In case you are not familiar with what an Absorption Rate is, check out Absorption Rate. How do you like that for redundancy?Another way of using Absorption Rate is by price range rather than by a geographic area. To do this you must carefully track information from the MLS. I track listings in the Omaha MLS by ranges of prices. For example $100,001 to $110,000, $110,001 to $120,000, and so on. For each price range I track the number of homes that were active at the beginning of each month and how many offers were accepted in that price range by the end of the month. With this information we can see how quickly or slowly homes in that price range are moving.I show it to my clients like this:Price RangeStatusOctoberNovember$110,001-$120,000For Sale303303 Accepted Offers4429     % of sell... 12/18/2007

Sellers often only look at the price for which other homes in their area sold and how long it took the homes to sell. What is missing from this view is putting it in context with the current market. This is why I use Absorption Rate. Absorption Rate shows that at the current rate of sales how long it would take for all of the homes for sale to be sold. This gives a much more accurate view of the time it may take for a home to sell. This is usually applied to a subdivision. Absorption Rate is calculated by taking the number of homes sold in the last 6 months, dividing it by 6 (for 6 months) to determine the average number of homes sold per month. Then take this number and divide it into the number of homes for sale. An example would be that over the last six months there were 10 homes so... 12/17/2007

It is extremely important to stage a vacant home with rental furniture when selling your home.  It is probably one of the last thing a seller wants to hear AFTER they have just moved out.  However, it can make the difference between a home languishing on the market or a closed sale.  I have sold several homes this year that had previously been listed by another broker.  Usually, it all comes down to two key items.  Number one is PRICE and not far behind is STAGING.  Furniture rental usually costs about $400 to $900 per home.  If it is a large home it may cost several thousand dollars for furniture rental.  In my marketing program I pay for the staging consultation which costs about $150.  If the home is vacant, the seller has the option to rent furniture at the sellers expense.  Time an... 12/16/2007

If you read In Omaha what is the difference between a Realtor® and a real estate licensee? then you know the the technical difference but what is the difference to the seller? The answer: EVERYTHING. In Omaha In order to be a member of the Great Plains Multiple Listing Service you must be a Realtor® (more information on the Omaha MLS). What does this mean? It means that if one is not a Realtor®, then they cannot list the properties that they are representing in the MLS. Having a home for sale and not having it in the MLS is like not having your home for sale in the first place because no one will know about it. If you read In Omaha what is the difference between a Realtor® and a real estate licensee? the you are probably thinking that it sounds pretty easy to get into real estate. Unfor... 12/16/2007

In Omaha what is the difference between a Realtor® and a real estate licensee? You often times hear the term "Realtor®," "real estate agent," and "real estate licensee" used interchangeable and you wonder what is the difference. In Omaha the difference is huge. First a real estate licensee is anyone that holds a Nebraska Real Estate license. The requirements for obtaining a real estate license in as established by the Nebraska Real Estate Commission are: 1. High school diploma or GED 2. 60 hours of approved pre-license courses 3. At least 19 years old 4. Criminal background check performed by the Nebraska State Patrol 5. Pass the state real estate exam A real estate license gives the licensee the ability to represent others in the sale of their property. Anyone can represent themselves ... 12/15/2007

One of the fun things I love about owning Alliance Real Estate is reading the feedback letters and testimonials we receive from our clients.  As a company, we send out a feedback letter from Alliance  to the client after the transaction has closed.  I firmly believe that this feedback is critical improving your service and it recognizes possible areas of weakness that need improvement.  Everyone has testimonials on their website.  That is fine, but I would rather see the actual letter itself from the client unfiltered and in their own handwriting.  In addition, these feedback letters can also be used on listing appointments so it gives potential clients some insight on how you conduct your business.  I am extremely fortunate to have some great Realtors at Alliance that are part of a tea... 12/12/2007

Everyone knows that mortgage defaults are at an all time high. It is true here in Omaha as it is across the country. In case you have been living under a rock, here are just a few of the hundreds of articles that came up on a search for "mortgage default": Existing home sales fall for eighth month Bank profits slide amid mortgage defaults Mortgage defaults: Latest woe for housing What many people do not know is that auto loans are also at a record high level for defaults. Credit card debt is also out of control. Of course this is no surprise to most people, Credit-card delinquencies stay near record level Overuse and misuse of credit was one of the majors contributors to the Great Depression. Add to this the increasing cost of fuel and the recent wild swings in the stock market and it d... 12/09/2007

