Angela May's Omaha Nebraska Real Estate Blog: June 2007

I've found so many of the items listed below hold true when showing homes. Although it may seem minor to a seller, when I'm at a front door for 5 minutes trying to get the key to work in the lock, it certainly gives the buyer's a bad first impression that the home is not well maintained. Additionally, they have 5 minutes to closely examine the entire entrance area - dirt, poorly painted front door/shutters, cracked porch, etc.

Other things that immediately bring down the offer price include pet smells, cigarette smoke smell (most people won't even bother continuing to look), "dark" homes - I am always ASTONISHED how many home owners know you are coming and have every blind, shade, and curtain drawn - let the light in - you are losing money!! -- happy selling! Angela

RISMEDIA, June 26, 2007 How much do you suppose a pile of crunchy dead bugs on the basement floor will affect the selling price of a $500,000 home? How about a life-size skeleton hanging in the closet, or an open coffin in the basement with a dummy vampire inside? Or an overly-ripe kitty litter box under the kitchen table?

The National Association of Exclusive Buyer Agents (NAEBA) recently conducted an online survey of their members to rate the items they found most annoying when searching for a new home with buyers. Since these real estate companies are always looking out for the buyer’s best interest they don’t pull any punches. The results of the survey are revealing, surprising, and sometimes downright weird.

Here are the top five things exclusive buyer’s agents find most annoying when previewing a home:

1. Broken door locks preventing access to the house.
2. Pet deposits in the back yard or dirty cat boxes.
3. Missing light bulbs in the basement.
4. Sellers that ask you to remove shoes and then have wet carpet or dirty floors.
5. Having loose stairs on a stairway or missing banisters.

Other reported annoyances include:

6. Low hanging dining room light fixtures in a vacant home.
7. Closet doors that fall off or are not adjusted properly.
8. Going into a vacant home and hearing animals in the walls.
9. Halloween decorations that are left out.
10. Dangerous children’s toys left out.
11. Dead cars in the driveway or yard.
12. Homes on large lots without a survey or description of the lot boundaries.
13. Political signs.
14. Graffiti on a home for sale.
15. Dead birds or animals in or around the home.

These should all be no-brainers. Sending buyers away disgusted or frightened out of their wits is probably not the best of business decisions. Neither is killing or maiming them with dangerous children’s toys left as booby traps.

Jon Boyd, president of NAEBA, relates some of the unbelievable things he’s encountered over the years when going through homes for sale.

“Once I was previewing a fairly expensive home by myself. I go into the huge basement and I can’t find the light switch. As I’m reaching around a corner I catch a light switch and turn it on. About eight feet in front of me is a life-sized model of the alien monster looking right at me! My heart starts beating again in a few minutes when I figure out what the stupid thing is, but whose idea was it to leave the thing there while the home is on the market?”

At another house Boyd almost became an unwitting participant in a Chaplinesque silent comedy.
“I’m stepping into the basement the first time with buyers right behind me, again without good lighting. My foot hits something and when the light goes on I see I just barely missed stepping off the step onto a roller skate. I’m serious. Can you picture me flipping
over onto my back like a cartoon character? If my foot had come down 2 inches to the left…”

Silliness aside, there is an important lesson here for home sellers.

“In all these cases the buyer’s attention is diverted from evaluating the home to something mildly disgusting or frustrating,” says Boyd. “If sellers have a dead pigeon lying on the deck it will just help our buyers negotiate a better price because of less competition. But let’s try to leave the skeletons and coffins for the Halloween party!”

Moving in the Omaha Metro Area? Conact the The Husker Home Finder Team" at http://www.huskerhomefinder.com/.

Contingencies are always a toss up. Have your Real Estate Agent assist in weighing your options and researching before accepting (or making one). As a BUYER, my advice is sell your current home first - you not only have more negotiating power to get the home for a better price, but it also affords you the patience on the selling end. -- Angela

As a SELLER before accepting a contingency, consider the following; 1) is the buyer's home priced aggressively, 2) how long has it been for sale, etc., 3) is the offer high enough to warrant the risk?, 4) what is the earnest deposit? 5) be aware although your home my remain "active" on the MLS, most agents will not show the home knowing it's already under contract.


