When to buy real estate

Many people question when is the right time to buy real estate.  The real estate market had become overpriced and we went through a recession when prices fell.  Recently prices have recovered.  Should you wait to see if they go back down or should you buy now?  Nobody can accurately predict everything that will happen in the future but a good real estate agent can help you make the best decision.  Do I think prices will go back down soon?  There is an article in Mortgage News Daily that says that in the fourth quarter of 2012 home prices showed a rate of annual appreciation greater than in any quarter since the end of 2005.  That makes me think that now is a good time to buy.  But it is only a decision you can make and Landmark is here to help guide you in your decision. 

Landmark Lead Safe

What is RRP lead safe? Why is it important? And WHY are property repairs and maintanence more expensive now because of it ?

The EPA RRP Rule represents the most significant and far-reaching Federal lead regulation since HUD published the Lead-Safe Housing Rule over 10 years ago. But how to properly implement the various components of the rule has created many issues and concerns among public agencies, community groups, contractors, property managers and owners.

When lead paint is sanded or scraped or disturbed, microscopic particles of the metal mingle with the dust that is created. That "lead-containing" dust is what can seriously impact people'shealth, especially children and pregnant women. Lead causes a long list of problems, including learning and behavioral problems, kidney disease, high blood pressure, miscarriage and birth defects. Lead can even cause depression and aggressive behavior. Experts say lead poisoning doubles the number of children in special education classes, and some studies show it plays a major role in crime rates as well. There is no safe level of lead - any amount can be harmful to you and your family.

The EPA’s Renovate, Repair and Painting Rule (RRP), which began on April 22, 2010, is designed to help reduce the hazards of lead based paint exposure during renovation projects. The RRP Rule is best known for the very specific and tedious safety and work practices that must be followed by all contractors performing renovation, repair and painting projects that will disturb lead-based paint in homes, child care facilities and schools built before 1978. In addition to the extensive lead safe work practices,  the rule requires that firms also keep extensive records for all work done for a minimum of three years.

The fines for non-compliance can be over $30,000 per day, and enforcement has begun nation wide. One Omaha company was already asessed fines and penalties as a cost of over $15,000. Click here to read the original story from the OWH.

It's Not All Bad News

Good economic news can be a little sparse right now and selling your home in today’s market can be intimidating if you are not working with a REALTOR® who has experience and market knowledge. Many homeowners are scared they will be selling their home for a discount in today’s market, and if you listen to the national news, this will only feed the hysteria.

Don’t base your decisions on what you read in the paper and hear on T.V. because not all markets are the same. The first step would be to request a comparative market analysis from a REALTOR® to determine if it’s the right time to sell or not.

Keep in mind, if you are selling your house for possibly less than your purchase price, you may be able to more-than offset this by your next purchase. Many homeowners are taking advantage of this with low interest rates to move up to their dream home!

Lessons We Can Learn From the Recession

As a homeowner are you worried about the value of your home? As an investor are you wondering how to know the best time to buy and the best time to sell? With recession still in the air and moving out slower then most people would have predicted, all property owners are pensive about the future.

I recently read an article on Inman News called "5 bright spots in real estate recession". While he refers to these trends as 'bright spots' I see it more as lessons for all property owners to take to heart and learn from.

1. People now buy for the long term.
Don't take a short-term view of the investment property you purchase or your primary residence. Keep your properties for a longer period of time then in the past.

2. Dysfunctional properties are being weeded out and creatively reused.Investors in real estate need to look at taking dysfunctional properties and turning them into something useful for the community.

3. American housing stock is getting an energy-efficient upgrade.
Instead of moving to a newer home check out upgrading your home with more energy efficient water heaters, doors and windows.

4. People are making more responsible mortgage decisions and building financial good habits in the process.
If you are in the market to purchase property plan ahead by saving money for a down payment , keep your credit good so that you have a good FICO score and can get the best loan. Once you do get your loan, read your loan documents carefully and use a REALTOR® to help you get the best price for the property and have someone knowledgeable on your side that's working for your best interest. Something you may not know, Landmark REALTORS® offer free buyer representation.

