Don’t take a fake wife to a real estate closing!!!

There are oodles of “don’t do this” and “be sure to do that” lists available on the net for real estate advice but I thought I would rack my brain of 22+ years of real estate experience for a few ‘non-traditional’ pieces of advice. Everything you are about to read is true. SOME names, however, are changed to protect the… the… less than smart.

Don’t take a fake wife to closing. I had sold an investment property to this particular buyer a few years back. When the title department was preparing the closing paperwork, they discovered the buyer was married. They called him and told him he would have to bring his wife to closing to sign all of the closing paperwork. He arrived at closing with his wife, getting ready to sign all the docs. The loan officer, Ted, then asked them for photo ID to verify their identities. She said she forgot her purse at home. Ted said “No problem, run home and get it and we’ll get back together in an hour.” What followed was several minutes of eerie silence until the buyer finally fessed up and said, “Um, this isn’t my wife.”

So away they went and an hour later he did indeed bring his ‘real’ wife to closing, not his girlfriend. But here’s the kicker, It was the wife’s idea not to come. She told him she was too busy and wanted him to take ‘Amy’ instead… True story…

Tell your loan officer the truth (part 1). I had sold a house I affectionately called the patriotic house because every room was red, white, and blue. The buyer had a prestigious job at a large local railroad company and his loan application went fine, or so we thought. This was before loan officers ran full credit checks and did just ‘preliminary qualifications’ with income, debts, and job history.

One of the questions asked as “Mr Jones, do you pay child support?” to which “Mr Jones” answered “No.” Fast forward a week when the full credit report came in and he was over $30,000 behind in back child support payments. The loan officer called him on the phone and was told the following; “Mr Larsen, you asked me if I PAYED child support, not if I was supposed to pay it. I don’t pay it!” You just can't make this stuff up!

Tell your loan officer the truth (part II). Same question, a couple of years later with a young couple in the loan officer’s office when the following question was posed: “Are you obligated to pay child support?” He nodded yes while she nodded no… Turns out there was a little ‘Mr. buyer’ running around that he failed to disclose to Mrs Buyer… They stepped out into the hall to have a discussion and never came back in... Guess that one should have been titled ‘telling your wife the truth’.. Yikes!

You never know who’s watching… This story took place before the internet when we actually had big thick MLS books that came out biweekly with all of the homes for sale in them. All the info was turned in by the real estate companies but the MLS office took exterior photos of all the homes. One of the agents in the office had taken a client out to lunch whose house he had just listed.

When they got back, the MLS books had just arrived. Don said “Hey Charlie, I think your house should be in this issue.” So they thumbed through the book and lo and behold ‘Charlie’s house’ was in there. Upon further inspection Charlie said “Hey, what’s my boss’s car doing in MY driveway?” Well, you guessed it, turns out Charlie’s wife and boss had a little something going on. Apparently, the boss would make sure "Charlie" was busy on projects in the office for several hours at a time. Busted!

Watch future blogs for more stories about this nutty business. One thing’s for sure, good market or bad, there’s never a dull day in Real Estate!

Bill Swanson is an agent with CBSHome Real Estate, an affiliate of HomeServices and Berkshire Hathaway. For a quick and easy online home evaluation, log onto http://www.billswanson.com/ or give me a call at 402-964-4871.

For more information, email Bill at Bill.Swanson@cbshome.com.

Mellow Yellow

The unanimously elected paint color of 2009 is (drum roll, please)... Yellow!

Experts across the board—from interior designers to paint supply giants—all agree that the warm freshness of yellow is just what our walls need this year.

Expects say that this nurturing, reassuring color will appear in both interior and fashion accessories to spark innovation and inspire optimism during a new time of political and social beginnings. It plays nicely with neutrals to energize any living space.

Use the color sparingly, such as in hallways, stairwells and connector spaces as a transitional color, or on one wall in a room to make a bold statement on a budget.

