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Chris Beaton Real Estate Agent (14)

Nebraska blogs (US-NE), 03/25/2011
10:03
Ten Things Real Estate Agents Help Take Care of When Buying a Home
» Chris Beaton Real Estate Agent

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You may have heard the common question asking why anyone would want to hire an agent to help buy a home. The fact of the matter is that real estate agents have many services to offer on all sides of the real estate equation. We all know what they do to assist us in selling our homes but did you know that there is equally as much, if not more, that they can assist us with when buying? Industry jargon coins it Buyer’s Value Proposition – and to make it simple we’ve listed ten things, from start to finish, helping to clarify exactly why, if you’re in the market to buy a property, hiring a real estate agent is a very smart initial move to make.

Needs Analysis

Agents thoroughly assess your needs as a buyer and assist you with identifying how you define the ideal home. They focus on the things that matter most to buyers in a home so that finding the right home is a much more fruitful endeavor.

Pre-Qualification and Pre-Approval
Choosing a loan officer can be a daunting task if you are out there on your own. An agent has a solid rapport with qualified loan officers in the region and they connect you with one to suit your needs, see through the process of getting pre-qualified and then approved. Terms are then negotiated to be in the buyer’s favor and assistance with finding the best possible mortgage financing is also provided.

Neighborhood Profiles

Understanding and listing a buyer’s selection of neighborhoods, real estate agents also compile data for each locale that helps to center in on which neighborhood is the right one.

Home Search Multiple List Services

Helping you to gain access to a large number of properties, agents arrange a home search process that makes accessing and perusing a MLS much simpler and useful at the same time. Not only that, your agent will keep you updated regularly, provide you assistance with drive-by home visits and coordinate home showings of the ones you are interested in.

Making Offers

When you center in on a home after going through the entire prequalification and then search process, the last thing you want to do is to make a decision that could hurt your chances of getting that ideal home. Agents go through the process with you, offering advice on terms so that you can be confident in your decision. Once the offer is decided, the contract is filed out with your agent’s help.

Negotiation to Buy

One less thing for you to worry about, your real estate agent will handle the process of taking your offer to the seller and his/her agent and negotiate the purchase on your behalf.

Coordination of Vendors

With so many vendors also in the picture for things ranging from the mortgage, title and insurance to other important aspects of the real estate deal, some coordination is required. As real estate agents, most deal with vendors on a regular basis and your own agent can help connect you to reputable vendors.

Preparation Prior to Closing

The main thing to be careful on is the documents right before closing on your new home. With assistance on all pre-close preparation, including document generation, agents also provide consultations to make sure the buyer is comfortable with all stages of the process and is ready to proceed.

Closing of the Sale

Providing a watchful eye and a helpful hand, real estate agents play a pivotal role in making sure all things are lined up during the closing stage of your new home purchase. Working to make everything as smooth as possible, you will be guided and then provided help throughout, until the final transaction is successful.

After Closing Assistance

Once all is said is done, the real work begins. Your agent will provide you support and backing to make the move-in process as smooth and effortless as possible. Whether assistance with moving your household items or learning about the new neighborhood you will be given ample help on that front, or in any thing you may need.

It’s an often misconstrued fact that real estate agents are very useful for the all-around real estate process; whether you are looking to sell or buy, you can definitely benefit from the supportive hands of your local agent.

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Nebraska blogs (US-NE), 02/24/2011
10:14
Slowly, But Surely – Foreclosures Move to the Background as Short Sales Become Common
» Chris Beaton Real Estate Agent
Ever so slowly, foreclosures are moving in the background after being in the forefront of the real estate woes that millions of people have been suffering during the past few years. The stories of families being evicted out of their life-long homes have been far too many and very gut wrenching. But as the option of short sales become more and more prevalent, both banks and homeowners are keen on the idea of going through the process of a shot sale rather than a foreclosure.

Why are Short Sales a Better Option?

As a solution for homeowners to be able to avoid foreclosure, short sales make sense because they allow banks to skip a large amount of processing, fees, legal time and effort and more – only to end up in the same boat; a property that is selling for less than what is owed on it. Choosing a short sale also makes sense for credit-conscious consumers, which is just about everyone – because this option does not affect credit ratings as much as a foreclosure does. Not only that, those people who have suffered through a foreclosure have a very long wait before they are able to easily buy another home.

How to Tell If You Qualify For a Short Sale

Many people do not realize that, just like any other loan, the short sales process involves an application for which you must qualify and subsequently be approved. There are several factors involved in determining eligibility and not everyone qualifies. But if you are able to secure a short sale rather than a foreclosure, one of the main benefits is a softer impact on your financial and credit portfolio. The usual reasons for applying and getting approved are typical derailment situations such as job loss or inability to work, divorce or inadequate equity.

