Many times I’ve heard clients declare that they are just going to rent their house. They are frustrated because it’s not selling fast enough or they believe the market is bad or because they are leaving town. There are a million different reasons homeowners decide to rent out instead of selling their home.  Renting your home is not automatically a poor decision but homeowners ought to know what they are getting into when taking this step.

I want to ask first if they know what it means to be a landlord.  It should be a given that the homeowner’s goal is to enter into a profitable venture.  If you have a mortgage then the rent should reflect the cost of the monthly mortgage payment plus the cost of maintenance and 15% for profit.

Maintenance is not to be taken lightly here.  Are you planning on hiring a property management company to do maintenance? Such companies usually take about ten percent or more of the rent.  Ask yourself these questions: Are you willing to be called in the middle of the night or at work because of a broken water pipe?  Are you willing to give up your nights and weekends working on non-emergency maintenance? 

Renting a property is a great investment until there is no rent coming in. The homeowner who was reluctant to fix up the house to sell it must now fix it up to rent it.  That means money.  Then there may be lost time while getting the place ready to rent; even after it is ready, it may take some time before someone agrees to rent it. 

Not to mention the fact that you should hire an attorney to draft a well-written lease for you.  Such a lease must protect your property, help you evict someone if necessary and will hold the renter accountable for damages.  Then you will have to spend money screening prospective tenants. Doing credit and criminal history checks and getting references from former landlords may take additional time. This all will cost you money.

I have barely touched on additional expenses you may have to incur before you receive a single rent check for your house.  I suggest that you think carefully before deciding on this action.  Make a list of all possible expenses and do some research into the cost of maintenance, legal work and landlord laws.  Renting is not an easy or even viable fall back solution.

It best to discuss such things with your Realtor before making a decision. When you are ready to sell or buy a home please text or call me at 402-670-8775 or email me at Marie.Otis@cbshome.com.

Paying off the mortgage on your Elkhorn home faster not only means that you’ll be able to enjoy the peace of mind that comes with completely owning your property earlier, but you may also save thousands of dollars in interest payments.

Below are seven clever tips to help you get your mortgage payments on the fast track.

1. Save for a large down payment

Pay as large a down payment as you can reasonably afford. The more you can put down, then the less you’ll have to borrow from the bank.

2. Read the fine print

When you are choosing a mortgage, look at the fine print to find out if any restrictions apply to paying early. Some lenders will charge you for making extra or early payments. 

3. Prepay early in the life of the mortgage

This is when the loan is the most interest-heavy. In the first five to seven years you are likely paying mostly interest. Request an amortization schedule of your mortgage to get a clear picture of how this works.

4. Be smart with unforeseen fortune

If you get an unexpected chunk of cash, such as a gift, prize, work bonus, inheritance, tax refund or other windfall, consider applying it straight to paying down the principal on your mortgage.

5. Double-check your records

When you make extra payments, ensure that they are processed correctly. Sometimes when the lender receives a payment that is outside of the monthly cycle, they may not know what to do with it. Make a special note and keep track of the payments yourself, so you can make sure they’ve been applied to your principal.

6. Increase your payment

Even increasing your payment by a small amount every month may take years off the length of your mortgage. Consider how much you can afford to pay every month rather than just the minimum payment amount.

7. Think about a bi-weekly payment

You might want to switch to an accelerated bi-weekly mortgage payment rather than a monthly payment. This typically applies an extra payment each year.

These are just a few techniques you can use to pay off your mortgage faster.

Remember, the quicker you pay off your mortgage, the less interest you will be paying.

Father’s Day is this Sunday, June 19th!  Most of us fire up the grill and have a family BBQ with Dad.

Here are a few Grill Safety Tips provided by our friends at Lowe’s.

Now is a great time to buy a new home.  If you are planning on buying or selling this summer, contact your CBSHOME Agent.  If you need an agent, feel free to contact our Relocation Department.

• Price it realistically from the start. Your agent will help you with a list of comparable properties in your neighborhood – typically both current listings and homes that have recently sold.  In today’s internet savvy world, buyers are instantly notified your home is on the market; take advantage of this by pricing your home competitively from the beginning.
• Be prepared to lose some money. There are several sources for pricing your home – everything from the tax assessor’s website to appraised values, but market value is different.  The article points out that “your house is worth what buyers are willing to pay.”
• Promotion, promotion, promotion. When interviewing potential agents, make sure to ask the question “How will you market my home?”

Here is a link to read the entire article “3 Tips for the First-Time Home Seller,” by RISMedia.