Should you Write or Accept a Contingency?

MINNEAPOLIS (MCT) - Amy Hyatt-Blat heard the horror stories of homebuyers who ended up paying mortgages on two houses, and wanted to avoid that when she decided to buy a bigger house. So when she made a full-price offer on a townhouse in south Minneapolis, the proposal was rejected.

The deal breaker? Her offer was contingent on selling her condo. She and her husband tried again by making a full-price offer on another Minneapolis townhouse, and while this offer was still contingent upon them selling their condo, they sweetened the deal by offering to lower the price on the condo to show the seller they were serious about selling.

Their strategy worked. Three months later, their condo sold and they have no regrets.

"There are so many things that are out of your control," Hyatt-Blat said. "But one thing you do have control over is whether or not you choose to gamble on how long your place will be on the market."

Contingencies have become a way of life for buyers and sellers in today's challenging housing market. Buyers don't want to take a chance getting stuck with two mortgages, and eager sellers are more willing to accept any offer, even if it includes a contingency.

Contingencies, however, are a gray area in the negotiating process, so both buyers and sellers should weigh their options before making or accepting them.

"Be very cautious and thoughtful about offers that are contingent," warned Faith McGown, an agent with Coldwell Banker Burnet.

During the strong sellers' market of recent years, contingencies were rare because buyers were confident they could sell before closing on their next home.

That's all changed. The average time it would take to sell the current supply of houses on the market is 8.4 months, according to the National Association of Realtors. The market is considered to be balanced between buyers and sellers when there is roughly a five-month supply of homes available.

Contingencies can be a conundrum for sellers, too. Realtor Steve Fiorella has a client who recently rejected an offer contingent on the sale of the buyer's northern Minnesota home. Fiorella and his client checked on the property and determined that it might be a difficult sale.
Fiorella, head of the Fiorella Group in Re/Max Results' Apple Valley, Minn., office, said it's common to stake out a buyer's home. "First and foremost, you want to make sure that the buyer of your home is marketing their home aggressively and pricing it accurately," he said.

McGown said it can be a smart move for buyers to make a full-price offer to make up for the contingency. To Fiorella, it's even better to offer more earnest money with a portion of it nonrefundable. "Additional earnest money will show that you're into making things happen," he said.

Contingencies can be confusing, stressful and complicated. Usually, there are many variables, such as the length of time that the buyer will have to sell their home before the contract expires, the potential of another buyer making a better offer and how comfortable the seller is with the buyer's ability to sell their home.

That's why McGown generally discourages buyers from making them.

"Get your house sold first, then make an offer. You have so much bargaining power when your house is sold and you're going in non-contingent," she said. "You need to sell your house before you can buy the new one anyway."

Contingencies can be a headache for developers, too. Most lenders won't count contingent offers as a legitimate purchase agreement, which is used to determine what the bank will set the interest rate at and when construction can begin.

"Contingencies have gone from being something of a nuisance to being a deal breaker for a lot of sellers," said Scott Parkin, marketing director for S.R. Hoffman & Associates in Minneapolis, which handles marketing for several condominium projects.

"They know that when someone has a home to sell, it's a crapshoot if that home is going to sell in any reasonable time in this market." Parkin said some developers are even targeting buyers who are unlikely to make a contingent offer.

"If you can bombard an apartment building with fliers about your new construction project, those renters won't need contingencies." Parkin said. "In this market, offers without contingencies are golden."

While contingencies can complicate a deal, they can also motivate buyers.

Hyatt-Blat, for example, lowered the price on the condo she was trying to sell, hung color notices in coffee shops and at work, sent out personal invites and kept her condo in showing condition for three months until it sold.

"I was tempted (to make a non-contingent offer)," Hyatt-Blat said. "But what I wanted more than that townhome was peace of mind. It's better to lose a place and wait than to roll the dice and gamble taking on a second mortgage."

