Peg Maloney - ReMax Real Estate - Omaha, NE

It's a sign of the time!

2012-02-07T13:28:00.000-08:00

Most of us grew up thinking that if we planned well and played by the rules, we’d never have to stand by as our financial lives unraveled.

But upheaval on Wall Street, unacceptable rates of unemployment and plummeting real estate values have taken their toll. Since 2007, 7.9 million homeowners have lost their homes to foreclosure. Current estimates are that one in four homeowners owe more on their mortgages than they could get from the sale of their home. Millions more homes will be lost to foreclosure before this real estate crisis runs its course.

The sad fact is that foreclosure is not an isolated event. For months leading up to the loss of a home, financially strapped homeowners live under a cloud of uncertainty. And then for many years afterwards, the blow to credit gets in the way of buying another home or buying anything on credit. Foreclosure even complicates employment prospects.

The impact of foreclosure is huge and the sad fact is that it’s often avoidable.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to provide financially strapped homeowners with options to foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.

Among the most important facts to keep in mind: the sooner help is sought, the better the options.

These are tough times, but more help is available than ever before. If you or someone you care about is ready to navigate away from the dark cloud of an unmanageable mortgage and realize that hope and blue skies are within reach, contact me today and let’s get started.

Foreclosure Fears Foster True Grief

2011-11-21T11:21:00.000-08:00

Reports of foreclosures by the millions have been in the news so much over the past few years that to some, it might seem like the new normal. But as a real estate professional who is in the trenches with financially stressed homeowners every day, it never feels like business-as-usual to me.

The prospect of losing one’s home is right up there among the major sources of grief, and often it goes hand in hand with other tragic setbacks such as the loss of a job, a divorce, death of a loved one, mounting medical bills or skyrocketing mortgage payments. Unfortunately, the first stage of grief is denial, and that’s even more the case when the threat of foreclosure is looming. No one wants to talk about or admit financial troubles—even when millions of others have founds themselves in a similar spot. It’s completely understandable, but for homeowners who are behind on mortgage payments, decisive action is often the most critical step toward ensuring the best possible solution.

As a real estate professional who has sought out the Certified Distressed Property Expert (CDPE) designation, I help homeowners to deal with every aspect of the grief and uncertainty that accompanies a mortgage which is no longer manageable. In the process, I help them to get on a path of financial solvency. If you or someone you care about would like to change the course of a life that’s facing foreclosure, I get it and I can help.

Contact me today at 402-598-3965 or peg@maloney.com

Seven Out of 10 Renters Say Owning a Home Is a Top Priority

2011-07-08T11:43:00.000-07:00

RISMEDIA, July 8, 2011

Most Americans still believe that owning a home is a solid financial decision, and a majority of renters aspire to homeownership as a long-term goal. According to the 2011 National Housing Pulse Survey released recently by the National Association of REALTORS®, 72 percent of renters surveyed said owning a home is a top priority for their future, up from 63 percent in 2010.

Seven in 10 Americans also agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. The annual survey, which measures how affordable housing issues affect consumers, also found that more than three quarters of renters (77 percent) said they would be less likely to buy a home if they were required to put down a 20 percent down payment on the home, and a strong majority (71 percent) believe a 20 percent down payment requirement could have a negative impact on the housing market.

“Despite the economic setbacks Americans have experienced in today’s current climate, it is clear that a strong majority still believe in homeownership and aspire to own a home,” says NAR President Ron Phipps. “However, achieving the dream of homeownership will become increasingly difficult for buyers if they are required to make a 20 percent down payment, which may be a reality for many of tomorrow’s buyers if a proposed Qualified Residential Mortgage rule is adopted. That is why REALTORS® are strongly urging regulators to go back to the drawing board on the proposed rule.”

Defining the QRM rule is important because it will determine the types of mortgages that will generally be available to borrowers in the future. As currently proposed, borrowers with less than 20 percent down will have to choose between higher fees and rates today—up to 3 percentage points more—or a 9-14 year delay while they save up the necessary down payment.

Over half—51 percent—of self-described “working class” homeowners as well as younger non-college graduates (51 percent), African Americans (57 percent) and Hispanics (50 percent) who currently own their homes reported that a 20 percent down payment would have prevented them from becoming homeowners.

Pulse surveys for the past eight years have consistently reported that having enough money for a down payment and closing costs are top obstacles that make housing unaffordable for Americans. Eighty-two percent of respondents cited these as the top obstacle, followed by having confidence in one’s job security.

The survey also found respondents were adamantly against eliminating the mortgage interest deduction. Two-thirds of Americans oppose eliminating the tax benefit, while 73 percent believe eliminating the MID will have a negative impact on the housing market as well as the overall economy.

“The MID facilitates homeownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working American families,” says Phipps. “Homeownership offers not only social benefits, but also long-term value for families, communities and the nation’s economy. We need to make sure that any changes to current programs or incentives don’t jeopardize our collective futures.”

When asked why homeownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind. On a local level, respondents said neighbors falling behind on their mortgages and the drop in home values were top concerns. Foreclosures also continue to remain a large concern, with almost half of those surveyed citing the issue as a problem in their area.

The 2011 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program. The telephone survey polled 1,250 adults nationwide, with an oversample of interviews of those living in the 25 most populous metropolitan statistical areas. The study has a margin of error of plus or minus 3.1 percentage points.

NAR’s Housing Opportunity Program, www.realtor.org/housing opportunity, was created in 2002 to encourage local REALTOR® associations to create initiatives that help increase housing opportunities available to consumers and make affordable housing more readily available in their communities.

Information about NAR is available at www.realtor.org.

Peg Maloney
www.omahanebraskahouses.com

First Time Home Buyer Loan Availability

2011-05-05T11:42:00.000-07:00

Today we are discussing the availability of loans for first time home buyers with Joe Iaccheri from Regent Financial Group in Omaha, NE. First time home buyers are the biggest group of buyers in the market.

The most commonly used loan for first time home buyers is the FHA Loan, (Federal Housing Administration). The FHA loan has more leniency is some areas where first time home buyers are concerned. These areas are Total Debt Ratio, Credit Score and Available Reserves which make this loan easier to qualify for. Mortgage Insurance is also now built into the FHA loans where before you would have had to carry PMI or Private Mortgage Insurance on your first home. This Mortgage Insurance insures the money on the behalf of the lender. As of April 18, 2011, The government has increased Private Mortgage Insurance.

5% Conventional Loans are great for people with rock star credit. You will need to have a very high credit score and good reserves. Most Private Mortgage Insurance companies do not like to insure 5% Conventional loans for people. They would rather flip you to a 10% Conventional loan or to an FHA loan and be able to carry Private Mortgage Insurance. With just a 5% down payment, you are considered more of a risk by the bank rather than if you were to put 10% down.

Get your credit cleaned up.

Be prepared for extra paperwork.

The national average is 45 days for closing of loans.

Call Joe Iacherri at Regent Financial today!
4402-884-5613
www.Regentfinancial.com

Peg Maloney
Re/Max Real Estate Group
402-598-3965
www.omahanebraskahouses.com

10 Tips To Make Your House Look Like a Model

2011-03-21T11:35:00.000-07:00

10 Tips To Make Your House Look Like a Model

1. Declutter - Clean, Clean, Clean
2. Remove any evidence of pets - Litterboxes, smell, toys
3. Remove any evidence of kids - Remove posters, personal artwork, etc
4. Cleanup the Front Yard and Porch - You are looking for Good Curb Appeal
5. Remove any Sunken Pavement Stones
6. Paint - Paint any rooms that need updated
7. Replace Fixtures - Lights, Ceiling Fans, etc
8. Replace Faucets and Spouts - Kitchen and Bathroom
9. Show Flowers/Greenery outside
10. Aromatherapy - Spray Vanilla before a showing!

Economical Kitchen Upgrades

2011-03-15T12:23:00.000-07:00

Watch my new video on Economical Kitchen Upgrades!

Peg Maloney

Re/Max Real Estate Group

402-598-3965

www.pegmaloney.com

Winter or Spring to Buy or Sell A House?

2011-02-23T11:03:00.001-08:00

Many buyers and sellers wait until spring to enter the market, especially families with schoolchildren, who want to make their deals so they can move in time for the next school year.

Still, there are people who, for a variety of reasons, are in the market in winter. And while the market is smaller, real estate agents say that foul-weather buyers and sellers tend to be serious about making a deal.

Certainly, there are plenty of obstacles—especially in a winter like this one. A house that would have a ton of curb appeal when everything’s in bloom is less attractive under gray skies and a blanket of snow. Buyers may struggle to find street parking and navigate icy sidewalks. Sellers find it tougher to keep the place clean as snow and road salt are tracked into the house.

Some agents say the smaller market works to the advantage of sellers. “If they wait for the spring market, there’s more competition” for buyers, said Ricki Sellner of Coldwell Banker in Upper Saddle River, who is Fonseca’s agent.

Other agents insist that the winter is a buyer’s market. “They can usually get a better price, because there are not as many buyers in the market. If a house is on the market in the winter, the seller is usually extremely motivated,” said Nicolette Lisella of Terrie O’Connor Realtors in Allendale, N.J.

“If a house has been on the market, and it is still available in the winter, the sellers are sometimes much more flexible, and prices more affordable,” agreed Dennis Decina of Werner Realty in West Milford, N.J.

Buyers who venture out in winter may be able to get faster action on their mortgages because the lenders aren’t dealing with as many applications, said Antoinette Gangi of RE/MAX in Woodcliff Lake, N.J.

Another advantage for buyers: They will be able to get a sense of how drafty the house is, and how well the heat works. But on the minus side, home inspections can be more difficult if snow covers decks and the home’s foundation, said Sharon Marinaccio of LeConte Realty in Hasbrouck Heights, N.J. And buyers won’t be able to have the air conditioning tested or the pool inspected. For that reason, agents recommend that buyers ask the seller to put aside money in escrow, or supply a home warranty, in case repairs are needed later.

All in all, winter markets have super motivated buyers and sellers, but spring markets have more inventory. Regardless, get into the market now and find your dream home.

Peg Maloney
www.pegmaloney.com
www.omahanebraskashortsales.com

Successful Short Sale Steps

2011-02-02T10:30:00.000-08:00

Solving Your Mortgage Crisis Just Got Easier

5 Steps for a Successful Short Sale

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction.

First, do you qualify?

You must:

1. Have a verifiable hardship, like unemployment, medical bills, or relocation.
Must have a monthly income shortfall.
2. Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency.

3. If you meet these qualifications, follow these five steps to a successful short sale:

1. Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale.
2. Gather financial information (i.e., bank statements, pay stubs) from at least the last three months.
3. Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford.
4. Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency.
5. Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved.

For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today. I can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

Cheap Ways To Help Get Your House Sold

2011-01-21T11:56:00.000-08:00

Cheap Ways To Help Get Your House Sold

I saw this article and thought: "How easy!" You don't have to spend a lot to make little changes that make a house look "refreshed". According to the HomeGain survey, the top five home improvements that real estate professionals recommend to home sellers based on average cost and return on investment (from highest to lowest ROI) are:

1. Cleaning and de-cluttering – ($290 cost / $1,990 price increase / 586% ROI)

2. Lightening and brightening – ($375 cost / $1,550 price increase / 313% ROI)

3. Home staging – ($550 cost / $2,194 price increase / 299% ROI)

4. Landscaping – ($540 cost / $1,932 price increase / 258% ROI)

5. Repairing electrical or plumbing – ($535 cost / $1,505 price increase / 181% ROI)

In my opinion, the cleaning, de-cluttering, and staging are the most critical, BUT above all else, make sure you are priced competitively. Now let's go out and get your house sold!

Peg Maloney

10 Real Estate Predictions for 2011

2011-01-07T09:31:00.000-08:00

I was reading the Daily Real Estate News that RisMedia put out in December, and they had the “10 Real Estate Predictions for 2011”. I wonder how they will pan out over the next year..

