Real Estate Information Archive

It's common to hear the term "all-cash buyer" during real estate shows. It's often used as a way to sweeten a deal, but what's the reality? You can buy a house in Omaha with cash or with a mortgage, and each has its own pros and cons.

Buying a House with Cash Is Increasingly Uncommon

You're in the minority if you're able to buy a house with cash. Considering the median home sale price is in the mid-300,000s, most people cannot afford it. In 2020, the National Association of Realtors' Profile of Home Buyers and Sellers estimates that around 87% of home buyers finance their purchase.

There is no requirement that you show up with a suitcase full of cash if you have enough savings to buy a home outright.

What it means is that you're not getting a loan. The money may come from savings, the sale of another property, or the use of investments.

The Upsides of Paying Cash

If you can pay cash for a home, there are undoubtedly some benefits, including:

• Sellers find you more attractive as a buyer. Right now, this is a big deal. Omaha has a limited inventory of homes and a high demand for them. Bidding wars are inevitable. When making an offer, paying cash can help you be more competitive. That’s preferable to sellers because then they don’t have to worry about what happens if your mortgage financing falls through. A cash-only transaction is also usually faster, so you can get to the closing quicker, which sellers tend to like.
• You don't have to worry about mortgage payments when you buy a house in cash, but you also won't be paying the interest and fees associated with a home loan.
• Omaha home buyers who pay cash have lower closing costs because they aren't paying fees associated with mortgages like lender fees.
• It's not just the seller who benefits from a faster closing. It’s advantageous for the buyer as well. You might be able to close on a home within a week of your offer being accepted. If you buy with a mortgage, it can take a month or more.
• Once you close, the home really is yours. You don’t have the fear of not being able to make the payments and subsequently losing your home.

The Downsides of Paying Cash

There are a few cons of paying cash for a home that you do have to think about as well.

• There is no liquid money in your account. Your cash won't be easy to access if you use it all to buy a house.
• If you invest your money in something other than a house, you could make better returns.
• The mortgage tax deduction will not be available to you. Your taxable income goes down when you itemize deductions for the first $750,000 of mortgage interest.

Talk to a financial professional before buying a house in cash if you're weighing the option. You can discuss all the different scenarios and how that choice could affect you.

Of course, if you’d still have money in savings or investments after buying a house with cash, then it might make the decision easier.

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

Are you buying a home in Omaha or plan to sell your Omaha home? If so, you may be dreading the moving process. To be honest, it's never easy. But there are ways to make the process go more smoothly and with less stress. Here are some tips to help your nest move a successful one.

Plan as Far Ahead as Possible

When planning a move into a new home, it is important to start several months in advance of the actual move-in date. For long distance moves of several hundred miles or more, planning should begin at least twelve weeks in advance. This involves creating a moving timeline, hiring necessary movers or professionals, and notifying the post office and utility companies of the final move-out date. Proper planning ensures a smooth and stress-free move.

Don’t Do Everything on Your Own

Hiring professional movers is a wise decision as it saves you from doing the bulk of the moving work yourself. In addition, it guarantees the utmost safety for your belongings during the move. Professional movers are highly experienced and know the exact ways to transport your belongings from your old home to your new home with the highest level of care while working as quickly as possible. This ensures that none of your possessions get damaged during the move. Moreover, having professionals handle the move makes it faster and smoother overall compared to doing everything with just your friends.

Hiring additional movers can simplify your move. A reliable vehicle shipping company can transport multiple cars safely and efficiently. This enables you to keep your family together in one car during the move, or you can opt for a comfortable plane or train ride.

When planning a move, it's important to be cautious about who you hire to assist you. Before making any decisions, take the time to research moving companies online. Look for positive reviews on sites like Google and Better Business Bureau. Once you've identified potential Omaha companies, request quotes from each of them to compare prices. Don't hesitate to call and ask any questions you may have. If the company is friendly and able to answer your questions truthfully, they may be a good fit for your move.