5. Our feelings about debt and equity have been reformed.
Don't refinance to pull out money to pay off other debts or buy other items you want. Let your equity in your home just build up, otherwise you will get caught up in overspending. Concentrate on paying your principal down to avoid being upside down on your mortgage.

If you have questions about purchasing or selling a property for your personal residence or for an investment call our knowledgeable REALTORS® at Landmark Group at 402.55.8111 and they can help you navigate through the process, or check out our website at http://landmarkomaha.com for more real estate information.

Buying New or Used?

In today's market, when one goes to purchase a house it means they have done their research and have wrestled with all their options. Countless aspects are to be considered when taking this step, but besides finances and family matters, deciding what to buy is just as big of a decision. Three or four bedroom? Bigger yard or bigger house? Two car garage or one?

Even before those questions arise, you should decide whether you are going to look at a old properties or new ones. Each has its advantages and disadvantages - once you've processed both sides of the spectrum, it's up to you to decide which areas you are willing to cope with and which areas you're set on.

Advantages to buying a older home

• Old world construction by a genuine craftsman
• Larger yard
• More character
• Longer-term neighbors
• Established neighborhood, no zoning changes
  
• Mature trees and vegetation
  
• Closer to downtown entertainment and restaurants

Disadvantages to buying a older home

• More periodic maintenance
  
• Expensive to replace wiring and plumbing
  
• Smaller closets, storage space, garages
  
• Might require updates
  
• Often more expensive due to location and walkability
  
• Smaller square footage on average

Advantages to buying a new home

• Little maintenance
  
• Modern conveniences
• Builder's warranty
  
• Energy efficient
  
• Built to code
  
• Emotional factor of newness
  
• Less expensive (if not custom)
  
• Greater square footage, on average

Disadvantages to buying a new home

• Tract homes have similar floor plans, little individuality
  
• Immature vegetation
  
• House settling may cause foundational cracks
  
• Longer commuting distances to downtown

So when thoughts of purchasing arise in your head, make sure this is one of the first choices you shuffle through. It will narrow down your options by a world and will make your desires clearer to your REALTOR®. 

Article source: About.com - Home Buying/Selling

Buyer Representation (Buyer's Agent)

The age old question when buying a piece of real estate is "Do I need an agent to represent me as a buyer's agent or do I deal with the listing agent directly?" The listing agent is going to tell you that you as the buyer, do not need to have your own agent and you should use him.

As the listing agent sees this, there are two reasons that a buyer should not have a buyer's agent. One is that the listing agent does not have to deal with another agent making negotiations, which is less time consuming. The second is that the listing agent does not have to split the commission with the selling agent.

But before you get involved with a real estate transaction without a buyer's agent, ask yourself these questions:

1. Are you familiar with the property type that you are thinking of buying?
2. Are you familiar with the construction techniques used to build the building?
3. Are you familiar with the zoning that is in place for the parcel?
4. Are you familiar with the zoning what you are intending to use the parcel for?
5. Are you good with reviewing contracts?
6. Do you feel confident in your abilities to negotiate?
7. Do you have good access to sales comparisons?
8. Do you have adequate time to review all the information I have listed herein?
9. Do you think you are being objective to the "deal"?
10. Are you good at inspecting for hidden things in both the contract and in the real estate itself?
11. Who wrote the contract?
12. Who besides you is going to review the contract?
13. If this is an investment property with an income, are you familiar with studying income statements?
14. Are you familiar with cap rate and how they work?
15. Do you know what cap rates are used for a property such is this?
16. Do you know how to access what a property will appraise for?
17. Do you feel confident in how to undertake the due diligence process?
18. Have you done this kind of business in the city that the real estate is in?

If you cannot answer all of these questions with confidence, then you should consider using a buyer's agent. They are FREE for home buyers to use as their commission is built into the sales price of the home and is split with the listing agent's commission. Sounds like there aren't too many reasons not to use a buyer's agent.

