Tammy Stuart, Broker Associate CRS -Heartland Properties-Council Bluffs/Omaha Real Estate

Omaha's own Warren Buffet agrees: Now is the Time to Buy a Home!

2012-01-30T09:36:00.000-06:00

What Does Warren Buffet Think About Buying A Home?

by THE KCM CREW on JANUARY 30, 2012

Warren Buffet is seen by many as the greatest investor of our time. When he speaks, people listen. Like anyone else in his position of influence, he is criticized by some for using his bullhorn to promote his own business agendas at times. That makes it very interesting when we occasionally learn of how heprivately advises those closest to him.

Such a situation occurred this week. Debbie Bosanek, Warren Buffet’s secretary of 37 years, recently purchased a second home in Surprise, Arizona.

In an article in the Omaha World Herald, Mrs. Bosanek discussed her reasons for purchasing a second home and the personal advice she received from Mr. Buffet.

“I just thought it was time to buy a home. Warren tells me that it will be the best opportunity in my lifetime. Mortgage rates are low and prices have dropped dramatically…I share Warren’s view about the future of America, and we believe that our country will do just fine. I’m happy to make this investment.”

The greatest investor of the last century privately has told the people closest to him that buying a home right now “will be the best opportunity in [their] lifetime”.

That’s good enough for us. How about you?

The Real Estate Market is Doing Better than Many Believe. ~ Check Out These Stats!

2012-01-11T10:49:00.000-06:00

People Are Buying Homes AND GETTING MORTGAGES!

by THE KCM CREW on JANUARY 11, 2012

Many believe that very few houses are selling and that almost no one can get a mortgage. We want to let everyone know that neither of these assumptions is true. Recently, the National Association of Realtors (NAR) released theirExisting Homes Sales Report. According to the report there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means that approximately 12,000 houses sold yesterday, approximately 12,000 will sell today and approximately 12,000 will sell tomorrow. So the thinking that homes aren’t selling just isn’t true.

Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.

There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe.

INFORMATION PROVIDED BY:

Thinking of Selling Your Home Yourself? Are the Potential Risks Worth the Minimal Advantages??

2011-12-13T12:53:00.001-06:00

Although their are advantages to selling your own home, more often than not the risks far more outweigh the minimal advantages. Contact Tammy to discuss why it is in your best interest to list with a professional such as a Certified Residential Specialist.

(Tammy Stuart 402.689.1769 Tammy@SOLDbySTUART.com)

FSBO Sellers Decline as More Sellers Turn to Real Estate Agents to Sell the Home

On December 12, 2011, in Did You Know, by Jessica Lautz, Survey Research Manager

The method most used to sell a home has changed in recent years. A higher share of sellers are relying on the expertise of real estate agents and brokers to sell their home, rather than trying other methods.

From 1991 to 2011 the share of home sellers who used a real estate agent or broker to sell their home increased from 77 percent to 87 percent.
Over the same time period, the share of sellers who sold their home as a FSBO (For-Sale-By-Owner) decreased from 19 percent to 10 percent.
Sellers use real estate professionals to help them sell their home in a reasonable timeframe, to market their home to potential buyers, and to price the home competitively.
For more information on the Profile of Home Buyers and Sellers, click here.

Jessica Lautz, Survey Research Manager

Jessica Lautz is the Survey Research Manager. Jessica analyzes data and writes annual studies such as the Member Profile, the Profile of Home Buyers and Sellers, and the Commercial Member Profile.

"Save 2nd Base" - 1st Annual - Pub Crawl for JEH Breast Health Center - 100 Block, Council Bluffs, Iowa

2011-10-12T14:51:00.001-05:00

"Save 2nd Base"

Pub Crawl for JEH Breast Health Center

Date: October 15th 2011
Time: 4p-8p

Crawl from PUB to PUB on the 100 Block
Barleys~Glory Day's~T'z~1892~Beer & Loathing~Fiddln Monkey~Venue 162

Check –in / register – Passage way
3:30-5:30pm
Early Sign-Up - $15/per person
Day of Event - $20/per person

REGISTRATION REQUIRED TO PARTICIPATE & BE ELIGIBLE FOR PRIZES!!
For early sign up:
save2ndbase100block@gmail.com or fax to 712.396.7780

At Check-In receive:
Wrist Band
Button
Player Card
Souvenir Cup

SPECIALS
$2 Draws
$3 Well Drinks

Special PINK Drinks at each location

Proceeds from this event will go to Jennie Edmundson Hospital Breast Health Center to help in their continued efforts to provide FREE screenings, educational opportunities to those in need and to continue awareness in our community.

Contact Tara Slevin or Amber Hawk at Jennie Edmundson Hospital for more info.

A VARIETY OF PINK T-SHIRTS WILL ALSO BE AVAILABLE FOR SALE TO HELP SUPPORT THIS GREAT CAUSE

Why You Should Choose a Certified Residential Specialist (CRS)

2011-08-30T09:56:00.000-05:00

Why Choose a Certified
Residential Specialist (CRS)

The Answers You Need

In the current marketplace, you need more than just a REALTOR®. You need a professional with the unique training and know-how to create opportunities, identify potential pitfalls up front, and make your home-buying or-selling experience an unqualified success.

You need a Certified Residential Specialist.

What is a Certified
Residential Specialist (CRS)?

A Certified Residential Specialist is a REALTOR® who has earned certification from the Council of Residential Specialists by completing a rigorous course of advanced training and by meeting significant experience requirements. It's this rare combination that makes a Certified Residential Specialist more than just another real estate agent. It's the ability to make a real difference in the purchase or sale of your home that places them among the best in the business. Discover the difference for yourself. And discover how enjoyable and successful a real estate relationship can be.

Benefits for Home Buyers and Sellers:

Less than 4 percent of the more than one million REALTORS® in business today hold the prestigious Certified Residential Specialist (CRS) Designation, the highest professional designation awarded to REALTORS® in the residential sales field. That's because just one in 25 has the experience, the commitment and the hours of advanced training necessary to call themselves a Certified Residential Specialist. Yet, despite all the extra expertise you get, a Certified Residential Specialist doesn't cost any more than any other REALTOR®. In fact, the skills and know-how you get with a Certified Residential Specialist may actually save you time and money.

And that's just the beginning. Here are some of the other reasons you should consider hiring a Certified Residential Specialist when you buy or sell a home.

4 Reasons to Work With the Top 4%

Experience

A hallmark of the Certified Residential Specialist isn't just the advanced training and education they receive. Just as important is the marketplace expertise they bring to the sale or purchase of your home. To earn the Certified Residential Specialist Designation, every REALTOR® must have significant experience and a number of real estate transactions. These strict requirements are your assurance that your Certified Residential Specialist is able to apply his or her education in the real world, giving you the knowledgeable, skilled service you expect.

Ethics

Ethics aren't just important in a REALTOR®. They're essential. That's why every Certified Residential Specialist is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics. That means, when you work with a Certified Residential Specialist, you can rest assured you're dealing with a trained real estate expert who will treat you fairly and professionally every step of the way.

A Focus on Home Buying and Selling

Whether you're looking to buy or sell a home, you face many risks along the way - financial risks, legal risks, even the risk that a home purchase or sale will fall through. A Certified Residential Specialist is trained to minimize those risks.

With that in mind, a Certified Residential Specialist is prepared to bring you the benefits of their significant experience and variety of successful real estate transactions. That expertise, combined with advanced education in areas like finance, technology and marketing, lets you know that your Certified Residential Specialist is able to make your home purchase or sale a success in every way.

Technological Expertise

Technology is changing the face of real estate. Computers, the Internet, mobile communications - each has helped make the market more efficient, and at the same time, more daunting. More than ever, the success of your home purchase or sale depends on the ability of your REALTOR® to harness that technology and make it work for you. For that reason, the training required of your Certified Residential Specialist focuses extensively on technology and its effect on the real estate business. You can count on a Certified Residential Specialist not just to understand technology, but to use it to make your home purchase or sale a worry-free experience.

Information Provided by: Council of Residential Specialists

The Council of Residential Specialists is the largest not-for-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS®, with its headquarters in Chicago, Ill. It is composed of over 38,000 Certified Residential Specialists (CRS) Designees and Candidates/General Members.

Why You Should Choose a Certified Residential Specialist (CRS)

2011-08-30T09:50:00.001-05:00

Why Choose a Certified
Residential Specialist (CRS)

The Answers You Need

You need a Certified Residential Specialist.

What is a Certified
Residential Specialist (CRS)?

Benefits for Home Buyers and Sellers:

And that's just the beginning. Here are some of the other reasons you should consider hiring a Certified Residential Specialist when you buy or sell a home.

4 Reasons to Work With the Top 4%

Experience

Ethics

A Focus on Home Buying and Selling

Technological Expertise

HOLY HAIL!! ~ Now what?? - Council Bluffs Hail Storm 8.18.11

2011-08-18T19:26:00.002-05:00

WOW! What a storm that was! It hit my neighborhood pretty hard and it sounds as though it was city wide!

You may be asking yourself...
Now what??

If you own real estate be sure to notify your insurance company of potential damage within the next few days.

