January Events in Omaha

Happy New Year!

Here is a brief list of what Omaha has to offer this January:

1/2 – 1/4 Sesame Street Live, Qwest Center Arena, 402-341-1500

1/4 Omaha Bridal Network Showcase, Mid-America Center, 402-933-4900

1/8 – 1/10 Monster Jam, Mid-America Center, 402-933-4900

1/9 Lisa Williams, Holland Performing Arts Center, 402-345-0606.

1/10 Fantastically French, Strauss Performing Arts Center, 402-345-0606

1/15 AC/DC, Qwest Center, 402-422-1212

1/16 – 1/18 River City Hunting & Fishing Expo, Mid-American Center

1/22 – 1/25 Midlands Intl Auto Show, Qwest Center, 402-222-1212

1/23 -1/25 Englebert Humperdinck, Holland Performing Arts Center, 402-345-0606

1/23 -1/31 Blithe Spirit, Omaha Community Playhouse, 402-553-0880

1/31 Cats, Orpheum Theater, 402-345-0606

1/31 Brad Paisley, Qwest Center, 402-341-1500

1/31 The Wacky Jam 2009, Qwest Center, 402-341-1500


For more information about Omaha contact bill.swanson@cbshome.com or visit www.billswanson.com.

Fannie Mae Changes its Long Time Investor Policy on Condominium Financing

Fannie Mae has changed its controversial policy on investor units in condominiums. In a memo to lenders last week, Fannie said that when new investors apply for financing to buy a condo unit, they won't have to deal with its former rule whereby vacant, bank foreclosed and REO units were counted as non-owner occupied.

That's important because Fannie's long-time policy has been to bar new investor loans in buildings where less than 51 percent of the units are owned and occupied as principal residences or second homes. The idea is that there's a greater risk of default in projects that have high numbers of investor units, with absentee owners renting out their units.

Under the revised policy, which was requested by the National Association of Realtors in November, Fannie says it will now count bank-owned REO units that are listed for sale, but are not rented, as if they are owner-occupied when computing the 51 percent ratio.

In buildings that still don't meet that baseline occupancy test, Fannie says it will allow lenders to ask for waivers by submitting financial information about the project for individual review by Fannie.

In the same memo last week, Fannie Mae also outlined a series of other policy changes that could potentially affect condo investors.

Here are the highlights:

· Fannie generally will not fund units in developments where more than 20 percent of the space is used for non-residential purposes. For example, if retail or office space exceeded one fifth of the total usable square footage in a project, the new rule would apply.

· Fannie will avoid projects where a "single entity" owns more than 10 percent of the total units. Examples of such owners include investor groups, partnerships, corporations, or individual investors.

· Fannie generally won't finance units in condo projects where it believes there are "excessive" sale or financing concessions being offered to buyers by developers or building owners completing conversions. These might include offers where developers pay purchasers' principal and interest payments for long periods of time, or refund condo fees, taxes or home owner association dues. Excessive concessions up front distort the underlying economics of projects, Fannie believes, and may attract buyers who can't really afford the full payments.

As our market shifts, Fannie is trying to shift as well to pave the wave for prudent financing while still allowing investor dollars to find their way into the real estate market. Their new approach may just be what the housing market needs for 2009.

Would you like more information about investment opportunities in Omaha? Contact bill.swanson@cbshome.com or visit his website at www.billswanson.com.

DinO!saurs: A Prehistoric Expedition

Looking for something fun and inexpensive to do with the kids this winter break? Take a trip downtown to the Omaha Children’s Museum and see the dinosaur exhibit.

DinO!saurs: A Prehistoric Expedition brings a whole new heard of dinosaurs sure to entertain and educate young and old alike. Learning comes alive with 13 robotic dinosaurs including a massive, 22-foot-long Tyrannosaurus rex—plus other favorites including Triceratops and Stegosaurus.

Little paleontologists will love the Dinosaur Dig where they can uncover fossils and Paleo Camp, where a number of educational activities will be available.