For more information about this subject, you can email me directly at dpaladino@landmarkomaha.com

Home Ownership

I read a great article about Home Ownership in the Omaha area Board of Realtors June of 2011 edition of Focus called "Why Home Ownership Matters." It broke it down how it matters to people, to communities and to America.

The points in the article made prefect sense as to how home ownership effects so many different aspects. Home owners are happier and healthier; it's the best way to build long-term wealth, not to mention the mortgage interest and property tax deductions. It reduces crime and supports the upkeep of the neighborhood. Plus, we have probably all heard the advertisement that it pumps $60,000.00 into the economy for every house purchased. WOW! And it is the American Dream to own your own home and have a mortgage burning party when its all paid off. Certainly something to look forward to!

For more information see REALTOR.org/Homeownership or contact Landmark Group and speak with one of our experienced REALTORS®.

Source: Omaha Area Board of Realtors, Focus, June 2011

Buyer's Agent

A common misconception among real estate rookies is that when buying a home, you call the agent whose picture and information is shown on the for sale sign, the handouts and flyers. But this is not the right step! Those people looking to purchase a home need to find a buyer's agent to represent themselves. The agent whose information is associated with the property is representing the seller of the house. Not the buyer! That agent has the seller's interests in mind and if any conflict arises, they will favor their client first and foremost.

A buyer's agent can be considered your personal home shopper. They scan the real estate listings available in your area and narrow down the options based on your lifestyle, taste and budget. They want to help you find the property of your dreams. And they help you through the thick parts - contract negotiations, walk-throughs, closing documents, etc.

The best part about hiring a buyer's agent? The seller of the home is responsible for their commission! Meaning you don't pay a dime for your agent's outstanding service. The reason the seller pays the buyer's agent is because they are trying to sell their home - they want agents seeking out their property and bringing in potential buyers.

So remember next time a property catches your eye, call your REALTOR® to assist you further. And if you don't have a REALTOR®, find one you know you can trust and who will act with your best interest in mind.

Are There Any Reasons NOT to Buy a Home?

I found this great article from About.com, and it discusses ten reasons why someone might not want to become a home owner. This is one of the biggest purchases most people make in their life, so make sure you know it's what you want before it's too late. Scan the list below if you're on the fence about this decision. If more than one of these reasons applies to you, you should become weary of taking the plunge - consider other options such as renting a home or leasing a unit in an apartment complex.

REASON 1: NO DOWN PAYMENT

Excluding VA loans and a smattering of first-time home buyer programs, you will need to make a down payment to finance a home purchase. This amount can range from 3.5% of the sales price for an FHA loan to a minimum of 10% for a conventional loan. The best interest rates are offered to those buyers with 20% to put down.

REASON 2: BAD CREDIT

Bad credit can disqualify you from obtaining any mortgage. Those with credit scores below 620 might find hard-money sources that will lend on a home, but the interest rates and fees will be through the roof. A higher interest rate equates to a higher mortgage payment. If you have borderline credit, consider waiting, and making changes in your spending habits to improve your FICO score.

REASON 3: HIGH DEBT RATIOS

Lenders change the rules all the time for debt ratios. If bills eat up 50% of your gross income every month, you probably cannot afford a mortgage payment on top of those expenses. Because lender guidelines have changed since the mortgage meltdown of 2007, your debt ratios will need to be line or you will never get through underwriting. Consider paying down or paying off your credit cards before buying a home.

REASON 4: LITTLE JOB SECURITY

If you have reason to believe that your job may be in jeopardy, now is not a good time to buy a home. Many home owners who go into foreclosure end up in that position because they have lost their jobs. Unemployed individuals often place priorities on buying groceries and putting gas in their car over making a mortgage payment, hoping they can make up the mortgage payments later. Instead, they tend to go deeper into debt.

REASON 5: WHEN RENTING IS 50% CHEAPER THAN BUYING

If your main objective is to put a roof over your head, consider whether it's smarter to rent than to buy. In some real estate markets, it can be a bit of a stretch to meet the financial obligations of home ownership when rents in those areas are 50% lower than a mortgage payment. When home prices are so high that few buyers cannot afford to buy their first home, you may be better off renting and paying less for that roof.

