The map also moves so you can venture out into other areas and compare the neighborhoods you are considering with others in the same vicinity.

Word of Mouth – An Often Underestimated Tool

Nothing beats knowing area residents and hearing first hand of their experiences of living in the area.  What you may not be able to access online or through an agent who many not be entirely familiar with a particular vicinity, you will be able to learn through the people who live and work there.  Here again, school district is an important factor to consider.  If you know teachers and professionals who live, work and operate in the neighborhoods you are considering, chances are they know of new properties that have just gone up or they can share valuable insight on the properties you may be considering. 

Look At Things From All Vantage Points

When perusing listings, these days it is hardly possible not to utilize online resources.  Lately, there is a plethora of technologically advanced vantage points for the potential homebuyer to avail, such as viewing a video tour of the property, surrounding homes and the street directly in front.  A lot of websites also feature web views that show a bird’s eye perspective of the home, as well as what one who might be standing in the home would see if looking outside the windows.  These tools are especially useful in helping you determine the look and feel of a home you may be considering.  They are also beneficial for out of town buyers or those who want to shortlist the homes and then go looking at the ones that made the cut.

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All in all, if you focus on the local markets you will yield better results in your search for the perfect home.  When it comes down to it, resources and tools are there for the taking and if you use what is available to the fullest, you – the homebuyer or homeowner – will end up benefiting most.

You've Written an Offer on a Home: Now What Happens?

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Presentation to the seller:

The next step is presenting your offer to the seller. If you've offered on one of my listings, I'll call the sellers and arrange to meet with them. If not, I'll call the seller's agent and let them know that an offer is forthcoming. Then I'll either FAX or hand-deliver the offer to the agent.

Meanwhile, back at the office, we'll set up a file for your offer. This is where a copy of the offer and all other documents and information are kept in one place for easy reference.

Hopefully, the seller will accept your offer as written. If that's the case, you'll sign acknowledging receipt of his or her signed acceptance. If the seller makes a counter to your offer, we'll discuss your response and either accept
the seller's counter offer or reply with another counter.

Once everyone is in agreement:

Once the price, terms, and contingencies have been agreed upon, all will receive copies of the final agreement with all signatures. A copy will go both to your lender and to the title company. The original will remain in my file.

Beginning the mortgage process:

Once you have an accepted purchase and sale agreement, you'll take a copy to your mortgage lender. He or she will be responsible for ordering the appraisal and will order the Title Policy, if this has not already been done by your agent. This will happen after you have seen the results of the home inspection and have indicated that you are prepared to go forward with the purchase. Even though you have been pre-approved, after the appraisal and Title Report are completed, your application will now go to the underwriters for final approval. They will probably take another look at your credit report, to see that nothing has changed. They may also ask for additional documentation from you, such as your bank balances and proof of continued employment. Lenders often ask for "one more thing," so don't be upset if this happens. This is not the time to change employment, withdraw money from the bank for a large purchase, make significant charges on your credit cards, or purchase any new items on
credit. Wait to do any of those things until your loan is finalized.

Inspections

The next step will be to order all required inspections. These are best done before your lender orders the appraisal, just in case the inspector finds problems that cannot be easily repaired, or that are unacceptable to you. I'll give you names of several reputable inspectors to choose from, and will order the inspections on your behalf.
First comes the "Home Inspection," in which an expert goes over everything from the wiring and plumbing, to the foundation, to the roof. You and I are allowed to meet with the inspector and accompany him or her during the inspection, which takes 3 to 4 hours. This affords you the opportunity to ask questions.

Acting on the inspection report:

When the report is completed, the inspector will send us a copy and will speak with you on the phone to discuss the findings. In rare cases the inspector will find something beyond his or her expertise and will recommend calling in yet another inspector. Then you and I will discuss all the findings and I'll help you determine your next step.
If the inspector finds problems that classify as "Major Repairs," your lender may require that they be done before closing. If repairs are minor the choice will be yours. In either case, I will type a report to the sellers, either indicating that you accept the house as is, or stating the items you wish repaired or replaced. You will sign this document, then I will forward it to the sellers, along with a copy of the inspection report showing the recommended / required repairs.