Admission to the exhibit is $2 for non-members and free for museum members. Regular museum admission applies. The exhibit runs through January 4th. For more information visit http://www.ocm.org/.

For more information about what Omaha has to offer contact bill.swanson@cbshome.com or visit his website at www.billswanson.com.

It's Time To Get Organzied!

If one of your New Years Resolution is to be more organized you may want to consider reorganizing your closets and storage spaces. One of the most popular trends in home design is the creation of custom closet spaces. Over the past few decades, closets have grown in new-home construction, but whether you have a newer home with a walk-in closet or an older home with a reach-in closet, everyone can use a little help getting organized.

If you're looking to revamp your closet there are a number of directions to go. First, you should consider all the choices out there for maximizing space and then decide whether you plan tackle the project on your own or if you'd rather hire a professional. These days there are countless businesses across the country that offers these services, such as California Closets and Easy Closets. The possibilities range from simple and structured, to lavish and luxurious. If you decide to take on this project yourself stores such as IKEA and The Container Store offer solutions in all shapes and sizes.

Of course each custom closet varies greatly by the particular layout of the closet and specific needs of the homeowner. Some of the more basic elements include pullout drawers to store folded clothes, shoe racks or shelves, wired or solid shelving for stacking things, and tiered hanging bars for clothing. But what make each closet truly "custom" are the stylish and even decorative elements that come next.

Custom closets are meant to reflect the décor and color scheme that is present in the larger room surrounding it. Wooden veneers in dark or light stains or finishes can be added to the drawer and cupboard faces. Or you can choose frosted or clear glass to showcase what lies inside. Shelves can be colored to match the room and islands or other shelving units can even be fitted with more luxurious materials such as marble or granite. Storage baskets or bins are often used to give a uniformed look and can come in plastic, metal or basket weaves. And to top it off, mirrors and specialty lighting can be incorporated to make the space more inviting and user-friendly.

With the countless options out there, it's easy to see why custom closets are an ever popular remodeling project. Not only does it make it easier to find what to wear in the morning, but it adds a creative and more personal touch to a place that in the past was overlooked.

Would you like more information on how home improvements may impact your home values? Contact Bill.Swanson@cbshome.com or visit Bill's website at www.billswanson.com.

Should You Wait to Refinance?

What happened to the Treasury Department's plan to cut mortgage rates to four and a half percent to stimulate home buying?




Under the plan, Fannie Mae and Freddie Mac would buy loans at four and a half percent and the Treasury would subsidize the difference between that and market rates.


But last Tuesday, in an interview on the CNBC cable network, Treasury Secretary Henry Paulson basically said no such plan was ever announced. It got leaked prematurely.


Paulson also hinted that he would be reluctant to launch such an ambitious and potentially costly program without having the full support of the incoming Obama administration's Treasury team.

The National Association of Realtors, which had proposed the rate buydown concept to Treasury weeks ago, again called for the federal government to find a way to lower rates to four and half percent.


Meanwhile, new reports surfaced that a second plan was being considered: Under this alternative, the 12 Federal Home Loan Banks around the country would offer cut-rate mortgages using money raised by bond issuance’s at 3 percent by the Treasury. This concept is being pushed aggressively by the president of one of the banks and is under active consideration by the bank system's top regulator, James Lockhart, director of the Federal Housing Finance Agency.


The net effect of either plan would be the same to consumers: Sharply lower monthly mortgage costs. For example, here's what a four and a half percent rate does to principal and interest payments compared with a note rate of five and half percent: On a $200,000 mortgage, the one point difference would reduce payments by $122 a month.


On a $300,000 loan, the savings would go to $183 a month. And on a $400,000 mortgage, costs would be lowered by $244 a month.


Meanwhile, with market rates tumbling to five percent and below, a half point rate buydown could cost the government much less than originally estimated.
Then again -- there's always the possibility that to stimulate a really big round of home buying, rates could be cut to 4 percent.