Changing wall color can feel like a scary commitment, but you can still enjoy the trend when you incorporate the cheer into your decor. Use accent pieces like the ones shown here with this happy hue.

For more information about real estate in your area contact Bill.Swanson@cbshome.com or visit http://www.billswanson.com/.

Move Along Little Doggie

Moving into your new home is very exciting, for your entire family!!

But did you know that introducing your dog into a new home can be incredibly stressful for them? Fortunately, there are a lot of things that we can do to make this transition easier on them, which in the end makes it easier on us!

There are a lot of things that you can do to make the move less stressful on your pet. When moving, if possible, it would be a good idea to leave the dog with a friend they know. This will keep the dog out of your way when you are moving furniture, and decrease the chance that any accidents may happen. You can also leave the dog in the backyard while you move, as long as it is fully fenced and they cannot escape!

Can’t do either? Well then, the ‘least worst’ scenario is to crate your dog while moving the furniture into the home. Make sure the crate is large enough that they can stand up, turn around and lay down comfortably, and be sure to give them access to water and let them outside to ‘do their business’ every few hours. Doors will be left open, items will be dropped, there will be a lot of commotion, and the best way to keep your pet safe during this time is to keep them out of the way!

During the packing process, you can actually plan ahead to make this as smooth a transition as possible for your four legged friend. Instead of trying to cram the packing into one or two days, planning to pack over a longer period of time can reduce the stress on your dog (and probably yourself as well!). Make sure that you pack their water and food bowls, toys, and blankets/beds in a separate box that will be easily accessible once you are at your new home. Dogs do not like change, so the more familiar the setting, the better!

One easy trick is to make sure that they have belongings that smell like you, their people! Having a familiar scent in a strange place can make the transition easier. All you would need to do is put their toys in your laundry hamper for a few days, and they will smell just like you!! And don’t feel embarrassed, this is like the sweet smell of roses for your dog. These are as important to your dog as your child’s teddy bear is to them.

Some other great links for advice on moving with your pet include:

petswelcome.com –find pet friendly hotels

http://www.airanimal.com/ – pet movers for the long distance moves

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

Nebraska 49th out of 50 states in foreclosure filings last month!

Stop the presses! This just in!


Only 1 out of every 16,974 housing units in the state of Nebraska had a foreclosure filing in December of 2008. That is 49th in the country!

Well, maybe it's not 'just in' but it is some great news for our local market. These stats are taken from Realtytrac.com, one of the leading national foreclosure tracking websites.


Who's number one? Nevada, where 1 out of every 73 housing units had a foreclosure filing.

The most filings in a state? California with 89,449 filings! Yikes!

Incidentally, our 'homes for sale' is now down to 4,134 residential single family detached homes in our multiple listing system, the lowest in over 2 years!

Does this mean we're 'turning the corner' with our local real estate market? I don't think we can definitively conclude that but there certainly are signs pointing toward a more 'normal' market...

Bill Swanson is an agent with CBSHome Real Estate, an affiliate of HomeServices and Berkshire Hathaway. For a quick and easy online home evaluation, log onto http://www.billswanson.com/ or give me a call at 402-964-4871.

For more information, email Bill at Bill.Swanson@cbshome.com.

Congress Limits Gain Exclusion on the Sale of Some Primary Residences

When Congress passed the Housing Assistance Act of 2008 a few months ago, their goal was to help those people who were losing their homes in foreclosure. One of the side affects of the bill, however, was a change that could effect taxation on the gain from the sale of your personal residence.

IRS law excludes $250,000 of the gain from taxation if you're single, and $500,000 if you're married, when you sell a primary residence you've lived in for at least two years of the last five years. This is so even if a portion of the gain was rolled over into the property in a 1031 exchange transaction.

The new law modifies that rule and penalizes you for time that your property is not your primary residence; you have to prorate the gain between the periods the property was not your primary residence, and the periods that it was. (Your primary residence is the place you live; the address you use on your drivers license; where you're registered to vote, etc.)
The new law only covers those situations where the period when the property was a rental or vacation home falls before it becomes your primary residence. It does not cover situations where it was your residence first, and then became a rental property – this was done so that homeowners who were forced to rent their former residence while they tried to sell it would not be penalized.