Resources Available for Further Assistance

With so many homes in distress these days, there is a greater demand for information and resources to learn about ways to overcome this difficult market and the harrowing situation of having to deal with possibly losing one’s home. Aside from consulting with your real estate agent for guidance and perspective on your situation, there are counselors and representatives of HUD available at various HUD hotline numbers. They offer free advice, help you to understand your options and have a wealth of information available. Homeowners can also work with their banks to assess the pros and cons of a short sale versus a foreclosure.

Statistics Show the Current State of the Real Estate Market
- In the nation, there are 10 million homes currently in distress
- About 3.8 million homes are currently sold in a year
- Approximately 1 million homes that will sell in 2011 are under stress
- Two million homes are being held off the market by banks – 4-6 years of distress inventory will be hitting the market
- Over 14% of homeowners are struggling to pay their mortgage
No matter what situation you find yourself in, if the possibility of a losing your home is appearing more and more likely, it is essential that you research and determine all there is to know about short sales as it may be the right option for you. With the slowly changing trends shifting away from foreclosures and toward short sales, there seems to be some relief in distant sight from the real estate woes being suffered by many property owners these days.

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Nebraska blogs (US-NE), 02/17/2011
11:41
Short Sale FAQs Omaha, NE
» Chris Beaton Real Estate Agent

Who Qualifies for a Short Sale?

In order to qualify for a short sale, the seller must prove to the bank one or more of the following conditions:

- Loss of job, and difficulty in finding new suitable job
- Job Relocation, when equity is deficient
- High medical expenses due to disability, injury or illness in family
- Divorce
- Unable to afford the loan from the beginning
- House needs unexpected major repairs
- Overextended Credit
- Changing Economy
- Adjustment in mortgage payment due to interest rate or an unforeseen increase in living expenses
- Incidentally, these are also the most common reasons for a foreclosure.

Why Would a Lender Accept a Short Sale?

Why would a lender accept less than they are owed? Simply stated, the alternative is a foreclosure. Just as with the borrower, there are significant consequences to the lender if they foreclose.

- The legal costs of eviction and repossession,
- The loss of loan payments during the foreclosure process until it is re-sold
- A foreclosed house will need work before it can be resold
- After the foreclosure, the bank has two options: Sell it at the courthouse steps, or try to resell in the market.

If they resell in the market, they are penalized by the government by freezing 3-10 times the loan amount so that the lender cannot lend those funds to another borrower.

Will my lender consider a Short Sale if the mortgage is current?

Sometimes, some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent.

What if a property needs work, can I still apply for a Short Sale?

Yes. In fact, lenders are more motivated to do a Short Sale on a property that needs work than on a property that doesn’t. The lender knows the risk of loss goes up when they foreclose on a property that needs lots of work.

What is a Short Sale Packet and What Needs to be in it?

A short sale package it used to determine whether a homeowner can afford the property. Our team will work with you and your realtor to gather the information needed to meet the bank guidelines and streamline the process as efficiently as possible. Below are some of the standard items needed to complete a short sale proposal:

- The Listing Agreement
- Authorization to Release form (to allow agent to discuss with bank)
- Hardship Letter (see “How to Qualify” above)
- Financial Statement
- Seller Net Sheet (a copy of the HUD form with offer)
- Contract (when offer is accepted)
- Buyer’s Proof of Funds (with offer)

I have more than one mortgage on my property . Is that a problem?

No. Subordinate lenders are more flexible than 1st mortgage holders.

What if I have 2 mortgages held by different Lenders?

When you have 2 loans with the same lender, it is more beneficial to them, as there is no need to negotiate
with another lender. When the two loans are with different lenders, the process is a little longer, but the second lender is the one who has more to lose if they don’t reach a settlement. This is because if the property goes to foreclosure, the first loan is the first one to be paid and the second usually nets nothing.

Do I have to be past due on my mortgage to be able to get the benefit of a short sale?

No, but it is likely that the lenders’ guidelines will prevent them from formalizing a short sale if the loan is not past due. This means, for them, that the borrower has the means and can continue to pay on the loan each month. Please understand, however, I AM NOT RECOMMENDING THAT ANYONE STOP PAYING THEIR LOANS. In the current market conditions, it is possible that a bank would accept a short sale, even when the borrower is current.

What is a hardship letter?

This is a letter that explains the borrower’s current financial circumstances. Which circumstances have changed from when the house was purchased, and why the mortgage payments can no longer be made. These circumstances are what led to a borrower’s inability to make payments and to pay off the loan in full. This letter must be written by the borrower, and be sincere in demonstrating (with documentation) that it is the truth.

How long does it take to complete a short sale?

The time frame for the lender to receive and evaluate the short sale proposal is about 8 weeks from the time the offer and Short Sale Package are received. Buyers need to realize that this is a lengthy process. This is why it is very important to work with a Short Sale Specialist who knows how to manage the transaction. The other agent and the buyer may get cold feet at the end, and the transaction may fall through.