1. Building is back. After 3 years of little or no new development, new properties are breaking ground again. I think you’ll find that true in Omaha..

2. Apartments continue to thrive. Some people like the benefits of renting, such as flexibility in housing commitments. Also a number of people just don’t qualify for a mortgage at this time and can wait it out in an apartment

3. Opting for established. Mega-communities in the exurbs are a thing of the past, where builders are moving toward smaller neighborhoods in established communities

4. Make it modern. Transitional and warm-modern design will be prevalent, clean line exteriors and open floor plans comfortable for the family and versatile for entertaining.

5. Buying for the long term. The idea of a home as a short-term moneymaker is essentially gone, so when people do buy, they’ll do it with the intention of staying put for closer to 10 years rather than 2-3 ( relocation buyers being the exception of course). Buyers want to be sure the home will suit their needs not only for now, but down the road , whether they plan to expand their family or become empty nesters

6. Upping the ante on amenities. Outdoor space will be of higher importance to many buyers, especially condo and townhome buyers, so folks can live with less square footage inside their home if they have a place to call their own outside, like an outdoor grilling area.

7. High-tech takes over. What? A smart phone app that controls their residence remotely?? We’re getting there!

8. Smaller homes stay the course. This trend is fueled by first-time buyers with smaller budgets, requiring smaller homes, more conservative mortgages, and higher down payments thus a home with a smaller price.

9. Green and gorgeous. No longer mutually exclusive, new products and forward thinking design have proved homeowners can have both.

10. Healthy homes. Indoor air quality, low VOC paints and adhesives, and healthier materials are more of a concern to people building homes, especially for those with small children. With our economy people have decided to stay put in their existing homes and invest in changes to make it look better and live healthier, like replacing old door and windows, and installing HVAC systems with better filtration.

These all sound reasonable to me and it’s what we are seeing on a day to day basis. What are your thoughts?

Simple Tips to Change Your Financial Behavior

2010-12-29T09:54:00.000-08:00

Simple Tips to Change Your Financial Behavior

By Gregory Karp

RISMEDIA, December 29, 2010—(MCT)—Americans have a renewed interest in all things frugal during this recession. They’re spending less money, using credit cards less, and the terms “frugalista” and “bargainista” have entered the daily lexicon.

Keeping up with the Joneses now means one-upping a neighbor with bargains you got at the consignment shop and bragging “my coupon is better than yours.”

But will it stick? Will our frugal ways remain after the Great Recession fades? Or will a pent-up wave of consumer spending eventually break through the restraint? More important, if we’re worried about financial backsliding when good economic times return, what can we do now to make sure we stay on track?

Recent reports suggest we have good intentions to maintain our fiscally responsible ways.

About half of Americans report they either avoid shopping altogether or shop only for those things that are absolutely needed, according to a survey sponsored by Citi. And 72% of Americans say they have cut back on everyday expenses.

“Only time will tell, but my hunch is we’re entering a new era of frugality,” said Jonathan Clements, director of financial education with Citi Personal Wealth Management. “We are 15 months into the economic recovery…and yet consumers are telling us that they are continuing to cut back on their spending.

“This recession will be like the Great Depression was to our grandparents.”

In addition, 80% of people claim to have at least a general plan for income and expenses, up from 47% in 2006, according to a survey by Synovate commissioned by personal finance author Matt Bell.

“Budgets have always been the Rodney Dangerfield of personal finance tools,” said Bell, who writes the MattAboutMoney.com blog. “But just as we’ve seen the recession bring about other changes in people’s financial behavior, such as more frugality, the lowly budget finally seems to be getting some respect.”

But Bell said he knows from working with financially distressed people that a “general” budget plan can mean simply balancing a checkbook or having a rough notion of what a consumer is spending on things. “My fear is that if and when the economy improves, those general plans will become even more general,” he said.

Since consumer debt peaked in 2008, Americans have chopped $922 million from their debt, or 7.4%, according to the Federal Reserve. Americans are reducing debt at a pace unseen in at least a decade, according to a recent Fed report, “Have Consumers Become More Frugal?” Unclear, say researchers, is whether that new frugality stems from borrowers being forced to pay down debt as credit standards tighten, or whether it’s a voluntary—and permanent—shift in behavior.

Farnoosh Torabi, author of the new book Psych Yourself Rich, said she thinks the most recent recession, though technically over, affected people more than the tech bubble of 2001 and other minor economic recessions because its effects have persisted for so long. Young people, especially, are likely to benefit.

“They got to see early on in their lives how overspending can derail you and divert you from your goals,” she said. And they saw it from a variety of directions, whether parents getting laid off or graduating school to enter a lousy job market, she said. “They had a 360-degree wake-up call about how money is the foundation of your livelihood. That’s a valuable lesson for this stage of life.”

The trick is moving from the descriptive to the prescriptive: “How do we make these frugal behaviors last?”

Change your words: Instead of viewing your newfound financial responsibility as a temporary exercise in deprivation, view it as a lifestyle and make peace with it. Author Jeff Yeager calls it slaying your Enoughasaurus, knowing when you have enough and being content with it. “I would ditch the word ‘frugal,’ ” Bell said. “It sounds like someone who obsesses over saving a nickel on every can of tuna they buy. In my workshops, I never talk about being frugal. I talk about spending smart.”

Have goals: The easiest way to say no to the tempting purchase in front of you is to have a specific reason to reject it. “You need a reason for doing whatever it takes to spend smart, a goal that motivates you,” Bell said. “Getting out of debt. Taking a great vacation. Whatever you’re trying to achieve financially.” In your head, the monologue sounds like, “I’ll pass on buying this sweater because I really want to go to the Bahamas in February.”

Track progress: “Monitor your decreasing debt or your increasing vacation fund,” Bell said. “When you see that spending smart is getting you closer to the accomplishment of your goal, that’ll motivate you to keep going.”

Make savings automatic: The easiest way to save is to do nothing. Put your savings on autopilot with automatic paycheck contributions to a retirement plan or direct debits from checking to savings. “If people are saving diligently now and want to keep it up, harness the power of inertia and make it automatic,” said Clements, a former financial columnist and author of four personal finance books.

Make a windfall rule: Most people periodically receive sudden inflows of cash, whether a tax refund, a year-end bonus, an insurance reimbursement or a gift. Make a rule that all windfalls are used for paying off high-interest debt or for savings, Clements said. That way, you improve your finances without affecting your daily lifestyle. A less-rigorous rule would be to blow 10% of the money on something fun so you don’t feel deprived.

“People have been shocked into better financial behavior,” Clements said. “The trick is to make sure they stick with it.”

(c) 2010, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.

What To Consider When Buying a Home

2010-12-07T08:19:00.000-08:00

Rismedia Top 5: Choosing a home is no easy process, however, and many factors must be carefully weighed before making your selection. As a member of the Top 5 in Real Estate Network®, I advise my clients to pay careful attention to a few details in particular when considering a home—these important details will significantly impact your long-term happiness in the home as well as the home’s appreciation over time. So, as you begin to consider properties in our neighborhood, here are a few issues to think about that may help you find exactly the right home for you and your family:

Type of home: One-story or two, single-family, duplex or condo? How will paying homeowner dues affect your overall buying power? Will a swimming pool be a bonus or a hindrance? Making these decisions in advance will help you focus on the right types of home to look at.

New or existing: A new home is all shiny and clean, but will carry with it some hefty initial costs such as landscaping and window coverings. An existing home will have many of these things, but repairs or renovations that may need to be made will also impact your budget.

Features: Weigh the costs of gas vs. electric heating and cooling, and the possible need for fencing. How important is a fireplace? Does the home have enough bedrooms and bathrooms to support your family in the coming years?

Ease of maintenance: What is the condition of the roof? The appliances? Will you have to paint the interior or exterior and/or replace the carpeting? Be sure to factor in such costs in your budget and your negotiations.

Location: Do you want to be in the city or in the country? Nearer to libraries, parks and entertainment or set among tall trees and lakes? What about the need for public transportation? Nearby hospitals and schools?

Crime rate and public schools: Check with local enforcement and local residents to get a feeling for statistics and quality. I can also provide you with up-to-date statistics on this information.

Economic stability: Whether an area is growing or not can affect its future property value—as will the economic stability of the area.

Property tax: Examine the annual amount of real estate taxes and other assessments levied in the neighborhoods you are considering.

I can help find the answers to the above concerns as well as provide more suggestions on what to look for in a new home—just e-mail me. Also, please pass this article onto others who may benefit from this information

Peg Maloney
RE/MAX Real Estate Group
Office: 800-248-6647
Mobile: 402-598-3965
peg@maloney.com
http://www.pegmaloney.com

Veterans Day 2010

2010-11-08T11:59:00.000-08:00

Veterans Day 2010

Big day coming up on Thursday- We celebrate all out Veterans who have given service to our country to protect our freedom. Many places will be offering free items but here are a few...

Eat Free at Applebee's

Military veterans and active-duty Service Members will be able to eat free at any Applebee's across the U.S. on Veteran’s Day, Thursday, Nov. 11, 2010. There will be six entrées available from the menu. Guests will be asked to show one or more of the following as proof of service: a U.S. Uniform Services Identification Card, U.S. Uniform Services Retired Identification Card, Current Leave and Earnings Statement, Veterans Organization Card, a photograph in uniform, or wearing a uniform in person. For more information about Veterans Day at Applebee's, visit the Applebee's website http://www.applebees.com/vetsDay/default.aspx

Eat Free at Golden Corral

Golden Corral's 9th annual Military Appreciation Monday dinner will be held on Monday, November 15, 2010, from 5 to 9 pm in all Golden Corral restaurants nationwide. The free dinner meal is a special "thank you tribute" to any person who has ever served in the United States Military. If you are a veteran, retired, currently serving, or in the National Guard/Reserves, you are invited to join us for Golden Corral's Military Appreciation Monday dinner. To date, Golden Corral restaurants have provided over 2.2 million free meals and contributed over $3.3 million to the Disabled American Veterans organization. Website for more information: http://www.goldencorral.com/military/

McCormick & Schmick's Complimentary Lunch or Dinner

Veterans will be able to choose a complimentary lunch or dinner entrée on Sunday, November 7. Some of the mouth-watering selections include Cashew-Crusted Tilapia, Grilled Atlantic Salmon, Seafood Fettuccini Alfredo and Cedar-Planked Salmon. http://www.mccormickandschmicks.com/featured-promotion/Veterans-Appreciation-Day.aspx

Salute from Outback Steakhouse

As an expression of Outback Steakhouse's appreciation to our Country's veterans and active duty military*, a free Bloomin' Onion and beverage of choice (one non-alcoholic drink or one draft Anheuser Busch beer except where prohibited by law) will be available to them at every Outback in the country on Veterans Day. Please visit: http://www.outback.com/pressroom/pr_101018.aspx for details.

Home Depot and Lowe's Military Discount

Home Depot and Lowe’s have long been known to offer a 10% holiday discount to military members and their families and in many cases veterans and retirees. These promotions were usually limited to the main military holidays such as Memorial Day, Fourth of July, and Veterans Day. Well, no longer – both companies have announced these offers are available every day of the week.
http://themilitarywallet.com/home-depot-lowes-10-military-discount/

Free Day at National Parks

To honor America’s service men and women, Secretary of the Interior Ken Salazar today announced that areas managed by the department would not charge entrance fees on Thursday, November 11, 2010.