With all these possibilities floating out there one may want to wait to refinance to see how the rest of this story unfolds.




Would you like more information about the Omaha housing market? Contact Bill.Swanson@cbshome.com or visit http://www.billswanson.com/.

Unusual Christmas Traditions

An upside-down Christmas tree! Who has ever heard of anything so ridiculous?

Well, you may be surprised to hear that an upside-down Christmas tree is one of the hottest fads of the season. But it's actually not so new. In fact, it goes back to the Middle Ages. In that religious time, the upside down tree was intended to represent the Trinity.

Bringing back this forgotten custom does have commercial overtones as it allows for more merchandise under the tree but some like the cutting edge aspect to it!

This is not only unusual custom out there. Here are few others that are sure to raise your eyebrow:

In Italy they have no Christmas trees. Instead they decorate
small wooden pyramids with fruit.

Ukrainians decorate their trees with an artificial spider and
matching web. A spider web found on Christmas morning is
believed to bring good luck.

The citizens of Caracas, Venezuela block off the streets on
Christmas eve so that people can roller-skate to God's house.

It is a British Christmas tradition that a wish made while
mixing the Christmas pudding will come true only if the
ingredients are stirred in a clockwise direction.

A traditional Christmas dinner in early England was the head
of a pig prepared with mustard.

Sending red Christmas cards to anyone in Japan constitutes
bad etiquette, since funeral notices there are customarily
printed in red.

In Norway on Christmas Eve, all the brooms in the house
are hidden because long ago it was believed that witches
and mischievous spirits came out on Christmas Eve and would
steal their brooms for riding.

No matter what tradition you observe in your family be sure to enjoy the holidays with those you love and appreciate the time together.

How To Make Your Holiday Eco-Friendly

Did you know that between Thanksgiving and New Year's Day, Americans throw away a million extra tons of garbage each week?

During the season of giving, it sure seems like we're taking a lot from Mother Nature.

Here are some suggestions of ways to go green this holiday season, and you just might save some green as well.

Gift Giving: Try giving an experience rather than a gift. Tickets to a ballgame, theater or an art exhibit create much less waste than complicated toys and gadgets. Some of the best gifts can even be homemade like cookies and cakes, or having guests over for a special home cooked meal or giving the gift of a service you can provide to someone.

Wrapping: Recycle your gift wrap. You can easily reuse gift bags, tissue paper, bows and even wrapping paper. If you just look around the house you'll probably find old posters, maps, sheet music, wallpaper scraps, magazine and newspaper cutouts, and comic pages which all work very well as wrapping paper. Homemade wrapping paper is also a great winter afternoon activity for the kids as well.


Shipping: Avoid Styrofoam packing peanuts and try the biodegradable kind instead. You can also use crumpled up newspaper, or even dry, popped popcorn, with a note inserted inside the box letting the receiver know that they can later treat birds to it.

Christmas Lights: Be sure to purchase lights made with light-emitting diodes, or LEDs. These lights are ninety percent more efficient than traditional Christmas lights and last about 200,000 hours. According to one U.S. Department of Energy study, if all families replaced their conventional holiday light strings with LEDs, at least two billion kilowatt-hours of electricity could be saved in a month. The savings alone would be enough to power 200,000 homes for a year.


The Christmas Tree: As you search for that perfect tree, keep in mind that if you purchase a tree from a tree farm you're not damaging forests. Another option is purchasing a potted plant that can be enjoyed year round. Artificial trees are also a good choice since they are reused every year and that saves on the gas you would spend driving to the tree farms.


My favorite for those that don’t want a big tree or are looking for an additional table top tree is the potted rosemary bush. These fragrant plants can be purchased shaped like Christmas trees and are perfect for the cooks in your family. Not only does it serve as a Christmas tree but you will have an endless supply of this wonderful herb as you make your favorite recipes.