As time goes on, we'll have lots of questions about this new law that will have to be answered by court cases or IRS rulings (such as what happens if you build a house on a piece of bare land that you've owned for years?), but my advice is that if you are planning to move into your current rental or vacation property at some point in the future, you should do so as soon possible.

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

Why Savvy Consumers Know More Than Just Their Credit Score

Are your personal files favorable? Your credit report and FICO tell only part of the story.

Do you pay your mortgage or rent on time? Are you in good health? It's unlikely you will be asked these questions directly when you apply for a job, loan or insurance. But those in a position to give you credit, health insurance or even a job are asking these questions and more, and answers come from a host of specialty consumer reporting bureaus that know a lot more about you than just your FICO score.

If you don't know what's in your files, it's time to find out. Some simple sleuthing can help you confirm the accuracy of your reports, and put you in the driver's seat when it comes to shopping for personal and financial services.

Start with Your FICO
The “Big Three” national credit bureaus are Experian, TransUnion, and Equifax. These bureaus track your credit history and report a snapshot summary of it in a three-digit score known as your FICO. Higher scores earn you faster loan approval and better interest rates, among other perks.

It's a good idea to request your report at least once a year and check it for accuracy. Contact the credit bureaus immediately with any disputes. If your score is low, consider working with a financial expert to learn what steps you can take to bring the number up.

Access your credit file by contacting:
Equifax: (800) 685-1111
Experian: (888) 397-3742
Trans Union: (800) 916-8800

Beyond the Big Three
Specialty consumer reporting agencies operate much like the credit bureaus, and collect information about you from a variety of sources. Reports can offer detailed descriptions of your medical conditions, check writing history, homeowner and auto insurance claims, tenant history, criminal records and more.

Unfortunately there is no centralized place where you can access every available report, and not everyone has a file in every category. Still, it's good to check, especially if you plan to apply for credit, private insurance, or if you've been the victim of identity theft.

The following are some bureaus that issue reports:

Insurance Claim History:
ChoicePoint CLUE Reports: (866) 312-8076
A-Plus Reports: (800) 627-3487

Medical History:
Medical Information Bureau for Medical History: (866) 692-6901

Resident History:
SafeRent: (888) 333-2413

Checking and Savings Account Reports:
ChexSystems: (800) 428-9623
Shared Check Authorization Network (SCAN): (800) 262-7771

Many consumers are in the dark about information in their credit file and other specialty reports. Don't wait until you've been denied a job, insurance or credit application. Do your homework now because when it comes to background and credit checks, knowledge really is power.

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

37% of homeowners did NOT make a mortgage payment on-time last month!

What??? How can that be? Well, it’s all in the numbers. This is a headline similar to nearly all of the news stories we read throughout 2008 regarding our mortgage crisis.

So how in the world can 37% of the nation’s homeowners NOT make an on-time mortgage payment last month? Well, it’s simple. What I haven’t mentioned yet is that according to the US Census Bureau’s American Housing Survey released September of last year, approximately 34% of American Homeowners own their home “free and clear” with no mortgage payment due… Hmmm.

The rest of the puzzle? According to Transunion, the percentage of mortgage payments that were ‘late’ last month was around 4% (which equates to about 3% of homeowners). So there you have it; 34% who made NO mortgage payment (thus the statement is true regarding NOT making an on time mortgage payment… or ANY mortgage payment) plus the other 3% equals 37%.

For years, again according to Transunion, the delinquency rate on mortgages has been about 2%, it just recently increased to 4% in the third quarter of last year. What did we hear? We heard that the delinquency rate DOUBLED. We didn’t hear that 96% of mortgages are being paid on time.

