April 17, 2014

Video-How To Determine If You Are Under Or Over Insured On Your Home


By Loretta McNally, Heeran's Home Team, RE/MAX PLATINUM Realty

Today, we want to thank Adrian Enzastiga, with American Family, for joining us to discuss ways to determine if you have enough, or too much, insurance.   Adrian works with the Robert Whitesel Agency, Inc., an American Family Insurance company. 

Adrian has also served the Omaha community by being a family teacher at Boys Town for 10 years and worked with foster children and much more.

He reported that you have to review your home owner's policies in three ways. 

1    Look at the building or house.  There is a maximum total amount that will be paid for your dwelling coverage—replacement cost or actual cash value.  A certain percentage of this amount (10%) covers unattached buildings such as garages.  An American Family policy actually covers 120% of replacement value. 

2.     Take a look at your personal property.  You want to check the total personal property covered.  Specific coverage for certain items such as computer equipment or unscheduled jewelry is listed in the policy. 

3.      Review the amount of time and dollar amount that will be covered for insured to live elsewhere while the home is being built which is called Loss of Use.

4.     Review the coverage you have if someone is injured on your property.

Adrian also explained that purchase vs. replacement cost is calculated via a computer program based upon current costs to rebuild a home (if a total loss), so this is the way it is done if you have a home in Omaha, Nebraska or another state.  If the purchase price is significantly less than the replacement cost, an actual cash value policy can be purchased as the cost to rebuild the home is much higher to insure.  

It is also very important for Omaha homeowners to review their deductible vs. monthly premium.  Adrian addresses with homeowners what saves the owners the most money.  Adrian explained that truly this is up to the customer.  However, the customer should know that if they go with a higher deductible (ex. $2500), they will be responsible for the difference when there is damage.  For instance, if there is a hail storm – we do have those in Omaha – and there is damage to your roof upwards to $6000, you will be responsible for that first $2500.  You must weigh this deductible figure against the monthly savings received.  Whatever the deductible is, you will want to set this money aside you are ready.

Adrian recommended reviewing your policy every 2 years with your agent.  Replacement cost calculations often increase with inflation, and they additionally can change with the rate of inflation.  Also, any upgrades or additions to the home need to be considered.  The bottom line is to make sure you have the best coverage possible for you and your family can afford. 

Adrian further recommended calling your agent first whether you are or not going to file a claim.  Your agent will answer your questions to help you make that decision.  The agent can help the customer understand how a particular claim might affect their insurance going forward. 

Lastly, if you do need to file a claim and have repairs made, your insurance agent can give you suggestions on how to look for well qualified and licensed Omaha area contractors. 

Adrian was delightful to be with us today.  He is looking forward to helping families review their current insurance or set up a new policy if you are a first time homebuyer.  Just give Adrian a call today at 402-330-0119.




April 3, 2014

Video - How's The Omaha Housing Market Doing? Heeran Workman RE/MAX PLATINUM Realty




From friends, family, and prospective clients, the most common question they ask me every day is “how’s the market?”  Then that is followed up with them saying “I heard we have little to no inventory and that it’s a hot seller’s market.”  Or, “I waited a couple years until the market bounced back to sell my home.  Do you think I can sell it for this price?”  Or, “If I wait a couple more years, do you think I can get $20,000 more?” 

For those of you who are analytical and want to see hard numbers, here it is. 