Treecycling: Don’t forget to start off the New Years on the right foot by treecycling. Instead of ending up in a landfill, Christmas trees can be ground into wood chips and be reused as mulch gardens, or to prevent erosion. If you visit Earth911.com, you can search your zip code to find the nearest Christmas tree recycling center near you.


Decorations: Give it your family's personal touch by decorating it with memorabilia such as a child's first shoe or grandma's hankie scented with perfume. There's no need to go out and purchase pricey ornaments when cookie cutters, pinecones, stuffed animals and toys, and miniature toy cars work just as well. As you pull these ornaments year after year they will be sure to put a smile on everyone’s face.


The most important thing to remember is that the holiday time is meant to share with those that matter to you most. By taking time to sit back and enjoy each others company you are creating memories that money can not buy.

Who are Todays Homebuyers and How Are They Finding Their Dream Homes?

One of the most useful research projects of the National Association of Realtors® (NAR) is the annual survey of homebuyers and sellers. The information is based on answers to an eight-page questionnaire mailed to 133,000 consumers who purchased a home between July 2007 and June 2008.

Here are some highlights of this years finding:

· 41% of the market constituted First-time homebuyers.

· 6% percent of buyers purchased a home that had been foreclosed or that was in the process of foreclosure.
· 69% of buyers said that they used the internet frequently during their home search.
· 33% of buyers went to the internet as the first step in the home search.
· 17% contacted a real estate agent first.

· 9% began by driving through neighborhoods looking for homes for sale.

Buyers use multiple sources of information in the process of looking for a home. The top three sources were:

· 87% used the internet
· 85% used real estate agents
· 62% used yard signs



Of the 87% who used the internet in their search process they visited the following sites:· 60% of those buyers went to MLS sites.


· 48% percent used Realtor®.com
· 46% went to real estate company websites
· 43% went to sites hosted by individual agents.


While there is a lot of intriguing information about the sources of information used by prospective homebuyers, certainly the most relevant has to do with where they actually found the home that they ultimately purchased.

· 34% of buyers found their home from information provided by their real estate agent.
· 32% found their home on the internet.
· 15% found their home via a yard sign.

Would you like more information about listing your home? Contact bill.swanson@cbshome.com or visit www.billswanson.com.

Mortgage Applications Jump 37%!

Last week the Mortgage Bankers Association's national survey registered a record 37 percent jump in applications for new conventional loans to buy houses, and a 39 percent increase for home purchases using FHA mortgages.

The reason for the sudden surge? A half point drop in 30 year fixed mortgage interest rates to 5.47 percent -- which was down from 6 percent the previous week -- and to just 5.13 percent for fifteen year loans.

The rate drop happened almost overnight, after the Federal Reserve announced plans to pump up the housing sector by buying $100 billion worth of bonds issued by Fannie Mae and Freddie Mac.

The Fed also said it plans to buy about half a trillion dollars of mortgage-backed securities issued by Fannie, Freddie and Ginnie Mae beginning this month. Ginnie backs the FHA side of the market, just as Fannie and Freddie do on the conventional side.

So why did the Fed's moves mean so much? Because mortgage rates have been higher than they should recently due to bond investors' uncertainty about the safety of Fannie and Freddie.
Both companies racked up multi-billion dollar losses last quarter, causing investors to demand extra-high premium returns before they'd buy Fannie or Freddie debt.

But now that's over. The government's backing of Fannie and Freddie is explicit and big. Investors are reassured. They'll take lower premiums, allowing consumers to get lower mortgage rates.

Although lenders report their phones were jammed with applications from people who want to refinance, the big surprise was the huge jump in applications from consumers who plan to buy houses.

With prices down in the majority of markets, more and more people are finding that the equation now works: Fixed rates in the mid-fives combined with pricing at 2003 and 2004 levels make a compelling case that this is an excellent time to buy - provided you've got a downpayment and reasonable credit.

Would you like more information about available home financing? Contact bill.swanson@cbshome.com today to arrange for a free consultation.