SELLER'S PROS

• 
  The market doesn't have as many buyers as it does sellers, so if you get an interested buyer, it might be wise to try to make it work, said sales agent Faith McGown.
• You're more likely to get a full-price offer from a buyer who wants to make up for an unattractive contingency.
• Typically, there's nothing about a contingent offer that prevents you from accepting other offers while you're waiting for the would-be buyer's house to sell. This could start a bidding war and could result in a higher offer.
• You have the upper hand. "How much can a buyer really negotiate because - let's face it - they don't even have their home sold," said sales agent Steve Fiorella.

SELLER'S CONS

• 
  Contingent offers must be disclosed to other interested buyers and that can decrease activity. Buyers have so many choices in this market that they don't want to waste their time in a bidding war.
• You have to guess how long it will take for the buyers to sell their home. If they're not able to sell by the time the contract expires, then you're back at square one.

BUYER'S PROS

• 
  You eliminate the risk of paying for two mortgages should you not sell your current house in time.
• The contingent offer could motivate you to do things to get your house sold that you wouldn't normally do.
• When buying a newly constructed home, writing a contingent offer could lock in an incentive or a special introductory price.
• If another offer is made while you're still trying to sell your house, typically, you'll get the first chance to sweeten the offer by lifting the contingency or raising your price.
  

BUYER'S CONS

• Because your offer is contingent on the sale of your house, you lose a lot of leverage and only gain an option to buy the house.
• Some sellers won't consider a contingent offer.
• If the home is attractive to first-time buyers, chances are good that the sellers will get a non-contingent offer from someone who is renting and doesn't have a home to sell first.
  Someone else can make a better offer at any time and you'll lose the house. This can be emotional, as buyers often get their hearts set on a home that they don't yet own.

Are you considering moving in the Omaha Metro Area? If so, please visit my website; http://www.huskerhomefinder.com/ for all of you real estate needs!

As a Military Spouse and mom of two "Army Brats", I love to read inspiring stories about kids who make a difference in the lives of our brave soldiers. It just proves there are no boundaries for what an individual (young or old) can do to make someones life brigher! -- Angela

Harms Way 4 Kids

Dear Families,

I recently listened to you on the Paltalk radio station and wanted to let you know about a small American hero who is making a real difference in the lives of the people she is touching. When my daughter Jenessa's ( age 12) uncle SFC Mike Chamorro was deployed to Iraq, she designed a bracelet in his honor. She then decided to make a bracelet for every family and troop who was deployed in the world. We created a website for her and the orders started flooding in. Since March 22, 2003 she has mailed over 89,000 bracelets.

Each one of these bracelets is hand made. They have six yellow beads which represent that you have a loved one "in harms way" and a red, white and blue heart bead that is cut and baked from Sculpey Clay. The heart bead represents love and patriotism for our country. Jenessa has inspired kids from her dance group, school and youth group to help with the bracelets. She also speaks to kids all over the state of Minnesota to help get them involved making the bracelets because she has over 135,000 orders. Over 40,000 have been shipped to Iraq, Afghanistan, Kuwait, Bosnia and Korea to troops stationed there.

We recently visited Washington DC where she went and visited the troops at Walter Reed Army Hospital. They were so inspiring and each of them was a hero. They kept telling Jenessa what a gift she was giving to them but I think the gift was given to us. Their courage was amazing and we were touched by each one of them. On the 21st -24th of May we will be traveling to Fort Hood for the second time to make bracelets with the families of the 4th ID who have loved ones deployed in Iraq. They put up a tent in front of the main PX and families come and make bracelets for themselves and their deployed troops.

I am so proud to be a parent of this child no matter how tired she gets she continues to make bracelets promising the families and troops that she will not quit until every family and troop who is deployed comes home. She has been on the Tonight Show and the Early Show but her humility through all of this inspires everyone around her to continue to help her reach her goal of providing a bracelet for every troop that is deployed. Sometimes at night when I hear her prayers I am so touched because her prayer is to find people to help her get the word out about her bracelets.

