Among the major milestones in life, buying a house is right at the top of the list.  The current market conditions have made for a frenzy of activity, with houses being listed and sold within as little as one business day.  Although widely considered a seller’s market, it’s still a great time to buy as long as you know exactly where you stand so you’re prepared to act quickly when you find your dream home!

First thing’s first – you’ll want to get your finances in order before you even begin looking at houses because you’ll need to know the price range that you are pre-qualified for. With respect to mortgages, you’ll want to work with someone who you trust and who you are able to establish a good rapport with as your business relationship will extend over months from getting pre-qualified to closing, and even after that, many companies also service the loans for the additional convenience of having one source for all questions and future assistance.

Brian Page - Mutual 1st Federal - Buying a Home

Brian Page – Mutual 1st Federal

Brian Page, Mortgage Loan Originator at Mutual 1st Federal, offers an overview of the critical steps you’ll be taking throughout the process:

“The first step is to meet with a lender to get pre-approved before house hunting. By meeting with a lender, you’ll get the assistance needed to determine how much home you can afford, closing costs and if the monthly payment will fit into your budget, making sure you are financially prepared. Be certain you can afford a new home by asking these questions:

• Can I make at least a 5-10% (preferably 20%) down payment?

• Can I afford a 15-30 year fixed rate loan?

• Can I keep the house payments at or below 25%-30% of my monthly take-home pay?

It’s imperative that buyers communicate with their lender and are aware of different loan options. Buyers would want to avoid any situation that would affect their credit or finances while buying a home. Changing jobs, applying for a new car or credit card, ensuring they’re not late on their credit card payments or charging items excessively can all cause the loan process to take longer than expected. I would recommend the potential buyer do their research and find a home price that fits their financial needs.
It’s also important to know which amenities are most important to you and how to estimate your price range so you don’t fall in love with a home that is too expensive. When planning for potential remodeling projects or upgrades upon purchase or in the future, be mindful of all the amenities you are looking  for when buying a home as it doesn’t stop at merely the purchase price and mortgage interest.  With so many features and systems in a home, there are any number of things that can break or malfunction in your house so if you’re buying a new or old home you’ll need to follow your home inspection to understand your home for future upkeep and repairs over the up and coming years.

Lastly, make sure you do your research. Here at Mutual 1st Federal we know buying a home for the first time can be overwhelming for many first-time home buyers because few home buyers know where or how to begin the search. Figure out your budget by getting pre-approved through a lender before you start looking, and then partner with a real estate agent to find the right home for you.”

Once your financing is in place you can get started with the fun part – shopping for your new house!  While looking at houses is more fun for some then it is for others, it’s generally enjoyable to check out houses and imagine yourself living in them along with what you’d do to make them into a permanent home for you and your family.

Megan Bengtson Nebraska Realty - Buying a Home

Megan Bengtson – Nebraska Realty

“The first thing you’ll need to get in order is your finances, which specifically entails getting pre-approval from your lender,” explains Megan Bengtson, a Realtor with Nebraska Realty. “You’ll need to ensure that you are ready to act on a home if you find one that you fall in love with because in the current market homes are moving very quickly.  If everything is figured out and ready to go, you’ll have a much better chance of landing the home you have your heart set on. If you’re in the market to buy you’ve also got to be actively looking and ready to act right when a home is listed because houses are literally selling overnight, if not within a few hours in some instances. Once you’ve obtained pre-approval and you’re prepared to make a move, you’ll want to put your best foot forward with a competitive bid.  In the past buyers have been able to test the waters with a lower bid but in the current market you really have to come out of the gate with your best offer.  Also, if you’ve done this and you don’t get the house, you know you’ve done everything you could have done and you can sleep better at night! It’s really all about preparation and setting reasonable expectations, and your Realtor can be of tremendous help with both of these areas. While it’s not necessary to panic just because the market is hot right now, you should know exactly what you want. Sit down and thoroughly go over what everyone wants in the new home and once you’re on the same page, you can focus on the homes that fit that criteria as well as pulling the trigger one you’ve found the home that fits your specifications. Consider the role of your Realtor as an educator and someone who is invested in your best interests. At the end of the day it’s your decision, and a major one at that, but I will provide you as much information as possible so that you can make an educated decision and move forward with the confidence that you are doing the right thing.”