Note that time is of the essence. You will have a specified number of days in which to respond to the findings of the inspection. If you do not, you signify that you have no objections and are moving forward. Unless your offer specified that the seller will make needed repairs, he or she will be under no obligation to do so. If the seller declines, you'll have the option of taking responsibility for the repairs or walking away from the agreement.

Acceptance of the condition of the house is one of the standard contingencies in a purchase and sale
agreement, so if you don't accept, your earnest money will be returned and you'll be under no further obligation.

Other inspections:

During this time we will have the home tested for Radon, (if you wish.) In the event that the home is above the recommended "Safe Level," we'll send a copy of the report to the sellers and ask them to take appropriate measures. This is generally an "easy fix." Go to www.radon.com for detailed information on radon.

We'll also conduct a termite inspection. Although termites are not a common problem in newer Omaha homes, this is a lender requirement. They may be present if a homeowner leaves firewood stacked near the house or uses untreated lumber in landscaping. In older homes with lots of trees they can sometimes be an issue, but are rarely a major problem.

The Title Report:

While all this has been going on, your Title Company will have done a title search prior to preparing a preliminary Title Report. This assures you and your lender that the title is clear and the sellers have the right to sell. It lists every individual or entity with an interest in the property, and the nature of that interest. You and your lender will get copies, and I'll have one for my file as well.

This is an important document, and your lender and I will both read it carefully. Sometimes we do find things that need to be cleared up prior to closing. If that's the case, I'll get busy seeing that it's done. In most cases, it merely shows any current lien holders who must be paid from the proceeds of the loan before funds are dispersed to the seller. The dispersal is done by the Title company as a part of the closing so that they can be assured that all liens against the property are cleared before they issue the Title Insurance Policy in your name. This is called title "insurance" because in the event they make a mistake, your financial interests are covered. They'll either take the necessary action to correct it, or reimburse you for any loss resulting from the error. In most cases, the seller will pay for your coverage, and you will pay for the extended policy covering your lender. This is included in your closing costs. In rare cases, problems exist that cannot be solved, and the Title company will refuse to insure title. If that happens, your lender will not accept the property as collateral for your loan and your purchase agreement will become null and void.

The appraisal:

Once your lender feels confident that you will go forward with the purchase, he or she will order an appraisal and call me to get access to the home. Because the buyer generally pays for the appraisal, lenders wait until they know that no physical and/or title issues will prevent the closing.

Depending upon the appraiser's workload at the time, it could take a week or more for the appraiser to visit the home and another week to get the report to the lender. So don't get nervous when you don't get a report immediately. On the off-chance that the house does not appraise for the selling price, the seller will usually have the option to sell for the appraised price or to cancel the transaction. You may also have the option to pay cash for the difference between the appraisal and the selling price.

Now you're getting very close to owning your new Omaha home...

Once the appraisal is in - showing a home value at or above your purchase price - your lender will work to finalize your loan and set a closing date.

The final walk-through:

Before closing we'll make another visit to the home to do a final walk-through. This is to make sure that things are the way they were when we wrote the contract. We'll make sure the furnace and air conditioning still work, no windows have been broken, the chandelier is still hanging in the dining room, etc. If you've asked for specific items to be left with the house, we'll make sure they're still there. Usually, everything is fine, but if there's anything amiss we want to catch it now - not after you've signed the closing papers.|

Obtain funds for closing: 

Your lender will have given you an approximate dollar figure that you'll need to bring to closing. Since those figures change depending upon the day of the month on which you close, the closing agent won't know the exact figure until the final paperwork is drawn. This will typically be within one or two days of closing. Be prepared to make a last-minute trip to the bank, because you'll need a cashier's check or certified funds for closing. If you can't make it to the bank on that day, or if your funds will be coming from an out-of-town bank, get a check for an amount greater than the estimate and have it made out to you. At closing you can endorse the check to the title
company and they will give you back any excess.

Turn on the utilities:

Since you will want utilities on when you move into your new home, be sure to call ahead so that instead of having utilities shut off when the seller discontinues his or her accounts, they will be smoothly transferred to you. You'll want to give each utility the name of the seller, their current account numbers, and the date on which the transfer will take place. I'll provide you with those account numbers and a list of websites and/or Omaha phone numbers for each of the accounts. This, however, is something I cannot do for you, as each utility will want financial information from you.