Holiday WildLights at Omaha’s Henry Doorly Zoo

Omaha's Henry Doorly Zoo's Holiday Wildlights is a walk-through colorful display of lights and animated figures among the Zoo's finest exhibits. From jumping frogs and wallabies to swinging monkeys and fluttering butterflies, the upper portion of the Zoo brilliantly glows with magnificent hues.



Holiday Wildlights is open free to the public from 4-8 p.m. on December 14th, with coupons distributed at the Holiday Lights Festival Family Festival locations. Crafts, music and treats will be absorbed as visitors make their way through the Wild Kingdom Pavilion. Get your family photo taken with Jack the Dog and get your free holiday glow necklaces.

This exhibit will be open for the remainder of December and Admission for Holiday Wildlights is $2 per person; $1 for Omaha's Zoo Members. Regular Zoo admission is separate.

Would you like more information about Omaha? Contact bill.swanson@cbshome.com.

Treasury Eyeing 4.5% Mortgages?

News that the Treasury Department may use Fannie Mae and Freddie Mac's influence on mortgage markets to push interest rates on home loans down to 4.5 percent has raised hopes for a boost in home sales but sparked debate on whether it's wise to prop up housing prices.

The Wall Street Journal reports that the Treasury is considering using Fannie, Freddie and other government-sponsored entities to purchase securities backed by mortgages at a price equivalent to a rate of 4.5 percent.

Treasury officials have not commented, but the Federal Reserve announced a similar program on Nov. 25, saying it would spend $600 billion to buy mortgage-backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae.

The announcement brought down interest rates on conforming loans by about 1 percent and sent mortgage applications soaring.

Each 1 percent reduction in mortgage interest rate gives home buyers about 10 percent more purchasing power. That can not only get buyers off the fence, but also prop up home prices.
This intiative, coupled with the $7,500 Homebuyer Tax Credit, could mean great news for buyers and sellers alike!

Would you like more information? Contact bill.swanson@cbshome.com.

What Improvements to Your Home Matter Most?

Exterior Improvements Add Most to Home’s ValueFor the second consecutive year, appraisers and REALTORS® report that exterior home remodeling projects bring the highest return on investment for homeowners, according to the 2008 -09 Remodeling Cost vs. Value Report.

Exterior improvements, including wood deck additions and all types of siding replacement, return more than 80 percent of project costs upon resale. Window replacements and kitchen remodels also fare well. All types of window replacements – upscale and midscale wood and vinyl – return more than 76 percent of cost, while a major-midrange kitchen remodel returns 76 percent and a minor midrange kitchen remodel returns 79.5 percent.

Bathroom remodels also continue to be a good investment, although they do not return as high a percentage as in previous years. A midrange bathroom remodel recoups an estimated 74.4 percent at resale. The least profitable remodeling projects are home offices, sunroom additions and back-up power generators.

Would you like more information? Contact bill.swanson@cbshome.com.

Top 11 Reasons to List Your Home During the Holidays

11. By selling now, you may have an opportunity to be a non-contingent buyer
during the spring, when many more houses are on the market for less money!

10. You can sell now for more money and we will provide for a delayed closing or
extended occupancy until early next year!

9. Even though your house will be on the market, you still have the option to restrict
showings during the six or seven days around the Holidays!

8. January is traditionally the month for employees to begin new jobs. Since
transferees cannot wait until spring to buy, you need to be on the market during
the Holidays to capture the market!

7. Some people must buy before the end of the year for tax reasons!

6. Buyers have more time to look for a home during the Holidays than they do
during a working week!

5. Buyers are more emotional during the Holidays, so they are more likely to
pay your price!

4. Houses show better when decorated for the Holidays!

3. Since the supply of listings will dramatically increase in January, there will be less
demand for your particular home! Less demand means less money for you!

2. Serious buyers have fewer houses to choose from during the Holidays and less
competition means more money for you!

And the number ONE reason why your Seller should list during the Holidays...