Why does the bank accept less than they are due?

They lose less on a short sale. On average, lenders lose tens of thousands of dollars less on a short sale versus a full foreclosure. It is simply in their best interest.

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Nebraska blogs (US-NE), 01/24/2011
13:55
What Are Reverse Mortgages and What Are Their Benefits?
» Chris Beaton Real Estate Agent

As the name suggests, “reverse” mortgages work exactly the opposite from a "regular" mortgage. Instead of you making monthly payments to a lender, the lender pays you. And, generally speaking, you don’t have to repay it for as long as you live in your home. So, what does the lender get out of this bargain? Well, in return, he or she holds part or all of your home's equity.

Reverse Mortgage Advantages

Home owners who are “house rich, but cash poor” can be beneficiaries of this type of mortgage. It allows them to stay in their homes and still meet their financial obligations. In addition, the proceeds of the loan are tax-free. Also, there are no minimum income requirements, and, for most reverse mortgages, the money can be used for any purpose you choose.

Reverse Mortgage Disadvantages
Below is a list of the major disadvantages of such loans:

1.) Reverse mortgages tend to be more costly than traditional loans because they are “rising-debt” loans. This means that the interest is added to the principal loan balance each month. Therefore, the total amount of interest owed increases significantly with time as the interest compounds.

2.) Reverse mortgages also use up all or some of the equity in a home. This fact means that fewer assets are left for the homeowner and the heirs.

3.) Lenders generally charge origination fees and closing costs; some charge servicing fees. It’s up to the individual lender as to how much the fees and costs are.

4.) Interest on reverse mortgages isn't deductible on income tax returns until the loan is paid off in part or whole.

5.) Because you retain title to your home, you remain responsible for taxes, insurance, fuel, maintenance, etc.

6.) Scams are sometimes run by unethical lenders. Never accept a deal with door-to-door/home solicitation lenders. Reputable lenders have no need to go door-to-door in search of loans.

From all the disadvantages listed above, you can see that you need to understand exactly how they work and what responsibilities you’ll take on with such a loan. Below, I’ve provided you with basic knowledge on reverse mortgages so you have a foundation upon which to consider them.

Types of Reverse Mortgages

Reverse mortgages have several different forms:

1.) Federally insured Home Equity Conversion Mortgages("HECM"). These are administered by the Department of Housing and Urban Development ("HUD")

2.) Single-purpose reverse mortgages. These are usually offered by state or local government agencies for a specific reason

3.) Proprietary reverse mortgages. These are offered by banks, mortgage companies, and other private lenders and backed by the companies that develop them.

Qualifying Factors

You must be at least 62 years of age and have paid off all or most of your home mortgage. In general, income is not a factor, and no medical tests or medical histories are required. If you seek an HECM, you also must receive free mortgage counseling from an independent government-approved "housing agency." This may also be true of financial institutions offering proprietary reverse mortgages.

Loan Amount

The mortgage loan amount depends on:

- Your age
- The equity in your home
- The value of your home
- The interest rate

If you choose an HECM, federal law limits the maximum amount that can be paid out. There are several ways in which you can be paid - in a lump sum, through monthly advances, through a line of credit, or a combination of all three.

Recommendation

As with any mortgage, shop around and compare terms of reverse mortgages. In particular, check:

1.) Annual percentage rate (APR). This is the yearly cost of credit

2.) Type of interest rate. Check to see if it’s a fixed rate or an adjustable rate.

3.) Number of points (fees paid to the lender for the loan) and other closing costs. In some cases, this can be costly so check closely.

4.) Total amount loan cost ("TALC") rates. The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs. TALC shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. More about it here!

5.) Payment terms, including acceleration clauses. These terms state when the lender can declare the entire loan due immediately.

Remember: Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan. Also, on plans with adjustable rates, they must provide you with specific information about the variable rate feature. And, on plans with credit lines, they must inform you about appraisal or credit report charges, attorney's fees, or any other costs associated with opening and using the account. Make sure you understand these terms and costs.

Finally, in most cases, you have at least three business days after signing a reverse mortgage contract to cancel it in writing! Want to learn more about reverse mortgages or any other kind of mortgage? Contact me immediately!

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Nebraska blogs (US-NE), 01/14/2011
12:12
It Pays to Conform!
» Chris Beaton Real Estate Agent

Have you ever gone into a neighborhood and noticed a few homes that stuck out like sore thumbs? One might be much fancier than the houses surrounding it while the other might be a "dump" in comparison to neighboring properties.

This scenario illustrates the real estate principle of "conformity." The main idea behind this principle is that a house is more likely to appreciate in value if age, size, condition and style are similar to, or conform to, other houses in the neighborhood.

How Does this Affect Buyers?

This principle of comparison also extends to buyers. By that I mean that if you make your property more "fancy" than others in your neighborhood, you end up limiting potential buyers. Of course, the opposite is also true – if you don't take care of your property, you'll definitely have fewer buyers looking at it.