If you are interested in selling your home and would like to learn more about what a CBSHOME agent can do for you – click to start your search for an agent on our website today!

There are a lot of do-it-yourself projects that can increase the value of your home.  On the contrary, it is possible to spend LOTS of money on projects that, when you sell your home, you find were not worth the cost.  Here are six simple projects, all approximately under $1000,  that could get you a decent return on your money:

1. Cleaning & decluttering.  Remove all personal items, clear off countertops, straighten-up and clean-out closets (all of them!) and clean, clean, clean! (approx cost $290, return – $1,990)
2. Brighten-up. Clean ALL windows, inside & out, replace old curtains, replace light fixtures, remove anything that keeps the light from shining in. (approx cost $375, return – $1550)
3. Smart staging. Rearrange/remove furniture, bring in new accessories, add complimentary artwork, play soft music, use aroma therapy, but NOT TOO MUCH. (approx. cost $550, return – $2,194)
4. Landscaping touch-ups. Punch up curb appeal, front and back, by adding fresh bark mulch, bushes, flowers, and make sure to keep them manicured. (approx. cost $540, return – $1,932)
5. Repair electrical and/or plumbing. Fix leaks under the sink, remove mildew stains,  make sure all plumbing is working.  Update older homes for modern appliances, fix any lights or outlets that don’t work, replace old plug points with new safety fixtures. (approx. cost $535, return – $1,505)
6. Replace or shampoo carpets. Steam-clean carpets, replace worn carpets, repair creaks in floors. Stretch carpet, if necessary. (approx. cost $647, return – $1739)

Excerpted from HomeGain’s 2011 Home Sale Maximizer Survey, www.homesalemaximizer.com

Here are three huge benefits to owning a home:

1. The Purchase: The IRS says you can deduct interest in the year that it is paid, and that is usually part of each monthly loan payment.
2. Mortgage Interest: In general, you can deduct interest charged on a loan used to acquire or improve your principal residence in the year that it is paid.
3. The Sale: This is the best new of all!  You can earn up to $500,000 on the sale of your home and pay no federal income tax.

If you’d like to read about these benefits in detail, please click here to read “Tax Benefits of Home Ownership Are Almost Too Good to Be True,” an article provided by Realtor.com.

At CBSHOME we go above and beyond to make a difference for you.  When you are ready to buy, please contact your CBSHOME agent.

• Inspect light strings and discard any that are damaged
• Follow manufacturer’s instructions for multiple strings
• Replace burned-out bulbs
• Don’t attach light strings with nails or staples

Here is a link to view the entire article and read HouseLogic.com’s additional Holiday Lighting Tips!

1. Interest rates are at an all time low. Combine this with lower than normal housing prices and you might find that buying is cheaper than renting.

2. There is a large number of inventory currently for sale so you have your pick from lots of homes. And since cooler weather is upon us you have virtually eliminated the competition as the majority of people do not want to move in the winter.

3.  Better negotiating power. There are a lot of extremely motivated home owners who are in financial predicaments whether they have lost their job or are looking to downsize to cut their expenses. Most sellers will go above & beyond to work with you on the purchase of their home whether it’s paying a portion of your closing costs or offering a home warranty.

4. Seeing a home decorated for the holidays might help you decide it’s “the one”. If you can picture yourself spending holidays in the home chances are you are going to love it for years to come. What better gift can you give yourself than a new home for the holidays?!

5. People typically get more time off work during the months of November & December. You can use this time to look at homes or even to move. And, you can recruit your family to help.

If you have questions about buying or selling a home or about the Omaha housing market please give me a call. I would love to help you find “the one”!

(402) 578-6223 (c)     Megan.Dreesen@cbshome.com (e)

• The economy is growing, though slowly.
• The 30-year mortgage rate is at generational lows.
• The national median-home price is stabilizing.
• Economist expect price increases in upcoming years.

Read the entire “10 Market Facts for Uncertain Times” or contact a CBSHOME agent today!

1.  Personal Satisfaction.  Few things in life compare with the pride and satisifaction you get from owning your own home.  You can paint it whatever color you’d like; add improvements that add value to your home; or simply entertain friends and family.

2.  Tax Advantages.  In contrast to renters, homeowners receive tax breaks.

3.  Equity Building.  Your monthly mortgage payment typically adds to the equity you have in your home. 

Would you like to read more about the advantages to owning your own home?  Check out this recent blog post about the 5 Financial Reasons to Buy a Home Today!

Or, if you’re ready to start your home search, visit www.CBSHOME.com!