As for sellers in the current market, Bengtson adds, “I do understand why it would be enticing to list your own home with houses selling so fast right now, but it’s one of the largest transactions you’ll ever complete in your lifetime so hiring a Realtor will protect your investment.  When you hire a real estate agent you’re ensuring that there’s nothing missed along the way and everything will be handled timely, correctly and professionally. Furthermore, not only will you get the most exposure for your home, but you’ll quite often sell it for a higher price. I always offer a few examples to put things in perspective. For those business owners out there who have complicated taxes, would you file them on your own without the help of a professional? If you were the defendant in a complex litigation matter, would you represent yourself?  Probably not. You run the exact same level of risk when you are trying to sell your own home; it’s something to be taken very seriously. When you hire a professional, it comes along with a sense of security along with many other benefits.”

When assessing the features of a home you are considering, along with the potential for incorporating new features with any leftover funds you have after purchasing a home, the house’s major systems and integrated technology are two major factors to consider.

Angie Timm - Complete Comfort Heating and Cooling - Buying A Home

Angie Timm – Complete Comfort Heating and Cooling

When you are buying a home it is very important to look at the age and condition of the heating and cooling system,” emphasizes Angie Timm of Complete Comfort Heating and Cooling. “The last thing you want to do is get in the home and have to repair or replace a furnace and air conditioner. Regular maintenance performed on the system plays a huge part in making sure the system is running at its full potential. If the system has not had regular maintenance done it is important to have it cleaned and inspected before purchasing your home. There are different levels of equipment, and it can be overwhelming to understand what exactly you are getting with your new home. At Complete Comfort we are here to help you; you can reach us directly at (402) 885-4422.”

Pat Killeen - Engineered Controls - Buying a Home

Pat Killeen – Engineered Controls

Pat Killeen, owner of Engineered Controls, offers advice for home buyers and sellers specifically from the perspective of a technology contractor:
“People shopping for real estate today are younger than the previous generation of home buyers and they are extremely tech savvy. They grew up with smartphones, apps and Google searches. And they want to use technology not only in their search for a home, but throughout the home itself. A recent survey by Better Homes & Gardens Real Estate shows that 77% of Gen X and Gen Y home buyers want their homes equipped with the technology that they have grown accustomed to. Many buyers today are looking to transform an entire property into a ‘smart home’ with home automation systems for home management, safety or security features. Additionally, realtors indicate that homes with smart home features and technology sell faster than homes without them.

When looking to buy a new home remember that companies like Engineered Controls represent a whole host of smart home products that will improve your home’s comfort and help you operate your home more efficiently. From the most state-of-the-art Wi-Fi enabled thermostats and zoning systems to whole-house air cleaning systems, whole-house humidification and dehumidification systems, Zigbee and Z-Wave wireless security and video systems; everything is geared to make homes more energy efficient and secure. No other manufacturer offers more for homeowners to increase comfort, save energy and protect your home. Engineered Controls represents Honeywell residential and commercial products, the most trusted and recognized name in home comfort and security. No other manufacturer offers more for homeowners to increase comfort, save energy and protect your home than Honeywell.

One of the most important benefits to purchasing a ‘smart home’ is that homeowners can now take advantage of new, cutting edge residential technology that improves their environment and living comfort, reduces energy and provides increased safety and security. Today’s smart phones and wireless devices will keep homeowners connected everywhere. Honeywell’s Total Connect Service provides a personalized web portal with mobile apps that allow the homeowner to stay connected to their home’s heating and cooling system and home security system from their smart phone, tablet or personal computer. For example, Total Connect by Honeywell can make a dramatic positive impact on home control technology. Total Connect will allow the home owner to remotely monitor and control their home at any time and from anywhere. With Total Connect, you can take advantage of all the amazing benefits next-generation digital technology has to offer  including enhanced communication and the ability to stay connected to your home and business from anywhere in the world. The state-of-the-art security, lighting and HVAC controllers provides you with an affordable way to control your security system, video cameras and heating and air conditioning needs all in one simple to use system.”

Killeen adds, “After seeing how much attention was given to the “smart or connected” home at this year’s Consumer Electronics Show, it is very clear that smart home technologies are entering the mainstream of today’s residential real estate market. Smart homes are solving many consumer and societal needs when you consider all of the security, energy efficiency and comfort advantages that come along with the connected home. This is why Engineered Controls is taking an active role in educating consumers about products, networks, features, and benefits of today’s smart or connected homes.”