Conformity is closely related to two other principles - progression and regression. In plain English, regression means that high-valued properties often tend to suffer when located close to lower-valued homes. Progression, on the other hand, means that lower-valued homes will often see increased value when found amongst higher-valued properties.

This formal principle leads the informal maxim: "Buy the cheapest property on the block!” The higher value of the homes around it will, in turn, make it more valuable.

As A Buyer, How Can I Use the Principle of Conformity to My Advantage?

I've already mentioned one method - buy the least expensive house in the neighborhood! Once you do that, improve it, and you'll get most ‘bang for your buck’ on your improvements. Of course, take caution when looking at such properties (often called "due diligence"). Spend the money on a real estate appraiser so you get an objective evaluation.

As A Seller, How Can I Use the Principle of Conformity to My Advantage?

As a seller, simply make sure that you maintain your home and lot on par with surrounding properties. Of course, if you've already done that, then invest in low-cost improvements such as new paint inside and out, landscaping, a professional cleaning job, etc. You might also want to add new carpets and/or new appliances if they are lacking.

Do it Yourself! ...if You're Sure You Can

All these actions will improve the value of the home in the eyes of potential buyers. If you're an experienced do-it-yourselfer, you should definitely tackle someimprovement projects since they can cost less than half of what professional contractors charge.

However, notice that I emphasized “experienced!” An amateurish job on, say, cabinets or roofs can actually reduce the value of your home. So, unless you're really, really good at it, leave major home remodeling projects to the professionals.

You Don't Want a House with TooMany Areas Needing Improvement

Avoid any homes that need major fixes such as roofs, foundations, siding, plumbing, electrical work, etc. The last thing you need is a "money pit" into which you keep investing money and get little or nothing in return. Be sure to seek out sound properties, like homes needing only minor fixes such as painting, cleaning, landscaping, carpets, new appliances, etc.

If you're a buyer interested in real estate investment, purchase a home in a neighborhood that's just beginning a revitalization cycle. That way you can be sure values will appreciate.

You can also look for ‘under-improved’ properties such as single family homes which can be converted to residential income or commercial use, especially if such properties lie in the "path of progress;" meaning areas experiencing positive growth.

Want to learn more about buying a ho

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Nebraska blogs (US-NE), 12/27/2010
10:08
How to Make a Buyer WANT Your House! Staging your house, before it’s too late and you lose the sale
» Chris Beaton Real Estate Agent

If you’ve shopped for a home, chances are you’ve come across one that you really wish you hadn’t visited in the first place. True, houses for sale ought to have a certain “lived in” quality to them, because they are to be lived in after all, but the art of tactfully balancing just the right amount of homeliness with neutrality is not so simple. You need to know what you’re doing when you prepare to set up your house and show it to potential buyers. We’ve put together some great tips for home-sellers so you can get the same results you’d get by hiring a professional staging company.

Fix Up the Place

One of the biggest mistakes homeowners make before putting their house up for sale is to neglect areas in the house that need attention. Folks, don’t leave that faulty step unrepaired, only for a potential buyer to step on, slide off of or worse, get injured on – FIX IT! You might think potential buyers won’t notice but they are walking around on your premises like hawks, noticing each little detail. The good news is that they are noticing the first-rate stuff too, so as long as you have the home’s amenities in order and other major areas in tip-top condition, you should be in good shape. Here’s how:

Get Rid of the Clutter

If you want to successfully sell your house, you need to get those potential buyers to imagine they already live there. Too much clutter, hobby-oriented items or personal possessions that most people may not be able to identify with, can easily get in the way of that vision. Organize things in stylish storage bins or better yet, have a garage sale before the open house and get rid of unwanted stuff. You have to move soon anyway, why not kill two birds with one stone? A clean and organized home will seem like a clean slate to buyers, who can then see themselves moving in without much hassle and settle in effortlessly.

Stay Neutral

Skip the tie and dye sofa cushions, shaggy 70s rug and don’t light incense on the day of your open house. While you’re at it, don’t fill the space with gender-specific things either. Buyers should walk into a neutral ground – literally.Light to medium colors, preferably in beige tones, are the simplest way to pull buyers’ attention away from other personal aspects of your home that they may not be able to identify with. Beige goes with almost anything so if someone considering purchasing your home can imagine their things in the space, then you’ve just crossed one of the most major hurdles in home-selling – making a buyer identify with the home.

Make It a Modern, Inviting Environment

If you don’t already have them, invest in a few modern decorative accessories to improve the look of your space while lending an air of style and taste and making it more enticing. It doesn’t have to take much but depending on how you set it up, you can enhance a given space with a few simple additions and deletions. Take your over-crowded study and rearrange the bookshelf to display only a few strategic but essential books, like a leather-bound set of encyclopedia or some literature classics. In the same way, leave a few children’s toys in a child’s room but be sure to display them tastefully.