If you aren't 100% sure whether you sustained damage your insurance company may advise you to first seek a damage assessment from a local contractor to avoid filing an unnecessary claim.

If there is damage you will want to get an exact assessment of damage from a local contractor, and then you will want to share this information with your insurance company.

If a claim is necessary your agent will have an adjustor come out to do their own damage (loss) estimate.

Insurance companies vary on their procedures for filing a claim so be sure to talk with your agent, or refer to their website.

Also important to Remember: AVOID STORM CHASER CONTRACTORS if at all possible. These are contractors that go state to state chasing storms to find work. ALWAYS HIRE A REPUTABLE, LOCAL CONTRACTOR FIRST!!

I have many business contacts in the home contracting trades, so never hesitate to call me for a reference!

~ Tammy

The American Red Cross Opens Emergency Aid Station in Council Bluffs

2011-06-27T14:52:00.002-05:00

COUNCIL BLUFFS, Iowa, Saturday, June 25, 2011 --The American Red Cross is offering an alternative for people who either need to move out of their residence or just are concerned about being there in the face of the threatening waters. An Emergency Aid Station will open tonight at 6:00 p.m. for individuals and families who will be able to check in 24 hours a day for information, a meal, shower, nap or in special circumstances, a safe bed for the night just until they can make other provisions. The temporary Emergency Aid Station is intended for citizens of Council Bluffs, but as is always the case with the Red Cross, no one in need is turned away.

Located at First Assembly of God, 3320 Harry Langdon Blvd., Red Cross officials emphasized that this is a temporary safe refuge in the storm. Three shelters, operated by the Red Cross, are open and located at Missouri Valley High School, 605 Lincoln Highway; Peru State College – J. F. Neal Hall, 600 Hoyt St., in Peru, and East Mills High School, 1505 E. 15th St., Malvern. Shelters remain on standby in Douglas, Cass, Sarpy, Dixon, Cedar, Thurston, Washington and Pottawattamie. Additional sites are on standby should the need arise.

More information is available by calling 1-800-RED-CROSS (1-800-733-2767) between 8 a.m. and 7 p.m.

Make a donation:

The Red Cross depends on financial donations to help in times of disaster. Those who want to help people affected by disasters like tornadoes, floods and wildfires, as well as countless crises at home and around the world, can make a donation to support American Red Cross Disaster Relief. This gift enables the Red Cross to prepare for and provide shelter, food, emotional support and other assistance in response to disasters. Visit www.redcross.org or call 1-800-RED-CROSS; people can also text the word “REDCROSS” to 90999 to make a $10 donation. Contributions may also be sent to local American Red Cross chapters or to the American Red Cross, P.O. Box 37243, Washington, DC 20013.

About the American Red Cross:

The American Red Cross shelters, feeds and provides emotional support to victims of disasters; supplies nearly half of the nation’s blood; teaches lifesaving skills; provides international humanitarian aid; and supports military members and their families. The Red Cross is a charitable organization – not a government agency – and depends on volunteers and the generosity of the American public to perform its mission. For more information, please visit www.redcross.org or join our blog at http://blog.redcross.org/.

by American Red Cross Heartland Chapter on Saturday, June 25, 2011 at 5:38pm

What a Government Shutdown Means for REALTORS® & their Clients

2011-04-08T09:44:00.000-05:00

What a Government Shutdown Means for REALTORS®

(April 5, 2011)
The current continuing resolution (CR) providing funding for government operations is set to expire on April 8, 2011. If legislation providing for funding is not signed into law to extend funding after April 8, the federal government could shut down. This means many, but not all, government programs, including some that impact federal housing and mortgage programs, could grind to a halt as early as April 9, 2011. While the true impact of a shutdown is unclear until it actually begins below is a synopsis of how federal housing programs will likely operate in the event of a shutdown. The Office of Management and Budget (OMB) requires each agency to have contingency plans in place and reportedly has instructed agencies to not provide specific information on impacted operations.

Federal Housing Administration

FHA cannot offer endorsements for any new loans in the Single Family Program and cannot make commitments in the Multi-family Program in the event of a shutdown. FHA will maintain operational activities including paying claims and collecting premiums. Management & Marketing (M&M) Contractors managing the REO portfolio can continue to operate.

VA Loan Guaranty Program

Lenders may continue to process and guaranty mortgages through the Loan Guaranty program in the event of a government shutdown.

Internal Revenue Service (IRS)

Should the federal government shut down, the IRS cannot process federal income tax returns or issue refunds (but it can deposit tax payments). Consumers who were expecting to use their tax returns as part of the down payment for a home purchase will temporarily not have access to these refunds.

Flood Insurance

The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) will not be impacted by a government shutdown.

Rural Housing Programs

For the US Department of Agriculture programs, essential personnel working during a shutdown do not include field office staff who typically issue conditional commitments, loan note guarantees, and modification approvals. Thus, lender will not receive approvals during the shutdown. If the lender has already received a conditional commitment from the Rural Development office, then the lender may proceed to close those loans during the shutdown. A conditional commitment, which is good for 90 days, is given to a lender once a USDA Underwriter approves the loan. If a commitment was already issued, the funds were already set aside and the lender may close the loan at its leisure. If Rural Development has not issued a conditional commitment, the lender must wait until funding legislation is enacted before closing a loan.

Government Sponsored Enterprises

Fannie Mae and Freddie Mac will continue operating normally, as will their regulator, the Federal Housing Finance Agency.

Treasury

No official word as of yet, but the Making Home Affordable program, including HAMP and HAFA, may not be affected as the program is funded through the Emergency Economic Stabilization Act which is mandatory spending not discretionary.

Background Information on Government Shutdown

HJ Res. 48 extends the Continuing Appropriations Act, 2011 (Public Law 112-6) to April 8, 2011. If another continuing resolution (CR) or budget is not signed into law, the federal government could shut down on April 9, 2011. This requires the furlough of non-emergency personnel and the curtailment of federal agency activities. Federal contractors cannot be paid. Programs funded by annual appropriations are directly impacted though programs funded by laws other than appropriations (such as Social Security) may also be impacted. The last government shutdown occurred during fiscal year (FY) 1996 and lasted 21 days, from December 16, 1995 through January 6, 1996.

The Anti-Deficiency Act is the primary law preventing government activity when no budget or CR is enacted. The act, found in 31 U.S.C., prohibits:

Making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law.
Involving the government in any obligation to pay money before funds have been appropriated, unless otherwise allowed by law.
Accepting voluntary services for the United States, or employing personal services not authorized by law, except in cases of emergency involving the safety of human life or the protection of property.
Making obligations or expenditures in excess of an apportionment or reapportionment, or in excess of the amount permitted by agency regulations

Basically, the government may not make payments or commitments unless there is enough money in the bank. According to the US Office of Personnel Management, an agency must shut down activities not excepted by the US Office of Management and Budget (OMB) when it no longer has the funds to operate. OPM recommends that agencies:

communicate with employees and representatives about a potential shutdown;
prepare draft furlough notices;
determine which positions are excepted from the furlough according to OMB guidance.

Federal agencies have been required to complete contingency plans since 1980. OMB has three different bulletins that agencies may reference in the development of their shutdown plans. Plans must include, among other things, estimated time to complete a shutdown and the number of employees to be excepted. The President, Members of Congress, presidential appointees, certain legislative branch employees, and federal excepted employees are not subject to the furlough.

Sources

House Resolution 3082, “An Act making appropriations for military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2010, and for other purposes.”
http://www.gpo.gov/fdsys/pkg/BILLS-111hr3082eas2/pdf/BILLS-111hr3082eas2.pdf
Antideficiency Act Background. US Government Accountability Office.
http://gao.gov/ada/antideficiency.htm
Guidance and Information on Furloughs. US Office of Personnel Management.
http://www.opm.gov/furlough/furlough.asp

*Information Provided by the National Association of REALTORS

Real estate: It's time to buy again

2011-04-06T08:46:00.001-05:00

Real estate: It's time to buy again

From Fortune Finance

Posted by Shawn Tully, senior editor-at-large

March 28, 2011 5:00 am

Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.

A home under construction in Austin. The number of new homes in the pipeline nationwide is quite low.

From his wide-rimmed cowboy hat to his roper boots, Mike Castleman fits moviedom's image of the lanky Texas rancher. On a recent March evening, Castleman is feeding cattle biscuits to his two pet longhorn steers, Big Buddy and Little Buddy, on his 460-acre Bar Ten Creek Ranch in Dripping Springs, a hamlet outside Austin in the Texas Hill Country. The spread is a medley of meandering streams, craggy cliffs, and centuries-old oaks. But even in this pastoral setting, his mind keeps returning to a subject he knows as well as any expert around: the housing market. "I'm a dirt-road economist who sees what's happening on the ground, and in 35 years I've never seen a shortage of new construction like the one I'm seeing today," declares Castleman, 70, now offering a biscuit to his miniature donkey Thumper. "The talking heads who are down on real estate will hate to hear this, but America needs to build a lot more houses. And in most markets the price of new homes is fixin' to rise, not fall."