Jenessa has also received letters from dignitaries all over the world including the Queen of England, PM Tony Blair, the PM of Israel, Ariel Sharon,The King of Jordon and The First Lady but the letters that she carries close to her heart are the ones from the troops. Many of the troops write to her and tell her that they feel they have been forgotten by Americans but the bracelets remind them of the reason why they chose to serve and fight in the first place. She sends a letter with her bracelets telling the troops that if they can't wear the bracelet on their wrist they should put it in their pocket and whenever they reach in and feel it there they will know that they are heroes.

For more information about this remarkable young girl visit her website Harms Way 4 Kids.

Contact: Mr. Gregg Pinick, Principal (714) 998-5151 Ext 602 Email: Pinick@lhsoc.orgShauna

Fleming, Student (714) 282-9415 Email: SFleming@AMillionThanks.orgAlice Wax, Executive

Director, NMAM (703) 765-8613 Email: nmam@nmam.orgWebsite: http://www.amillionthanks.org/

If you're PCSing to Offutt AFB, I'm an expert in that arena - let me help! www.HuskerHomeFinder.com/Military

Foreclosures may sometimes seem like a great deal, however, once you factor in all the cosmetic work and hidden repairs (that usually need to be done prior to occupancy), the price sometimes isn't as good as it seems...not to mention hidden issues that can be costly. In most cases foreclosure homes are sold "as is" with no repairs - the occupant can do their own inspection prior to purchase risking the loss of the inspection cost (about $300-400), but that's a small price to pay in comparison to finding a major issue after occupancy!

Don't get me wrong, there are sometimes some exceptional deals with foreclosures. In my opinion the two main key factors are;

1) Have a quailified home inspector give the house a thorough inspection prior to purchasing so there are no unpleasant surprises, and

2) Prepare to have liquid cash up front to make the home liveable prior to occupancy, i.e. new carpet, paint, repairs, appliances, cleaning, etc. -- Angela

Daily Real Estate News June 11, 2007

Buying a Foreclosed Home? Get Ready to Clean

Owners of houses in foreclosure often leave them in poor shape, including abandoning desperate pets and rotting garbage, say properly inspectors and real estate professionals.

"It's almost every day now that we see a [foreclosed] house in awful condition," says Scott Mitchell, president of National Property Inspections, a company that provides home inspections and assessments in the Las Vegas area. "They know they are going to lose their house, so they have no pride of ownership anymore."

He says some home owners will leave the water on so there's flooding and mold, or they'll tear the chandelier or the ceiling fan out of the ceiling. He's also seen doors and walls kicked in, making it easy for bugs, rodents, and other critters to take over the home.

Pets are often the real victims. In May, authorities found 23 abandoned animals in a house in Lake Carmel, N.Y.; three pigs trapped in an Oregon home; 20 birds in a Lorain, Ohio, house: 24 horses on a Bixby, Okla., property; and more than 60 cats in a house in Cincinnati. All of the properties were in foreclosure.

Source: BusinessWeek Online, Maya Roney (06/07/2007)

Visit www.HuskerHomeFinder.com for all of your Omaha Metro Area Real Estate Needs!

There are over 5000 homes for sale in the Omaha Metro area - and it's a BUYER'S market. It's a tough market out there...seller's should do everything in their power to make their home outshine the competition - staging is a key element and should not be overlooked! I'm always happy to assist my seller's with staging tips for their homes (this is a free service I provide) - it truly makes a difference! -- Angela May, Realtor - www.HuskerHomeFinder.com

Regional Spotlight: Professional Stagers Help Yuma Residents Sell Real Estate

RISMEDIA, June 6, 2007-(MCT)-Staging a home doesn't have to be costly. It can be as simple as removing extra furniture, buying a new comforter and replacing personal belongings with new pictures and accessories.

When prospective buyers walk through a house, they want to see space they can visualize filling with their possessions, not the buyer's "stuff."

That's advice professional stager Teri Short gives to her clients, advice meant to help people prepare their home to entice potential buyers to sign on the dotted line.