We can all debate as to WHY the news gets reported the way it does, especially in the last eighteen months. I guess it comes down to the old adage; “If it bleeds, it leads”. I firmly believe that the skewed reporting of exactly how ‘bad’ the news really was last year struck fear into all homeowners, and to the detriment of the nation’s real estate industry, all potential home buyers. They reported, people reacted, they reported the reaction, people reacted again. Etc…

It reminds me of a story I heard about an Indian Chief and a local Weather Service office:

The Indian Chief thought that he’d better start preparing for winter so he sent all the braves out to collect wood. As he watched them return laden with timber from the forest he suddenly felt that he ought to check his forecast so he phoned the local weather office."Tell me, is it going to be a bad winter?""Yes" said the forecaster "It will be a bad one"

So the Chief told the braves that they didn't have enough wood and sent them back into the forest again. They returned with more wood but once again the Chief had doubts and he called the forecaster to confirm."It is going to be a really severe winter" replied the forecaster.

The Chief look at the wood supply, decided that more was required and the braves were dispatched back in to forest. The Chief called the forecaster."Are you sure it's going to be a really severe winter""Look" said the forecaster "It’s definitely going to be the worst winter on record - the Indians are gathering wood like crazy!""

Am I naïve enough to really think that if things were reported differently we’d all be holding hands singing Kumbaya? Of course not! Would we still have had a decrease in the number of homes sold last year? Probably but I’d bet it wouldn’t have been near the 16% I spoke about on last Fridays blog (Wowie Zowie Uncle Howie).

For a quick and easy on-line evaluation of your home’s market value, log onto: http://www.billswanson.com/ or email me at Bill.Swanson@cbshome.com.

Mosaic Tile Artwork Latest Trend in Home Decor

Using tile in a home for artwork can enhance homeowners' surroundings while adding value and bringing home a museum-quality artwork look.

Mosaic tile designs have been decorating architecture since the beginning of recorded history. Tile designs can be patterns with repeating designs like the ones used in the Roman Empire to floor their great structures or figural, telling a story just as a stained glass window might. Designs done in mosaic sometimes include animals, people, and scenes of nature, but are not limited to these. Designs in pools and fountains give timelessness to classy construction.

So how are homeowners using the tiles to decorate? They're making murals that create custom-made views. They're using tile to brighten a dark or out-of-the-way corner. Homeowners are using their own unique designs to create family heirlooms by turning an inexpensive piece of furniture such as a hutch or bookcase into a one-of-a-kind item by applying customized tile to it. Many are using tile to create a themed-room.

All sorts of things have been used for mosaics. People have employed objects as irregular as pebbles and as uniform as square glass mosaic tiles with outstanding results. The designs on floors are usually done with ceramic tiles and natural stones that are smooth to the touch and nice to walk on. Designs on walls can have texture and roughness not compatible with floor installations. Some wall mounted mosaics are done on boards and others are actually the wall, with mortar and grout holding it together.

Imagination and inspiration make for the most unique designs and simple checks can accent already interesting architecture. Creating mosaic tile designs using ancient techniques is a perfect way to make a lasting impression on those who will enjoy them. Creating lasting images through tile helps sustain value in your home while bringing unique décor that sets your home apart from the rest.

For more information about how to add value to your home contact bill.swanson@cbshome.com or visit www.billswanson.com.

Today's Mexico Offers More Than Ever to an Investor

The people, the proximity, the Peso. These are three reasons why our neighbor to the south, Mexico, is increasingly becoming a choice for foreign investors around the globe.

In particular, US Citizens have become a major force in Mexico’s booming real estate market. Baby boomers are a growing middle class in Mexico. With the passage of the North American Free Trade Agreement and numerous other factors, Mexico is realizing its full potential as a major player in world politics and economics. The Peso is trading at 13.22 to 1 against the dollar. The bottom line is today’s Mexico is a lot different than the country of the past century.

Banking has become easier in Mexico. Bancomer USA now has a retail business unit. Its basic goal addresses the financial service needs of foreigners. They provide retail services like credit cards, debit cards, checking accounts in dollars, in pesos, and even car loans. Several lenders including BBVA Compass Bank and Bancomer also offer mortgage loans for Americans who are buying in Mexico and can finance up to 80% of the value of the property.