Castleman is in a unique position to know. As the founder and CEO of a company called Metrostudy, he's spent more than three decades tracking real-time data on the country's inventory of new homes. Each quarter he dispatches 500 inspectors to literally drive through 45,000 subdivisions from Baltimore to Sacramento. The inspectors examine 5 million finished lots, one at a time, and record whether they contain a house that's under construction, one that's finished and for sale, or a home that's sold. Metrostudy covers 19 states, or around 65% of the U.S. housing market, including all the ones hardest hit by the crash: Florida, California, Arizona, and Nevada. The company's client list includes virtually every major homebuilder and bank -- from Pulte (PHM) and KB Home (KBH) to Bank of America (BAC) and Wells Fargo (WFC).
The key figures that Metrostudy collects, and that those clients prize, are the number of homes that are vacant and for sale in each city, and the number of months it takes to sell all of them. Together those figures measure inventory -- the key metric in determining whether a market has a surplus or a shortage of new housing.

Today Castleman is witnessing an extraordinary reversal of the new-home glut that helped sink prices just a few years ago. In the 41 cities Metrostudy covers, a total of 78,000 houses are now either vacant and for sale, or under construction. That's less than one-fourth of the 343,000 units in those two categories at the peak of the frenzy in mid-2006, and well below the level of a decade ago. "If we had anything like normal levels of buying, those houses would sell in 2½ months," says Castleman. "We'd see an incredible shortage. And that's where we're heading."

If all the noise you're hearing about housing has you totally confused, join the crowd. One day you'll read that owning a home has never been more affordable. The next day you'll see news that housing starts have plunged to nearly their lowest level in half a century, as headlines announced in March. After four years of falling prices and surging foreclosures, it's hard to know what to think. Even Robert Shiller and Karl Case can't agree. The two economists, who together created the widely followed S&P/Case-Shiller Home Price indices, are right now offering sharply contrasting views of housing's future. Shiller recently warned that the chances were high for a further double-digit drop in U.S. home prices. But in an interview with Fortune, Case took a far brighter view: "The lack of new home building is a huge help that a lot of people are ignoring," says Case. "People think I'm crazy to be optimistic, but housing is looking like the little engine that could."

To see where real estate is truly headed, it's critical to keep your eye firmly on the fundamentals that, over time, always determine the course of prices and construction. During the last decade's historic run-up in prices, Fortune repeatedly warned that things were moving too fast. In a cover story titled "Is the Housing Boom Over?," this writer's analysis found that the basic forces that govern the market -- the cost of owning vs. renting and the level of new construction -- were in bubble territory. Eventually reality set in, and prices plummeted. Our current view focuses on those same fundamentals -- only now they're pointing in the opposite direction.

So let's state it simply and forcibly: Housing is back.

Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction that so amazes Castleman. The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.

Drumming up sales

Of course, home prices are low and home construction is weak for a reason: incredibly low demand. For our scenario to play out, America will need a decent economy, with job creation and consumer confidence continuing to claw their way back to normal.

One big fear is that today's tight credit standards will chill the market. But we're really returning to the standards that prevailed before the craze, and those requirements didn't stop prices and homebuilding from rising in a good economy. "The credit standards are now at about historical levels, excluding the bubble period," says Mark Zandi, chief economist for Moody's Analytics. "We saw prices rising with fundamentals in those periods, and it will happen again."

To see why, let's examine the remarkable shift in home affordability. A new study by Deutsche Bank measures affordability in two ways: first, the share of income Americans are paying to own a home. And second, the cost of owning vs. renting. On the first metric, the analysis finds that homeowners now pay just 9.8% of their income in after-tax mortgage, tax, and insurance payments. That's down from 17.2% at the bubble's peak in 2007, and by far the lowest number in the Deutsche Bank database, going back to 1999. The second measure, the cost of owning compared with renting, should also inspire potential buyers. In 28 out of 54 major markets, it's now cheaper to pay a mortgage and other major costs than to rent the same house. What's most compelling is that in all of the distressed markets, owning now wins by a wide margin -- a stunning reversal from four years ago. It now costs 34% less than renting in Atlanta. In Miami the average rent is now $1,031 a month, vs. the $856 it costs to carry a ranch house or stucco cottage as an owner. (For more, see The top 10 cities for home buyers)

Not all markets will bounce back equally, of course. Housing resembles the weather: The exact conditions are different in every city. But in general the big U.S. markets fall into two different climate zones right now. We'll call them the "nondistressed markets" and the "foreclosure markets." A more detailed look shows why the forecast for both is favorable.

Nondistressed markets: Ready for launch
No cities went untouched by the collapse in prices over the past few years. But markets such as Northern Virginia, Indianapolis, Minneapolis, San Diego, the San Francisco suburbs, and virtually all of Texas held up reasonably well. In those areas prices spiked far less than in bubble cities -- the foreclosure markets we'll get to shortly -- chiefly because they didn't get nearly as many speculators who thought they could flip the homes or rent them to snowbirds.

The nondistressed markets will be able to get prices rising and construction growing far faster than the harder-hit areas for a simple reason: Although some of these markets are still suffering from foreclosures, they don't need to work through the big overhang haunting a Las Vegas or a Phoenix. The number of new homes for sale or in the pipeline is extraordinarily low in nondistressed markets. San Diego is typical. It has just 921 freestanding homes for sale or under construction, compared with 4,425 in late 2005. The challenge for these cities is to generate enough demand to reduce inventories of existing, or resale, homes. In the entire country the resale supply stands at 3.5 million houses and condos. That's a fairly high number, since it would take more than eight months to sell those properties; seven months or below is the threshold for a strong market.
But in the nondistressed cities, the existing home inventory is lower, closer to seven months on average. So a modest increase in demand will translate into strong gains in both prices and new construction. That should happen quickly, because most of those markets -- including Silicon Valley, Northern Virginia, and Texas -- are now showing good job growth.

Zandi of Moody's Analytics expects that prices will rise three to four points faster than inflation for the next few years in virtually all of the nondistressed markets. His view is that prices will increase in line with rents, which are now growing briskly because apartments are in short supply. Those higher rents will encourage buyers to cross the street from an apartment to a home of their own.

In Northern Virginia, Chris Bratz, an engineer, and his wife, Amy DiElsi, a publicist, are planning to leave their rental apartment and become homeowners for the first time. The main reason? Buying has simply become a far better deal than renting. "The market got completely inflated, then it crashed, so prices are coming back to where they should be," says Chris. As the couple have watched prices fall, they have also watched the rent on their apartment spiral upward, reaching $2,700 a month. They calculate that they should be able to purchase a townhouse for between $400,000 and $500,000 and pay less per month for a mortgage.

The nondistressed markets will also lead the way in construction. Zandi predicts that for the nation as a whole, single-family housing "starts" -- measured when a builder pours a foundation for a new home -- will rise from 470,000 in 2010 to as much as 700,000 this year. A large portion of that activity will happen in nondistressed markets where a tightening supply of resale houses will start making new homes look like a good deal. "Our main competition is from resales," says Jeff Mezger, CEO of KB Home. "The prices of those homes have stayed so low, because of low demand, that it's hampered the ability of builders to sell new houses."

But many would-be buyers simply prefer a brand-new house. Eventually they'll move from renters to buyers, and the trend will accelerate now that prices are no longer dropping. In Minneapolis, Yuan Qu and her husband, Xiang Chen, a researcher at the University of Minnesota, just moved from a two-bedroom rental to a new light-blue four-bedroom ranch with a chocolate-colored roof on a spacious corner lot. They paid $400,000, a bargain price compared with a few years ago. The couple, both in their early thirties, moved to Minnesota from China six years ago. "We wanted to buy a house, and we've been waiting and waiting and waiting," says Qu. "The prices went down for so long, we finally thought they couldn't keep falling." For Qu the only choice was new construction. "We're not very handy people," she admits.

Foreclosure markets: The outlook is brightening

A home off the market in Mesa, Ariz.

The true disaster areas for housing since the bubble burst have been Sunbelt cities such as Las Vegas, Phoenix, and Miami -- places that boasted great job and population growth in the mid-2000s, only to suffer a housing crash that swamped them with empty homes and condos and crushed their economies. But people always want to live in those sunny locales, and their job markets are starting to recover, albeit slowly. In foreclosure markets the inventory problem is far greater because it includes not just traditional resale homes but millions of distressed properties. Fortunately those houses are now such a screaming deal that investors, including lots of mom-and-pop buyers, are purchasing them at a rapid pace. To be sure, some foreclosure markets won't rebound for years because they're both vastly overbuilt and far from big job centers; a prime example is California's Inland Empire, a real estate disaster zone 80 miles east of Los Angeles.
But the outlook is brightening for Phoenix, Las Vegas, Miami, and parts of Northern California. A big positive is the tiny supply of new homes entering the market. Phoenix, for example, has a total of just 8,100 new homes that are either for sale or under construction, down from 53,000 in mid-2006. The big test in these cities is absorbing the steady stream of distressed properties. The foreclosures put downward pressure on the market far out of proportion to their numbers because of markdown pricing. "We had levels of inventory even higher than this in 1990 and 1991," says MIT economist William Wheaton. "But they were traditional listings, not foreclosures, so they didn't create the big discounts you get with foreclosures."