1. People who look for homes during the Holidays are more serious buyers!

Want more information regarding your home value and the selling process? Contact Bill.swanson@cbshome.com.

Most Expensive Home in the World

Villa Leopolda (aka La Leopolda), an estate in the French Riviera’s Cote d’Azur, built by King Leopold of Belgium in 1902, has been reported today to have been sold for $750,000,000 to a “mystery Russian billionaire”.

Forbes questions whether this is even true as apparently this very property has been subject to much speculation in recent years — including a rumor that Bill Gates purchased the property for a mere $110M in 2005.

It would seem that despite a desirable location, and an almost impossible to find 20 acre parcel, the rumored $750M price tag is a bit steep. Properties similar to this one are available for only $60 – $150 million.

Your mortgage: only $3,800,000 per monthThe mortgage for this guy would come in at $3,792,408 per month (assuming 20% down and a 6.5% rate). If the sale indeed happened, a more likely scenario is the buyer paid cold hard cash.While there is no question this is one nice spread, one has to ask; is any home really worth 750 million bucks?

For information on the most expensive homes to ever sell in Omaha email bill.swanson@cbshome.com or visit http://www.billswanson.com/

Save On Your Credit Score This Holiday Season

With the economy slowing and holidays just around the corner, many consumers may be looking to credit cards to help them get through the heavy shopping season. While that may be a good short-term solution, you want to make sure you don't overlook the long-term impact on your credit rating. After all, the actions you take today could hang over your head for years to come--and may make it tough for you to get the home loan or car loan you want in the future.

To help you make sure you manage your credit cards--and your credit score--during the upcoming holiday spending season, follow these steps:

Double-check your card limits. Many credit card companies today have started lowering credit limits. That means you have less credit available, but it also may mean that your credit score is about to take a hit. That's because approximately 30% of your credit score is based on the amount you owe in relation to your available credit. So, if a credit card company cuts back your limit, you may find that you're suddenly almost maxed out. That's not a good sign for your long-term credit score rating.

Ask, pay down, or move around. If some of your credit limits have changed or are nearly maxed out, you can take a few steps to help alleviate the problem. First, consider simply asking for a higher limit to your card...not necessarily to use up with spending, but to allow more unused credit line to be available and therefore boost your credit score. You can also pay more money to the cards that are near the credit limit, if you can. Or, if you have cards with little to no remaining credit line, transfer some of the larger balances onto the cards with lower balances. That'll give you a more... well... balanced financial picture.

Leave home without it. One of the best tips for the holiday season is to: make a budget, identify specific items, and then leave home without your credit card. Instead, bring just enough cash to purchase the items on your list. That will help you resist the urge to impulse buy, and keep your credit card balances lower.

Pick a card... not just any card. If you can't bring cash, make a credit card plan. Identify specific items that you'll pay for on specific cards. By making a plan and spreading your purchases to different cards, you won't overspend and you won't risk running up one or two cards that are near the credit limit, which will hurt your credit rating.

Resist card offers at the counter. Retailers are famous for offering "savings" when you open a credit card. But those savings often don't outweigh the long- and short-term negatives. For one thing, opening a new account--or multiple accounts in a short period of time--can negatively impact your credit score. In addition, consumers often spend more than planned when a new card is suddenly available. So this holiday season, resist the temptation.

Stay active. If you have older cards that you don't use, make sure you keep them active. For one thing, some of those older cards help establish a longer history of positive credit. For another, the available credit on those older cards can help keep your credit score higher because it improves your overall debt-to-credit ratio. To keep those cards active, make sure you charge one or two items on them throughout the year... like, say, when you go shopping for the holidays. Then, pay them off when the bill comes in.

Always pay on time. Your payment record is a very large part of your credit score, so it's crucial that you have an idea how your holiday shopping will impact your credit card bills and that you make a plan to pay those bills on time. If you have trouble for any reason, contact your card companies right away to work out a plan that helps you pay down your debt... and save your credit rating from a huge hit.

