Freguently Asked Real Estate Questions-Ep. 5

Should I buy now or wait?

If you are using FHA financing to purchase your next home, I would suggest buying BEFORE April 18th. I follow the real estate blog kcmblog.com, which stands for keeping current matters, and the information below about FHA loans was recently posted.

The administration recently announced increases to the insurance premiums that the Federal Housing Administration (FHA) charges. FHA is the dominant loan program in the marketplace today. The FHA has two types of Mortgage Insurance Premiums – Up Front Mortgage Insurance Premium (UFMIP) and the Monthly Mortgage Insurance Premium (MMIP).

UFMIP is typically added to the loan amount and financed over the term of the loan. MMIP is part of the monthly mortgage payment for a minimum of five years and a maximum of fourteen, depending on the loan-to-value.

For the majority of FHA Insured loans, the MMIP will be increasing .25% effective April 18th which is, in effect, equivalent to a .25% increase in interest rates. The income ratios that lenders use in qualifying borrowers look at the total payment. Therefore, the MMIP hike has the same impact on affordability as a rate hike. Higher monthly costs mean lower loan amounts and lower loan amounts mean lower offers that borrowers can make on houses. This will translate into lower sales prices. Nothing is good in this news. The increase in Annual Mortgage Insurance Premiums for forward mortgage amortization terms is effective for case numbers assigned on or after April 18, 2011.

For example using a 30 year term with a sales price of $163,000, currently the FHA monthly MIP is $118 a month, after April 18th it will be $151, this is a $33 increase in your monthly payment.

FHA loans allow you to get into a house for as little as a 3.5% down payment. I know some of the best mortgage professionals in Omaha. Call me for a referral if you need to get preapproved quickly. Interest rates are still really low. If you are thinking of buying, you can get the best deal now before the increase, so don’t wait!

Frequently Asked Real Estate Questions-Ep. 4

What can I do to enhance my curb appeal?

In the winter months it can be a difficult task to increase your curb appeal. Most importantly during that time, be sure you keep your sidewalks and driveway clear of snow and ice at ALL times. In spring and summer, make sure you keep the sidewalks and driveway swept and clean. And of course in the fall, clean up the leaves. You can always add more color by using tasteful decorations that coincide with the season or an upcoming holiday. You can plant flowers in the spring and summer or use artificial flowers or wreaths in the winter months. Some other easy ways to add color would be to paint your front door and or shutters.

Some larger items that are sure to increase your curb appeal would be to replace your entry door, Garage door and siding. Entry door replacement can really make a big difference. Just make sure it matches the style of your house and the rest of the neighborhood. Garage door replacement, I would advise you spend the extra money to get an insulated door. Some buyers will use the garage as a workshop and will want it to be insulated. Siding replacement will give your house a face lift. This upgrade costs more than the others, so be sure you truly need it before spending the money on it.

I offer my clients a free no obligation meeting when they are considering putting their home up for sale. When we meet, we talk about what to expect when you hire me, what is the best price to list your house at and what things you should improve or spend money on PRIOR to listing your home. This allows you to budget and plan accordingly. We can discuss if you need a major face lift, like siding, or just a splash of color. I will help you figure out what is best to enhance your homes curb appeal. It does not have to cost a lot of money to make your house stand out from the competition.

Thinking of selling this year? Call me today and I can help you get ready.

Frequently Asked Real Estate Questions-Ep. 3

Do pictures really matter?

YES! They are EXTREMELY important. You only have one chance to make a great first impression with a potential buyer. When you are selling your home you need to make sure it shows its best at all times, but most importantly in the pictures. Over 80% of buyers are looking for their new home online and looking at the pictures of your home.

I have a PROFESSIONAL photographer handle the photography for all my listings. When you list your home with me you get the best presentation possible. I work with Paula Moser of Paula Moser Photography. She was voted the number one wedding photographer in 2010 from theknot.com. You can check out her work at www.paulamoser.com.

Great pictures will get the buyer looking at your house online and then set up an appointment to see it. There is so much competition in the market right now, you must be sure your house stands out from the rest. Make sure you invest the time to make your home picture perfect and hire an agent who will do the same.

Keep me in mind if you know of anyone looking to buy, sell or invest in real estate. I appreciate the opportunity to earn their business!

Frequently Asked Real Estate Questions-Ep. 2

Should I purchase a home warranty?

Most home warranty programs cover Heating and A/C, Appliances, Electrical and Plumbing. Home warranty companies work like this, they will come out and repair these items for a trip fee and if they are not able to repair them, they will replace them. For a 1 year home warranty it is about $400 depending on what company you use. Most will give a discount per year if you sign up for more than one year at a time. It is important to note, this does not replace home owners insurance or a whole home inspection as both of these have different coverage for your home.