Doug Dushan - Echo Systems - Buying a Home

Doug Dushan – Echo Systems

“Music and home entertainment can be as crucial as basic plumbing in a home…well, for some people anyway,” adds Doug Dushan of Echo Systems. “In any case, home technology should not be an afterthought.  Even if your family doesn’t have the immediate need for a distributed audio or video system, steps should be taken to ensure that the home is prewired in a forward thinking manner.  If not for you, then definitely for resale in the future.  This should be explored as early as possible in order to incorporate this into the home’s financing. Make sure to talk to local industry experts and educate yourself on trends so that you can make informed decisions. At Echo Systems, we consider it be our first job to educate our clients. This entails helping them understand what they need to know about home technology, including what decisions need to be made now and which ones can be planned for in the future.”

As far as the exterior features of the home and property are concerned, there are also things to be assessed prior to putting a bid in on the home as well as after you have officially purchased the home.

Brandy Prettyman - The Grounds Guys of SW Omaha - Buying a Home

Brandy Prettyman – The Grounds Guys of SW Omaha

“It’s important for homeowners to pay attention to the landscape of the home, but not necessarily to let a property that hasn’t been kept up detract them from buying a home that otherwise fits all of their specifications,” explains Brandy Prettyman, owner of The Grounds Guys of SW Omaha. “Oftentimes with properties on the market that haven’t been kept up with proper maintenance, the investment you’d need to make to get the landscape back into shape is relatively minimal.  Is the appearance of the property poor due to tall grass, overgrown bushes, or dismal plant beds? While it can certainly be a turn off, those things are very easy to fix. Just because certain things don’t look good right now doesn’t mean it’s all bad.  However, there are some red flags visible on properties that I’d advise to avoid. One of the biggest things is any depressions in the ground. This could indicate any number of water-related issues such as poor drainage, a leak or mishap with the underground sprinkler system if the property has one, a sump pump that isn’t doing its job, and so on.

Another major issue is large older trees.  Not to be confused with the gorgeous, stately trees that can be found in many neighborhoods all across the Omaha Metro, these are trees that haven’t been taken care of which appear overgrown, weathered and haggard in general. Older trees that haven’t been maintained properly pose a risk of falling over entirely or limbs breaking off and causing damage to the property along with being a major safety hazard, especially with the extreme weather we face here in the Midwest. Again, not all trees are bad but it’s certainly a prime case of ‘buyer beware.’

Many things about the property can be put in as a condition of sale, such as trimming or removing the trees or fixing issues with the sprinkler system and so on. Using the landscaping as a bargaining tool is a great way to reduce the cost of the home, but a lot of people just don’t have it built into the contract. It’s also important to take the neighborhood aesthetic and price range into consideration. If all of the other homes in the neighborhood have nice landscaping but your potential home doesn’t but it’s marked in the same price range, use that to negotiate a price that reflects the investment you’ll have to put into the property as the new owners.”

She adds, “It’s essential to keep your own personal taste in mind when you are looking to purchase a home. While some things appear drastic but are an easy fix, conversely there are some things that seem like an easy fix but are much more costly and time consuming than they appear.  Lava rock is a prime example; you’d think it would be easy to remove a few rocks but in reality it’s very expensive and labor intensive to remove and replace. While you can make any improvements you want once you’ve bought the home, keep in mind that some are worth the time, effort and money more than others.

For this reason, it’s important to consult with a professional landscaping or grounds maintenance company. Ask plenty of questions during the showing and then go and get estimates for what you’d plan to do to the property in order to gauge if it’s a deal-breaker or not.  Moving into a new house is a major, often stressful task on its own so you don’t want to bite off more than you can chew. However, if you have a thoughtful timeline in place that fits into your budget then projects are much more manageable and can be prioritized into what needs to be done immediately and what can be done further down the line.  With the housing market ‘good deal’ is a relative term; sometimes move-in ready is preferred while others have their sights set specifically on a ‘fixer-upper.’ Home ownership is phenomenal but there are a lot of hidden costs that won’t come up when you’re looking at houses but will when they become a problem and you’re the homeowner. Due diligence and consulting with the professionals will allow you to have the peace of mind that you’ve covered your bases before you make the commitment.”

Once you’ve taken the plunge and invested in your new home, especially since you aren’t familiar with the property yet, you’ll want to know exactly where your property lines are before doing any improvements. In fact, you may even want to know this information before you purchase the house if it’s contingent on improvements that need to be made to the property.

Toni Montana - Land Survey Inc. - Buying a Home

Toni Montana – Land Survey Inc.