Wheaton reckons that we'll see a flow of around 1 million foreclosures a year, at a fairly even pace, from now through 2013. That figure is frequently cited as evidence that the market is doomed for years in most foreclosure markets. Not so. The reason is that the vast bulk of those units, probably over 600,000, according to Gleb Nechayev, an economist with real estate firm CB Richard Ellis (CBG), are being converted to rentals either by investors or their current owners. Those properties are finding plenty of renters, since the rental market is still extremely strong across the country. Remember, the millions who lost their homes to foreclosure still need somewhere to live.

A typical investor is Alex Barbalat, a Russian immigrant who's purchased seven homes east of San Francisco in the towns of Bay Point, Antioch, and Pittsburg. His average purchase price is around $100,000 for homes that once sold for between $300,000 and $500,000. But he has no trouble finding renters, since his tenants can commute to jobs in San Francisco on the BART transit system. Barbalat is pocketing rental yields on the prices he paid of around 12%, and he's in no hurry to sell. "I'm holding them until prices drastically rise," he says.

Investment funds are also entering the game. Dotan Y. Melech looks for bargains in Las Vegas for UnitedAMS, a firm he co-founded that manages apartments and other real estate investments. The firm has raised more than $20 million from outside investors to purchase distressed properties. So far, Melech has bought around 300 houses and plans to purchase another 200 this year. He has no trouble renting the houses he buys, since, he estimates, occupancy rates in Las Vegas are touching 95%. The "cap rate," or return on investment after all expenses, is between 8% and 10% -- twice the rate on 10-year Treasuries. Melech rents to people who lost their homes but are reliable renters. "A lot of people can't be buyers because their credit got hurt," he says.

Even with investors jumping in, buying activity in foreclosure markets hasn't yet increased enough to bring inventories down. It will soon. Zandi thinks prices will fall a couple of percentage points lower in the distressed markets in the short run. "But that will be overshooting," he says. "It's like an elastic band. If prices do drop this year, they will need to bounce back because they'll be far too low compared with rents and replacement cost." Renters will come off the sidelines to purchase homes in the years ahead, precisely the opposite trend of the past few years.

Consider the example of Michael Dynda, a retired Air Force avionics technician who now works for a government contractor in Las Vegas. Dynda, 49, is a first-time buyer who put off purchasing for years, in part because prices were falling so rapidly in Las Vegas, with no bottom in sight. But last year the combination of bargain prices and low mortgage rates became too good to resist. He ended up purchasing a 2,300-square-foot stucco home for $240,000, or about half what it would have fetched in 2007. Dynda got a 4.38% home loan, and pays the same amount on his mortgage as on the rent on the house he left to become a homeowner. "The timing was about as good as it could get," says Dynda.

Mike Castleman's company tracks the inventory of new homes in 19 states across the country. He sees supply getting tight. "Home prices are fixin' to rise," he says.

Back on the ranch, Mike Castleman is lounging in his creek-front mansion, built from "a hundred tons of fine central Texas limestone." As he shows off his collection of custom-made guitars, including one crafted to resemble the skin of a rattlesnake, the homespun housing guru once again returns to his favorite topic.
Castleman claims that this recovery will look like all the others: It will bring a severe shortage of housing. He invokes the livestock business to explain. "It takes three years between the time a bull mates with a cow and when you get a calf ready for market," he says. "That's how it is in housing too. We'll get a big surge in demand and the drywall companies will take a long time to ramp up, and it will take years to get new lots approved. Buyers will show up looking for a house in a subdivision, and all the houses will be sold. The builders will tell them it will take six months to deliver a house." But those folks, says Castleman, will be set on buying a place. "And they'll want it so bad they'll bid the prices up!" In other words: Beat the crowd.

It's a Great Time to Buy a House
Mike Castleman, the Texan with the best realtime view of housing in the U.S., tells editor-atlarge Shawn Tully that the naysayers are about to get a big surprise: rising prices for new homes.

--Reporter associates: Anne VanderMey and Christopher Tkaczyk

Tax Time Less Taxing for Home Owners

2011-04-06T07:43:00.001-05:00

Tax Time Less Taxing for Home Owners

Washington, March 15, 2011

“Owning a home offers myriad benefits throughout the year, but some of the financial advantages of home ownership are most apparent at tax time,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “As many of today’s hard-working American families are feeling a financial squeeze, the tax benefits that can come from owning a home can be a welcome relief.”

A number of tax deductions and credits are still available for home owners; these include deductions – with specific limits – for mortgage interest and capital gains on home sales, and credits for certain energy-efficient home improvements. Even with these benefits, home owners pay 80-90 percent of all U.S. federal income taxes.

“It’s been suggested that many of today’s tax incentives for home ownership primarily benefit wealthy individuals, but that’s simply not true,” said Phipps. “As today’s public debate continues about what home ownership means for families, communities, and the nation’s economy, there’s no question that for many, owning a home is still the best way to begin building wealth.”

Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year.

“Realtors® see the very real positive impact of home ownership every day with our clients,” said Phipps. “Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”

For home owner tax season tips, visit www.HouseLogic.com. HouseLogic is a free source of information from NAR that helps home owners maintain and enhance the value of their homes and engage in issues that affect their local communities.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

*Information provided by th National Association of REALTORS

Myths About Homeownership

2011-03-23T08:46:00.004-05:00

Myths About Homeownership

How lenders assess mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:

Myth: It’s a bad time to buy a house.
Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today's homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.

Myth: Buying a house is just too risky; I'll end up in foreclosure.
Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we've even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can't always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!

Myth: You can't buy a home in the U.S. if you're not a citizen.
Fact:If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.

Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage.
Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.

Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared. If you are unsure how your information will be used, don't be afraid to ask – it's your right to know.

Myth: If you're late on your monthly mortgage payments, you'll lose your house.
Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it's possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).

If you experience a change in your financial situation and think that you will fall behind or have fallen behind on your mortgage payment, call your lender immediately.
Despite popular belief, lenders do not want to foreclose on homes. They want to keep you as a customer for life. In fact, lenders typically lose money in the foreclosure process, so they are always looking for ways to help you make ends meet.

Myth: You can't get a mortgage if you've changed jobs several times in the last few years.
Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income and good credit.

Information Courtesy of...

About Homeownership

Freddie Mac's Online Guide to the Homebuying Process

Tax Benefits of Home Ownership Are Almost Too Good to Be True

2011-02-26T10:59:00.000-06:00

Tax Benefits of Home Ownership Are Almost Too Good to Be True

Uncle Sam helps you in three ways when you own your home.

1. The purchase
When buying your own home, most of the expenses are not tax deductible. But there is one exception that is worth finding.

The IRS says you can deduct interest in the year that it is paid, and that is usually part of each monthly loan payment. In addition, if the day you purchase is on any day other than the first of the month, you will likely pay a charge for "daily interest" between the day of closing and the end of the month. Look on line 901 of your HUD settlement statement.

Much more importantly, the IRS says that, in most cases, loan discount points and origination fees are tax deductible to the buyer, regardless of who pays them. Look at lines 801 and 802 of your settlement statement and see if you hit the jackpot. This is a particularly unusual deduction because you get the benefit even if the seller paid your closing costs. And because origination fees of 1% and more are common, this can amount to a lot of cash.

2. Mortgage interest
In general, you can deduct interest charged on a loan used to acquire or improve your principal residence in the year that it is paid. In the early years of a loan, most of your monthly payment is interest, so this can really add up. If you are in a 28% federal tax bracket, this can have the effect of lowering your borrowing costs by almost a third, depending on which state you live in. This is truly nothing more than a subsidy to home owners, and it's a very popular deduction.

In addition, you can always deduct interest on an additional $100,000 of mortgage debt, which can be used for any purpose. This is called the "Home Equity Loan" exception, and it allows you to tap into your home equity for any purpose. This gives home owners the ability to do what is called "debt-shifting." For example, if you live in an apartment and have a credit card balance of $10,000 at 18% interest, none of that interest would be deductible. But if you bought a house, obtained a home equity loan for $10,000 and paid off the credit card, then ALL of the interest expense becomes automatically deductible. Furthermore, the rate on the home equity loan is likely to be around prime plus one or two, usually much lower than credit card rates. This same technique works with any and all personal debt, from car loans to consolidation loans - with only one hitch. In every home equity loan, you have pledged your house as collateral for the loan. If you fail to pay the payments as agreed, you could lose your house to foreclosure. So be careful in using this technique.

3. The sale
This is the best. In fact, I can hardly believe this myself. Here's how it works:

If you have owned and occupied your principal residence for at least two of the past five years, you can earn up to $500,000 on the sale of that house and pay no federal income tax whatsoever. That's assuming you are married - singles get up to $250,000 tax free. And here comes the kicker:
You can do this as often as every two years for the rest of your life.

This is as good an excuse for getting married as I have ever heard. Buy a fixer-upper in an up and coming neighborhood, work on it nights and weekends for two years, then sell it at a nice profit and pocket the cash, totally free of federal taxes. And most states recognize the federal exclusion, so you put the cash away totally tax free. You don't have to re-invest, you don't have to be age 55, and you can do this every two years forever. No, I'm not kidding.