As a buyer you can request the seller pay for this on your behalf or you can purchase it at closing, or anytime after. If you have a whole home inspection done on the house you are purchasing, most home inspection companies will give you a 90 day free home warranty.

As an agent I always advise my buyers to review what the home warranty gives you and decide if this is something you feel you will need or will help you in the first year of owning a home. If the appliances or heating and A/C are older units it may make more sense to have a warranty plan, versus if the home is only 2 years old and those items typically covered are fairly new.

For sellers, at times it makes sense for you to automatically include a home warranty for the buyers. If your home comes with a 1 year home warranty, it will take away the buyers concern of a costly out of pocket repair. This may help your home sell faster than a comparable home without a home warranty included for the buyer.

Should I purchase a home warranty? My answer is, highly consider it, with regard to the condition of the items it will cover in the home you are purchasing.

Frequently Asked Real Estate Questions-Ep. 1

Should I get pre-approved before looking for a home? YES!

This is an extremely important part of the process and is most definitely the first step. You want to find out exactly how much you are approved for and make sure you get an estimated payment amount. You want to know that before so you can look at homes in the price range you are comfortable with. Also, you need an estimate of what the down payment amount will be required. This way you will know if you need to save additional funds or this may could change the price range you shop in as well. Here is what I recommend.

1. Ask around for referrals of Mortgage Loan Specialist. Ask your friends, family, co-workers and real estate agent. I am sure someone you know has had a good experience with one and will recommend them to you. I know some of the best in Omaha, you can always ask me for a referral.

2. Meet with at least two of them. Make sure you are a good fit. Have them explain the process to you. The more you know up front the easier it will be.

3. Get your income and asset information together.

4. Go through the actual pre-approval process with the Mortgage Loan Specialist you picked. You should get a letter stating you are pre-approved and an estimated cost sheet showing estimated payment and down payment. As well as interest rate and closing costs.

5. Call me! Or your agent. It is time to start shopping for your new home! Make sure you pick the right agent too. Someone who knows the market and will work hard for you.

Now you are prepared and know exactly what price range you can afford and are comfortable with. The process of purchasing a new home does not have to be overwhelming, you just need to know the right steps and work with an agent that can guide along the way.

Share the wealth!

Welcome back to my blog! I truly appreciate you taking the time to watch my video posts!

You have heard me say many times that I want to be your resource for real estate, and I do! BUT today I want to expand that even more and tell you I want to be your connection for other things you may need. I am out networking each and every week. I meet several other professionals in Omaha almost daily. I belong to a business networking group, where the focus is to pass referrals to the other 30 professionals with-in the group. I have been a member of this group for 3 years now and know the members well. I want to share these great people with you. From time to time I will feature them on my blog so you can get to know them as well, but for now, just call or email me with what professional service you may be in need of and I will connect you.

Your son or daughter is getting married, graduating or just had a new baby and you are in need of a photographer? I know a fabulous one! She takes the photos of all my listings too.

Need some electoral work done around the house? Call me, I know a great electrician.
Time to finish your basement or remodel your kitchen? I know a guy!

Need some auto body work done? No problem, I know a reputable place that will take good care of you.

I think you get my point. Whatever you need, reach out to me. It can be for real estate or well just about anything. You can call, email, text or send me a message on FaceBook. I will get right back to you.

I hope you and yours have a VERY Merry Christmas and of course a Happy New Year.

"When you cease to make a contribution, you begin to die." -Eleanor Roosevelt-

Giving Thanks!

“Today I want to just take a quick moment to say thank you to everyone who has used me to help buy or sell a house or sent someone my way. My business has been built on happy clients using me again or referring me their friends, co-workers and family members. I truly appreciate the trust you have placed in me and will continue to work hard to earn your future business. I hope each and every one of you have a very HAPPY THANKSGIVING!”

Calling all Investors! Let me help you find the great deals that are out there. It is such a great time to buy. Do you want to start investing in rental properties or homes that need some TLC so you can re-sell for a profit? I will search out the deals and make sure the property meets your goals.

There are homes listed for sale by home owners who see the value in selling their current size home and buying a new one to take advantage of the LOW interest rates. They have value priced their homes to get them sold. These are great values for buyers! Investors!

I am currently working with a client who purchased a house he intends to rent to his son and his friends, while they are going to college. He will make over 10% annually on this investment, not including any value appreciation on the home! There are pros and cons to investing in real estate and I will make sure you know both sides before you begin.

Some home owners have found that they need to short sale their home to sell it. This means the bank will agree to take less than what the current homeowner owes on their home to avoid the home going into foreclosure. Some may need some TLC to get into shape, but if you are patient and willing to put a little work into the home, you can find some that are a steal.

If you or someone you know is considering investing in real estate in the next 3 to 6 months, please give me a call, email or text. I am easy to reach! Text or call me direct at 402-305-4335 or email me at Susan@gosusanclark.com.