Omaha is a Red Hot Market
Omaha is a red hot market, according to Omaha.com. “Victoria and Rafael Aristy were elated that their Millard-area home sold in a matter of hours, allowing them to secure their dream move-up home that also had just hit the market. That lickety-split timing, however, was just part of the joy.
“Their house had drawn a flurry of interest. Nine potential buyers in a four-hour period toured the three-bedroom residence — and five made offers.
“When the last volley ended with an offer of $11,000 more than the $150,000 asking price, even longtime real estate agent Tracie Weaver was stunned.”
“That’s quite a jump,” said Weaver, of Berkshire Hathaway HomeServices Ambassador Real Estate. “We have such a lack of inventory and a lot of buyers out there — if you see something and want it, you better go get it.”
According to the Realtors board’s latest statistics, home-seekers in May had about 2,600 dwellings to pick from, compared with nearly 6,000 that same month in 2011. That means Omaha is a red hot market. That’s a 56 percent decline in inventory compared with five years ago, and a 16 percent drop in a year. Normally, a supply of 4,000 to 4,500 is a balanced market.
It has to be frustrating for a potential homebuyer to compete in a severe shortage. So what can you do to be the best competitor?
- Before house hunting, get pre-qualified – talking to different lenders and seeing not only who offers the best rates and terms, but also manageable fees and costs. Lender fees can vary quite a bit from one to the next. The mortgage industry has three main types of lenders: big banks and credit unions, mortgage bankers and mortgage brokers. The big banks have checking and savings accounts and car loans and home loans and just about anything you might need for your financial needs. Mortgage bankers focus on home loans and they use their own funds to make loans. Mortgage brokers contract with banks, mortgage bankers and private lenders to arrange for home loans. Pre-qualification gives you great information about how much house you can afford and allows you to move quickly if you find the right house.
- Pre-qualified is not the same as pre-approved – With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you’re one step closer to obtaining an actual mortgage.
- Get professional help – Find a realtor you can trust. Yes, you have unprecedented internet access to sellers’ information, but a realtor has years of experience that can help you with everything from the area, the appraising of a dwelling, the paperwork, the comparisons, and negotiation on price. If you need help finding a qualified agent, Styl Properties, Inc. knows many agents we can refer you to for your first home purchase. Keep in mind that we can also help you find your dream home. Sometimes we allow buyers to choose finishes in the house before we have finished the rehab, that way you can customize the home to your liking.
- Make an Offer – Your real estate agent will help you decide how much money you want to offer for the house along with any conditions you want to ask for, like having the buyer pay for your closing costs. Your agent will then present the offer to the seller’s agent; the seller will either reject, accept your offer, or issue a counter-offer. You can then accept, or continue to go back and forth until you either reach a deal or decide to call it quits. Remember Omaha is a red hot market. If you reach an agreement, you’ll make a good-faith deposit and the process then transitions into escrow. Escrow is a short period of time (often about 30 days) where the seller takes the house off the market with the contractual expectation that you will buy the house – provided you don’t find any serious problems with it when you inspect it.
- Beware of sleeper costs – Comparing the monthly mortgage payments to paying rent is only part of the story. The bank may require property taxes and insurance to be part of the monthly mortgage payment. Then there’s the unexpected. When a couple I know first moved into their house, the front, cement porch collapsed costing them $1.500 to repair.
- Always hire a home inspector – “You should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.”
We are Styl Properties, Inc. here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 402.909.0608 to let us know what YOU need help with!