The one restriction is that you MUST own and occupy the house as your principal residence, so don't try this on a rental property by pretending you live there when you don't. And there are some unclear rules about how you can take a partial exclusion if you live there less than two years, but we don't really know what they mean yet, so I recommend you stay there two years.

*Information provided by the National Association of REALTORS* By John Adams : Copyright © by Move, Inc.

7 Steps to House-Selling Success - Step 7: Moving

2011-02-25T08:49:00.000-06:00

Step 7: Moving

7 Steps to House-Selling Success
Even the smallest home contains a lot of furniture, clothes, kitchen equipment, pictures and other items. For a short move, it may be worthwhile to transport small goods by yourself, but larger items will likely require a professional mover.

Our moving center provides calculators as well as information on moving options, storage, truck rentals and related topics. This information, plus assistance and advice from your REALTOR®, can ease the moving process.

How do you plan a move?
The time to plan your move begins once you've decided to sell your home. Some of the activities required to sell the home can actually help with the moving process. For example, cleaning out closets, basements and attics means there will be less to do once the home is under contract.

Your planning will be guided by a number of things:

•Are you moving a long distance? If yes, you'll likely require an interstate mover and the use of a large van.

•Moving internationally. Contact the embassy in Washington, D.C., for information. Be aware that items which may be entirely common in the United States can be prohibited in foreign countries. Ask about customs protocols, duties and taxes.

•Moving locally? If yes, will you move yourself? You'll need to consider packing boxes, peanuts, blankets or padding and a van rental.

•Planning is key. Stock up on boxes, packing materials, tape and markers. Always mark boxes so that movers will know where goods should be placed.

Who should you use?
The decision of who to use can begin with a visit to REALTOR.com's® moving center and discussions with the REALTOR® who is marketing your home.

There are a number of factors to consider. Money is one issue: You'll want to spend as little as possible, but choosing only on the basis of cost can be a mistake. Movers must have the right equipment, training and experience to do a good job. A mover, no matter how large or small, should be able to provide recent references for home sellers with a similar volume of goods to transport.

Get mover estimates in writing. Be aware that it's possible to get discounts through membership organizations and, sometimes, on the basis of your profession: Clergy, for example, sometimes qualify for a discount.
Always confirm mover credentials. Movers should be licensed and bonded as required in your state, and employees should have workman's comp insurance.

Get a checklist.
Moving is a big job and checklists can make it more organized and easier. Here are some of the major items to consider:

•Money. If you're moving more than a few miles then you should have enough cash or credit to cover travel, food, transportation and lodging.

•Medicine. Keep medicines and related prescriptions in a place where they will be available during the move.
•Number boxes so that all items can be counted on arrival. Make a list of boxes by number and indicate their contents.

•If moving with children, make sure that each has a favorite toy or toys, blankets, games, music and other goods.

•Moving historic, breakable or valued items? Such goods routinely require special handling and packaging.

•Have address books readily available in case you need help.

•If you have a laptop computer with a modem, make it accessible during your trip to pick up business and personal e-mail.

*Information provided by the National Association of REALTORS - Copyright © by Move, Inc.

7 Steps to House-Selling Success - Step 6: Closing

2011-02-24T10:24:00.001-06:00

Step 6: Closing

7 Steps to House-Selling Success
It might seem as though once a sale agreement has been signed that the selling process is complete. Not only is it not over yet, but some of the most complex aspects of a real estate transaction now begin.

A sale agreement sets not only a purchase price for the home, but also a series of terms and conditions. For instance:

•Contracts routinely depend on the ability of a buyer to obtain financing, which is why most sellers prefer buyers with preapproval letters from lenders.

•A growing percentage of transactions involve a home inspection, or a physical review of the home by a trained and independent observer.

•Lenders will establish numerous conditions before granting a loan. They will want a title exam, title insurance to protect against title errors, termite inspections, surveys and an appraisal to assure that the home has sufficient value to secure the loan.

The REALTOR® typically arranges required inspections and helps the owner prepare for closing.

When should you close?
With automation now available, closings can occur within a week in some areas -- at least in theory. In practice, it takes time to arrange financing, conduct inspections, obtain appraisals, locate replacement housing, contact movers, pack and actually move.

While instant closings are not practical, neither are closings too far in the future. The problem with closings much past 60 days is that loan rates are difficult to lock in. If mortgage rates go up, it's possible that the buyer will no longer be able to afford the home and thus the deal may fall through.

The result of these considerations is that most homes close 30 to 45 days after a sale agreement has been signed.

What happens?
Closing -- or "settlement" or "escrow" as it is known in some areas -- is essentially a meeting where the closing agent (the party who conducts settlement) takes in money from the buyers, pays out money to the owner and makes sure that the purchaser's title is properly recorded in local records along with any mortgage liens.

The closing agent reviews the sale agreement to determine what payments and credits the owner should receive and what amounts are due from the buyer. The closing agent also assures that certain transaction costs are paid (taxes and title searches).

Closing is also the time when "adjustments" will be made. For instance, suppose you've pre-paid taxes four months in advance. In this case, the closing agent will compensate you for the prepayment at closing by having the buyer pay you additional money.

It could also work in reverse. If you are behind on property taxes, the closing agent will reduce the money due to you at settlement by the amount of the unpaid taxes.

How do you prepare to sell?
It's important to look at the sale agreement and review your obligations. For instance, if you have agreed to paint a room or replace the dishwasher, such work must be completed before closing. Your REALTOR® can discuss your agreement and the steps which must be taken to complete the transaction.
The closing agent will handle both the settlement papers and related documents.

*Information provided by the National Association of REALTORS - Copyright © by Move, Inc.

7 Steps to House-Selling Success - Step 5: Sell it

2011-02-23T12:50:00.000-06:00

Step 5: Sell it

7 Steps to House-Selling Success
There is no question that selling a home is an important event. A home sale represents transition, movement and change. Big money is involved. Households move from the known and comfortable to the unknown and a period of adjustment. There may be job changes, new schools, distance from old friends and the possibility of new ones.

No less important, a home sale by itself can be complex. There will be people looking at your house, documents to sign and issues to be negotiated.

Because a home sale involves an array of both personal and business concerns, it's important to get it done right. You need to carefully prepare your home, understand the market and see what alternatives are realistically available. The old motto "be prepared" is a good guide in such circumstances.

What's an acceptable offer?
The goal of every seller is to have a line of buyers outside the front door, each clutching higher and higher offers. And while this has been known to happen, in most markets there is some balance between the number of buyers and sellers. A number of factors determine whether a buyer's offer is acceptable. They include:

•Is the offer at or near the asking price? Is the offer above the asking price?

•Has the buyer accepted the asking price or something close? Has the buyer then buried thousands of dollars in discounts and seller costs within tiny clauses and contract additions?

•What is the alternative to the buyer's offer? If a home has not attracted an offer in months, then sellers need to determine if a better deal is possible -- recognizing that each month costs are being incurred for mortgage payments, taxes and insurance.

•Does the owner have enough time to wait for other offers?

•What if no other offers are received?

•What if several offers are received? Do you choose the high offer from the purchaser with questionable finances who may not be able to close, or a somewhat lesser offer from a buyer with preapproved financing?
In each case, owners -- with assistance from REALTORS® -- will need to carefully review offers, consider marketplace options and then determine whether an offer is acceptable.

What is a counter-offer?
When a home is made available for sale the owner is essentially making an offer to buyers: For a given number of dollars and other terms you can acquire this home. Buyers, in turn, can respond with several options:

•Not interested.

•Yes, we'll buy on the owner's terms.

•We're interested and here's our counter-offer.

A counter-offer is nothing more than a new offer. And just as the buyer had three options in response to the owner's original price and terms, the seller can now choose one of three reactions: accept the offer, decline the offer or make a fresh counter-offer.

Offers and counter-offers reflect the back-and-forth activity of the marketplace. It's an efficient and practical process -- but also one that may contain tricky clauses and hidden costs. The REALTOR® who lists your home can explain the local bargaining process in detail and assist in the actual negotiations.

How do you negotiate?
It's sometimes argued that negotiation must produce one "winner" and one "loser." Others suggest that a "win/win" situation is possible where each side gets something of value.
Real estate bargaining typically involves compromises by both sides. It's not war; it's not winner-take-all; and it's not the time to take personally any comments made by purchasers.

Instead, negotiating should be seen as a natural business process; buyers should be treated with respect; and owners should never lose sight of either their best interests or their baseline transaction requirements. These are the standards unique to each owner, which must be met before the home can be sold.

*Information provided by the National Association of REALTORS - Copyright © by Move, Inc.

7 Steps to House-Selling Success - Step 4: Market it

2011-02-22T09:41:00.000-06:00

Step 4: Market it

7 Steps to House-Selling Success
If you bought a car, you could purchase a given model with selected features from any dealer. Since the car comes from one assembly plant, it's going to be the same whether purchased from dealer Smith or dealer Jones.

Homes are different. Each is unique, the marketplace is always in flux, interest rates constantly change and new buyers search for homes each day. With such fluidity, it requires REALTORS^® to craft marketing plans specifically for individual homes and market conditions.