REASON 6: TEND TO MOVE EVERY YEAR

Buying a home is generally a long-term commitment. If you love the excitement of new digs, which makes you want to constantly change your environment, you may find that it's impossible to sell your new home in a relatively short period of time without absorbing a big loss. The reason many people buy a home is to build equity, and it's very difficult to build equity if you're buying and selling at the drop of a hat, especially in areas where appreciation is little or none.

REASON 7: UNSTABLE RELATIONSHIPS

Although many single people buy a home, especially single woman home buyers, often a home buying purchase is made with a partner or spouse. If your relationship with that person is unstable, what will you do if you're relying on that person's income and support to make the mortgage payment, and that person vanishes? At that point you could be facing a short sale or, at the very least, a loan modification, both of which affect credit.

REASON 8: DECLINING REAL ESTATE MARKET

People who buy homes in declining markets often watch in horror as their equity disappears when the market continues to fall. Home buying in a falling market means if you put down 20% and the market falls another 5%, you have now lost 25% of your investment. Poof. Gone. Out the window. The only way that it makes sense to buy in a falling market is if you buy below the comparable sales. If you try to time the real estate market and buy at the bottom, your predictions could be wrong.

REASON 9: CONSTANT TRAVELING

Let's be serious here. If you travel all the time, why would you want to buy a home? Some people say condos are a good choice for people on the go; it's called a lock-and-go lifestyle. They feel that other owners in the condo complex will watch over their home in their absence and nothing will happen. Well, what about that homeowner association fee that is due and payable every month for services that are used once or twice a month? That could be a huge waste of money.

REASON 10: EVERYBODY ELSE IS DOING IT

It's a fact that in seller's markets, buyers often end up in multiple offer situations. That's because in those markets, inventory is tight and demand is high. When you buy a home in a seller's market, you have little negotiating power and often will pay more than the list price. You'd be much better off buying a home in a buyer's market, when there are fewer buyers competing for larger amounts of inventory. You don't always have to follow the crowd to make a wise financial decision.

** This article was written by Elizabeth Weintraub who has 30+ years in the real estate industry and is currently a full-time broker-associate at Lyon Real Estate's midtown Sacramento office.

Craigslist Posting Offers Pet Dinosaur

A man in Vancouver, Canada is unable to afford a home in the very expensive city. He has posted a listing on Craigslist offering to be a "dinosaur" for anyone who will let him live in their house. Some of the duties he offers are, "babysit children, scare the mailman, wash dishes, and entertain guests."

Hard to believe? Click the link below to see the original posting.


http://curbed.com/archives/2011/08/08/guy-offers-to-become-a-pet-dinosaur-in-exchange-for-housing.php

Buying is Cheaper Than Renting, But Not in Omaha

CNN reports that a 2 bed home is cheaper to buy than rent in most cities. Omaha is one of the few cities, they say, that renting is a better option than buying. CNN reports that buying is 27 times annual rents.

Why You Should Work With a REALTOR®

It's no secret that the economy isn't the strongest it's ever been or that the housing market is still trying to come back from its dip a few years back. But what may be a secret to some is that, despite the state of our economy, trying to cut costs and sell a home yourself (For Sale By Owner/FSBO) may not be the best route to take.

Hiring a REALTOR®, a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS®, will mean paying REALTOR® commissions but will also mean saving yourself from a humongous headache. Here are nine reasons why you should choose to work with a REALTOR® during the home selling process:

1. You'll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal and avoid delays or costly mistakes.
2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools and more. They'll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? And second, will the property have resale value when I am ready to sell?
3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will even take some investigation by your REALTOR® to find all available properties.
4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession and inclusion or exclusion of repairs, furnishing or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Property marketing power. Real estate doesn't sell due to advertising alone. In fact, a large share of real estate sales come as a result of a practitioner's contacts through previous clients, referrals, friends and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers in your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
6. Real estate has its own language. If you don't know a CMA from a PUD, you can understand why it's important to work with a professional who is immersed in the industry and knows the jargon.
7. REALTORS® have done it before. Most people buy and sell a home only a few times in a lifetime, usually with quite a few years in between each purchase. And even if you've done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is crucial.
8. Buying and selling is emotional. A home often symbolizes family, rest and security - it's not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they'll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.
9. Ethical treatment. Every member of the NATIONAL ASSOCIATION OF REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation, and they're required to complete a refresher course every four years.