Unclutter

Before your move, it's important to downsize your belongings. Take the time to go through everything you plan to bring with you and get rid of anything that you no longer use or need. If you have the budget, consider hiring a professional organizer to help you get everything in order before moving day.

Uncluttering before moving can greatly speed up the process. By reducing the number of items to be packed, transported, and unpacked, the entire process becomes more efficient. Packing fewer items takes less time and can be done more quickly, ultimately making the move faster.

Pack Methodically

It is important to prepare for a move in advance by gradually packing and labeling boxes by room. Rushing to pack everything in a short amount of time is not recommended. Prior to packing, it is helpful to declutter. Labeling boxes with their contents and designated room will simplify the unpacking process and ensure that items end up in their proper place.

To simplify packing during a move, it's worth considering using different types of boxes for different items. For instance, old beer boxes with handles can be useful for packing books. Additionally, packing smaller yet heavier items in rolling backpacks can make transportation easier. Rolling these items instead of carrying them can save time and energy.

When moving, the bottom line is the be as organized and prepared in advance as possible. Get professional help as much as you can afford to. Doing so will ensure your next move will go as smoothly as possible.

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

Important Factors to Consider in a Construction Company

• Commitment to safety. When undertaking new construction projects it is imperative that safety be the paramount priority of any organization. Ensuring compliance with all applicable laws and regulations, having comprehensive insurance and taking every feasible measure to ensure the safety of all workers greatly avoids potential issues on multiple levels. Firstly, there is a moral responsibility to prioritize safety over other aspects of a project. Additionally, there is an economic logic; by prioritizing safety companies drastically reduce their chances of experiencing delays due to accidents. Furthermore, employee morale and thus productivity often increases when employees feel secure in their work environment.
   
• Areas of specialty. What are the areas of expertise and specialty held by this construction company? Are they competent at building the type of house you want?
   
• Options and customization potential. How many options do you have when building a house with this company? Increasingly, construction companies are trying to streamline the design and preparation phase, relying on templates and simple modules for customization. If you're looking for something more unique, you'll need to find a construction company that can accommodate you.
   
• Past work/portfolios. How many houses has this company built? Can you tour some of them? What are the strengths and weaknesses of these houses, as you see them?
   
• Ratings and reviews. It's important to weigh in the opinion of past customers when considering a construction company. Be sure to read all customer ratings and reviews, as they can provide valuable insight into their experiences with the firm. Are there mostly positive or negative critiques? What are some of the most consistent compliments and complaints? Careful analysis of client ratings and reviews will help you get an informed sense of the quality of work this company does.
   
• Pricing and payment schedules. Cost is an important factor when choosing a construction team—some may be pricier than others, for a number of reasons. Make sure to take payment schedules into consideration, too: What are the respective amounts and due dates?
   
• Timelines. When building a new house, the typical timeline is 7-8 months from the point of obtaining permits to completion. However, it is important to note that this duration may extend or shorten depending on a range of factors. Be sure to clearly establish an understanding of the timeline and associated variables before starting the construction process.
   
• Contractors and subcontractors. When it comes to a construction project, it’s important to understand who is handling the work. The construction company no doubt relies on both its employees and contracted subcontractors as needed for each job. It's critical that the work meets quality standards, so make sure you know more about any contractors or subcontractors before committing; be sure to ask for references and reviews from previous customers. Additionally, ensure that all parties are properly insured and licensed so you can have confidence throughout the building process.
   
• Customer service. Client satisfaction is vital to ensure successful communication, organized progress, and an overall positive experience. Are you assigned a project manager for this process? If so, does this individual make themselves available as needed and respond to your queries objectively and truthfully?
   
• Terms and conditions. What other terms and conditions apply to this contract with this construction company? Do they make any assurances or guarantees? What happens if they can’t meet the original timeline? Will the price increase if the cost of materials increase?

Other Important Tips

• Set your priorities in advance. What are your biggest priorities when buying a house? You should know what these are long before you start looking for a construction company. For example, do you have a strict budget that's going to limit your options? Or are you willing to extend your budget if it means completing the house by a certain date?
   
• Shop around. Don't go with the first construction company you encounter. It's important to shop around and review many different options so you can properly evaluate each.
   