Selling can entail a variety of marketing strategies. Once listed, it's likely that the home will be quickly entered into the local MLS (Multiple Listing Service) and placed on REALTOR.com^®. REALTORS^® routinely market by mail with new-listing announcements and regular newsletters. Open houses, broker access to the home via the use of a lock box and networking with both local and out-of-town brokers are also common.
Much of a broker's work will be quiet and unseen -- yet important. The quiet telephone calls, the work with contacts, the follow-ups with open-house visitors, conversations with ad respondents, the web postings and other outreach efforts are all part of the process required to sell homes.

Experienced REALTORS^® base their marketing efforts on previous transactions and ongoing research. For instance, according to the National Association of Realtors (NAR), most people begin their home-buying process on the Internet. NAR numbers also show that most households move within 10 miles of their current location while 20 percent move at least 50 miles.

How to market your home.
If you look at a typical transaction you can see that there are five general areas where REALTORS^® can assist in the home-selling process.

•Preparation: Before being placed on the market, homes must be in "show" condition. REALTORS^® can explain what repairs and upgrades are required for individual homes which are most likely to produce the best results.

•Pricing: Brokers do more than price homes for sale, they also construct sale terms designed to speed the selling process. It may be, for example, that a home priced at $150,000 with a 2 percent seller credit to the buyer at closing will be far more attractive to purchasers than a home priced at $147,000. Why? That 2 percent credit is worth $3,000 to the purchaser at closing -- the time when buyers are most likely strapped for cash.

•Marketing: REALTORS^® will execute strategies and programs to get the home sold. Typically this includes placement on the local MLS and Realtor.com as well as related marketing, advertising and networking.

•Negotiation: REALTORS^® assist owners in the bargaining process, offering advice and counsel as offers are received and by working closely with legal counsel, tax specialists and inspectors as required.

•Closing: Once a contract for the purchase of a home has been accepted, a series of inspections and checks are typically required to satisfy buyers and lenders. REALTORS^® can help owners complete the transaction process by assisting with the many requirements found in a typical sale agreement.

How to hold an open house.
There are no universal marketing standards for real estate because marketplaces are localized. For instance, open houses may be common in some communities but rarely used in others.

In the case of an open house, a REALTOR^® typically advertises that the home will be open for a given period (2-5 p.m. on Sunday). During the open period, the REALTOR^® hosts the home while the owners leave for a few hours.

At the open house, the REALTOR^® will provide literature, maintain a visitor log and answer questions. By interacting with visitors, the REALTOR^® will seek feedback regarding the home and opportunities to follow up with prospective purchasers.

How do you show your home online?
The Internet is an important factor in real estate marketing and will likely become more important in the future.
The Internet has two important roles in the real estate selling process. First, it is a "place" to view real estate. Realtor.com, for example, lists about millions of homes, the largest group of homes online or off. Individual REALTORS^® also maintain thousands of localized sites while professional groups and, likewise, industry organizations, have an online presence.

Online real estate information includes not only home listings, but numerous additional features and benefits. For instance, Homestore^® offers neighborhood information, school data, recent home sale prices, video tours, model forms, real estate news and consumer information.

Equally important, the Internet offers new communication media. E-mail and instant messaging give REALTORS^® and consumers more opportunities to keep in touch. As the Internet evolves, more technologies and techniques will be introduced to make transactions easier and more efficient.

*Information provided by the National Association of REALTORS - Copyright ^© by Move, Inc.

7 Steps to House-Selling Success - Step 3: Set the Price

2011-02-21T12:36:00.000-06:00

Step 3: Set the Price

7 Steps to House-Selling Success
Every reasonable owner wants the best possible price and terms for his or her home. Several factors, including market conditions and interest rates, will determine how much you can get for your home. The idea is to get the maximum price and the best terms during the window of time when your home is being marketed.
In other words, home selling is part science, part marketing, part negotiation and part art. Unlike math where 2 + 2 always equals 4, in real estate there is no certain conclusion. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale and engage the REALTOR® you feel is best able to sell your home.

What is your home worth?
All homes have a price, and sometimes more than one. There's the price owners would like to get, the value buyers would like to offer and a point of agreement which can result in a sale.
In considering home values, several factors are important:

•The value of your home relates to local sale prices. The same home, located elsewhere, would likely have a different value.

•Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population and a limited housing supply, it's likely that prices will rise. Alternatively, it's important to be realistic. If the local community is losing jobs and people are moving out, then you'll likely have a buyer's market.

•Owner needs can impact sale values. If owner Smith "must" sell quickly, he will have less leverage in the marketplace. Buyers may think that Smith is willing to trade a quick closing for a lower price -- and they may be right. If Smith has no incentive to sell quickly, he may have more marketplace strength.

•Sale prices are not based on what owners "need." When an owner says, "I must sell for $300,000 because I need $100,000 in cash to buy my next home," buyers will quickly ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, the seller will not be successful.

•Sale prices are NOT the whole deal. Which would you rather have: A sale price of $200,000, or a sale price of $205,000 but where you agree to make a "seller contribution" of $5,000 to offset the buyer's closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, re-paint the entire house and leave the washer and dryer?

How much is too much?
Because all transactions are unique there is flexibility in the marketplace. The amount of flexibility depends on local conditions.

For example, suppose you're selling a townhouse. Suppose also that there have been five recent sales of the model you own and that sale values have ranged between $200,000 and $210,000. You now have an idea of how your home might be priced. In a strong market perhaps you can ask for $210,000 or a little more. If the market has slowed, $210,000 may be a reasonable asking price, but perhaps more than the final sale price.
Here's another scenario. Imagine that you live in a community of Victorian-style homes, most of which were built in the 1920s. All the homes are different in terms of size, condition, modernization, style and features. In such a neighborhood, an average sale price is just a statistic without much practical meaning. On a single block one home may sell for $400,000 while another is priced at more than $1 million. The average price may be outrageously high for one home and staggeringly low for another.

Who can help?
Experienced REALTORS® are active in the local marketplace and can provide assistance with pricing, marketing, negotiation and closing.

Because experienced REALTORS® have handled many transactions, they're familiar with the terms and conditions that went into individual sales, not just published sale prices which may not reflect various premiums, discounts and adjustments.

* Information provided by the National Association of REALTORS - Copyright © by Move, Inc.

7 Steps to House-Selling Success - Step 2: Get a REALTOR®

2011-02-20T11:42:00.000-06:00

Step 2: Get a REALTOR®

7 Steps to House-Selling Success - Step 1: Plan and Prepare to Sell Your House

2011-02-19T10:25:00.001-06:00

Step 1: Plan and Prepare to Sell Your House

7 Steps to House-Selling Success
Million of existing homes are sold each year, and while each transaction is different every owner wants the same thing -- the best possible deal with the least amount of hassle and aggravation.

Unfortunately, home selling has become a more complex business than it used to be. New seller disclosure statements, longer and more mysterious form agreements, and a range of environmental concerns have all emerged in the past decade.

More importantly, the home-selling process has changed. Buyer brokerage -- where REALTORS® represent homebuyers -- is now common nationwide, and good buyer-brokers want the best for their clients.
The result is that while hundreds of thousands of existing homes may be sold each week, the process is not as easy for sellers as it was five or 10 years ago. Surviving in today's real estate world requires experience and training in such fields as real estate marketing, financing, negotiation and closing -- the very expertise available from local REALTORS®.

Are you ready?
The home-selling process typically starts several months before a property is made available for sale. It's necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out.

Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers -- and as much demand -- as possible.
While part of the "getting ready" phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell.

Selling a home is an important matter and there should be a good reason to sell -- perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it's important to discuss your needs and wants in private with the REALTOR® who lists your home.

When should you sell?
The marketplace tends to be more active in the summer because parents want to enroll children in classes at the beginning of the school year (usually August). The summer is also typically when most homes are likely to be available.

Generally speaking, markets tend to have some balance between buyers and sellers year-round. In a given community, for example, there may be fewer buyers in late December, but there are also likely to be fewer homes available for purchase. So, home prices tend to rise or fall because of general demand patterns rather than the time of the year.

Owners are encouraged to sell when the property is ready for sale, there is a need or desire to sell, and the services of a local REALTOR® have been retained.

How do you improve your home's value?
The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. For example, if most homes in your neighborhood have three bedrooms, two baths and 2,500 sq. ft. of finished space, a property with five bedrooms, more baths and far more space would likely be priced much higher and likely be more difficult to sell.

Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments, the cost of which cannot be recovered from the sale. Furthermore, improvements should reflect community preferences.

Cosmetic improvements - paint, wallpaper and landscaping - help a home "show" better and often are good investments. Mechanical repairs - to ensure that all systems and appliances are in good working condition - are required to get a top price.

Ideally, you want to be sure that your property is competitive with other homes available in the community. REALTORS®, who see numerous homes, can provide suggestions that are consistent with your marketplace.

*Information provided by the National Association of REALTORS - Copyright © by Move, Inc.

Home Selling Tips

2011-02-18T09:16:00.000-06:00

Home Selling Tips

When you decide to sell your home, you can list it with a Real Estate Broker or you can sell it yourself. Many homeowners would not think of attempting to sell their home themselves, because they know selling your home takes more than a sign in the yard and newspaper ads. A Real Estate Broker or Selling Agent will advise you on pricing, financing, home conditions, marketing and assist you in negotiating the sale.