Colonial Williamsburg Free Admission

Colonial Williamsburg honors America's Veterans with a procession down Duke of Gloucester Street, 4:30 p.m., beginning at the Capitol. The parade culminates in a public ceremony, with militia and cannon crew firing volleys in recognition of those who serve. Hear Colonial Williamsburg's Fifes and Drums, and speakers from past and present. Active duty military, guard and reservists, retirees, veterans and their dependents enjoy free admission passes Friday through Wednesday, Nov. 6-11. Learn more.
http://www.history.org/visit/eventsAndExhibits/calendar/index.cfm?id=421009&startAt=1&&searchAll=0&categorySelect=&&keyWords=veteran&itemsPerPage=25&types=&start_date=11/11/2010&end_date=11/11/2010#show_undefined

Improve Your Credit Score Before Searching for a Home

2010-10-27T11:45:00.001-07:00

I have people who ask me all the time, "What is the first step in buying a home?" I have found a great article that touches that subject. Credit! Rebuild your credit before trying to buy a home.

By Paige Tepping

RISMEDIA, October 16, 2010--Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.

According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.

The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.

By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.

Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.

If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.

Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.

After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.

It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.

By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.

http://www.pegmaloney.com
http://www.omahanebraskashortsales.com

Be Market Smart: Do's and Don'ts for Buyers and Sellers

2010-10-19T09:46:00.000-07:00

RISMEDIA, October 13, 2010—It would be unrealistic to say that the real estate market is utterly rosy right now, but neither is it thorn-filled by any means. In fact, things are decidedly looking up: July got some good news, when the National Association of Realtors reported that pending home sales rose 5.2% from downwardly revised June levels, beating economists’ expectations. This is good news for both buyers and sellers.
While challenges still exist—for instance, getting the best price when selling, or securing financing when buying—there are some once-in-a-lifetime opportunities out there, and plenty of happy results can be had for both buyers and sellers. The key for both groups is to remain flexible, adaptable and diligent. To that end, here are some dos and don’ts for today’s buyers and sellers:

For Sellers:

DO’S
Be flexible. Often it’s the little things that push a buyer into the “yes” zone. If the buyer goes on and on about how much they love your icemaker, throw it in. If the closing has to be pushed ahead more than you expected, try to be as flexible as possible and pack the moving van a little quicker.

Clean up. One person’s prize doll collection is another person’s cluttered nightmare. Similarly, a living room filled with Beanie Babies could elicit a reaction of fear, rather than “Aw, how cute!” from a buyer. Put away any personal collections that not only cause clutter, but also make it hard for a buyer to see the home as his or hers, rather than yours.

DON’TS
Don’t be greedy. The market—not your emotions—dictates your home’s price. If comparables in the area, and several trusted real estate agents tell you your home is worth $400,000, you’re not fooling anyone by pricing it at $500,000—and you’re only doing yourself a disservice. Pricing it at market, even a little below, could generate a bidding war, and ultimately get you more money.

Don’t get personal. If you’re selling your house for a certain amount, and someone offers something much lower, don’t take this as a personal affront and refuse to counteroffer. Letting your emotions get in the way can potentially ruin the deal. What’s the harm in making a counteroffer?

Don’t procrastinate. In the current climate, you might be scared to try to sell your home, as you may have to face a lower selling price than you may have gotten before the recession. But remember, the house you buy might be even lower, commensurately. It’s all relative. So if you’re serious about selling, consider doing it now. Also, acting before the cold months come is a good idea, as the winter months are historically harder for home sales.

For Buyers:

DO’S
Get a home inspection. It’s important to hire a trusted home inspector to check out the house’s potential issues and problems. Don’t skip a home inspection because you’re afraid of what you might hear—many issues sound more serious than they actually are, and can be fixed easily. And if something deal-breakingly serious is turned up, as disappointing as that is, it can save years of heartache and financial outlay. Better to walk away from a clunker.

List your place before you look for another. If you’re truly serious about looking for a home, list your place first. In the current economy, banks want to make sales as uncomplicated as possible—and contingency sales, which can be very complicated, are often rejected.

Talk before you act. Don’t ever start a home search without a firm budget not only in mind, but literally written down. Mutually agree with yourself—or with your partner, if you’re buying with someone else—long before you start seriously searching. Going out of that zone because of a place you just “gotta have,” or are emotional about, could put you in dire financial straits later. You don’t want to buy a house that isn’t affordable for you, and then be worried about paying for dinner and a movie on Saturday night.

DON’TS
Don’t be a design snob. If someone’s enormous bathroom has wallpaper border containing frolicking kittens and pastel flowers, or a wall that’s a nuclear shade of green, we understand this can send you into style shock. But stand fast and ignore bad décor. Instead, try to envision the space raw. Besides, you can always redecorate once the home is yours.

Don’t make a silly offer. There’s nothing wrong with making an offer below asking price—it’s no secret that today, many homes are selling for under the asking price. But going 40% below the asking price may anger the seller. Some sellers, especially more emotional ones, won’t even bother counter offering an outrageously low offer. Feel free to make a deal—just don’t make an offer so low that you’ll be kicked off the table.

For more information, visit www.pillartopost.com.

Dan Steward is the president of Pillar To Post Home Inspections.

10 Helpful Tips for an (Almost) Stress-Free Moving Day!

2010-10-05T10:35:00.000-07:00

Oh, moving day is exciting, isn’t it? And, sometimes, it’s too darned exciting! After all, you have so many things to remember…worry that the mover will show up on time…fret that things may be lost or get broken…and on and on. But, really, that day doesn’t need to be so stressful!

If you follow the tips below, you can make the day as painless and as enjoyable as possible. The key underlying each of these tips is, of course, proper planning!

Tip 1: Start early!

There are two reasons for starting early. One is psychological. When you start early, you can break the moving task down into smaller steps; that is, you can pack a little at a time. Psychologically, this gives you a great boost because you’re not overwhelming yourself by trying to do everything at once. The second reason relates to the first:packing is harder and more difficult than you think! So, by starting early, you have time to think things through and pack logically and economically!

Tip 2: Weed Out the Unused or Useless!

As I'm sure you know, you’ll be amazed at how much stuff you’ve accumulated that’s either never used or seldom used. So, why take it with you? Sort through everything and get rid of any item you haven’t used for a year or so. Donate it to a charity organization or, if appropriate, throw it into the trash or recycling. Remember, movers charge by weight! So, the equation is simple: less weight = less money out of your bank account! Plan on making a couple of passes through your belongings. If possible, take a break of a day or more between passes. That allows you to take a more objective look at everything.

Tip 3: Label Everything in Sight!

This is a real time-saver and stress-reducer. On each box, write down the contents as specifically as possible. At the same time, avoid overdoing the “Miscellaneous” label. If you end up with several boxes with that label, you won’t have a clue as to what they contain!

Tip 4: Do One Room at a Time!

There’s always the temptation to take items from several rooms and put them in one box. This is a good way to end up with too many “miscellaneous” boxes. Instead, pack one room fully at a time and then move to the next room.

Tip 5: Consolidate!

Since it’s easy for small boxes to get lost or damaged, place smaller items in small boxes and then put those put small boxes into a bigger box.

Tip 6: Take Important Documents with You!

Never pack any personal financial information and important papers and put them on a moving truck. Identify theft is possible, but, equally important, if those documents are lost, it could take you many, many hours to replace such important items as bank statements, passports.

Tip 7: Take Your Valuables with You!

Use common sense and take jewelry, artwork, rare book collections, etc. with you. You don’t want it on a moving truck, and, to be blunt, most moving companies don’t want to ship it for obvious liability reasons. If you absolutely have to ship valuables, get expanded moving insurance through the carrier or a third party.

Tip 8: Plan for Essentials!

Keep a box separate for all the essentials you’ll need in your new home and make sure it’s loaded last onto the truck so you can get at it easily upon arrival. Depending on your needs, “essentials” could include: soap, towels, toilet paper, sheets, coffee maker, drinking cups, paper plates, eating utensils, pencils and paper, etc.

Tip 9: Inventory Everything That Goes on the Van!

List every box or item that goes on the moving van and take the list with you. Once you arrive at your new home, have a family member tick off the boxes and items as they come off the truck. This is vitally important if your belongings are transferred from the truck to storage before being delivered. If a box is missing, lost or left behind, it could be months before you realize it’s gone.

Tip 10: Save Money!

Packing boxes can be expensive. If there are items that will go into plastic storage bins and/or large trash bags (stuffed animals, towels, etc.), then buy the inexpensive bins or bags. This will also save you the time and trouble of unpacking the boxes in your new home. Hope you enjoyed this list!

To talk about more packing tips or anything related to real estate, contact me today.

Want to Add Value to Your Home? Get Into the Kitchen and the Bathroom!

2010-09-28T09:16:00.000-07:00

Everyone knows that – all things being equal – the first areas buyers look at when considering the purchase of the home are the kitchen and the bathroom. They know they’re heavily-used areas and also the most expensive to upgrade. So, buyers want to know they’re in great shape or need, at most, minor repairs.

This tells you that you need to make the kitchen and bathroom “shine” in terms of their appeal. By some estimates, you can earn back 80 to 90 percent of your money in resale value!

Here’s more good news! Depending upon the state of these rooms, improvements don’t have to be all that expensive! Let’s look at the kitchen first.

Making Your Kitchen Shine!

The first bit of advice for you actually applies to both the kitchen and the bathroom – use paint! In fact, use high-quality paint. It’s a fact of life that kitchen walls get spattered with grease and food (especially if you have kids!), and bathroom walls get battered with steam and moisture.

So, the first thing to do is to take a look at those walls, clean them, and then paint them. And consider the color carefully. It should be a color that’s relaxing and tends toward a neutral tone.

Once you’ve chosen a color, spend the money on good paint, not the cheap stuff. It’ll look better, and buyers will notice that it’ll resist stains and water for a longer period of time than lower quality paint. It’ll also tell them that you’ve taken good care of your home.

Another inexpensive “fix” you can do yourself is, of course, the faucets over the sink (or the sink itself). A visit to a “big box” store like Home Depot, Menards, etc. will cost you little money. All you have to do is invest some “sweat equity.”

Of course, fresh curtains always spruce up a kitchen as well as orderly counters, islands, etc. And don’t forget lighting! Warm, friendly lighting can make a huge impact upon a buyer’s first impression.

Another area to look at is the kitchen floor. If it’s worn, I’d recommend that you replace it with a hard-wearing material. Everyone knows the kitchen is a high-traffic area so they’ll look closely at the floor to see if they’ll have to bear the expense of replacing it.

Again, if you have handyman abilities, you can do this yourself. There are many inexpensive materials available today that are relatively easy to put in – high-quality tile, laminate floors that clean up easily, etc.

In terms of kitchen cabinets and counters, you may want to consider refinishing them or replacing them if they’re in bad shape. This can be rather expensive, of course, but it also might make the difference between a sale and the home staying on the market.

Moving on up in terms of expenditures, buyers today expect modern appliances in the kitchen – stoves, dishwashers, etc.

These are big ticket items, of course, but if your appliances are worn or out-of-date, think about replacing them, especially if you’re having trouble selling your home.

Look for sales on modern higher-end appliances such as the ones available at Sears, etc. Buyers will spot cheap ones in a heartbeat, and this can cost you a sale.

Today’s buyers look for spacious kitchens that open on to another room and which have a window over the sink. Obviously, if your kitchen doesn’t have these features, it would be far too expensive to put them in.

However, you can make your kitchen look as open as possible. Make sure the counters are clear, visible pots and pans are ordered neatly, and the floor is free of clutter.

Okay, now onto the bathroom!

Making Your Bathroom Shine!

If your bathroom is in good to great shape, then it’s a simple matter of paint, as I mentioned before, and a good all-round clean up. Since we’re dealing with sanitary issues, you want this area to sparkle as much as possible.

But, what if the shower, tub, sink, or toilet are not in great shape or are out of date? Well, then, I’d recommend that you do a whole remodel.

It can be expensive, but when you replace, say, just one item, it can create an unharmonious look. Ideally, you want the sinks, faucets, toilets, showerheads, tile, etc. to match to make the bathroom look as unified and appealing as possible.