Mexico has laws that are a little bit different than ours but mostly parallel our economy. The biggest upside for an American when they buy property in Mexico is that the taxes, home maintenance and cost of living are all less expensive than in the U.S. If you want less risk, buy property that already has title and has been sold several times already to other people. Get the title and the property correctly registered before you go ahead and disburse the remainder of the purchase price.

Take advantage of the “fly and buy” and “play and stay” offerings. For about $300 you and a companion can travel to certain resorts in selected areas. They will wine and dine you, and of course do a hard sell. There is no commitment to purchasing. It’s a great way to do research [for more information, complete the form at www.IncomePropertyInvestmentTalk.com/112608].

If you would like more information about how to find a real estate professional in Mexico contact bill.swanson@cbshome.com.

Wowie Zowie Uncle Howie!

Well guess what? The numbers are in and, contrary to popular belief; people DID indeed buy houses in Omaha, Nebraska last year.

According to our industry numbers there were 8,796 properties closed through our MLS system last year. Those numbers do not include any ‘for sale by owners’ or any of our local ‘production builders’ like Celebrity or Hearthstone which pushes the number up even more. Granted, that is down from 10,491 in 2007 but most of the news reports last year gave us the impression that nobody, that’s right, nobody was buying at all. All-in-all we had approximately a 16% drop in number of closed properties.

I took a totally unscientific straw poll of about 20 people and asked them the following question: "Based on what you’ve heard or read last year about our local real estate market, what percentage would you estimate our number of sales had decreased by?" You can probably guess how that was answered, most were in the 30-40% range, a couple around 50% but not one person guessed under 20%. Hmmm.

What does that say for ’09? Well, we could line up a dozen ‘experts’ and obviously get a dozen different outlooks but the bottom line is this: Mortgage rates are at or near a fifty (yes 50!) year low. There are still plenty of very reputable loan companies out there with billions of dollars to lend. Sure, the “fog a mirror and get a loan” days are pretty much over and our industry is back to more reasonable loan products, but a credit worthy buyer can still put as little as 3% down and get a great fixed rate loan.

Oh, and did I mention rates at or near a FIFTY YEAR LOW??? I think I did.

For more information about Omaha Real Estate, please email me at Bill.Swanson@cbshome.com or if you'd like a quick and easy online home evaluation, visit my website at: http://www.billswanson.com/

5 Ways to Protect Your Financial Health in a Divorce

Don’t Become a Financial Victim
Whether or not you anticipate a divorce you should understand your financial picture and keep copies of all important financial records such as account statements for all assets and statements from all creditors. Watch cash in joint checking, brokerage accounts or cash value of life insurance so you understand your position as all times.

Recognize Your Common Enemy….the I.R.S.
Work together with a divorce financial planner or tax accountant to minimize the total taxes you and your ex will pay during separation and after divorce and share the money you save. Both parties are liable for taxes due as a result of audits on joint returns. Tax consequences also need to be considered when analyzing any settlements.

Use Computer Models to Evaluate Settlement Proposals
If you are trying to decide whether a divorce settlement is equitable and workable, you certainly want to know how you will be doing financially 3, 5 or 10 years down the road. There are many interactive factors you must consider including assets, incomes, budgets, maintenance and child support, taxes, retirement plans, investments and educational expenses. Specialized divorce computer models produce comprehensive and realistic analyses of your post-divorce lifestyle. This model should also include tax implications of any settlement.

Don’t Use Your Divorce Lawyer as a Financial Planner, Real Estate Agent or Therapist
Attorneys generally charge $200 to $300 per hour and are not skilled therapists or certified financial planners. If you need emotional support, career counseling, financial analysis or real estate advice utilize qualified professionals and save big money in lawyer’s fees.