Omaha Metro Area (Statistical Comparison)
Category
2013
2012
2011
2010
2009
2008
2007
Total Res. Closed
12,405
11,177
9538
9295
10,655
9226
10,750
Active Listings
3403
3621
4324
4918
4345
4678
5409
Average DOM
54
65
72
68
67
72
68
Average Sale Price
 $ 177,734
 $ 170,502
 $ 163,268
 $ 164,357
 $ 158,616
 $ 166,216
 $ 172,251
Median Sale Price
 $ 149,000
 $ 142,000
 $ 137,000
 $ 138,000
 $ 135,000
 $ 137,500
 $ 140,000
Absorption Rate (Dec.)
4.3
6.5
6.6
10.1
8.3
7.7
9.4
Total New Construction
1509
1166
975
1163
1223
1058
1487
Average Sale Price NC
 $ 275,552
 $ 259,326
 $ 248,038
 $ 239,760
 $ 236,958
 $ 283,957
 $ 272,901
Average sale Price Exist
 $ 164,188
 $ 160,186
 $ 153,479
 $ 153,566
 $ 148,335
 $ 150,961
 $ 155,763
# Bank Owned
Foreclosures Sold
1200
1442
1686
1379
*986
NA
NA
# Sold over $500,000
247
208
182
157
157
188
219
# sold over $1,000,000
22
17
17
8
14
21
15







Percentage sold increase from 2012 to 2013
10%

Inventory decrease from 2012 to 2013
6%

New construction increase from 2012 to 2013
23%


Over the last 7 years, 2013 was a record breaking year in terms of closings.  It will be interesting to see how the Omaha Metro Area markets performs for the remainder of the year but currently, 2014 has been slower than the previous year.  Last year, the market peaked the first half of the year.  Consumer confidence came back, the fear of falling values subsided, and we had amazingly low interest rates.  Then as we approached fall, there were variables that affected the market slowing down.  These variables included the rates rising 1%, school starting, government shutdown, holidays, and Obamacare rolling out.  From fall of last year to now, total sales are down about 8%.

Overall for the last several years in a row, it’s taking shorter and shorter time to get a contract on the table.  But this still does not mean that every seller gets a contract.  Over-pricing your home will turn off buyers and they will go down the street and purchase a better priced home.  The absorption rate of 4.3 tells us that at the end of December of 2013, if no other houses came on the market for sale, the Omaha Metro Area had enough real estate listings to supply buyers for the next 4.3 months.  The lower the supply, the better it is for sellers.  Last year’s absorption rate is very similar to what the market was experiencing about 10-11 years ago.  So for the seller’s out there who are waiting and waiting to sell your house until the market continues to improve, there is no need to wait.  The time is now. 

New construction sales are up considerably at a whopping 23% increase from the previous year.  For the sellers listing their homes, they really need to think about the other competing listings out there as well as new construction.  For example, if you’re a seller and you have a 10 year old home that you want to sell, the buyers in the marketplace will consider spending an extra 30 to 40 thousand dollars to build.  For the purchasers, now they are more willing to have the confidence to spend a bit more and get the house to their exact specifications and taste.  There are still lots available in some of the established neighborhoods and we have a few new brand new developments where you can have cherry pickings on the lots.  We have a new construction specialist Heeran’s Home Team so if you are thinking about building, please call me.

The bank owned foreclosures have decreased from the last couple of years but these types of listings will always be in the marketplace.  Yes, they do affect the neighborhoods to some degree, but they only account for 1 to 2 percent of the market.

In all of 2013, 247 homes priced over $500,000 sold.  22 sold over $1million.  There’s not as many buyers for this price range so these sellers need to have more patience, time, and hire a Realtor with an aggressive home marketing plan.

So generally:
1.     Yes, the market is better. Considerably from 2010 but not from the previous year.
2.     No it’s not a HOT seller’s market.  Buyer confidence has gotten stronger over the last several years but buyer’s are smart and want the best home for the money they are willing to spend.  You will sell your house for fair market value for today.
3.     No, if you wait another couple years, it doesn’t necessarily mean you will get $20,000 more for your home.  As long as the home marketing plan is good and buyers an buyer’s agents know your home is for sale, you home will sell for fair market value for the condition and location of your home.  Even when times were good for example in 2005, the appreciation rate in Omaha was only 2-3 percent.  Trust me, I started my career as a real estate investor so I paid very close attention to this.

If you or someone you know is looking to buy or sell a home in the next 3-6 months, please call our office to schedule a private home buying or selling consultation.  We would love to be your Omaha Metro Area’s real estate source for information.  Take care until next time!

Heeran Workman, MBA
(402) 707-7878
http://www.HeeransHomeTeam.com