Put a Few Finishing Touches in Place

The idea is that you want your house to be sold – and you probably want it sold fast. If you are careful to respect the people who are visiting your space to decide whether it’s the right one for them, then you are doing something that a lot of homeowners neglect to consider.Taking down a piece of controversial artwork that may make a potential purchaser uncomfortable could be the one bargaining chip that could make or break the sale. Arranging for all those who currently live in the home to be away during the open house and while showing the house being dressed in a way to present a good impression are also great ways to tip the scales in the right direction.

It’s very simple. You need to make the potential buyer feel right at home from the get-go. If from the moment they walk in and smell cinnamon cookies baking makes them wish this was already home – then you’re already two steps ahead and can call the open house a success! Of course, a signature on the dotted line is where the real success lies and as long as the buyer feels at home, chances are that if everything else lines up – the sale is a winner!

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Nebraska blogs (US-NE), 12/17/2010
16:12
Happy Holidays!
» Chris Beaton Real Estate Agent

I would like to wish you and your family a happy holidays! Thank you for all your past business and the referrals you have sent me as well as supporting my video blog. Remember me for any of your real estate needs and have a great and safe new year. See you in 2011! Now please enjoy this article about doing your due diligence in real estate.

What’s the One Unbreakable Law of Real Estate?“Perform due diligence!” is the one law you should never break in any kind of real estate deal – residential, multi-occupant, or commercial!

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

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

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

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

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

Physical Inspection of Properties

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

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

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

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

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

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

What Do Professional Inspectors Look For?

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

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

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

Pest Control Inspection

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

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

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

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

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Nebraska blogs (US-NE), 11/30/2010
14:13
FSBO - Your Advantages and Disadvantages - Why Shouldn't I Try to Sell My Home by Myself?
» Chris Beaton Real Estate Agent

Many home owners think about selling their own home but relatively few attempt it. Why? Because it's an extremely time-consuming and often exhausting process, especially if you're working a full-time job! It's the Realtor who takes this burden off your back.

Nonetheless, I don't discourage you from putting your home on the market and attempting to sell it yourself.
But before you do it, I do encourage you to become extremely knowledgeable about the process and aware of the both advantages and disadvantages of it.

Below, I've provided information on the benefits and drawbacks of doing a "For Sale By Owner" (FSBO) sale.

Read it carefully and then make your decision!

Advantages of Selling Your Own Home

Of course, the biggest advantage a FSBO is that there's no commission to be paid to a Realtor. You get all the proceeds from the sale, minus any marketing costs you incur.

A second advantage is that you have complete control of the transaction. You don't have to rely on anyone else. You're totally independent.

A third advantage concerns your equity. If it's low, you have the possibility of selling your home without having to write a check.

A fourth advantage is that you don't have to rely on a realtor to schedule showings, answer inquiries, etc.

Disadvantages of Selling Your Own Home

Perhaps the greatest disadvantage is the tremendous amount of time you have to put into the sale.

It's a time-consuming process to do all the paperwork, the marketing and advertising, the showings, etc. by yourself - not to mention the hours it takes to get acquainted with all the legal, financial, and other issues. You must be prepared for this.

A second disadvantage is the costs in terms of marketing and advertising. If you don't exactly what you're doing, this can be very expensive!

A third disadvantage is that you won't have access to the Multiple Listing Service (MLS) unless you pay a fee to have your listing included. If you don't pay that fee, then you'll end up hunting for buyers one at a time, a very inefficient, ineffective, and frustrating process.

The fourth disadvantage relates to your knowledge of the market. If you're not knowledgeable about it, you may not price your house correctly.

That is, you may underprice it or overprice it. If you underprice your home, you lose money. If you overprice it, you lose buyers. By the same token, if you do find a buyer and you're not experienced at negotiation, you could be taken advantage of.

A fifth disadvantage relates to a belief of some buyers. They believe that since you're selling the house by yourself and not paying a commission, then they're the ones who should get the savings instead of you!

My Advice: Do your homework before considering selling your home by yourself! And, if you do decide to go the FSBO route, be fully prepared in all aspects of home sales!

If you'd like more information and advice on selling your own home as well as my real estate services, contact me.

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Nebraska blogs (US-NE), 11/15/2010
13:08
Adding Value To Your Home Through the Garage
» Chris Beaton Real Estate Agent

By nature, garages are places where we store many things we don’t want or need in the house. They’re also places where oil and gasoline are spilled due to cars, mowers, snow blowers, roto-tillers, etc.

Garages tend to store toys, mementos and many other items that, at one time, we thought vitally important. Then, when we go through them, we wonder why in the world we thought they were so important in the first place!

Well, as you can guess, all those boxes, stains, smells, unorganized tools, etc., can add up to an unsightly mess in the eyes of potential buyers. So, that means it’s time for a cleanup and, just as important, a rigorous re-organization of the garage to make it “shine” in the eyes of buyers.