Develop a Post-Divorce Financial Plan
It is key to produce a realistic budget needed at the initial separation and through the divorce settlement. Many people start their post-divorce lives not fully understanding that their settlement must last a significant amount of time and in some cases the rest of their lives. Financial planning can help people transition from married to single lifestyle by prioritizing financial goals, developing realistic expectations and producing written plans for allocation of financial resources. Use experts in the area of financial and real estate planning to set up a plan that works for your individual situation.

If you would like assistance with real estate planning feel free to contact bill.swanson@cbshome.com or visit his website at www.billswanson.com.

Home Improvements Still Provide Many Happy Returns

Many people are wondering where their money will be safest during these uncertain economic times. What a recent report conducted by the National Association of Realtors has shown are that some things never change: Investing in their home still pays off.

Today’s buyers have much more to choose from in the way of inventory, any home for sale must make a positive first impression. This year’s Cost vs. Value report underscore the importance of curb appeal in the buyer’s eye.

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal such as siding, windows, and decks, give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

According to the 2008 survey the top ten projects were:
1. Upscale fiber cement siding (86.7%)
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%)
4. Upscale foam-backed vinyl (80.4%)
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%)
7. Midrange wood window replacement (77.7%)
8. Midrange vinyl window replacement (77.2%)
9. Upscale wood window replacement (76.5%
10. Midrange major kitchen remodel (76.0%)

Also, don’t forget about landscaping. Landscaping puts the finishing touch on any property for minimal investment and boosts the curb appeal of properties in any price range.

If you would like to receive a 10% discount coupon from Lowes just email bill.swanson@cbshome.com and one will be mailed to you at no charge. The discount is good on purchases of anything from landscaping to lumber up to $10,000 which adds up to a big savings as you consider those home improvement projects.

Start the New Year with Positive Chi!

In uncertain times such as these, many families find themselves frazzled by the stresses and pressures of everyday life. The one place where people should feel most at peace is in their home. Home is where we retreat to after the days work to rest and recharge. But for many people, the home is less of a safe-haven and more of a mess, and that's where Feng Shui can help.

Feng Shui is an ancient Asian art that began in China with the Tang Dynasty and dates back at least 3000 years. The basic principles are intended to help people live more balanced and harmonious lives. It focuses on a balance between the Yin and Yang, which are masculine and feminine energy, and the five elements of fire, earth, metal, water and wood. Basically it's an intuitive art, so as you're remodeling or redecorating really listen to your instincts as to what feels natural and comfortable to you.

The front door of the home is considered the "Mouth of the Chi." Chi is positive energy; keep that in mind as you choose your paint color or plant choices. Because this is the first place you and others will walk through to enter the home it's very important to give off a welcoming and calm air.

The living room is another important area because that's where families spend so much of their time. In this room it's all about promoting an easy flow of positive energy. First, de-clutter the room; when things are neat and tidy it's easier to feel at ease in the space. As far as furniture goes, less is more in Feng Shui. Arrange what is needed in a comfortable layout, preferably in a circular pattern rather than having most of the furniture against a wall or corner.

The kitchen isn't just the room where everybody ends up at parties and gatherings; it's also considered the heart of the home because that's where food is prepared which helps sustain life. According to Feng Shui principles, the kitchen should be light and bright with full spectrum bulbs. White is a preferable color to use in paint and décor as it stands for purity. Just like every other place in the home, Feng Shui dictates the kitchen to always be kept clean and tidy, free from clutter.

The bedroom is one of the most personal and private places in the home and therefore requires careful attention. To create a balanced and relaxed environment in your bedroom try painting it a pastel shade, put dimmers on the lights so that you can adjust the mood, and take out the TV. To achieve a restful nights sleep invest in a good mattress, use high-quality natural fiber sheets and balance the bed with nightstands on either side.

These simple suggestions just brush the surface of true Feng Shui design elements. But with just a few changes here and there you just might enhance your family's Chi.

For more information on how to find the perfect home contact bill.swanson@cbshome.com or visit www.billswanson.com.