Omaha Real Estate     Contributed by David Matney with Alliance Real Estate On Thursday, December 13, 2007 from 3:00 to 5:00 PM the Omaha Chapter of the Women's Council of Realtors will hold their annual Officer Installation and Holiday Reception at the Regency Lake and Tennis Club.  Refreshments will be served and guests are welcome.  They are also collecting donations for the WCR Annual Angel Tree for Women's Shelter of Catholic Charities.  They are asking everyone to bring unwrapped gift in a gift bag.  (I'll probably put my items in a box, and my wife helps me out as well) :-)They are looking for items such as women's clothing, personal care items, toys, children's games, etc.  Probably one of the biggest misconceptions about WCR is that you have to be female to join.  Not so, anyon... 12/09/2007

This is the third part in the epic trilogy of the story of an MLS from long ago in a galaxy far, far away. What is the Omaha MLS? Part one  What is the Omaha MLS? Part two   What information about a home goes into the MLS? Everything. The basics include of course the address (duh), style of home; number of bedrooms, bathrooms, and garages; amount of finished square footage, and room dimensions. Finer details include the type of floor coverings in each room, how high are the ceilings, what type of heating fuel is used, are there association fees, etc. Also included are marketing remarks. This is where the agent describes the home and tries to ‘sell' its features. Our MLS allows for 500 characters, which is not much. I can barely begin to describe a home in 500 characters (that includes s... 12/08/2007

  As a follow up to my previous post (Tragic Shooting in Omaha takes Nine Lives including one Realtor) about the shooting at Westroads Mall in Omaha on 12/5/07, I would like to thank the first responders. Thank you to the Omaha Police Department and Omaha Fire and Rescue. Both departments responded quickly to arrive on the scene of this dangerous and horrific event. Also thank you to the Girls and Boys Town National Hotline. As always they provide free counseling 24 hours a day. Right now they are reaching out to the community to let people know to call if they need someone to talk to about the loss of loved ones, how to cope with such a tragedy so close to home, or how to explain the event to children. In times like these it is good to have people that will selflessly give when others ... 12/07/2007

Yesterday I arrived home early to put a turkey in the oven for my wife. As I was doing so my buyer's agent called with a question on one of my listings and asked if I had heard about the shooting at Westroads Mall. I hadn't. I dropped everything and turned on the tv. As I am sure you have heard a gunman killed eight people and then himself at the Von Maur department store. I watched as reporters tried to gather what little information was available. Flipping through the local channels, I caught part of an interview with an eyewitness. She was explaining what she saw and I heard her mention the name Beverly Flynn. I stopped and thought "I know a Beverly Flynn." I had done a deal with her earlier this year. She represented the buyer purchasing a listing of mine at 4173 Cass St. I didn't k... 12/06/2007

If you have not already read part one, here it is What is the Omaha MLS? Part one.  The MLS information is usually accessible to be viewed by the public through brokerage websites (http://www.alliancesells.com/) or individual agent websites (http://www.trummteam.com/) or vendor websites (such as http://localism.com/agents/ttrumm). The public does not however have access to enter information into the MLS. Thus for-sale-by-owner sellers cannot advertise their homes in the MLS. So what is the benefit of the MLS? It allows agents to quickly and efficiently advertise properties that they are selling to other agents regardless of what company they are with. The MLS is the great real estate equalizer. The MLS puts all properties on equal footing. No preference or partiality is given to any age... 12/06/2007

What is the Omaha MLS? The simple answer is MLS stands for Multiple Listing Service. An MLS is a network in which multiple real estate brokerages can advertise the properties that they are representing to other members of the network. In Omaha, Nebraska our MLS is the Great Plains Multiple Listing Service. We have just the one MLS. It covers not only Omaha but also the surrounding cities of Papillion, LaVista, Ralston, Bellevue, Springfield, Louisville, Fort Calhoun, Elkhorn, Gretna, Millard, Plattsmouth, Beaver Lake, and a handful of other towns that no one has heard of. Many larger cities might have multiple Multiple Listing Services (Would that make them MMLS's?) just within their one city. Access to an MLS is generally restricted to Realtors or real estate licensees. In Omaha in ord... 12/04/2007