• Take your time. This is a huge decision, and not one you can afford to rush. If a construction company representative tries to pressure you into finalizing a deal before you're ready, push back.

After a red-hot real estate market during the pandemic & subsequent months, rising interest rates have cooled the chaos. But does that necessarily mean bad news for buyers? Maybe not, here’s why.

When the housing market skyrocketed, many would-be homeowners found themselves in a position of being unable to buy due to tons of cash offers and bidding wars that went sky-high, most-often thousands of dollars above asking price and almost always all contingencies waived. With interest rates rising, home prices are now edging down. 

In a recent Bloomberg article (October 2022) by Teresa Ghilarducci titled “Looking to Buy a House? It’s Not the Worst Time to Buy” she states “Buying an asset when the price is falling is generally a good thing. Buying a home now when mortgage rates are high and housing prices are falling means as mortgage rates stabilize or even drop, your house value will more likely inflate than if prices were rapidly increasing and mortgage rates were increasing. Rising mortgage interest rates and a potential recession may seem like bad news, but these trends could benefit would-be home buyers by cooling demand and dropping prices further, especially if the buyers are confident, they won’t lose their jobs and income.”  She further explained “Of course, a would-be home buyer must consider other important criteria besides housing prices before buying a house. Other important decision factors include having at least 20% for a down payment; whether you will live in the property for more than five years; and whether your monthly payment will be lower than 30% of your gross income.”

Although some may feel that buying a home while inflation & interest rates are higher is less than ideal, it may be a perfect time if you can afford it. You will avoid the bidding wars that kept so many buyers out of the market previously and you can refinance when the FED lowers interest rates, which some experts predict will start happening in 2023. 

If you’re considering a home purchase, or have questions about buying in this new market, please reach out and schedule a time with us to discuss your needs, options, and homes available to you.

Nancy Heim-Berg and The Heim-Berg Team
402-677-9024

Today more than ever we are all looking for ways to save money and one of our largest expenditures is our mortgage. While monthly budgets can get tight, utilizing a little extra money to pay down our largest expenditures can pay off BIG in the end. Here we’re going to look at ‘principal only’ mortgage payments and the effect they can have on your finances.

When you purchase a home and secure a mortgage through a lender, you are paying several components of that mortgage.

1. The principal- the amount of the loan needed to purchase the home.
2. Interest on that loan- a monthly interest payment calculated on the interest rate accessed to the loan.
3. If you put down less than 20% you are also paying PMI (private mortgage insurance)
4. Property taxes
5. You may also have your Homeowners Insurance tied into the loan as well and pay a monthly premium for that.

These 5 components make up your monthly mortgage payment. However, the principal component of the mortgage represents the amount of equity you accrue each month and essentially ‘buy-back’ from your mortgage lender.

If you currently have a 30-year mortgage, and never make any additional payments, it will take you 30 years to pay off the mortgage in full and pay the full amount of interest associated with the mortgage. For example, a $350,000 loan with a 5% interest rate would be $17,500 a year paid in interest alone!!!

By making a principal-only payment, in addition to your monthly mortgage payment, you are paying down the principal amount of your mortgage faster. If you were to pay a $100 principal-only payment today at the 5% interest rate, you’ll save $332 over 30 years. Now imagine doing that every month, or more if you can. It will put equity in your pocket much quicker, pay off the principal and loan faster and save you thousands of dollars in interest over the course of your loan.

Please don’t confuse making additional mortgage payments with a principal-only payment, as they are very different. If you choose to start making principal-only payments- in addition to your regular monthly mortgage loan payment, we suggest you call your lender and have them walk you through the process, so it is done correctly, and the monies are applied appropriately. Remember, a principal-only payment NEVER takes the place of your regular monthly loan payment. That must always be made monthly and on time. This would be an additional payment to help pay down the principal amount of your loan. Any questions regarding your loan should ALWAYS be directed to your lender.