Depending upon your expertise, you can install these items yourself at a lower cost. If not, hire an expert to do the work, especially if your home has been on the market a long time and isn’t selling.

Okay, here’s one last suggestion. It’s an expensive one but it’s been proven to add value to your home – add a second bathroom!

One-bathroom houses are simply harder to sell and sell for less than ones with two or three bathrooms.

So, if you have the financial wherewithal, consider adding one. A good place for a second bathroom is right off the master bedroom. This will appeal to buyers with children since they’ll have a space separate from the kids.

Also, if for some reason, you decide not to sell, a second bathroom can make life easier for you if you have children as well!

Want to hear some more suggestions for improving the value of your home? Contact me today and we can talk about some inexpensive methods of doing just that!

Something Broken? Call ServiceOne!

2010-09-08T12:56:00.000-07:00

The joys of homeownership are many, most centered on the new control you have over your space. No one to tell you to turn the music down, no rules against pets or nail holes in the wall. You can paint the walls any color you like, change the carpet, hang out in the back yard and often park your car in a garage within steps of your living space.

Homeownership is bliss … until something breaks down, and then we wish we could just call one person and have them take care of it. Instead, we go searching for a contractor that we can trust to do a good job and not wipe out our savings account in the process.

We’d like to propose another solution. For years we’ve worked closely with ServiceOne, a locally-owned home warranty company who has saved hundreds of our clients time, money and headaches. If you haven’t looked at the advantages and value of a home warranty lately, you’ll want to pay attention.

What Makes ServiceOne Such an Essential Stress-Reliever for Homeowners?

First, contrary to popular belief, ServiceOne is not a franchise. The company is locally owned and has been serving Omaha area residents for more than 20 years. That means when you call for help, you will be talking to someone in Omaha who knows the city, who is experiencing the same weather (and its complications) that you are and who truly understands your needs.

ServiceOne does not outsource its repairs. In fact, it’s the only company in town that employs plumbers, electricians, heating and air technicians and appliance repair professionals all under one roof. Our repair professionals are experienced and reliable, and committed to the high standards ServiceOne demands.

Here are just a few more reasons we love ServiceOne:

- 24 hour emergency service
- Convenient appointments
- All parts and work guaranteed
- Bonded, insured and licensed technicians, who've passed pre-employment drug and background checks
- Money-saving service agreements

What Kinds of Help Does ServiceOne Offer?

While many of ServiceOne’s customers have purchased one of the convenient and cost-effective home warranty plans, ServiceOne also provides the following serviceson-demand, even if you don’t have a home warranty. Here’s only a partial list of all of the ways ServiceOne can make homeowners lives’ easier:

- Heating and cooling

- Repairs for major brands of furnaces, air conditioners, heat pumps, humidifiers, and boilers

- Sales of new equipment

- Preventative maintenance

- Plumbing

- Repairs and/or installation of faucets, water heaters, toilets, garbage disposals, leaks and clogged drains

- Sales and service of new water heaters

- All basic electrical services, repairs of outlets, switches, shorts and traces & installation of service panels

- Appliance repair, including

- Refrigerators & Freezers

- Dishwashers & Garbage disposals

- Washers & Dryers

- Ranges and exhaust fans
- Built-in microwave ovens

- Trash compactors
- Central vacuum systems

Since I Can Call ServiceOne if I Need a Repair, Why should I Consider a Home Warranty?

ServiceOne actually offers a variety of service agreements, but if you have a new home (less than five years old) we highly recommend the home warranty. For only $99 (plus tax) your home is covered for five years, which means that ServiceOne will repair (or if unfixable, replace) your equipment for just the cost of a service call. Even if your home is older than five years, you can still purchase a home warranty that can dramatically reduce your out-of-pocket expense in the event of a major repair or replacement.

How Can ServiceOne Help Me if I’m in the Process of Buying or Selling My Home?

The greatest advantage for home buyers and sellers is the peace of mind you get with ServiceOne.

If you’re selling your home, ServiceOne can cover your home during the listing period, including the appliances that you’re taking with you when you move. Then, your warranty can be easily transferred to the buyer, which is a great selling point.

Whether you’re buying or selling, ServiceOne can provide:
- A mechanical evaluation to ensure there are no surprises for either party
- Greatly reduced liability during and after the sale

Check out how much you’ll save by having a ServiceOne policy.

The Bottom Line

With ServiceOne, you won’t be making numerous calls because one call can solve virtually any repair problem you may encounter, including other services not mentioned here. For more information about ServiceOne’s products, services and warranty plans, give us a call or call Brenda Stuart at ServiceOne at 402.306.6319. You can also visit www.serviceone.com to learn more.

Can staging your home increase the value when selling?

2010-08-27T13:19:00.000-07:00

Home staging is one of those subjects that people often feel a little bit intimidated by. There are a number of factors that are involved in good home staging but it does not need to be a complicated issue.

We caught up with Tori of Ross Designs. She is an expert in home staging and has a wealth of experience that can turn your home selling experience into a quick and lucrative home sale experience.

Whether you plan to do your own home staging or hire a professional to do it for you, here are a few commonly asked questions about this process with surprisingly easy answers:

What Exactly is “Home Staging?”

The process of staging is taking what you have (or, in some cases, bringing in new items) and presenting them in a way that shows off what you have as well as you possibly can.

In a way, home staging is about illusions. It's beyond decorating and cleaning. It's about perfecting the art of creating moods. Staging makes your house look bigger, brighter, cleaner, warmer, more loving and, most of all, it makes home buyers want to buy it.

Does My Entire Life Have to Be Disrupted for Home Staging?

No! Many people think home staging requires a lot of new furniture and artwork to be brought in and put in your home. In fact, most people already have what they need for a great home staging already in their home. They just need a little expertise to help guide them on how to position their assets.

It is also possible to easily live in the home while the staging process is in full swing. In fact, this is frequently part of the home staging challenge: making your home both staged appropriately and livable.The great news is that it can be done. Particularly when you hire a professional to help you with this process, you will find that the two really can coincide easily.

Is It a Good Investment to Invest Money in Staging a Home?

Absolutely! Many times staging is done after a home is generating little interest on the housing market. Some strategic staging is performed and it sells quickly thereafter. The fact of the matter is if you want to sell your home…and sell it quickly…staging makes all the difference.

Homes that are staged sell faster in a slow market and sell for more money in a hot market. There is simply no reason not to stage. The investment comes back to you in a sold house.

How Can I Find Someone to Stage My Home?

Tori of Ross Designs is one of Omaha's leading home staging companies. She can be reached at 402.490.3244.

Home staging is often overlooked in the home selling process. In fact, it can be one of the most important factors if you want to sell quickly and for top dollar. If you are in the market for selling your home, I suggest speaking with a professional home stager and see what they suggest. In the end, it may be the best move you could make.

For Your Clients: 5 Great Tips to Close the Deal

2010-08-18T07:39:00.000-07:00

By Paige Tepping

RISMEDIA, August 14, 2010--In a tough real estate market where competition for buyers is high, sometimes the seller has to ‘sweeten the pot’ to get the deal done. Here are five creative ideas from Realtor Vicki Walker to help close the deal.

1. Offer a Decorating Allowance
There may be a buyer that likes your home but just has different decorating tastes. To seal the deal, offer a decorating allowance (for painting, new carpets or wallpaper). You can offer cash at closing, or put money in escrow to reimburse decorating and remodeling expenses made within 90 days of closing, up to a maximum amount.

2. Do a Pre-Sale Inspection
This actually works for both the seller and the buyer. By having a whole house inspection done before listing the house, you get a chance to address any issues before prospects see the home. That means you increase the homes saleability. Display the report during open houses and highlight the repairs that have already been addressed. It's like seeing the repair history when you buy a used car; it makes you feel better about making an offer because you know the car is in good shape and exactly what has been repaired in the past. By having the home inspected before listing it, people don't have to guess what kind of condition it is in, they can see it in writing.

3. Offer a Home Warranty
A home warranty reassures the buyer that the property is in top condition and gives them comfort knowing that certain future repairs will be covered by insurance. Buyers fear that as soon as they buy the house the dishwasher, dryer, or stove will go on the fritz. A home warranty is an inexpensive way to offer peace of mind to the buyer.

4. Cover Closing Costs
Sometimes it takes a little nudge to close the deal. You can offer to pay the buyers half of title and escrow fees, or pre-paid interest charges. Paying the points on the loan may also be a tax deduction for you. Many lenders may limit how much of the closing costs you can pay, but if the buyer is short of cash, offering to pay some closing costs can make a difference.

5. Offer Seller Financing
There are many ways to offer seller financing. Options include putting funds in escrow to cover several months of mortgage payments, buying down the mortgage rate, or carrying a second mortgage to cover the down payment. It is wise not to offer seller financing unless you have consulted a real estate attorney and your real estate agent. Make sure that the buyer has good credit. Although this is the least attractive option to the seller to get a deal closed, sometimes it takes creativity and going the extra mile to get your home sold.

Increase the Value of Your Home Through Landscaping

2010-08-09T10:26:00.000-07:00

Let's increase the value of your home by up to 15% through landscaping!

For the sake of argument, let’s assume you have a home that’s valued at $100,000 and you could add 15% to the sale price.

That’s an additional $15,000 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 about 10 seconds to make a first impression applies here. If buyers see a well-maintained exterior and a well-groomed yard, well, thenyou’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!

Here are 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 Right Way

Fertilize your lawn a minimum of once a year and, ideally, three times. Use a slow-release nitrogen fertilizer. And here’s an 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 anddon’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 homeand 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.

And 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, and we’ll have a wonderful time discussing one of my favorite subjects!

How to Catch the Eye of the Buyer

2010-07-26T12:00:00.000-07:00

When about 84% of home buyers start their search online, you know you need to have an Internet presence in order to sell your home!

But that presence needs to have a professional appearance! You can’t simply slap up casual photos or boring videos. They won’t do the “sell” job for you. So, here’s some advice on how make your property as attractive as possible on the Internet.

Guideline 1: Hire a Professional Photographer or Find a Realtor Who Uses One!

There’s simply no substitute for high-quality photos of your property, inside and out. And, frankly, most of us just can’t reach the level achieved by a professional photographer. So, use the services of one to make your house stand out.

He or she should take several photos inside and out, highlighting the most attractive features of the home. Of course, get shots done on sunny days and be sure to include photos of the most important areas of the house; i.e., kitchen, a bathroom, dining room and a bedroom.
Then post the best photos (or have them posted) on an easily accessible site. It’s important to have a number of them online since potential buyers will pass over a listing with just one or two photos, feeling that they’re not getting enough information.

Guideline 2: Hire a Professional Videographer or Find a Realtor Who Uses One!

Video tours of your home are a great marketing tool. They’re dynamic and interesting to viewers – if done correctly. Also, such tours are very attractive to younger buyers who are familiar with such sites as YouTube.

I’m not saying you can’t film a video tour itself. In fact, it’s very easily done with YouTube. But, you need to ask yourself, “Do I have the talent for this?”

If you don’t and film a tour, then, frankly, the results can look very amateurish and may well end up turning off buyers who have high expectations of the videos they see online!

So, I recommend working with a professional videographer or with a realtor who has access to one. The money will be worth it. Of course, check out the videographer’s credentials first and ask for samples of their work. They should be able to send you to their own website where those samples are posted or to real estate listing sites on which their work is displayed.

Guideline 3: Work with a Realtor Who’s Knowledgeable about Social Media!

If you’re not familiar with the term “social media,” it refers to free Internet services like Facebook,YouTube, Twitter, etc. where people go online to socialize and get their messages out. A savvy realtor will link your video tour and photographs to all these sites, thus increasing the pool of potential buyers for your property and, again, tapping into a younger audience who may be the ideal customers for your home.

Need to know more about how to make the most of your Internet listing? Contact me immediately and let’s get started today!

What’s the One Unbreakable Law of Real Estate?