Want more information? Contact bill.swanson@cbshome.com or visit www.billswanson.com.

New Tax Law Impacts Those That Turn Rental Property Into Primary Home

Property owners need to be aware of the tax law change that will go into effect January 1, 2009. This new law changes the how one is taxed when they turn a rental property into a primary residence.


Currently, if the property is sold at least 2 years after the date of the original purchase, and it is owner occupied at the time of the sale, you may apply the full $250,000 exclusion against the gains.Under the new tax law this would not be the case. You are still eligible for an exemption if you sell a property at least 2 years after the date of original purchase, and it is owner occupied. However, you may be subject to capital gains based on the percentage of time the property was used as a rental. You will also have to pay tax on depreciation recapture.


One of the great things about building a real estate portfolio is that when life changes occur it gives you more options. Making the decision to live in a former rental property is an excellent solution to many situations. However, you do need to be aware of the tax implications when making such financial decisions. This is especially significant when it is a divorce situation. When determining the value of the properties at the time of the division of real estate, these tax consequences need to be accounted for to ensure a true accounting of the value of the assets to be divided. There is more to the value of a home than an amount determined by an appraisal.

For more information contact Bill Swanson at bill.swanson@cbshome.com or visit www.billswanson.com.

What Does Rent to Own Really Mean?

In a lease-purchase, you are effectively a renter for some time until you decide to purchase the home. While you lease the property you have to review the document in light of the landlord-tenant relationship. You have to decide who will have to pay for the cost to maintain the property with a view towards those major components of a home that can have problems and then deal with the minor maintenance items.

As a tenant of the property, you need to remember that you do not own the property. You should not invest in the home, make improvements to the home or spend much money on the home until you decide to buy the home and exercise your rights under the lease-purchase and have closed on the home.

When the document deals with the purchase side of the deal, you need to be quite careful. If you are putting money down to assure your seller that you will buy the home, you need to know that your down payment is safe. You also need to make sure that the seller will have the ability to close on the deal when you decide to exercise your rights to purchase the home.

So what do you need to look out for? As a general rule, you need to make sure that the person you are dealing with owns the home and can sign documents with you as both landlord and seller of the home. You also have to negotiate the manner in which the owner will take care of the property and won't take actions that will disturb your living in the home. It won't do you much good to live in the home if the seller treats the home as his and deprives you of your privacy and joy of living in the home.

The owner has to maintain the home until you close on the purchase. If you take care of the ordinary and routine maintenance of the home, your documentation needs to set up a mechanism for you to make sure that (1) the owner has homeowners insurance to pay for damage caused to the home by a casualty, (2) the owner is current on his mortgage payment to avoid losing the home to the lender, and (3) the owner is current on his real estate tax payments and homeowner association fees and dues to avoid losing the home to the taxing authorities or association.

If the owner fails to keep any of these items current, you could find yourself homeless in the future even if you have been a model tenant.If the owner maintains the home, pays the real estate taxes, mortgage and homeowner association payments, you should be in a good position to close when you decide to purchase the home in the future.

But you also need to treat the home as a purchase at some point in time; your documentation for the lease-purchase might require the seller to provide you with a title insurance report. Depending on the lease-purchase arrangement and how serious you are about buying the home, you might be better off knowing early on whether anything affects the title to the home now rather than later.

If you lease the home and wait a year or two to review the title to the home, you might be surprised by what you find. While you might not be obligated to purchase the home if the title report shows something you don't like on the title, you will not have wasted a year or two in a home you can't or won't purchase.

Lastly, any money held by the seller for the purchase of the property should be held by a third party that can hold the money and would not disburse that money until the deal closes, or if you decide not to purchase the home, the deal dies and you move somewhere else.These are just some of the issues to look out for; work closely with your real estate professional when you are drafting the documents to avoid any surprises later on.

For answeres to all your real estate questions feel free to contact bill.swanson@cbshome.com.