PRICING:

Proper pricing is crucial to the success of your home selling. If your home is under-priced, you could lose money. If your home is overpriced, buyers who are seeing comparable homes in your area may refuse to look at yours. Your Realtor can prepare a CMA (Competitive Market Analysis) to help you determine the best price for your home.

FINANCING:

The interest rate and the financing available can influence the ability of your Realtor to sell your home. It is usually to the buyer's advantage to consider many financing options. Your Realtor is aware of what options are available in your areas, such s financial institutions, mortgage companies, or some plans may involve financing assistance from you, the seller.

CONDITION:

A home that stands out from its competition will attract buyers. First impressions are very important and making some easy improvements can enhance your home's marketability. If they don't like it from the outside you can bet you are not going to get them inside! Make that front yard and door shine!

MARKETING:

Your Realtor understands the market and is equipped to advertise your property both nationally, on the internet, and locally in the papers and buyers guides, and hold Open Houses for both the Realtors and the public.

ASSISTS NEGOTIATIONS:

When you receive an offer, you can accept it, reject it or make a counter offer to the potential buyer. However, your Realtor is a skilled negotiator and can separate the serious buyers from the Lookie-Lou's. Many times, the first offer may be your best offer. Don't be afraid to accept it! If it sold right away it is because it was priced right- in good condition and the agent that sold it had probably showed the buyer 20 other homes and they were just waiting for yours. Listen to your Realtor... if they say it's a good offer, fair and it works out for you ... take it!

CLOSING:

The Realtor will do the running when it comes to ordering the title search policy, and having the deed drawn by an attorney. We will break down all the expenses showing the estimates of proceeds, pay off the taxes, mortgage, and pay for the expenses from your proceeds so when you get your check everything has been paid for. We will check on the buyer's financing to keep it going. We can help you arrange for pest inspections, home inspections, surveys, etc. We are there before, during, and after the sale. Before closing you need to sign the deed set. That way you don't need to be present at the closing. It is helpful if you leave a letter of instructions if the home has something special the new owners would want to know about, including the sprinkler system, alarm system, keys, furnace, etc.

10 Steps to Home Ownership - Step 10: What's Next?

2011-02-17T10:11:00.001-06:00

Step 10: What's Next?

10 Steps to Home Ownership
You've done it. You've looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the home buying process?

Whether you're a first-time buyer or a repeat buyer, there are several more steps you'll want to take.
Those papers you received at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.
Also at closing, determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by owners as of closing and you also want services transferred to your name for billing. Usually such transfers can be done without turning off utilities. REALTORS® can provide contact numbers and related information.

About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property.

Moving in
It is generally understood that sellers will leave homes "broom clean" when moving out. This expression does not mean "vacuumed" or "spotless." Broom clean makes sense because it means the house is ready to be painted and cleaned.

Your home, your money
For most owners a home is the largest single asset they hold, so it makes sense to protect that asset.
Many owners make a photo or video record of the home and their possessions for insurance purposes and then keep the records in a safety deposit box. Your insurance provider can recommend what to photograph and how to secure it.

You want to maintain fire, theft and liability insurance. As the value of your property increases such coverage should also rise. Again, speak with your insurance professional for details.

Lastly, enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what's most important is that home ownership should be a wonderful experience. Enjoy!

*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 9: Closing

2011-02-16T07:12:00.001-06:00

Step 9: Closing

10 Steps to Home Ownership
Go to any local courthouse and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.
These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.
The closing process, which in different parts of the country is also known as "settlement" or "escrow," is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.
In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.

What to expect
Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.

What you need to do

One of the best parts of settlement is that buyers and sellers need to do very little. (Other than signing deed set tranfer docs & mortgage)
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.

*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 8: Get Insurance

2011-02-15T10:39:00.001-06:00

Step 8: Get Insurance

10 Steps to Home Ownership
No one would drive a car without insurance, so it figures that no homeowner should be without insurance.
The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

What kind and how much?
There are various forms of insurance associated with home ownership, including these major types:

Title insurance:
Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.

Homeowners' insurance:
Homeowner's insurance provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.

Flood insurance:
Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as $250,000 in coverage for a single-family home plus $100,000 for contents. Local REALTORS® can explain which locations require such coverage.

Home warranties:
With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?
Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two years, and structural defects for up to 10 years.
Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.
Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles and costs. For details, speak with REALTORS®, insurance brokers and home builders.

Where to look.
REALTORS® often provide info on home insurance and such policies are also available from insurance brokers.

How do you get insurance?
The time to obtain insurance and warranty coverage is at closing, so speak with a REALTOR® or insurance broker prior to closing. Be sure to ask about limitations, costs, deductibles and "endorsements" (additional forms of coverage that may be available).

*Information provided by the National Association of REALTORS

For Homeowner's Insurance Quotes Contact:

Judd Knispel - State Farm Agent

Jared Spangenberg - Farm Bureau Financial Services Agent

10 Steps to Home Ownership - Step 7: Make an Offer

2011-02-14T11:03:00.001-06:00

Step 7: Make an Offer

10 Steps to Home Ownership

REALTOR® groups, working with legal counsel, have developed forms that are appropriate for realty transactions in specific communities. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. REALTORS® can explain the general contracting process in your community as well as his or her role.
While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers -- or additional costs. Terms are extremely important and should be carefully reviewed.

How much?
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.

How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.
Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.

How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.
Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.

*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 6: Get Funding

2011-02-13T08:34:00.003-06:00

Step 6: Get Funding

10 Steps to Home Ownership

Often the cost of real estate financing is routinely greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.
Realtor.com^® provides consumers with extensive mortgage information as well as a variety of loan calculators. Local REALTORS^® can provide mortgage information, discuss financing options and recommend loan sources. In addition, some REALTORS^® also originate loans.
What kind of loan?

There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:

•How much down? Loans with 5 percent down or less are available -- in fact, loans from major lenders with no money down have appeared in recent years.

•If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults). Millions of VA, FHA and PMI loans are generated each year.

•How's your credit? The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.

•Are you a first-time buyer? It might seem that "first-time buyer" means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller downpayments and below-market interest rates. For details, speak with your local REALTOR®.

How do you get a loan?

To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, rental checks and tax returns for the past two or three years if you are self-employed. During the prequalification procedure, the loan officer will describe the type of paperwork required.

Where do you get a loan?

Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies.

*Information provided by the National Association of REALTORS

For Mortgage Loan Pre-approval Contact Jennifer or Mike TODAY!!

Jennifer Doebelin - Liberty Bank Home Mortgdage

Mike Perkins - Wells Fargo Home Mortgage

10 Steps to Home Ownership - Step 5: Choose a Home

2011-02-12T07:16:00.001-06:00

Step 5: Choose a Home

10 Steps to Home Ownership

There's no doubt that choosing a home is a big decision and you want to do it right.
As a buyer, here's what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices: accept the seller's offer and create a contract; reject it and not make an offer; or suggest different terms and make a counter-offer. If you choose this last option, the seller may accept, reject or make a counter-offer.
No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. This is the point where the value of an experienced REALTOR^® is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.

Is it THE house?

A house is shelter, but a home is far more. It's where you live, relax, entertain friends, raise families, and work. A home is where you spend much of your life, and so choosing a house is an enormous decision.
How do you know if a house is THE one? Probably the best approach is to look at as many homes as possible, something made easy by Realtor.com, where you can quickly and easily view huge numbers of homes, check prices, take video tours and view extensive neighborhood information. Once your choices have been narrowed, you can then contact a local REALTOR^® to find specific information and options.

Can you really afford it?

Remember Step 2 - the pre-approval process? Getting pre-approved means you have a very good idea of how much you can borrow, what loan programs will most likely work best in your situation and how much home you can afford.
How reliable is a pre-approval? While pre-approval is not a loan commitment, it's still necessary for lenders to check such items as appraisals and the latest credit reports. Despite fluctuating interest rates, pre-approval nonetheless provides a reasoned, careful analysis of what you can afford. After all, loan officers are routinely paid only when loans are originated. It doesn't make much sense for loan officers to suggest high loan limits that later can't be delivered.

*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 4: Look at Homes

2011-02-11T11:21:00.001-06:00

Step 4: Look at Homes

10 Steps to Home Ownership

Millions of new and existing homes are sold each year. There's no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.
The housing market is complicated because the stock of homes for sale is always in flux. If it were possible to have a complete list of every home for sale at this very moment in a given community, such a list would become obsolete within seconds as new homes become available and properties now for sale are put under contract.
In effect, buyers are looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with a local REALTOR® who has a good lay of the land.

What are you looking for?

A home is more than just a collection of bedrooms and bathrooms. Several properties -- each with four bedrooms, three baths, and the same price -- may well represent radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes.
Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).
Next, it's important to consider your priorities. If you can't get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?
Lastly, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.

Where should you look?