2010-07-09T12:39:00.000-07:00

“Perform due diligence!” is the one law you should never break in any kind of real estate deal – residential, multi-occupant, or commercial!

What is due diligence? It’s a common phrase for the evaluation of a property and its surrounding environment before you commit to buying it.

Due diligence has two objectives. First, you want to reduce or eliminate risk! Needless to say, you’ll be assuming a large loan and will want to know exactly what’s right or wrong with a property before you sink any money into it.

Two, due diligence allows you to uncover real bargains, especially for investors. On the surface, one property may look like a “loser,” but a closer inspection may reveal that the building is structurally sound and requires only minor and inexpensive maintenance and repairs.

One part of due diligence is what you’d expect – the physical inspection of the property and inspection of all documents and records concerning that specific property. The other part is the inspection of the documents and records concerning that property.

In this article, I’ll just talk about the physical inspection portion of due diligence.

Physical Inspection of Properties

Below, I’ve listed all the inspection tasks which should be performed by a professional inspector. Of course, you should visit the property as well. Many times, a quick “eyeballing” can reveal any obvious signs or poor maintenance or decay - a leaky roof, wet basement, foundation cracks, cracks in the walls, plumbing leaks, etc.. In those cases, you’ll know you don’t need to waste any further time on that property.

As I mentioned earlier, such an inspection may reveal that you’ve actually got a bargain on your hands instead of a “dog.” In such a case, you’ll want to purchase or invest in that property quickly.

What happens when you find problems in a property and still like it? Well, then, you can require that the seller correct those problems or reduce the price before you sign any contract.

In general, defects fall into two categories. One category contains the obvious defects – wet basements, peeling paint, broken windows, leaky plumbing, warped floors, etc.

The other category contains the more expensive and dangerous hidden defects. These can include corroded pipes in the walls, roof or window leaks that don’t show up until it rains or snows, subtle cracks in the foundation.

Obviously, you want to make sure these hazards are spotted before you ever sign a purchase agreement. They can cost you a lot of money in the long run, not to mention the fact that they can send your blood pressure through the roof!

What Do Professional Inspectors Look For?

Below are the items inspectors examine when they check a property:

• Overall structural integrity
• Property drainage/landscaping
• Walks and drives
• Foundation, footings, crawl space, basements, sub-flooring, decks
• Exterior walls, siding, trim
• Windows, doors, cabinets, counters
• Gutters, downspouts
• Roof, roof shingles, roof structures. chimneys, attic
• Floors, walls, ceilings, etc.
• HVAC systems
• Plumbing systems, (fixtures, supply lines, drains, water heating devices, etc.)
• Electrical system (wiring, service panel, devices, and service capacity
• Energy conservation/safety Items
• Insulation & ventilation
• Moisture intrusion/mold

And, of course, we can’t forget the voracious appetites of….bugs!

Pest Control Inspection

Depending on the area of the country in which you live, insects can cause a heckuva lot of damage to a property!

I’m talking about such bugs as termites, carpenter ants, powder post beetles, and any other insect that likes to munch on wood. Then, there’s fungus, in the form of “dry rot.” It can also cause a lot of destruction.
In such cases, you’ll need to hire the services of a specialist (pest control inspector) to examine the property.

If the operator identifies any problems, he or she should provide you with a diagram that pinpoints the location of the infestations. If serious problems exist, they need to be corrected immediately! The expense is usually paid for by the seller.

To protect yourself against any of the problems I mentioned above, ensure that the purchase contract provides for cancellation without penalty or loss of money if the physical condition of the property doesn’t meet standards.

So, there you have it – all the physical items you or an inspector should check on to meet the law of due diligence! Remember – never, ever break this law! To learn more about any special concerns for due diligence in our area, contact me today!

For Your Clients: Interpreting a Home Inspection Report

2010-07-08T14:23:00.000-07:00

RISMEDIA, July 8, 2010—A home inspection report is an important document that a potential buyer will have that accurately describes the conditions that exist in the house they are considering buying. It is crucial that your client receive a well written and detailed home inspection report and working with your client to interpret the inspection report can help eliminate confusion and indecision. This article will attempt to give you some guidance to assist your buyers with interpreting a home inspection report.

There are many styles of home inspection reports used by property inspectors, including a hand written checklist, a digital checklist or a computer generated report. But the most important aspect within an inspection report is the descriptions given for each system or component.

A typical home inspection report will be divided up into systems that make up the building. Each system is identified and a report on the condition of each system is delivered to the client.

A system is a group components assembled together through building techniques that make it complete. For example, a roofing system might be made up of several components such as rafters, sheathing, roof covering and flashing. The inspection report will identify the visual components that make up the system and report on their condition.

If there is an issue with the condition of the system or any individual component, the inspection report will comment on the type of deficiency and provide the buyer with possible recommendations such as replacing, repairing, monitoring or even bringing in a professional for further evaluation.

Deficient or defective items: If an item is deemed deficient in the inspector’s opinion, then it is either not functioning as intended, has come to the end its useful life expectancy or has deteriorated to the point that replacement or repair is imminent. An example of a deficient item may be a roof covering with severely cracked and curled shingles, even if there is no sign of leaking. The inspector may report this as deficient because the condition of the system is nearing the end of its useful life and replacement in the very near future is imminent.

Safety issues: If the inspector finds safety issues in the home, the report will reflect the nature of the safety issue—where in the home the safety concern was found and a recommendation to correct the safety concern. Safety issues can be minor in expense but important to the safety of the occupants of the home. For example, a bathroom without a GFCI (ground fault circuit interrupter) may only be $15.00 to repair, but the potential danger it poses for the occupants of the home would necessitate the item being tagged as a safety issue.

Maintenance: If a maintenance item is in the report, the inspector has determined that some maintenance is needed to prevent a safety issue or the deterioration of another part of the home. For example: If the inspector finds the gutters are full of debris but are properly attached to the home and in good condition, they might put that in the report because during a rain storm, the gutters would overflow, dumping large amounts of water next to the foundation of the home and eventually begin to erode the soil around the foundation.

Common terms used in an inspection report

-Recommend: The inspectors’ opinion of how to guide the client to resolve noteworthy issues found during the inspection. Common recommendations would be to replace, repair, monitor or evaluate.

-Visual inspection: The general scope of the inspection is limited to a visual inspection which means that the inspector is not required to disassemble equipment.

-HVAC: Heating ventilation air condition system.

-Condensate line: The copper pipe that runs from the outside air conditioning condenser to the inside furnace (where the A/C coil is located).

-Ductwork: A system of distribution channels used to transmit heated or cooled air from a central system (HVAC) throughout a home.

-Damper: An air valve that regulates the flow of air inside the flue of a furnace or fireplace.

-Pilot light: A small, continuous flame (in a hot water heater, boiler or furnace) that ignites gas or oil burners when needed.

-Accessible: Can be approached or entered by the inspector safely, without difficulty or danger.

-Blow insulation: Fiber insulation in loose form used to insulate attics and existing walls where framing members are not exposed.

-Board and batten: A method of siding in which the joints between vertically placed boards or plywood are covered by narrow strips of wood.

-Buckling: The bending of a building material as a result of wear and tear or contact with a substance such as water.

-Cantilever: A projecting beam or other structure supported only at one end. Any part of a structure that projects beyond its main support and is balanced on it.

-Cast iron: Heavy metal formed by casting on molds. The metal is covered with a porcelain enamel coating to make fixtures such as cast iron tubs.

-Ceiling joist: One of a series of parallel framing members used to support ceiling loads and supported in turn by larger beams, girders or bearing walls. Also called roof joists.

-Cellulose insulation: Ground-up newspaper that is treated with a fire retardant.

-Celotex: A brand of black fibrous board that is used as exterior sheathing.

-Flashing: Material used around any angle in a roof or wall to prevent leaks.

-Earthquake strap: A metal strap used to secure gas hot water heaters to the framing or foundation of a house. It is intended to reduce the chances of having the water heater fall over in an earthquake and causing a gas leak.

-Sump: Pit or large plastic bucket/barrel inside the home designed to collect ground water from a perimeter drain system.

-Sump pump: A submersible pump in a sump pit that pumps any excess ground water to the outside of the home.

-Trap: A plumbing fitting that holds water to prevent air, gas and vermin from backing up into a fixture.

-Knob and tube wiring: A common form of electrical wiring used before World War II. When in good condition, it may still be functional for low amperage use.

-BX cable: Armored electrical cable wrapped in galvanized steel outer covering. A factory assembly of insulated conductors inside a flexible metallic covering.

-Circuit breaker: A protective device which automatically opens an electrical circuit when it is overloaded.

-Ground-fault circuit interrupter (GFCI): A device intended for the protection of personnel that functions to de-energize a circuit

-Grounded: Connected to earth or to some conducting body that serves in place of the earth.

For more information, visit www.hometeaminspection.com.

From: http://rismedia.com/2010-07-07/for-your-clients-interpreting-a-home-inspection-report/

7 Things All Borrowers Should Know About FHA Loans

2010-07-06T10:54:00.000-07:00

RISMEDIA, July 3, 2010—FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market.

FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).

“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87% today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly
able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The overnment recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium
development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment. Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner. “At FHA Pros we have worked with countless HOAs, attorneys and individuals to easily and efficiently navigate the historically tricky FHA-approval process.”

For more information, visit www.checkfhaapproval.com.

From: http://rismedia.com/2010-07-03/7-things-all-borrowers-should-know-about-fha-loans/

Investor – Do You Know the Seven Basic Principles of Real Estate Valuation?

2010-06-23T09:43:00.000-07:00

With knowledge and mastery of the seven principles listed below, you’ll be able to valuate properties with an objective eye and sort out the good deals from the ones that are “money pits.”

Before we get to the principles, be aware that all of them relate to a fundamental maxim of real estate – “the highest and best use” of a property. In a legal sense, “highest and best use” is the use of a property that makes it the most valuable to a buyer or the market.

In a business sense, it means one single use will result in maximum profitability through the best and most efficient use of the property.

Okay, here are the seven principles:

Principle 1: Demand

In plain old English, do buyers want or need to own or possess a property and do they have the money to satisfy that need?

If, for example, you have a home (or rental property) in an upward-trending neighborhood, then you can anticipate a good-to-great demand that will allow you to charge accordingly!

Principle 2: Utility

The term “utility” refers to a property’s intended use; e.g., single-family home, rental property, retail function, industrial use, etc.

The gist of this principle is that you want a property to fulfill its intended purpose. That way, it’s in high demand in the right market.

Here’s an example of unfilled purpose: an upscale boutique stuck in a working-class neighborhood. Since the residents aren’t likely to have the money for luxury goods, this retail store would likely not have a great or profitable future. Clearly, this is not the “highest and best use.”

Principle 3: Scarcity

Put plainly, “scarcity” refers to the fact that the value of a particular property is set by comparing it to similar properties.

In technical real estate language, the “theory of substitution” states the following: “The value of a property replaceable in the market tends to be set by the cost of acquiring an equally desirable "substitute" property.”

Principle 4: Transferability

“Transferability” refers to the ease with which ownership rights are transferred from one owner to the next.

As you can imagine, investors love properties that are easily transferable (or relatively so). At the same time, they hate properties encumbered by liens, judgments, etc. because such legal issues eat up time and money and can ruin an otherwise good deal.

Principle 5: Regression

When a property’s value is negatively affected by surrounding properties, then you have a situation of “regression.”

The price of your property deteriorates when the nearby properties are of lower value, have inferior construction, or are just plain in lousy condition. Needless to say, you don’t want to buy the best property in a bad neighborhood. You’d simply be throwing your money away!

Principle 6: Progression

“Progression” is the opposite of regression. In this case, a property’s value rises upward because the surrounding properties have better quality, are in better condition, and possess a higher value.