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Are you looking for a home in the Omaha area right now? Our team is ready to be our local experience knowledge and expertise to work for you!  If you’re ready to begin the exciting home-buying journey, reach out!  The Heim-Berg Team- 402-677-9024

If you are starting the journey of buying a new house the excitement of what’s to come can be all consuming. Everything from interior design to landscaping to paint colors - a whole new world is in your future. 

However, you have to remain practical and keep in mind that the first big step of the process is getting pre-approved for a mortgage, and your actions prior to the lender agreeing to fund the loan are important. Knowing this, we have listed five things you should avoid doing up until closing day. Let’s dive in:

-Because overusing credit can be a red flag, you want to make sure to keep your available credit as high as possible - which means keeping low balances on any lines of credit you have open. Essentially, you don’t want to buy all new furnishings for your new home before your loan closes.

-Making mysterious deposits or withdrawals is another action you want to avoid as the lender will keep a close eye on your bank statements during the pre-approval and underwriting process. There will need to be an explanation for unusual activity so it’s best to avoid large deposits or withdrawals that don’t normally take place. 

-Being late with bills before closing can really hurt you, and potentially even ruin your deal. Some lenders will require 12 months of consecutive on-time payments in order to qualify for a loan as roughly a third of your credit score is comprised of your payment history.

-It’s best to avoid co-signing a loan and making yourself financially liable for someone else’s debt during the loan process. Lenders will see this as another financial obligation which will be a factor when they determine your ability to take on a mortgage. 

-Changing jobs is another action you shouldn’t take during the approval process because lenders want to see reliable, stable income. Job-hoping can create hurdles for you and raise red flags. 

Be sure to check back each week for more real estate and Omaha, NE community information! Also, are you following us on Facebook? If not, be sure to check us out here! 

Buying a home in today’s crazy real estate market is no small feat. If you recently closed on a house, first off congratulations! But don’t get too complacent just yet. There are a handful of things you should do immediately upon moving in. We have broken those actions down below - let’s dive in: 

1. One of the first things you want to do after moving into your new home is to change the locks. There is no way for you to know how many people currently hold a key to your new abode so it’s best to be safe and change all the locks on the doors. Also, it’s always a good idea to make and hide a spare key somewhere outside in the event you lock yourself out.

2. Another task is to check the batteries in the smoke detectors to ensure they are working. As a lot of smoke detectors only last for about ten years or so, it’s also a good idea to check how old they are and if there is a warranty. Additionally, check if the smoke detector had a carbon monoxide detector built in. If not, that should be your next purchase! 

3. Connecting the utilities is another important step to take (ideally) before moving into your new Omaha, NE home. Utilities such as water, electricity, and gas are essential to have working as you get settled in. You can check with your local providers to get an idea of what the process looks like, how far in advance you need to schedule the turn-on, and the type of residence verification you will need to provide. 

4. Once you are a bit more settled in, you will want to go over the inspection report to review what repairs were noted and need to be completed. While major repairs were most likely negotiated during the contract phase, other minor ones will likely be your responsibility. List them in order of importance and make time to tackle each one. 

5. Your new home will require regular maintenance and cleaning so creating a schedule of what needs to be completed each month will help keep you organized and on track. These tasks include cleaning the gutters, completing pest inspections, emptying the hot water heater, winterizing your home, cleaning air filters, and more. Regularly maintaining your home is the key to maintaining its value for the future. 

6. Lastly, get to know your neighbors! There is nothing better than having a great relationship with the people living around you and now is the perfect time to introduce yourself, your family, and any furry four-legged family members you have. 

Happy memory-making in your new home!! Enjoy.

Be sure to check back each week for more real estate and Omaha, NE community information! Also, are you following us on Facebook? If not, be sure to check us out here! 

When it comes to buying a home, there are certain precautions you can take that will help protect you financially. One of them is getting an appraisal contingency, which essentially means that if the home does not appraise for what you agreed to pay you are allowed to take your deposit and walk away from the deal. How does an appraisal contingency work? We’re glad you asked..