Still think you are down for the FSBO challenge? Clearly, having a REALTOR® on your side will help you navigate through the complex process that is home buying and selling. Pick a professional you trust to help you through this time. You won't regret it.

(Article comes from REALTOR® Magazine: "Why You Should Work With a REALTOR®")

Home Loans

I just wanted to share a quick article with you entitled "Fed Imposes $85M Penalty Against Wells Fargo."

Essentially, Wells Fargo was hit with this fine for leading customers into high-cost loans and also for falsifying income information on home loan forms. So to everybody out there about to take this big step in their life: MAKE SURE YOU KNOW WHO YOU'RE DEALING WITH!!! Loans and mortgages can follow you for a lifetime, so make sure you trust the people you're working with to recommend what's best for you and not their pockets! Because unfortunately, although a lending company or bank is well-established, it doesn't mean they are trustworthy.

Bad Owners

I toured a house yesterday that the bank had foreclosed. The owner in-protest took all the copper, the air conditioner, the appliances, the water heater, the fixtures and some electrical items. The toilet and sink were even removed out of one of the bathrooms.

From what I understand, it is very difficult for a bank to actually evict a person from the home. The process may take months while the tenant is still allowed to live in the house, mortgage free. I think banks should be allowed to foreclose more swiftly in order to protect their only asset.

“Flipping”

This is a common phrase. Some people find it to be a cheesy way to turn a profit and others seem to think it’s easy. I believe or better yet - know - it is neither. The ones who say it is easy probably only watch the TV shows.

If it was as easy as the shows on TV, then everybody would do it. In “flipping” you must move fast and know a good deal when you see one. You must have the right people in place. This means a REALTOR® willing to tell you when it’s a great deal and when the margins are too tight to make this worthwhile.

The idea is to get the house ready to sell ASAP. This doesn’t mean fix the house to the bare minimum causing problems for the buyer down the road. If you go a little further in the renovation, typically the buyer will recognize this and will pursue purchasing the home. Going the extra step may mean making $15,000 instead of $20,000. But if the property sells in the first two weeks instead of a month or two later, you may actually save some of the $5,000 difference. It will also allow you to sleep better at night. The idea is to sell a quality house quickly and move on to the next one. If you can sell it faster and allows you to duplicate the process, the $5,000 can easily be made up for.


Thank you,

Chris Bauer
Real Estate Investment Advisor
Landmark Group
Cell: 402-510-1300
Fax: 402-916-4051

Go to www.Chris-Bauer.com for real estate tips and information!

First Time Financing

My advice to anyone looking at their first home purchase is to start saving. I would recommend that all buyers try to secure a conventional loan. They are easier to get and have fewer restrictions.

I ran into a problem last month with a buyer who wanted a foreclosure but had an FHA loan. The lending prohibited him from buying the house while any repairs were needed. The bank would not do any repairs before the sale. A normal FHA loan wouldn't work for him. When he tried switching to a FHA 203k loan, the new lender denied him the financing. If he had the savings to put down a payment with a conventional loan, he would be living in a new house right now instead of renting still.

Negotiating Real Estate

In the art of negotiating the price down or finding a property with a great price, keep this in mind:

If the property isn't priced correctly and you know it, the seller's realtor and the seller for that matter will most likely know. (The seller is most likely just being stubborn and the realtor is hiding their true opinion.)

Don't wait until they lower the price because everyone will jump on it. Don't be afraid to go after the correct price/great deal ahead of time. I have had multiple clients wait until the price is lowered, only to have every Tom, Dick and Harry offer on the property. This can drive up the price and add to frustration. Don't be afraid, they can only say "NO".