Omaha Real Estate Schools    Contributed by David Matney with Alliance Real EstateThis is just a quick post on obtaining your real estate license in the state of Nebraska.  In order to obtain a real estate salesperson's license in the state of Nebraska you need to meet the following requirements:   1)  Be at least 19 years of age.   2)  Have a high school diploma or GED.   3)  Pass a criminal background check by the Nebraska State Patrol.   4)  Have at least 60 classroom hours (2 classes) with a passing score.   5)  Submit an application with the Nebraska Real Estate Commission.   6)  Pass the Licensing Exam administered by the state.More information can be found on the Nebraska Real Estate Commission Website.  For more information on classes you can visit Randall School of Real Estate ... 12/02/2007

Omaha Real Estate     Contributed byDavid Matney with Alliance Real EstateMany times I hear clients voice concerns over rising interest rates.  Interest rates have been at historically low levels for several years.  Every market is different and in the Omaha real estate market we are very fortunate to have a very stable and diverse job market.  We are also very fortunate in that we do not have the wild swings in the marketplace.  Unfortunately, we are still subject to the national media.  They are in business to sell news and good news does not sell.  Jobs are by far more important.  If a job is lost it completely removes someone from the market.  A change in interest rates will determine what someone can afford, lose a job and now they are no longer even in the market.  The Omaha area ... 11/27/2007

Omaha Real Estate     Contributed by David Matney with Alliance Real EstateMany buyers after a home inspection ask the sellers to make repairs.  There are several key issues to consider when requesting repairs?  When will they be completed, who will make the repairs and how will the buyer know the work has been completed?When representing a buyer, an agent will fill out a home inspection contingency removal form.  Typically, the buyer has 3 choices.  Take the home as is, have the seller fix the listed items, or the house has too many issues and they no longer want the home.  If you ask the sellers to make repairs, make sure that the work is done by a QUALIFIED and/or LICENSED CONTRACTOR before closing and RECEIPTS available upon 48 hour walk-through.  It is also a good idea to have a ho... 11/19/2007

Omaha Real Estate     Contributed by David Matney with Alliance Real Estate Some things are so simple yet are often overlooked.  When was the last time you REALLY looked at your yard sign?  Is it faded?  Is it readable?  How far away from the sign can you be and still read the sign?  Is the font a readable font?  Have you driven by your sign at night?  What is the furthest away you can be and still read the sign at night? Do you have the company number or the company website on your sign?  Why do you want YOUR leads going to the company? (I do have the company website on my sign but I am one of the owners of the firm.)  In Omaha during the winter months, your sign can be invisible?  During winter months buyers and sellers are driving home from work in the dark.  Those are potential buye... 11/16/2007

Omaha Real Estate     Contributed by David Matney with Alliance Real Estate This is a follow up post to a earlier blog concerning an offer contingent on a buyer's first right to purchase.  Some agents will immediately not even consider accepting this kind of contingency.  Even worse, some agents do not even know what is a first right to purchase.  There are both advantages and disadvantages of this kind of offer.In a first right to purchase the home will remain on the active market.  Once the seller has accepted an offer that is subject to a first right to purchase, the seller MUST disclose that information to all potential buyers.  This has to be done on the PUBLIC marketing remarks as well as the AGENT specific marketing remarks.  This disclosure might discourage some agents from show... 11/13/2007

Real Estate Commissions in Omaha: Everything You Need to Know Every year a handful of homeowners decide to sell their homes "by owner" in order to avoid real estate commissions. Usually their decision is based on the misguided notion that selling a home is easy and paying real estate commissions are just a waste of money. What these homeowners and many times potential sellers and buyers don't completely understand is what a commission covers and who gets what. Following is a closer look at real estate commissions and why they're worth paying. 1.   Real Estate Commission Rates According to the National Association of Realtors®, the average commission rate charged nationwide is 5.1%. Potential sellers should shop around when looking for a Realtor®. If a Realtor® has a higher than average ... 11/12/2007

Omaha Real Estate     Contributed by David Matney with Alliance Real EstateCase Study in PriceIn an earlier post I discussed pricing your home and how certain amenities or lack there of will effect the price of your home.  Pricing is determined by the market.  Location, condition, size and amenities all effect the price of a home.  Of all of these factors, location has the greatest effect on price.  For example, have you ever seen the prices of homes in another state like Hawaii or California?  The exact same home located in California might be $500,000 and the same home in Omaha is $150,000.  Same home, but the location is the only determining factor.That is an extreme example of differing locations.  There are even differences in price within a subdivision or differences where a stree... 11/10/2007