Once you find a home you would like to purchase, your lender will request a home appraisal to ensure the property isn’t selling for more than it’s really worth. During the appraisal a licensed professional will asses the home, as well as the surrounding area, and give their opinion on how much the property is worth. If the amount that comes back is lower than what you offered you can request for the seller to come down on the sale price, make up the difference in the offer price and appraisal amount, or back out of the sale entirely. 

While it’s not a requirement to have an appraisal contingency, things can become extremely difficult for you as a buyer if the appraisal comes back low and you waived the clause. Having an appraisal contingency not only gives you and your lender protection from overpaying, it also gives you negotiating power and allows you to walk away if you and the seller can’t come to terms. 

Whether you have experience in the real estate world or are dipping your toes in for the first time, hiring the right real estate agent is key when it comes to buying and/or selling a home. How can you be sure you have the right person working with you? We are glad you asked!

You will not always hire the first agent you speak with, which is why asking the right questions when interviewing real estate agents is crucial. Below we have listed four questions for you to ask that will give you better insight into their experience as an agent and what you can expect if you choose to work with them. Let’s dive in:

How long have you been a licensed real estate agent? 
When choosing an agent, you want a professional who is knowledgeable when it comes to all things real estate. That level of understanding is only gained through experience which is why ideally you want someone who has at least a few years under their belt. 

How many homes have you helped clients buy/sell in the last year?
It should be noted that there is a big difference between ‘working’ with clients to buy and sell homes versus actually getting the job done. You want to have confidence that the agent you hire will be able to successfully help you achieve your goals with buying and/or selling a property. 

Do you have specific neighborhoods that you specialize in? 
While it’s great for an agent to have a general understanding of different neighborhoods, you want the person you work with to have vast knowledge of the specific areas you are looking to buy and/or sell in. If you are looking to buy, they should be able to provide information regarding current home prices for the area as well as schools, safety information, nearby entertainment and more. If you are looking to sell, they should be able to provide information about other comps in the area and what they are selling for. 

Can you provide testimonials from previous clients that you have worked with?
Many agents will be able to provide testimonials from clients they have worked with in the past. Reviewing these will allow you to see what other people are saying about their experience working with the agent and give you a better understanding of what you can expect if you choose to hire them.

If you are looking to sell your Omaha, NE house, be sure to contact our team for more information. Our dedicated, knowledgeable agents are here to provide you with the expert services you need.

If you have ever purchased a home you understand just how costly and emotional the process can be. There are so many checklists to complete and checks to write. One of the optional costs is to have a home inspection completed, which leaves some buyers unsure if the $200 to $500 invoice is worth it. 

Ultimately the decision on whether or not to schedule a home inspection is up to you. However, if you are on the fence we have outlined four reasons why it would be a benefit to you during the home buying process below. Let’s dive in:

Safety. 
First and foremost, a home inspection can bring to light any issues around the home that could negatively affect your family’s safety and health. Things such as mold, carbon monoxide, radon, outdated electrical wiring, foundation issues, traces of lead in pipes and deteriorating plumbing materials are all issues that, if not for a home inspection, may have been overlooked. 

Negotiate. 
Based on the inspection report that comes back, the buyer has the opportunity to request repairs to be completed and/or a reduction in price. Your realtor should be able to work with you to fully understand what asks should be made to achieve the best deal possible. A home inspection can be a great negotiation tool. 

Avoid inheriting costly repairs. 
By opting out of a home inspection, buyers are accepting the risk that major issues may go undetected and costly repairs may need to be completed down the road. Larger issues such as roofing, foundation, HVAC system and plumbing can potentially cost thousands of dollars to fix and pose a large financial setback. 

Peace of mind.
At the end of the day a home inspection will allow you to paint a clearer picture of the homes condition and exactly what you are stepping into once those keys are in hand. Not fully understanding all the details of the house can cause unnecessary anxiety, stress and uncertainty. A home inspection allows buyers to safeguard their budget and adds an extra layer of protection to what is probably the largest purchase they will may in their lifetime. 

If you are looking to sell your Omaha, NE house, be sure to contact our team for more information. Our dedicated, knowledgeable agents are here to provide you with the expert services you need.