“Don’t rely on the previous owners’ attempt to demarcate the property lines with fences, retaining walls, plant beds and landscaping, etc. It can be a potential waste of money to rely on these ‘fixtures’ and continue to improve upon the property without actually knowing where the property corners are located,” emphasizes Toni Montana, owner of Land Survey Inc. “A boundary survey will clear the path for future improvements with peace of mind, mentally and legally. My suggestion is to obtain a boundary survey certificate. This legally binding document will alleviate any concerns or questions as to where your property corners are. Also, the certificate is filed with the county and helps minimize any future disputes. Property owners need to know where their boundaries are, as this knowledge can allay disputes with neighbors, clear up murky or unclear lines, and give property owners the knowledge, empowerment, and sense of relief that they are doing the right thing.

She adds, “It’s also important to note that just because you opt to have a boundary survey done, it does NOT need to be a point of contention with neighbors. I see many people afraid or hesitant to get a boundary survey done because they don’t want to upset their neighbors. Everyone should have the knowledge of where their property lines are, and it’s going to be mutually beneficial in the long run.”

Tyler Whalen - Two Men And A Truck - Buying a Home

Tyler Whalen – Two Men And A Truck

Along with buying a new house comes with moving into the new house and a well thought out strategy here is extremely helpful too. “I always advise people to really plan ahead of time and educate themselves on what type of service they will need on moving day,” says Tyler Whalen, co-owner of the Two Men And A Truck Omaha franchise. “I see a lot of people wait until a week prior to the move and both the availability for the particular day and accommodating the service that works the best becomes an issue. As a general rule the more prepared you are, the easier the transition will be. It’s a popular assumption that calling for quotes is the first step, but in all actuality every move is different so we tailor every estimate to the specific needs of the client.  This includes key questions such as both locations, whether you’re doing the packing or you’d like us to do the packing for you, and an itemized list of items to be moved that’s as accurate as possible. The list would include large items, estimated number of boxes, and any items that require special care. We carry a full line of boxes and packing supplies along with offering a complimentary delivery system of those items for any customer that has booked a move with us. We deliver a bulk amount of boxes, and then take any extras with us after the move so that the customer only pays for the boxes that they actually use. This prevents a lot of hassle and I can assure you we have everything on-hand that you could possibly need, all you have to do is ask!”

He adds, “The biggest mistake I see people make when moving is ‘underpacking,’ or leaving a lot of loose items that aren’t in boxes or properly protected.  This makes the move much more time consuming along with the chances for damage being much higher. If it’s small enough to fit in a box it should be in one, and it will make for a much more efficient move, which will also save you money on the overall cost.”

So know that you have some helpful tips for obtaining financing and searching for the perfect house as well as getting moved and settled, you’ll have to decide when the time is right for you to begin the process. If you could buy now but you’re thinking about putting it off for a year or two, you may want to reconsider.

According to a blog post on www.keepingcurrentmatters.com entitled “What If I Wait Until Next Year to Buy,” waiting until next year to buy a home could prove to be very costly.

“The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.

Let’s look at an example of what the experts are predicting for the upcoming year, and what that really would mean for you. Let’s say you’re 30 and your dream house costs $250,000 today. Right now mortgage interest rates are at or about 4%.

Your monthly mortgage payment (principal & interest only) would be $1,193.54.

But you’re busy, you like your apartment, and moving is such a hassle. You decide to wait until next year to buy. CoreLogic (www.corelogic.com) predicts that home prices will appreciate by 5.1% in the next 12 months; this means that same house you loved now costs $262,750.

Freddie Mac (www.freddiemac.com) predicts that over this same period of time, interest rates will be a full point higher at 5.0%. Your new payment per month is now $1,410.50.

The difference in payment is $216.96 PER MONTH!

That’s basically like taking $8 and tossing it out the window EVERY DAY!

Let’s look at that number annually. Over the course of your new mortgage at 5.0%, your annual additional cost would be $2,603.52!

Over the course of your 30 year loan, now at age 61 and hopefully ready to retire soon, you would have spent an additional $78,105.60, all because when you were 30 you thought moving in 2015 was such a hassle or loved your apartment too much to leave yet.”

(http://www.keepingcurrentmatters.com/2015/07/14/what-if-i-wait-until-next-year-to-buy/)

So, whether you’re in the market to buy a house or considering selling, there’s truly no better time than the present.  As this is a key area where you’ll want to bring in the experts to help you each step of the way, make sure to utilize the wealth of local resources found right here in the Omaha Metro and to consult them early and often!