"Now I'm getting a taste of my own medicine," she said as she pointed out moving boxes stacked along a wall and renovation projects in various stages of completion in her own home.
With the cooled-off real estate market, just posting a for-sale sign could result in a long wait for a buyer, she said.

That's why she's taking her own advice to get her home ready to sell as she and her military husband prepare for another move.

"How you live in a home and how you market a house are two different things" is the golden rule she learned while taking a staging class.

The staging process has sometimes been referred to as detailing your house much as you would a car before selling it. It's the process of making a house more appealing to potential buyers so it will stand out from other homes on the market.

Potential buyers will decide whether they like a house within 15 seconds of walking in the door, said Kathy James, a real estate agent who recently became certified as a property staging consultant. Sometimes it can happen as soon as they park at the curb.

That means the clutter has to go, she and Short agree. Trim trees, pack away the personal photographs and the knickknacks collected over the years, take the magnets off the refrigerator, remove all but the minimal furniture and weed out the closets.

"You need the house to flow and you don't want distractions so people can imagine their stuff in there," James said.

Staging is a service she offers free to her real estate clients, many of them senior citizens in the Foothills. Otherwise, the going rate is about $1 a square foot, she said. In other cases, she will act as a consultant.

While the effort will cost some money, the end result is that people likely will sell their homes faster and often for more than they would have otherwise, she said.

"Staging isn't redecorating," James said. "It's not about expensive upgrades. It creates space visually. I want them to get the maximum out of their house."

It's not always easy. James related her experience with one couple who were selling their home after 15 years to move near their daughter. It was a traumatic experience, especially for the man, she acknowledged.

One of her first recommendations was to remove a large ficus tree he had planted that had grown so much it obscured the front of the house. Then she had his overgrown citrus trees trimmed way back to open up the backyard.

"The hard part is that it creates a lot of emotions," James said of staging. "The man was angry the whole time.

"Sometimes I have to comfort people as things in their home change. It's no longer their home. Their pictures are gone. You have to honor their stuff, then tell them to pack it away. Sometimes it takes a neutral person to help them."

The results can be dramatic, James said, with such simple things as removing a window cooler and providing a clear view to a nicely trimmed yard. Maybe it's buying a new comforter and replacing window blinds.

When all the work is done and the sellers have packed and stored or shipped a lot of their personal belongings, "they can focus on the buyer," she said. "They did all the hard work before hand."

Short said she suggests people shift their thoughts to the new house they will be moving to and the new friends they will make. "That makes it easier to detach from the old house and pack away things."

That's what she's been doing herself in anticipation of putting her house on the market in about a month.

She's also painting over the dark paint on the ceilings throughout the house, replacing the mauve kitchen tile and stripping wallpaper — all things that came with the house when the family bought it during the height of the real estate boom and there were few choices on the market.

"When the market is hot," Short said, "the buyer will think they can paint over or take down wallpaper. With the slower market, they'll say forget it."

Staging was something she got into a few years ago with the idea she could do it while her children were in school. But there's been a demand for it only recently with the downturn in the market, she said.

Realtor Ed Sexton, who has used Short's services for several houses, agreed that staging has helped market them.

In one case, a house sold three weeks after Short gave the sellers a two-hour consultation. It had been on the market for six months before that, he said.

"There's two things to selling a house," Sexton said, "the price and how people feel about a home when they walk in."

Staging Benefits
Lasting impressions occur in the first 15 seconds of viewing a property. Property staging prepares your property for sale through a series of steps that increase its value and produces more appeal for buyers. A prospective buyer must be able to visualize the home by way of satisfying their own unique needs.

Why hire a property stager?- Maximizes square footage- Reduces stress to the seller- Catches buyers' attention quickly- House is on market for less time- Increased traffic flow of potential buyers- Encourages buyers to view the property's architectural features- Analyzes the strengths and weaknesses of the property.

Source: Kathy James, Property Staging Consultants
Copyright © 2007, The Sun, Yuma, Ariz.Distributed by McClatchy-Tribune Information Services.

I offer FREE Staging tips and advice to all of my sellers! Visit www.HuskerHomeFinder.com