Note: If you've arranged to let the seller stay in the house for a period after the closing, you should do this a week or so before they move out.

Do remember to call the utilities and let them know you're moving from your previous home!

The closing:

Hopefully, we will have received closing documents ahead of time, so you will have had time to read them and to understand all their provisions. Even so, you should prepare to spend some time at closing. You'll have a large stack of papers to initial and sign for your mortgage. If you haven't seen the documents prior to closing, you'll need time to read them before signing.

The celebration!

Congratulations! It's now time to relax and savor the moment before beginning the work of unpacking, arranging your furniture, and settling in to your new home.

This is a perfect world scenario of course, many things can come up during a transaction and are too numerous to list here but that is where my true value comes in as your buyers agent. Steering you through the transaction.

Understanding the Difference Between Online Resources and a Realtor When Pricing Your Home

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The Internet can be a great resource for a host of things centered on buying or selling your home but in some cases, the most you can expect to gain is a basic understanding of things. For something as serious and important as pricing your home to either value it or sell it, relying on the Internet can only go so far. Here we’ve outlined some key differences between the figures you will yield from online sources versus those that have been compiled by your local Realtor.

ACCURACY IS VITAL

In today’s market especially, accurately pricing your home to sell is essential. With it being a buyers’ market, you will have to gain a solid understanding of all factors that contribute toward your property’s value. There can be negative repercussions of pricing a home either too low or too high. One such scenario is if there was a seasoned buyer who had taken the time to research in advance of searching for homes. That buyer’s knowing what to expect in the local market seeing your overpriced home could result in a turn-off and you could lose the sale. By the same token, you stand to get the shorter end of the stick in case of not knowing what you could have charged. Spending a little more time and/or expense can make a huge difference in the end outcome.

ONLINE TOOLS AND CALCULATORS

There are more than several websites where anyone can log on, put in their zip code and be given an instant “analysis” of their real estate value. The figures that appear as results from searches made through online resources stem from a conglomeration of several weeks and sometimes months of data collected from a particular region.

Websites such as www.zillow.com, www.realtytrac.com orwww.trulia.com offer a great way to get a generic idea of the value that homes in your region are going for or have gone for recently. As an added resource to other services also offered on these sites, the goal is not to assist homeowners in assigning a selling price on their property based on the data, rather to offer a snapshot on sales and pricing data for the area. In fact, for many people it is the perfect tool to add an extra edge when determining the fair market value of your home, along with other factors.

PROFESSIONAL COMPARABLE MARKET ANALYSIS

While online real estate tools are a great way to get a preliminary idea, they are only going to yield a figure that will show you where to start. To get an accurate assessment, you will need to avail the professional services of a Realtor. The only way to get an accurate “reading” of what the market rates are for homes in your vicinity and your neighborhood in particular, is to have a comparative market analysis conducted by a Realtor who understands your neighborhood. There is a good chance that they have dealt with properties in the area on a first-hand basis, regularly interact with the agencies and organizations that deal with homes in your neighborhood and are familiar with the people in various facets that you will end up needing to interact with yourself, as the seller of your home.

Realtors conduct a detailed Comparable Market Analysis (sometimes also called Competitive Market Analysis) through a series of data compilation of area homes and properties, considering factors such as amount of land, the square footage and number of bedrooms or typical amenities in the neighborhood. But homeowners can also opt to delve into accurate detail about their property’s value by relying on an independent appraiser. Also, through the use of CMA data the County Tax Assessor determines the value of your property taxes.
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When you are pricing your home to sell, it is vital that you use all available resources. At first, it makes sense to “shop around” and get to know the generalities before you head for the specifics. And as with most transactions dealing with your real estate world, it is always best to rely on your Realtor for quality, effective and accurate information that is relevant to you and YOUR market.

Summer Events in Omaha, NE

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Omaha, Nebraska is a summer gem hidden in the Heartland of America.  Activities abound for those living in the metro area or looking for a weekend get-away.  Great food, outdoor activities, baseball, and culture are just some of the options open to those who wish to soak up the summer sun and dive into “The Big O.”

The Omaha Henry Doorly Zoo is one of the most heralded zoos in the country and Omaha’s premier family destination.  Offering state of the art exhibits and an array of animals from around the globe, a trip to Henry Doorly Zoo is a memory that is sure to stay with any visitor, young or old.