Another way to spell progression is “opportunity!” In other words, you can purchase a sound but neglected/unmaintained property in a good neighborhood.

Then, by bringing the property up to neighborhood standards through repairs, maintenance and upgrades (“rehabbing”), you have the ability to gain great value at a very low cost.

Principle 7: Conformity

“Conformity” refers to the fact that property values are maximized when a property conforms to (is similar to) the properties surrounding it. Of course, the opposite is also true. If a property doesn’t mesh well with surrounding ones, its value decreases.

So, for example, if you buy a neglected property, you should renovate it to conform to neighborhood standards, but not over-improve it. Over-improvement can push that property into a higher cost bracket and limit your opportunities for selling or renting it!

In summary be aware that there many variables that can affect the highest and best use of a property. Zoning, re-zoning, the path of progress, etc. – all these factors can change the value of a property. That means, as an investor, you need to stay on top of the market!

Want to learn more about the fundamentals of the real estate market? If so, contact me right now at peg@maloney.com to discuss this matter or any other real estate matter of interest to you! I look forward to talking with you!

First-Time Home Buyers: Tips to Make Your House a Home

2010-06-21T09:41:00.000-07:00

RISMEDIA, June 21, 2010—After getting the keys to their new homes, many first-time home buyers are excited about finally having the opportunity to personalize and furnish their new house. From coffee tables to lamps to lawnmowers, many previous renters leap into homeownership quickly realizing they need to do a lot of shopping to truly make their house a home.

“Whether you’ve been living in an apartment with roommates or at your parents’ house, many first-time home buyers do not think about all the items they need – and want – when moving into a house,” said Janice Jones, national vice president of merchandising for Centex. “With a little advance planning and budgeting, you won’t break the bank to make your new home a reflection of your personal style and showcase your pride of homeownership.”

A typical home buyer spends $7,400 on average on their home, with more than half of that spent in the first year after purchase, according to the National Association of Home Builders.

While many first-time home buyers may not have accounted for this level of spending, Jones offers advice on what types of items to purchase to not only properly maintain and live in the home, but also more importantly, items that help new homeowners feel like their house is a place to call home.

Furnishings

Many first-time home buyers no longer want their parents’ hand-me downs or their childhood bedroom set. From sofas to dining room sets to mattresses, many first-time home buyers take the opportunity to upgrade their furniture when moving into their new home. According to an NAHB study, furnishings take the biggest chunk of the budget, with home buyers spending about $5,300 on furnishings during the first year after buying a home. The biggest ticket item for all households is bedroom furnishings, including mattresses, followed by sofas.

Window coverings and linens

The median square footage of homes bought by first-time buyers is 1,500. So, you can only imagine the number of windows that need to be covered to ensure privacy and security in a home. According to Jones, many home buyers don’t account for this in their budget. Additionally, with the ability to now paint and decorate each room, new homeowners find that they want to purchase new bedroom and bathroom linens.

Garden tools

Since a first-time home buyer is likely to move into their home from an apartment, unless you plan on hiring a gardener, you’ll need to purchase a few basic gardening tools, including a lawnmower, garden hose, sprinkler and a shovel (for winter weather).

Flat screen TV

Let’s face it: many home buyers shop for their new home while taking into a consideration how a new, large, flat-screen television set will be situated in their new living space. So, it’s not a surprise that a hot item on the list is purchasing an entertainment system.

However, you’ll also need the basic appliances in your new home: a refrigerator, stove, and a washer/dryer. While many existing homes usually come with appliances, a home buyer needs to take inventory as to whether or not they will need to purchase these big ticket items before they purchase their new bedroom set.

Basic tool kit

Every home needs a well-stocked tool box. Many home improvement stores have sets you can purchase, but make sure it includes a hammer, screw drivers, pliers, wrenches, a tape measure and a staple gun.
“My biggest piece of advice for new home buyers is to be creative and tackle this room by room,” said Jones. “For example, after outfitting your home with the necessary items—like appliances and window coverings—move on to the kitchen and family room spaces. This area is the heart of your home where everyone gathers.

“Look for great values on the items you need that will be utilized most. Take your time and get the feel of how you want to use each space for both function and enjoyment. This strategy allows homeowners to stage their purchases and add new furnishings as the budget allows. Decorating your new home should be fun and a reflection of your personal style.”

For more information, visit www.centex.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Five Ways To Keep Your Kid Safe This Summer

2010-06-15T11:36:00.000-07:00

Five Ways to Keep Your Kids Safe This Summer

By Kristen Gerencher

RISMEDIA, June 9, 2010–(MCT)–As summer approaches, so does the prime injury season for children. Parents have different ideas about how to keep their kids safe, but their assumptions don’t always match up with some of the biggest known threats.

“By far, the leading cause of death in children is injuries, and there’s a lot we can do to prevent those injuries,” said Garry Gardner, a pediatrician in Darien, Ill., and chairman of the American Academy of Pediatrics’ committee on injury, violence and poison prevention. “Injuries, in general, cause more deaths in kids over a year of age than the next seven leading causes of death combined.”

Parents shouldn’t underestimate their role in keeping their kids out of harm’s way, said Alfred Sacchetti, an emergency physician at Our Lady of Lourdes Medical Center in Camden, N.J. “You are the No. 1 safety feature that comes with your child.”

Here are some of the biggest safety risks for children during the summer and otherwise — and what you can do to minimize them.

1. Suffocation and strangulation.

This pair is the leading cause of unintentional-injury deaths in children under age 1, according to the Centers for Disease Control and Prevention.

How to reduce the risk:

Make sure your infant has a sleeping environment free of pillows and soft bedding, and put him or her to sleep on his back in a crib, rather than in a bed with adults. Also position the baby far away from loose or hanging cords.

Parents should use cribs with four fixed sides, rather than those with sides that drop down. With the latter, parts can more easily break, deform or detach, opening up spaces where youngsters can become entrapped and suffocate, according to the Consumer Product Safety Commission and Consumer Reports. Drop-side cribs have been responsible for 32 infant and toddler deaths in the past nine years, according to the Consumer Product Safety Commission, which has recalled 7 million such cribs since 2005.

Parents who use a drop-side crib should check the plastic slides regularly and tighten the hardware if necessary, said Don Mays, senior director for product safety at Consumer Reports. “If there’s any missing or broken hardware, get rid of the crib,” he said. “Don’t try to fix it yourself.”

2. Drowning.

Among children ages 1 to 4, drowning is nearly tied with motor-vehicle accidents as the leading cause of death. Incidents frequently revolve around swimming pools and bathtubs.

How to reduce the risk:

Never leave a child unattended in a bathtub or allow a kid to swim without supervision. Avoid making or answering phone calls; that’s the biggest distraction for parents when children are in a bath or pool, sometimes with fatal results, Sacchetti said.

Home swimming pools should have a fence that wraps around all four sides of the pool instead of having one side open to the house, he said. Having four-sided fencing plus a separate pool-entrance gate can greatly reduce the likelihood of a child falling in and drowning.

Swimming lessons for kids over six months old can be fun, but parents shouldn’t get a false sense of security because there’s no such thing as drown-proofing your child, Gardner said. “I would recommend touch supervision under the age of three or four,” he said, which means you’re supervising your child in the pool or lake and they’re only a hand reach away.

3. Motor-vehicle crashes.

Car accidents are the leading cause of death among children over one year old, according to the CDC. And they account for as many as two-thirds of deaths among teenagers and young adults age 15 to 24.

How to reduce the risk:

Using age-appropriate car seats is critical to boosting a small child’s chances of surviving a crash, according to the National Highway Traffic Safety Administration.

Infants from birth to at least age 1 and 20 pounds should ride facing backward in a car seat placed in the back seat. After that, children should ride in the back seat using forward-facing toddler seats and then booster seats until regular seat belts fit properly—usually not until age 8 or when they’re 4 feet 9 inches tall, the NHTSA said.

Parents can have their car-seat installation checked by a professional for free. The NHTSA’s website lists car-safety experts by area.

4. Other car-related accidents.

Nearly 42 percent of the nontraffic fatalities in children under age 15 between 2004 and 2008 happened because drivers backed over kids, who often were in the vehicles’ blind spots, according to Kids and Cars, a nonprofit that tracks such accidents. More than 18 percent of nontraffic deaths occurred because children got heatstroke after being left in cars. Other risks include power-window strangulation, trunk entrapment and vehicles that are accidentally set in motion.

How to reduce the risk:

Teach children not to play in or around cars and supervise them carefully around vehicles. Make sure kids aren’t around before pressing the gas pedal.

It doesn’t take long for a child left in a car to overheat and die. So drivers should put a stuffed animal in the front seat or a briefcase or purse in the back seat so they don’t forget about the child in the back seat. “It can get very hot, lethally hot, very quickly, and children should never be allowed to be alone in a car ever, even for a moment,” Gardner said.

5. Head injuries.

Brain injuries remain among the most devastating for patients.

How to reduce the risk:

Always use the proper car seat or seat belts. Make sure kids wear sport-specific helmets when they’re playing sports or riding bicycles or skateboards. A child’s aversion to helmets is no excuse for not wearing them, Sacchetti said. “Your responsibility is to be their parent, not their friend,” he said. “The one thing you can’t do is sacrifice their safety to make them like you.”

FHA203K Rehab Loans

2010-06-08T11:16:00.000-07:00

An FHA loan can provide a great deal of help to many families, but not everyone knows exactly what is and who it helps. To start, “FHA” stands for Federal Housing Association. This is the organization that administers the loan, and it is also a part of the Department of Housing and Urban Development (HUD.) Since the FHA doesn’t provide the loan directly, the borrower must contact a financial lending institution to receive the loan.

What is Required?

The FHA does, however, investigate the applicant and insures the lending institution against loss of principal, just in case the borrow does meet all the guidelines of terms of the mortgage. The borrower, who pays an insurance premium of one half of one percent on declining balances for the lender's protection, receives two benefits:

1. A careful appraisal by an FHA inspector.

2. A lower interest rate on the mortgage than the lender might have offered without the protection.

This federal assistance mortgage loan, secured by real property through the use of a mortgage note, can only be issued by federally qualified lenders. Other deciding elements of the application process include getting the house appraised and approval of the buyer’s credit.

The main mission of this kind of loan is to provide lower-income families with the resources to buy a home that they would otherwise not be able to purchase. The program started around the time of the Great Depression when foreclosures and defaults were on the rise. Nowadays, it strives to provide the same kind of assistance.

Insurance

You may be asking, “How does this program survive and where does it get its money?” Well, upon its entrance into the home-buying market, the loan was intended to provide lenders with enough insurance to make a profit. Today, it is fairly self-supporting thanks to the premiums that are paid to the lenders by borrowers.

While this loan program helps families in need maintain a home they would otherwise lose, it is more centrally focused on rehabilitation. The FHA 203(k) program could be categorized as a “home improvement” loan system. One of HUD’s main values is to open provide greater opportunity for homeowners to capitalize on their property, and this mission is carried out through the 203(k) program as well.

Lenders Won't Short You

Some lenders have been known to partner with nonprofit organization to assist with the revitalization of many homes, incorporating other housing assist services to give the borrower as many useful resources as possible.

Through their generous participation, lenders further their dedication to the Community Reinvestment Act (CRA), which was created in 1977 under the Housing and Community Development Act. The CRA is a federal law that encourages banks and other saving services to target and assist different segments of their respective communities with housing, especially lower income families.

What are All Its Uses?

The program isn’t always used directly by the lender. It can also provide money to rehabilitate property in three different ways:

- The loan can be used to purchase a dwelling on the land on which it resides, then restoring and reviving the property.

- The loan can be used to refinance current debt and refurbish a home (like most borrowers would use it for.)

- The loan can be used to buy a dwelling on a separate site and then move it to the land that has been mortgaged, then they can proceed to rehabilitate it in its new location.