First:
Go through all those boxes in your garage and sort out the items. Be ruthless and toss out anything that no longer has any use or meaning. Even better, donate items that are still useful to your favorite charity. You’ll feel great and make somebody else happy at the same time. By clearing out all the clutter, you’ll make it easier to take the next step.

Second:
Clean the garage as thoroughly as possible. Get rid of dust and dirt anywhere you find it. If you have minor oil/gas stains on the floor, you may be able to pressure wash them away.

However, if they’re large and/or long-standing, then you’ll need to find a cleanser like TSP (trisodium phosphate) or specially-made cleansers like “Gunk,” “Swab,” etc. that can be found at paint/automotive stores or in sections of “big box” stores like Wal-Mart.

Third:
Consider a “garage organization” system. Usually, the cheapest ones consist of storage bins and wall hooks. But, if you want to spend the money, there are also ones available with wall panels and flooring.Depending on your needs, an organization system can range from approximately $40 to thousands.

Simply google “garage organization systems,” and you’ll find plenty of links to companies selling these products.No matter what system you choose, it will definitely give your garage a clean and professional look.

I can’t stress how impressive it is to potential buyers to have a well-organized garage.

This tells them that you’re a person who takes care of every detail of your home and property.And that, in turn, lets them know that buying your home will be a great investment on their part and well worth the asking price.

Need more hints on how to spruce up your garage or any other part of your home and property? If so, contact me today.

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Nebraska blogs (US-NE), 11/01/2010
09:08
Ever Wondered Which Home Improvements Give You the Best Return on Investment (ROI)? I’ve Got the Answers for You!
» Chris Beaton Real Estate Agent

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

Natural Gas Furnace Replacement

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

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

Painting

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

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

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

Vinyl Siding Replacement

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

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

Replacement Windows

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

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

Kitchen Remodeling

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

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

Roof Replacement

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

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

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

Bathroom Remodeling

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

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

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

If you’d like to discuss the ROI on other home improvements, contact me today!

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Nebraska blogs (US-NE), 09/30/2010
11:28
How to Be a Wise House-Shopper in a Great Buyer’s Market!
» Chris Beaton Real Estate Agent

There’s no doubt about it – there are a great many bargains in the real estate market today if you’re a person looking for a new home.However, I highly recommend that you don’t get dazzled by all the opportunities and make a potentially expensive and poor decision. To that end, I’d like to offer you some common-sense guidelines to follow.

Guideline 1: Pay Attention to Your Budget
Before beginning your search for that new home, sit down and come up with a monthly payment you can handle with ease and then look for the house that fits that budget.

Guideline 2: Save Up for a Down Payment
Due to the “mortgage meltdown,” lenders are currently much more cautious about giving out money. Depending on the situation, they may insist on a minimum down payment of 10% or one that’s all the way up to 25%. So, start saving!

Guideline 3: Improve Your Credit Score
A good credit score is a great way to make the whole process easier when you apply for a loan. Today’s lenders scrutinize such scores more closely today than in the past. If you don’t have a good score, work hard to get it up into an acceptable range. It’ll save you money on interest charges and down payments in the long run!

Guideline 4: Get a Pre-Approved Mortgage Loan
If you’re a first-time home buyer or simply a buyer who wants to make sure you stay within your means, it’s a wise idea to get a pre-approved mortgage.This is simply the process of applying for a mortgage and getting approval for the loan prior to buying a home.

A “pre-approval” is an indication that the lender is ready to extend a mortgage to you once you’ve located the right property. And it has several benefits. First of all, it saves time and energy. Once you have a pre-approved loan amount, you’re required to stay within the limits of that loan in terms of the price you’ll pay for a house.

First, when working with a realtor, ask him or her to limit the choices to those stated in the loan. This prevents the agent from showing you properties which are out of your range. By the way, they’ll really appreciate those parameters because it’ll help them zero in on properties with the best chance of sale!

Second, you can spend more time looking at homes you really like and, simultaneously, not wasting time on houses that aren’t within your budget. This allows you to focus on the details of the homes you do like in order to make sure you select the right one; for example, kitchens, baths, garages, etc.

Third, you can bargain more effectively with sellers once they know you’re pre-approved. In the current market, that’s a great relief for many sellers because they realize they have a reasonable certainty of selling their property when working with a pre-approved buyer.

Fourth, you can close faster with a pre-approved loan because there’s no time lost in the usual processing period for loans. For example, an appraisal can be ordered right away, and you have the potential to cut a 30-day closing to two or three weeks.

Finally, the seller will prefer to deal with you, particularly if he or she needs to move quickly.

Now, you have some common-sense guidelines to follow when seeking a new home in today’s market! You can learn even more by contacting me today

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Nebraska blogs (US-NE), 09/08/2010
15:12
Why Use the Services of a Real Estate Agent?
» Chris Beaton Real Estate Agent

This question is often asked, especially by homeowners who consider selling their homes by themselves.