The Omaha Farmer’s Market occurs throughout the summer on Saturday and Sunday mornings.  Customers stroll among the outdoor stands and are able to peruse and choose from the freshest fruit and vegetables from America’s Breadbasket.  The annual Taste of Omaha showcases the best food in the area right on the scenic Missouri River waterfront.

Every June, college baseball teams and their fans travel from coast to coast to witness collegiate athletics in its highest form for the NCAA College World Series.  Known as “The Greatest Show on Dirt,” the CWS was played annually at Johnny Rosenblatt Stadium for 60 years.  This year, the tournament has moved to a new 21st century facility named TD Ameritrade Park in Omaha’s North Downtown, or NoDo, region.  Children will enjoy the excitement on and off the field as well as an ice cream cone from the world famous Zesto’s.  For adults looking to enjoy a night on the town, there is no bigger week than the CWS.  Due to the anticipation of the move to the new ballpark, the rows of bars on Leavenworth Street and in the Old Market are sure to be hopping with more energy and buzz than ever before this year.

The Cox Classic at Champions Golf Course brings in some of the brightest up and coming stars in the PGA-Nationwide Tour.  Before the exciting weekend conclusion to the tournament, lessons and camps are offered to youngsters looking to get on the links and improve their budding golf game.  

The Omaha-metro area offers any outdoor lover numerous opportunities to get out and enjoy the sun.  Boating and jet-skiing are available at Carter Lake, Lake Manawa, and the Missouri River for the aquatic enthusiast.  Mahoney State Park, DeSoto Wildlife Refuge and Fontenelle Forest offer miles of hiking trails for those looking to get off the beaten path.  Dozens of events geared toward the runner and cycler are taking place all summer in the metro area at places like the Wabash Trail and Big Papio Trail.

The Joslyn Art Museum, Durham Western Heritage Museum and the Omaha Children’s Museum offer fun and educational exhibits to all.  Shakespeare on the Green performs the playwrights great works in the comfortable night air.  The Orpheum Theatre brings in some of the hottest acts from Broadway such as Wicked and Jersey Boys.

From critically acclaimed local bands to the biggest tours on earth, Omaha will not disappoint the music lover.  In addition to concerts at Omaha’s best indoor venues such as The Waiting Room, The Slowdown and the Qwest Center arena, Omaha has added two music festivals to its arsenal of shows (The Maha Music Festival and The Red Sky Music Festival) in addition to the already popular Jazz on the Green and Playing with Fire concert series.

"Mark - Are There Different Types of Listings?"

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Short Sale, Bank-owned, “Flip,” or a “Normal” Listing – Which Should You Choose?

You’ve no doubt noticed that there are five distinct types of listings for you to choose from today:

· Short Sales
· Bank-owned homes
· Investor “flips”
· Owner-occupied, non-distressed, “normal” listings
· New Construction

Should you consider one or all? You’ll find good homes in all these categories, so the answer depends upon you and your circumstances.

How much time and patience do you have? A short sale can take months, just to get approval from the seller’s lender.

How much risk are you willing to take? A bank-owned property comes without any property condition disclosures, so you won’t know about any hidden defects that your inspector fails to find. You also won’t have anyone to explain the mechanical systems, so you’ll either have to figure them out for yourself or hire an expert to help.

Investor flips also demand a bit of risk-taking, unless you know the contractor’s reputation. Unscrupulous “flippers” have been known to hide structural defects beneath cosmetic improvements. And, since the owner has never lived in the house, you won’t get property condition disclosures. On the other hand, you will have someone there to explain how things work.

Owner-occupied, non-distressed homes carry the least risk and can usually close shortly after the appraisal and inspections are completed. In addition, owner-sellers are often willing to help out with closing costs or make some minor repairs prior to closing. But – the price may be slightly higher.

New construction offers some fun and excitement – but you still need to proceed with a buyer’s agent at your side.

Over the next few days I’ll go into more detail about these 5 types of listings, and what you should watch out for / be prepared for with each of them.

P.S. If you don’t want to wait, just call or email! I’d love to talk with you and answer any questions you have about the market or about buying a home.