No matter how you ended up with existing debt or a run-down home that you were unable to afford repairs for, the FHA 203(k) loan rehabilitation plan may be your light at the end of the tunnel. Lenders a generally rather generous and it can make an enormous impact in the life of you and your family.

For further comments of question, please feel free to contact me anytime by email, which is peg@maloney.com, or by phone at 402.598.3965.

What is a Real Estate Short Sale?

2010-05-26T11:50:00.000-07:00

A “short sale” is a handy term for a situation in which a homeowner’s debt on his or her property is greater than the amount for which the property can be sold.

Here’s an example: Assume a homeowner has an unpaid loan balance of $110,000, but the property will only sell for $100,000. The unhappy lender accepts that $100,000 as full payment from you or another investor. This is obviously “short” of the full $110,000 amount, thus the name “short sale.”

Let’s be clear – lenders don’t like short sales and often will go through them only as a last resort. After all, they’re not in business to lose money! In many cases, they’ll prefer the option of foreclosure since that choice makes more financial sense.

However, there are instances in which lenders accept short sales and, if you’re “Johnny-on-the-spot,” you can make a very good profit – if you’re willing to brave a complicated process!

Why Is a Short Sale More Complicated Than a Normal Real Estate Transaction?

Simply put, it’s complicated because there are so many factors involved:

- the loan mitigation policies of the lender and third-party investors
- the financial condition of the lender and third-party investors
- financial condition of the borrower
- the property’s as-is value
- the cost to “repair” the property to put it into saleable condition and market it, etc.

On top of these factors, approval for short sale has to come from the investor who actually owns the loan. And then, if the lender is a government-sponsored institution like Fannie Mae or Freddie Mac,approval can eat up a lot of time. After all, you’re dealing with government bureaucracies!

When Will Lenders Accept a Short Sale?

There are a variety of situations in which lenders accept short sales. For example, homeowners experience a devastating illness that eats up all their financial resources. Or they may be military personnel called up to active duty for extended periods of time, and they lack the income to continue mortgage payments.

Other examples include anyone who falls into the “hardship” category—disabling, permanent injuries; financial insolvency; convictions; lack of employment due to economic conditions beyond the homeowner’s control, etc.
In these instances, lenders are willing to consider a short sale.

How Do I Find Out If A Property Qualifies for a Short Sale?

You’ll have to do some digging and gain knowledge about the lenders in your area. In order to acquire that knowledge, complete the following tasks:

Task 1: Talk to the lender and find out their loss mitigation policy. If they seldom or never do short sales, don’t bother with them. Find another lender with a better record in this area.

Task 2: Find out the number of liens recorded against the property title and the total amount of money in those liens.

Task 3: Know the borrower’s present financial condition.

Task 4: Know the type of loan that’s in default and its current status.

Task 5: Know both the property’s as-is market value and its as-repaired value.

Task 6: Be aware of the state of the local economy and the current real estate market conditions. Analyze all this information to determine if a short sale is worth pursuing.

Okay, let’s assume you’ve completed all those tasks and know the short sale is worth pursuing. What’s next?

How to Pursue a Short Sale

First, have the homeowner sign an authorization to release the loan information. Next – and this is very important! - you must have cash on hand. Why? Because all short sales are cash transactions! What’s more, you also need verifiable proof that you possess the money!

Also very important - short sales can’t be made to relatives, family members, or close friends of the homeowner. In real estate, this is called an “arm’s length transaction.” What happens if you do this and the lender discovers that you’ve done an arm’s length deal? The lender can file a lawsuit to have the sale overturned!

As you might expect, the property owners themselves can complicate the process. After all, they can’t receive any of the money from a short payoff sale. That means not much of an incentive for them to do a short sale.

And one last negative - the debt that’s canceled by the short sale payoff of a mortgage or deed of trust is subject to federal income tax as ordinary earned income. This is not true of a bankruptcy or insolvency.

How to Start the Short Sale Process

Follow these steps (yes, there are many):

- Get in touch with the homeowner who’s in foreclosure.
- Determine the homeowner’s financial condition.
- Analyze the condition of the property.
- If both the financial and property condition are suitable, ask the homeowner for written authorization to communicate with the loan loss mitigation department of the lender.
- Get in touch with the decision-maker in the loan loss mitigation department of the lender and provide them with a copy of the written authorization.
- Contact the decision-maker to discuss the short sale and request that the decision-maker send the appropriate short-sale documents to the homeowner.
- Ask the homeowner gather all documentation to provide support for financial hardship case.
- Get repair cost estimates from a minimum of three licensed home improvement contractors.
- Do a comparable value study by assessing the value of three similar neighborhood properties sold in the last six months.
- Return the short sale proposal to the lender’s decision-maker. It should include a signed purchase agreement for a percentage less than the amount owed to the lender; e.g., 20%, 30%, 40% less, etc. Include a HUD 1 Settlement Statement in your proposal. You can download the statement in PDF form here.
- The lender’s decision-maker reviews your proposal and orders a BPO to determine the property’s as-is and as-repaired values.
- The decision-maker either accepts your proposal or rejects it.
- If the decision-maker feels a short sale is appropriate, they’ll make a counteroffer.
- You then accept or reject the counteroffer.
- If you accept the counteroffer, you close on the transaction within 30 days.

I hope this brief introduction to short sales gave you enough information to decide whether or not you want to pursue this type of transaction. If you have more questions, please contact me today at peg@maloney.com or 402.598.3965 and we can discuss this topic or any other area of real estate.

Ever Wondered Which Home Improvements Give You the Best Return on Investment (ROI)? I’ve Got the Answers for You!

2010-05-06T13:08:00.000-07:00

Below I provide you with the best home improvements to make in terms of their Return on Investment (ROI). Choose the ones that best fit your situation and your budget!

Natural Gas Furnace Replacement

The ROI on furnace replacement can reach as high as 100%. How can that be? Well, of course, it depends on how long you keep the house before you sell it. In the first year, the ROI of a new furnace may be only around 10%.

However, consider that a new furnace adds to the resale value of your home and makes your home very attractive to potential buyers. And, then, if you look at the money saved in utility bills over, say, a five-to-ten year period, well, then you’ll be hitting that ROI of 100%!

Painting

Amazingly, a new coat of paint on the exterior of your home can give you an ROI of 90%. Dollar for dollar, it’s one of the most cost-effective home improvement projects you can undertake!

Depending on the quality of exterior paint, it can cost you anywhere from $25 to $50 a gallon. To give you an idea of the overall costs, the average 3,000-square-foot home takes about 15 gallons of paint. So, you may pay anywhere from around $375 to $1,500.

Looking at the interior, you’ll likely pay anywhere from $12.00 to $50 a gallon, again depending on the quality of the paint. Plus, of course, you have the cost of rollers, brushes, drop cloths, etc. If you do the work yourself, it’ll likely cost you around $300.00. If you hire a professional, double the cost. In either case, you’ll end up with an ROI of around 75%.

Vinyl Siding Replacement

If appropriate, siding is a great place to start your home improvement projects. It has an ROI of around 88%.
Nearly everyone loves vinyl siding for two reasons – it’s low maintenance and has great durability. Plus, of course, the shiny appearance adds the perception of increased value in the eyes of potential buyers. And you have two options for putting it on. If you have the time and talent, you can do it yourself for around $1.00 per square foot!

If you have little time and money, call a professional. Depending on your area and the size of your home, the job may cost you around $7.00 per square foot and anywhere from $3,000 to $12,000.

Replacement Windows

New windows have an ROI of 80% plus. It’s true that they are expensive, running $300 for a basic design up to $1,000 for custom designs. However, they have tremendous value in terms of both maintaining the house and increasing its value for sale.

Chosen wisely, replacement windows can really improve the look of your home from the exterior and in the interior. In addition, of course, they can really save on heating bills since old windows are great leakers of energy.

Kitchen Remodeling

Remodeling your kitchen can give you an ROI of around 80%. Now, it’s true that such a remodel can be expensive; the average cost is about $17,000. However, you must remember that the condition of the kitchen is very often the deciding “sale/no sale” factor in the minds of potential buyers!

So, seriously consider this remodeling project. Add new countertops, cabinets and appliances. If you have the time and skills, do much of the work yourself. Plus, of course, shop all the sales to get the lowest price on any appliances like stoves and refrigerators.

Roof Replacement

Replacing a roof has an ROI from around 60% to 65%. Depending on the nature of the replacement, it can cost about $100 to replace a few asphalt shingles on up to around $100 to $350 for a 10 x 10 foot square.

An overall re-roofing can cost anywhere from $6,000 to $14,000, depending on the size of the roof and the nature of the shingles (asphalt, wooden, etc.).

Now, while roof repair or replacement doesn’t have as high an ROI as some other home improvements, it’s definitely important because buyers will back quickly away from the purchase of a home that needs roof repairs. So, put this one high on your list!

Bathroom Remodeling

The ROI on a bathroom remodel ranges up to 78-80%. The average remodel costs in the $12,000 to $13,000 range. If you go “whole hog,” costs can range up past $30,000. However, you don’t have to do all the remodeling at one time, and you may be able to make some of the changes yourself.

For example, new tile or linoleum can up down for anywhere from $100 to $1,000, depending on the size of the bathroom and the materials used. New light fixtures can also be an inexpensive do-it-yourself project.

So, there you have it – a list of home improvements that will give you the best return on investment!

If you’d like to discuss the ROI on other home improvements, contact me today at peg@maloney.com or 402.598.3965, and I’ll give you all the information you need.

Want to Sell Your Home? Clinch the Deal With Curb Appeal!

2010-04-28T10:00:00.000-07:00

For this article I sat down with Cathy Sykora at Omaha Drapery & Blind and we talked about Curb appeal and what you can do to your home to make it more appealing from the street. If you are planning on selling your home in the near future you're going to want to read this article and watch my video.

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 peg@maloney.com or 402.598.3965.

Home Buyers/Refinancers: Expanded Title Insurance Is a Necessity These Days!

2010-04-15T09:08:00.000-07:00

Recently I spoke with Julie Hudkins of First Nebraska Title and Escrow. She’s an expert on the subject of title insurance and, more importantly, expanded title insurance.

As I’m sure you already know, basic title insurance is necessary to protect you against any unexpected defects, claims on any house you buy, or judgments against previous owners like alimony, child support, etc.

For example, you’d want to know if there are liens against a previous owner because, if there are, then you could be held legally responsible for paying them!

That’s why you always need title insurance – it’s protection in advance.

But, these days you need more than the basic form, especially if you’re buying a foreclosed home! Expanded title insurance protects you against unexpected things like:

• Building permit violations (from previous owners)
• Encroachment violations
• Subdivision violations
• Covenant violations (from previous owners)
• Living trusts
• Structure damage from mineral extractions
• Variety of encroachments and forgeries after title insurance is issued, etc.

For example, assume a contractor put the wrong kind of shingles on a roof; that is, they violated the subdivision rules. Or, in the course of refinancing, you find that you built a fence that encroaches on your neighbor’s property, etc. In either case, you’re more fully protected when you have extended title insurance!

In short, whether you’re buying a new home or refinancing your current one, extended title insurance is vital to protecting your interests!

To learn more about this subject, call Julie immediately at 402.691.9933. For all your real estate needs, call me today at 402.598.3965 or contact me at peg@maloney.com!

Avoid Foreclosure! Follow These 10 Guidelines!

2010-03-30T13:57:00.000-07:00

Here’s a fact that may surprise you – lenders hate foreclosures almost as much as you do! After all, they’re losing money and have to follow a complicated legal process to take the property back.

This tells you, if you’re facing the possibility of foreclosure, that it’s in your best interest to work with your lender. So, if you’re having trouble keeping up with your mortgage payment, contact your lender immediately and inform them of the situation.

Also, you can contact a HUD-approved Housing Counseling Agency or call them Toll FREE at: (800) 569-4287 or TTY (800) 877-8339.