The fundamental first answer to this question is that an experienced realtor is an expert at what he or she does. Through hard work and education, they’ve acquired a set of skills that make the process of home buying and selling a lot easier than it would be by doing it yourself.

So, what are the skills in the set I’m talking about?

Well, for one thing, we have the skill of being the go-between. We’re the people who handle people and calls and separate the “wheat” (real buyers) from the “chaff” (non-buyers) without you ever having to deal with such situations. In Internet terms, we make sure you’re not “spammed” with worthless offers and target real deals for you.We’re also the ones who save you a lot of time by making sure you’re looking at appropriate properties and neighborhoods right from the get-go.

And, speaking of neighborhoods, an experienced realtor will know them inside-out or will know how to find the latest information on them. That means he or she can get you into neighborhoods where the crime rate is low or non-existent, find you ones with great school systems, rising property values, etc.

By the same token, an experienced agent will steer you away from neighborhoods where the trends are downward; that is, rising crime, falling property values, and so forth.

And what about the prices of homes? Well, some people believe that we select them for our clients. Not true! We have no way of setting prices. They’re set by the market! However, we can guide you toward properties that fit your individual needs and are comfortably within your price range. Frankly, it’s not in our best interests to put you into a home beyond your means or that’s not right for you. When that happens, we lose clients and money!

So, we’ll do our best to work within your price range and, based on current information (market supply, demand, etc.), we’ll come up with the best negotiation strategy possible. Current information can include cost-per-square-foot of homes, ratios of list-to-sold prices, knowledge of the buyer/seller, etc. All this information is gathered by the agent and used to formulate solid offers.

Another important skill experienced Realtors possess is objectivity. We have the ability to stay out of the emotional process that often occurs with the buying and selling of a home. Instead, we present your case in the best light possible, all the while holding your information confidential from any competing interests.

One realtor skill that’s often not apparent is our ability to network with other service providers (housing inspectors, title companies, etc.) Professionally, we can’t recommend one specific vendor over another. However, we do keep lists of vendors with excellent reputations as well provide references for the vendors. This service allows you to choose the best provides for your particular situation.

Now, here’s one realtor skill that everyone truly appreciates – the ability to handle tons of paperwork! Today, purchase agreements can run 10+ pages, and that doesn’t even include all the state and federal disclosure statements that are required in the current market! Heck, a real estate file can end up being 2-3 inches thick with paperwork these days!

And it’s not only the heavy paperwork handled by realtors; it’s also the attention to detail within that paperwork. It’s their job (or a lawyer’s, depending on the state) to make sure all the information is correct because if it isn’t, it can end up costing the client hundreds of dollars.

So, as you can see, there are many reasons why it’s wise to use an experienced Realtor for the purchase or sale of a home! To find out about the services I haven’t mentioned in this article, contact me today.

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Nebraska blogs (US-NE), 08/25/2010
12:50
1031 Tax Deferred Exchanges
» Chris Beaton Real Estate Agent

There are three types of 1031 tax deferred exchanges that can take place:

1.) Straight exchanges—two parties trade properties of equal or approximate value. This is the simplest exchange.

2.) Multi-party exchanges—this involves three or more parties buying, selling, or exchanging properties. Don't attempt these exchanges without the aid of a tax professional; they tend to be very complex.

3.) Delayed exchanges—this exchange allows the sale of the relinquished property and the buying of the replacement property to occur at different times as long as stringent rules are followed.This is the exchange most often used.
What's the Advantage of the 1031 in Terms of Taxes?

As the law's title indicates, the capital gains tax is deferred, but not eliminated. However deferral is a great way to leverage small real estate holdings into larger ones! Since you can postpone gains, you're able to use a tax-deferred exchange strategy to transfer equity to a larger property, all without paying taxes!

Another advantage is that there’s no limit on exchanges. This means you can make as many exchanges as you want! So, over the course of your lifetime, you can keep growing income and appreciation by adding new properties without having to pay the capital gains tax!

If you specialize in buying and renovating properties and want to keep reinvesting your profits into larger properties, then this strategy is especially attractive.

Note: If you don’t keep reinvesting, you risk being classified as a real estate dealer by the IRS and will not be able to participate in exchanges.What Are the Basic 1031 Qualification Rules?

There are some basic rules that must be followed in order to qualify for a 1031 exchange. These include the following:

1.) The properties to be exchanged must be located in the United States. Note: You can exchange foreign property for foreign property and domestic for domestic. However, you can’t mix these exchanges together.

2.) You must trade only like-kind real estate.3.) An exchange must be made that’s equal to or greater in both value and equity. Any cash or debt relief received above this amount is considered “boot” and is taxable.

4.) The like-kind property must be identified within 45 days of the closing on the initial property.