Bill's Pick For Places to Go This Holiday Season

Looking to get out for a night of fine dining and champagne? Well, don't look here.

However if you want a place to escape the holiday shoppers or just need to get out of the house for awhile this is your spot. Aptly called The Forgot Store, this friendly place for drinks and greasy food will be sure to become one of your favorites. It even has a little grocery store in the front so you can pick up that gallon of milk you told the wife you were going out for.

You can find this hidden cove at 11909 Calhoun Rd, between Ponca and N 48th Street in North Omaha. Be sure to tell the bartender that Bill sent you!

$7,500 Homebuyer Tax Credit May be the Path to Homeownership

When you combine the tax credit with today’s low interest rates, wide selection of inventory, and affordable home prices, many of the pieces are in place for you to buy now.
Here are 6 things you should know about the $7,500 how ownership tax credit:

1. Buyers have until July 2009 to make a purchase that qualifies.The tax credit was passed in July of this year as part of the Housing and Economic Recovery Act (H.R. 3221). It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009.

2. Buyers don't really have to be "first-timers."The tax credit is actually available to any individual or household that hasn’t owned a home for at least three years.

3. Even if buyers exceed the income limit, they can benefit from the credit.The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500. Sounds like a great deal. But what if you make more money than the income limit of $75,000 for individuals and $150,000 for households? Good news: Individuals whose income exceeds the $75,000 limit but don't make more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000. By the way, any house is eligible as long as it’s a primary residence and is in the United States.

4. Think of it as an interest-free loan.The federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.

5. You don't have to be authorized before making a home purchase.There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.
6. New-home construction qualifies.For a home that a buyer constructs, the purchase date is the first date the buyer occupies the home.However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.

For more information contact bill.swanson@cbshome.com or visit http://www.billswanson.com/.

Thanksgiving Day Puzzle

Here's a little puzzle for Thanksgiving.

Follow each step in the directions very carefully. Then write the new result. When you're finished, you'll discover a phrase that describes something we all do at Thanksgiving!

1. Begin with THANKSGIVING - THANKSGIVING

2. Remove all the vowels - THNKSGVNG

3. Add the word COB between the second and third letters from the left -

4. Remove the third and sixth letters from the right -

5. Switch the fourth and fifth consonants from the left -

6. Add the word LESS between the fourth and fifth letters from the right -

7. Move the fourth letter from the right so that it is the first letter from the right -

8. Add the word BUY after the fourth consonant from the left -

9. Remove the sixth letter from the left -

10. Add the word OUR after the letter Y -

11. Remove the second letter from left -

12. Change the forth letter from the right to an I -

13. Move the first letter on the left so that is becomes the fifth letter -

14. Switch the second consonant and the second vowel from the left -

15. Add spaces after the fifth and ninth letters -

Answer is a 3 word phrase.

Happy Thanksgiving Everyone!

A Thanksgiving Treat From The Fed's

Happy Thanksgiving – Mortgage Rates Plunge Finally, some good news for the mortgage industry!

In a move to increase credit availability, the Federal Reserve and Federal Home Loan Banks announced that they would purchase up to $600 billion in Mortgage-Backed Securities (MBS), exciting news that sent interest rates for 30-year fixed-rate mortgages plummeting below 6.00% and near the lows for the year!

If you have been on the fence about buying or refinancing a home, now is the time to act. Interest rates are extremely low and home prices in some areas are at 2003-2004 levels. Add to that recent declines in energy prices and lower consumer interest rates, and you have a great holiday recipe for success. And don't forget about the bonus that will come after the holidays - the $7,500 homebuyers tax credit!

Don't wait too long to make a move. Rates have already been very volatile and this opportunity might not survive the holidays. In many markets, falling prices are bringing out buyers that have been waiting to buy and they are scooping up both bargains and hot properties.

For more information about real estate in your area contact Bill Swanson at bill.swanson@cbshome.com or visit www.billswanson.com.