Now, if you’re unable to make your mortgage payment, I recommend you follow the guidelines below. They were taken straight from HUD with some additions on my part.

Guideline 1: Definitely Don't Ignore the Situation!
With foreclosure, there’s a natural tendency to hope the whole situation will just go away if we ignore it.

This is not a wise choice because the farther behind on the payments you fall, the more difficult it’ll be to re-instate your loan and the more likely it’ll become that you’ll lose your home. So, take the foreclosure “bull” by the horns and deal with the situation right away.

Guideline 2: Contact Your Lender Immediately!
As I said earlier, lenders hate foreclosure nearly as much as you do. So, most have options to help you through tough financial times. It depends on the lender, but such options may include:

• modifying the mortgage length or interest rate.
• waiving fees or penalties.
• deferring payments through temporary forbearance.
• increasing monthly payments to cover past due amounts.
• modifying an adjustable-rate mortgage to a fixed rate, etc.

Guideline 3: Open and Respond to All Lender Mail Right Away!
Normally, the first notices you receive from a lender will give you one or more of the options listed under Guideline 2.So, definitely open that mail immediately because those options can help you through a rough time.

If you don’t open the mail or toss it out, you’re only making matters worse because they may include notices of pending legal action. And, believe me, foreclosure courts don’t accept any excuses regarding failure to open mail!

Guideline 4: Know Your Mortgage Rights!
Always learn the specifics of your loan documents so you know what your rights and those of the lender are under the terms of the contract if you can’t make the payments. If you don’t understand the contract provisions, talk to a counselor or a real estate attorney.

Also, remember that foreclosure laws and time frames vary by state. This means you need to contact the appropriate state office to learn what’s involved in the foreclosure process.

Guideline 5: Understand Foreclosure Prevention Options!
HUD has free and valuable information on options for preventing foreclosure (also called loss mitigation). These options can be found on the internet at portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL .

Guideline 6: Contact a HUD-approved Housing Counselor!
HUD funds free or very low cost housing counseling nationwide. The counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

Guideline 7: Evaluate Your Spending and Budget. Budget, Budget!
After healthcare, your first priority should be keeping your house. So, that means you need to look at where your spending goes and “cut out the fat.”

By that, I mean zero in on “optional” expenses – cable TV, memberships, daily trips to the coffee shop, eating out, etc. If you’re not careful, these expenses can tear the heart of your budget, and they’re easily avoided! All the money saved by foregoing these items can go to making your mortgage payment.

Also, delay payments on credit cards and other "unsecured" debt until you’ve have paid the mortgage.

Guideline 8: Employ Your Assets!
You may well have assets that you can sell for cash and apply to your mortgage payments. These could include items like a second car, jewelry, a whole life insurance policy, etc. Also, if anyone in your household can get an extra job, it’ll bring in additional income.

Even if that income isn’t great, the effort demonstrates to the lender that you’re willing to make sacrifices to keep your home.

Guideline 9: Avoid Foreclosure Prevention Companies!
I repeat – avoid these companies! Some are legitimate; some are scam artists. In either case, you don’t need to pay them hefty fees for foreclosure prevention!Sometimes those fees can amount to two-to-three months’ worth of mortgage payments! Why do this when, for free, you can work with a counselor or with the lender?

Guideline 10: Don't Lose Your Home to Foreclosure Recovery Scams!
You may be contacted by firms claiming that they can stop your foreclosure right away if you sign a document appointing them to act on your behalf. If that’s the case, tell them to get lost! This is a scam where you end up signing over the title to your property and becoming a renter in your own home!

NEVER, ever sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD-approved housing counselor!

Want to talk more about options for preventing foreclosure? Contact me right now at 402.598.3965 or email me at: peg@pegmaloney.com, and I can provide you with that information!

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

2010-03-14T20:17:00.000-07:00

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 at 402.598.3965

4 Important Questions to Ask When When Getting a Mortgage

2010-03-01T16:28:00.000-08:00

A special thanks to Stacy Thorne of West Star Mortgage for her interview!

You know, home buyers often have several questions about fees involved in the whole mortgage process. I know mortgages and their associated fees can seem overwhelming and confusing at first, so I thought I’d ask Stacy Thorne of West Star Mortgage to break down those fees - so you can make best-informed decision possible when it comes time for you to shop for a loan.

So, here is a breakdown of the questions I asked and the answers Stacy provided!

Question 1. In Nebraska, a Home Loan Is Called a “Deed of Trust” While In Other States It’s Called a Mortgage. What’s the Difference?

Answer: Actually, they’re very much the same thing. It’s just that the administrative processes are different. The more common term, of course, is “mortgage.”

Question 2: What Are Standard Mortgage Fees?

Answer : You can break them down into three areas:

• Lender fees – these are administrative fees for processing the loan.
• Third party fees – these are standard fees charged by, for example, a title company, which searches the title to make sure there aren’t any unexpected liens or other things of that nature. Other third party fees can include: appraisals, credit reports, closing fee, etc.
• Any local or state government fees (varies by state)

Question 3: Are Fees Negotiable?

Answer : For the most part, no. They’re pretty standard. However, lenders will be more flexible on the mortgage loan’s interest rate because they want to remain competitive with other lenders.
So, be sure to compare rates among lenders to get the best deal! It can save you a tremendous amount of money over the life of the loan!

Question 4: What’s the Difference between a Mortgage Banker and a Mortgage Broker?

Answer : A mortgage banker lends you their money.Think of mortgage brokers as “go-betweens.” That is, their job is to find you the best mortgage for your needs. So, they shop for that mortgage among banks or lenders and charge a fee for that service.As you can see, this is more expensive than working directly with a banker but a broker can be a good choice in the right circumstances.

I hope you found this information valuable, because I have much more to share with you ! Naturally, I couldn’t include everything in this short message, so why don’t you give me a call today at 402-598-3965 or contact me at peg@maloney.com , so I can provide you with all the information you need to make the right decision!

I look forward to speaking with you soon!

Use These Steps to Raise Your Credit Score and Get a LOWER Interest Rate on Your Mortgage.

2010-02-17T08:51:00.000-08:00

Pay Off YOUR Debt, NOW!

The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate credit card debt first.They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!

What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

1.) Pay Your Bills on Time – All the Time!
I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.”

2.) Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%)

Is this a good ratio?
Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better.So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

I’d be happy to discuss some more in-depth budgeting tips and provide you with information on mortgages at the same time! Go to (insert link) right now so we can get together and have an interest friendly financial chat!

You're Invited to Tour My Omaha, NE Re/MAX Office & Meet My Exceptional Staff!

2010-02-01T11:29:00.000-08:00

It's time for a special break from my real estate education articles - let's take you on a tour of my office! We're located on 98th and Giles in Omaha, NE, so when we're working together on your next home, you'll meet my exceptional team that will help you get the deal done!

Sue and Missy are my assistants that take care of your listings and closing contract, while I focus on negotiating with the seller to get you the absolute best deal. Karen and Rhonda are my buyers specialists who will find your perfect home here in Omaha and walk you through all the steps so you make a decision that's right for you.

So, if you know anyone who is looking to make a decision in real estate within the next six months, send them over to my team - we'll take excellent care of them!

Why You Should Hire "Sherlock Holmes" To Increase The Value of Your Home

2010-01-18T17:54:00.000-08:00

No, you don't need the fictional detective inspector. However, you do need a home inspector!

Think of this as a "pre-emptive strike" to maintain or increase your home's value before you put it on the market. Here are the benefits an inspector provides you:

Benefit 1: The inspector can uncover any problems that need fixing, and you can correct them before any potential buyers enter your home. Such an inspection can prevent your sale from falling through!

Benefit 2: With an inspection, you can show prospective buyers receipts to prove the work has been done. Buyers love proof! In reality and in their eyes, it underpins the value of your home and the asking price.

Benefit 3: You may be able to factor the cost of the inspection into the asking price for your home!

Benefit 4: When you have a presale home inspection completed, you're able to estimate if the discount the prospective buyer is asking is reasonable. In other words, you can refuse unreasonably low offers if you know the value of your house, including the degree of its defects.

So, How Do I Find a Qualified Home Inspector?

I can recommend a certified home inspector who will do a great job for you. However, if you decide you want to do it on your own, make sure he or she is qualified!

Con artists sometimes pose as home inspectors, taking your money and giving you nothing but grief in return. Here's how to know if an inspector is the real deal:

    * Ask your friends for referrals. If they've had a good experience, go with that home inspector.

    * I’d recommend you interview a minimum of two or three inspectors before choosing one. Make sure they’re full-time professionals conducting several inspections a year.

    * If possible, select a home inspector who’s a member of The American Society of Home Inspectors (http://www.ashi.org/) or the National Association of Home Inspectors http://www.nahi.org/. These association members follow a stated code of ethics. In addition, they’re prohibited from having a professional interest in the sale, repair or maintenance of a property they inspect. They’re also forbidden from using their inspection business as a way to find customers for a handyman service that they “happen” to own. You may want to go on the Internet and use ASHI’s “Find a Home Inspector” link to identify potential candidates in our locality.

    * As part of the interview process ask for samples of comprehensive reports (about 20-50 pages in length). The samples should be painstakingly done and backed up with complete details, including photos and diagrams. If an "inspector" refuses to give you a report or provides only a sloppily written 2-to-5 page sample, run the other way!

What Does a Home Inspector Cost?

Frankly, the rates vary. On a national level, the rates fall in the range of $200 to $400.

As part of the interview process, I recommend you ask several inspectors for their rates so you can get an idea of the price range.

In the end, keep in mind that while the cost of an inspection may seem high, it can actually add several thousand dollars to the value of your home! So, don't think of it as a cost; think of it as an investment!

What Exactly Does a Home Inspector Evaluate?

In general, he or she will look at the following areas:

Energy Conservation/Safety Items
Electrical System Wiring, Service Panel, Devices, and Service Capacity
Exterior Walls, Siding, Trim
Floor, Wall, Ceiling, Roof Structures
Foundation, Footings, Crawl Space, Basements, Sub-flooring, Decks
Gutters, Downspouts
Heating & Cooling Systems
Insulation & Ventilation
Interior Floors, Walls, Ceilings
Moisture Intrusion/Mold
Overall Structural Integrity
Plumbing Systems, (fixtures, supply lines, drains, water heating devices, etc.)
Property Drainage/Landscaping
Roof, Roof Shingles, Chimneys, Attic
Walks and Drives
Windows, Doors, Cabinets, Counters, etc.

Should I Be Present During a Home Inspection?

You bet! A typical inspection takes three hours or more, so I recommend that you be present for at least the first 30 minutes to make sure the job is being done thoroughly.

At the end of the inspection, the home inspector should give you a point-by-point summary of what needs to be corrected in order to add value to your home!

Hope you enjoyed this information! If you have more questions, contact me at 402.598.3965 or email peg@maloney.com!

What Determines the Value of Your Home?

2010-01-04T18:06:00.000-08:00

What Determines the Value of Your Home?

Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area.

So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range.

But market value is also determined by a number of factors including the following:

External Factors

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc.

Internal Factors

The condition of a home's interior also has a huge influence on prospective buyers.

When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them.

Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc.

Supply and Demand

"Supply and demand" simply refers to the number of homes for sale versus the number of buyers.

When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell

Location

More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location."

While that's not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc.

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood? Aren't Allowances Made for This?

Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties

Where Do I Find Sales Comparison Information?

The easiest source to access is your realtor. After all, it's his or business to know such information

But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. The Local Assessor's Office

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll.

Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service.

2. Online Private Companies

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee.

If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information

3. Your Local Newspaper

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections

The Key to Getting the Price You Want (or Close To It) for Your Home

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the realtor!

He or she should work hard to qualify those buyers upfront so the right people are viewing your property!

In other words, the realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you.

See how I do that for you by sending me an email to peg@maloney.com