5.) All proceeds from the initial sale must be turned over to a"qualified intermediary" (also called a QI, facilitator, exchanger, etc.) who is the person or company playing the role of middleman.

6.) Any of the proceeds not under the control of the middleman are subject to taxation.

7.) The middleman holds the funds from the initial property in escrow until such time as the closing on the second property occurs.

8.) The middleman also assists the owner with the preparation of paperwork and other services to ensure the transaction progresses in a smooth manner.

9.) The closing on the second property must take place within 180 days following the close on the first property.

Wow, as you can tell, this is pretty complex subject and can't completely covered here! But if you're an investor or plan to be one, I hope I whetted your appetite for this subject.

And please, if you have any further questions, feel free to call me! I'd love to tell you more!

More... »
Nebraska blogs (US-NE), 08/09/2010
12:25
Before Buying a Home, Talk to the Neighbors To Determine If the "Neighborhood Value" Is There!
» Chris Beaton Real Estate Agent

"Neighborhood value" is the atmosphere of a particular area - the look and feel of the homes and yards and so forth. But, more importantly, it's the "vibe" you receive from the neighbors.

Let's be honest: You can buy the finest home on the planet, but obnoxious neighbors can spoil the whole living experience for you.

Or, it could be the opposite - the neighbors aren't obnoxious; the current owners are. They may have had disputes with their neighbors and created an unhappy climate.

Depending on the nature of the disputes, the neighbors may be glad to see you, or they may be so negative toward the current owners that their attitude may spill over onto you, even though you had nothing to do with the situation! If that's true, then you may want to look at homes in a different area.

I'll give you an extreme example that happened to a friend of mine in a different city. We'll call him "Dave." He was interested in a home in a nice central-city neighborhood. The price seemed high, but the owner was trying to sell the house by himself so that didn't seem unusual since a "For Sale By Owner" often asks for a price above the estimated market value. As I'd advised him to do, Dave did his "due diligence" and talked to the neighbors.

Boy, did he get an earful! Turns out everyone hated "Ted," the owner of the property. As far as Dave could tell, this man had gone out of his way to offend everyone he possibly could in the neighborhood.

"Ted" played loud music at all hours of the night…shot a BB gun at pets that weren't in his yard…disputed suggested changes at neighborhood meetings…and had even tried to prevent a current neighbor (a nice family with two well-behaved children) from buying his present home because…well…no one was quite sure why. "Ted" simply seemed to have "mean" in his circulatory system, instead of blood.
Needless to say, this was a strange situation for Dave! On the one hand, the neighbors were practically begging him to buy the home simply to get rid of "Ted."

On the other, "Ted" was every bit as obnoxious with him in the bargaining process. He was loud, verbally abusive, and ridiculed every offer Dave made.

Well, you can guess the result. Dave felt sorry for the neighbors, but walked away because he didn't need the grief! Let me emphasize once again that this is an extreme case; however, as you can see, it never hurts to investigate a neighborhood thoroughly before buying a home!

But there's also another important reason for you to talk with neighbors; good neighbors can alert you to problems you may not be aware of; for example, basement flooding, termites, leaky roofs, etc.

When that happens, you can either look at a different house or negotiate with the seller to lower the price of the property!

The Best Way to Evaluate a Neighborhood and Its Value

The best way to evaluate a particular neighborhood is write up a checklist of desirable aspects before you ever enter that neighborhood!

Below, I provide you with typical features (in alphabetical order) to check out. However, you should add as much detail as possible to that list since everyone has different needs and wants.
• Association fees (if applicable)
• Closeness to parks and recreation for the kids
• Crime rate
• Length of commute to work
• Noisy pets (barking dogs, etc.)
• Property taxes.
• Proximity to busy streets or main thoroughfares.
• Proximity to mall, shops, restaurants, etc.
• Reputation of school district
• Sidewalks and running trails throughout the neighborhood.
• Type of families in the neighborhood, etc.

The list above has all the "objective" features of a neighborhood; that is, you can measure them, for the most part, by facts and figures.

Assuming a neighborhood meets these objective criteria, then it's time to analyze the "subjective" features by visiting the area.

Drive through the neighborhood to get an initial look. Do this at different times and on several different days to get a real feel for the area.

Assuming you like what you see, you should also get out and walk the neighborhood. You may well see things you missed from the car.

As I suggested earlier, talk to the neighbors to get their opinions of the neighborhood and the property you're considering.

I'd recommend you select a time when they're likely to be outside walking or in their yards (gardening, watering, mowing, etc.). That way, you don't have to knock on their doors and interrupt their personal time.

Since buying a home is such an important decision, you can see that it's vitally important to check both the objective and subjective features of a neighborhood. And, since it's my business to know every one of those aspects, I encourage you to contact me so I can fill you in on the "neighborhood value" of an area you're interested in! Contact me today!

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