All neighborhoods and communities have a special nature that gives them identity and value. One community may be well known for historic homes while another offers both suburban living as well as easy access to downtown office areas.
REALTOR.com® offers millions of homes online. By any standard, it's the largest source for property information, online or off. You can look at homes to contact listing brokers, and you can also search Realtor.com® to find brokers who offer buyer representation services.

How do you find a house?

Some buyers like to search REALTOR.com® or (Realtor's website) by looking at listings on the basis of location or price; others prefer to have local REALTORS® suggest properties; and many buyers prefer both approaches.
Regardless of your choice, it's important to target your search. By using basic measures such as general location and affordability, you can refine your search and focus on homes that offer the most desirable features.
As a guide, you should maintain a file with information on each of the homes you like. You can print out listing pages from REALTOR.com® and then make notes for each one -- what you like, questions, REALTOR® contact data, etc.
*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 3: Get Loan Pre approval

2011-02-10T07:42:00.001-06:00

Step 3: Get Loan Pre approval

10 Steps to Home Ownership
Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers finance their purchase, which means that virtually all buyers -- especially first-time purchasers -- required a loan.
The real issue with real estate financing is not getting a loan (virtually anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that's right for you -- the mortgage with the lowest cost and best terms.
REALTORS® routinely suggest that consumers start the mortgage process well before bidding on a home. Many lenders (the sources of money) and programs, for example, are available right here in the finance section of Realtor.com as well as through recommendations from local REALTORS®. By meeting with lenders -- either online or face to face -- and looking at loan options, you will find which programs best meet your needs and how much you can afford.
REALTORS® also recommend pre approvals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won't be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

What is it?
"Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.
Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

How do you get pre-approval?
Real estate financing is available from numerous sources, including lenders here in the finance section of Realtor.com, mortgage companies that have worked with local REALTORS® and in some cases, individual REALTORS® themselves. Based on his or her experience, the REALTOR® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.
The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan. *Information provided by the National Association of REALTORS*

Contact Jennifer or Mike for Loan Pre-Approval

Jennifer Doebelin - Liberty Bank

Mike Perkins - Wells Fargo Home Mortgage

10 Steps to Homeownership - Step 2: Get a REALTOR®

2011-02-09T10:46:00.001-06:00

Step 2: Get a REALTOR®

10 Steps to Home Ownership

More than 2 million people in the United States have earned real estate licenses. However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers.

The National Association of REALTORS^® (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides REALTORS^® with a better understanding of the area in which they are selling.

Why?
Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.
But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS^® who serve your area.

How do you choose?
In every community you're likely to find a number of realty brokerages. Because there is heated competition, local REALTORS^® must fight hard to succeed in your community.
The best place to find a local REALTOR^® is from REALTOR.com's^® extensive listing of community professionals and properties. Other sources include open houses, local advertising, Web sites, referrals from other REALTORS^®, recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.
In many cases buyers will interview several REALTORS^® before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.

What should you expect when you work with a REALTOR^®?
Once you select a REALTOR^® you will want to establish a proper business relationship. You likely know that some REALTORS^® represent sellers while others represent buyers. Each REALTOR^® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.
Once hired for the job, the REALTOR^® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS^® will keep you updated and alert you to each step in the transaction process.

*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 1: Are You Ready?

2011-02-08T07:24:00.001-06:00

Step 1: Are You Ready?

10 Steps to Home Ownership

Knowledge and experience are the keys to successful real estate transactions. REALTOR.com^® contains an enormous amount of valuable information, and such data -- combined with the expertise, experience and training of local REALTORS^® -- can be the essential keys to your success. One of the keys to making the home-buying process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the home-buying process.

Do You Know What You Want?
Whether you are a first-time home buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe? Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting with local REALTORS^®.

Do You Have The Money?
Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require a 5 percent down payment or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down. In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs. Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most home buyers choose to buy with some cash up front. As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Speak with local REALTORS^® for details.

Is Your Financial House in Order?
Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

*Information provided by the National Association of REALTORS

Seven Costly Mistakes Sellers Make

2011-02-07T15:50:00.001-06:00

Seven Costly Mistakes Sellers Make

FREE HOME BUYER & HOME SELLER SEMINAR!!

2010-01-04T14:09:00.000-06:00

FREE HOME BUYER & HOME SELLER SEMINAR!!

	Thursday, January 21, 2010
	6:00pm - 8:00pm
:	Heartland Properties
	535 W Broadway Ste 100
	Council Bluffs, IA

*Learn the How-To's for the 1st Time Home Buyer

*Learn the Advantages of Buying vs Renting

*Learn How To Sell Your Home for Top Dollar and Buy a Home at the Same Time while still Keeping your Sanity in Today’s Real Estate Market.

*Learn about the $6,500-$8,000 Tax Credit Available to First Time & Repeat Home Buyers.

*Sellers are eligible for a Complimentary Market Analysis on their Current Home

*Buyers are eligible for a Complimentary Mortgage Pre-Qualification.

FREE HOME BUYER & HOME SELLER SEMINAR, Hosted & Sponsored by:

Tammy Stuart, Broker Associate CRS GRI ~ Heartland Properties
Mike Perkins, Home Mortgage Consultant ~ Wells Fargo Home Mortgage

(This is not an attempt to solicit currently listed properties...Please disregard this invitation if your property is currently listed with another Broker)

Questions?? Email me ... Tammy@SOLDbySTUART.com

Tammy Stuart, Broker Associate CRS -Heartland Properties-Council Bluffs/Omaha Real Estate

Omaha's own Warren Buffet agrees: Now is the Time to Buy a Home!

What Does Warren Buffet Think About Buying A Home?

The Real Estate Market is Doing Better than Many Believe. ~ Check Out These Stats!

People Are Buying Homes AND GETTING MORTGAGES!

Thinking of Selling Your Home Yourself? Are the Potential Risks Worth the Minimal Advantages??

Although their are advantages to selling your own home, more often than not the risks far more outweigh the minimal advantages. Contact Tammy to discuss why it is in your best interest to list with a professional such as a Certified Residential Specialist.

(Tammy Stuart 402.689.1769 Tammy@SOLDbySTUART.com)

FSBO Sellers Decline as More Sellers Turn to Real Estate Agents to Sell the Home

Jessica Lautz, Survey Research Manager

"Save 2nd Base" - 1st Annual - Pub Crawl for JEH Breast Health Center - 100 Block, Council Bluffs, Iowa

Why You Should Choose a Certified Residential Specialist (CRS)

Why Choose a CertifiedResidential Specialist (CRS)

You need a Certified Residential Specialist.

What is a CertifiedResidential Specialist (CRS)?

Benefits for Home Buyers and Sellers:

4 Reasons to Work With the Top 4%

Experience

Ethics

A Focus on Home Buying and Selling

Technological Expertise

Why You Should Choose a Certified Residential Specialist (CRS)

Why Choose a CertifiedResidential Specialist (CRS)

You need a Certified Residential Specialist.

What is a CertifiedResidential Specialist (CRS)?

Benefits for Home Buyers and Sellers:

4 Reasons to Work With the Top 4%

Experience

Ethics

A Focus on Home Buying and Selling

Technological Expertise

HOLY HAIL!! ~ Now what?? - Council Bluffs Hail Storm 8.18.11

The American Red Cross Opens Emergency Aid Station in Council Bluffs

What a Government Shutdown Means for REALTORS® & their Clients

What a Government Shutdown Means for REALTORS®

Federal Housing Administration

VA Loan Guaranty Program

Internal Revenue Service (IRS)

Flood Insurance

Rural Housing Programs

Government Sponsored Enterprises

Treasury

Background Information on Government Shutdown

Sources

Real estate: It's time to buy again

Real estate: It's time to buy again

Tax Time Less Taxing for Home Owners

Tax Time Less Taxing for Home Owners

Myths About Homeownership

Myths About Homeownership

Tax Benefits of Home Ownership Are Almost Too Good to Be True

Tax Benefits of Home Ownership Are Almost Too Good to Be True

7 Steps to House-Selling Success - Step 7: Moving

Step 7: Moving

7 Steps to House-Selling Success - Step 6: Closing

Step 6: Closing

7 Steps to House-Selling Success - Step 5: Sell it

Step 5: Sell it

7 Steps to House-Selling Success - Step 4: Market it

Step 4: Market it

7 Steps to House-Selling Success - Step 3: Set the Price

Step 3: Set the Price

7 Steps to House-Selling Success - Step 2: Get a REALTOR®

Step 2: Get a REALTOR®

7 Steps to House-Selling Success - Step 1: Plan and Prepare to Sell Your House

Step 1: Plan and Prepare to Sell Your House

Home Selling Tips

Home Selling Tips

PRICING:

FINANCING:

CONDITION:

MARKETING:

ASSISTS NEGOTIATIONS:

CLOSING:

10 Steps to Home Ownership - Step 10: What's Next?

Step 10: What's Next?

10 Steps to Home Ownership - Step 9: Closing

Step 9: Closing

10 Steps to Home Ownership - Step 8: Get Insurance

Step 8: Get Insurance

Why Choose a Certified
Residential Specialist (CRS)

What is a Certified
Residential Specialist (CRS)?

Why Choose a Certified
Residential Specialist (CRS)

What is a Certified
Residential Specialist (CRS)?