Todd's Blog

Keller Williams Offices shine on Industry Surveys

Todd Graves (Keller Williams Greater Omaha) — Wed, 21 May 2008 10:41:39 -0500

Every year, RISMedia and REAL Trends release two of the real estate's most comprehensive surveys: the RISMedia Power Broker Report and the REAL Trends 500. Both surveys rank the largest residential real estate brokerages in the U.S. based on both transaction sides and sales-dollar volume, and these reports are frequently used as referral tools and are referenced by thousands. This year, Keller Williams stormed onto the lists with a very strong showing.

KW offices dominated the Power Broker Report - with more offices listed in their top 700 list than any other franchise brand. The survey also named Keller Williams Realty as the industry leader in terms of number of agent teams. And, 102 KW offices were listed in the Companies to Watch section - making up 55% of the total list!

As for the Real Trends 500, which lists the top 500 brokerages in the nation, Keller Williams Realty had the second highest amount of offices listed both transaction sides and sales volume, among the top franchise brands.

Even further proof that it's always a great day at Keller Williams!

To find out more about these lists, visit RISMedia's Website or REAL Trends' site.

What interest rates really mean

Todd Graves (Keller Williams Greater Omaha) — Mon, 12 May 2008 10:38:47 -0500

The Fed did this! The Fed did that! Rates are up! Rates are down! Aaaagggh! Okay, now exhale. In turbulent economic times the media can't wait to report what interest rates are doing. Pundits prognosticate, forecasters forecast and soothsayers sooth. When should you buy a home based upon interest rates and when is it the right time?

The fact is that interest rates, while important, have little impact when it comes to buying a home. Alright, alright, I'll admit: it's important...but it's not a deal-killer.

There is a fixation on what rates are doing. A fixation on what rates will be in the future and what rates were in the past. I've heard potential home buyers tell me, "I'm not sure I want to buy now because rates are ¼ percent higher now and I think I'll wait." I say, "Wait for what?" I say let's not look at the rate but instead concentrate on what that rate actually represents ... your monthly payment.

Let's look at what an interest rate move of ¼ percent really does to a $200,000 mortgage. Say a 30-year interest rate at 6.00 percent "jumps" to 6 ¼ percent. Shall we sit on the sidelines, thinking such a move is suddenly unaffordable? No. The payment on a $200,000 loan "jumps" by about $32 a month!

Now let's get a bit more draconian and look at a ½ percent increase and the monthly payment increases by $64. Putting that into daily financial terms, $64 is about a tank of gas. While not insignificant, it's hardly a reason to stay on the sidelines of home ownership. Right now, buyers should have more urgency than ever. Home prices have declined enough to make buying more affordable than it's been in recent memory and interest rates (whether at 6 percent or 6 1/4 percent) are historically low. It's time to act.

Are rates important? Sure they are. But are they the end-all? Heck no. Interest rates over the past few years have been in a very tight range, with few major swings. Just remember what interest rates represent, your monthly payment, and pay less attention to the headlines.

Overcoming the misconceptions about the "credit crisis"

Todd Graves (Keller Williams Greater Omaha) — Wed, 07 May 2008 12:46:49 -0500

Financing Solutions

You've watched the news and read about it in the papers. You know, the "credit crisis" and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren't making loans anyway. So, why bother, right? Wrong!

We're right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers. It seems the press just can't get enough of all the gloom and doom in the housing industry. The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn't required. You just need to know where to look. Who are these lenders? They're right down the street.

Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn't technically have a minimum credit score, although, in practice, lenders won't approve an FHA loan with a credit score below 500. But that's a far cry from the notion that an 800 score is the only thing lenders care about.

The best part? FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant. FHA borrowers only need to have $500 in a transaction. All the while, FHA mortgage rates are as good or better than their conventional counterparts.

Low or no down payment, extremely competitive rates and easier qualifying. No wonder FHA is moving up the charts!

Please contact me if you would like more information about FHA loans or help getting into your first home.

I've moved to Keller Williams Greater Omaha!

Todd Graves (Keller Williams Greater Omaha) — Tue, 15 Apr 2008 21:54:05 -0500

I just joined the Keller Williams Greater Omaha office today and look forward to continuing to help bring buyers and sellers together in the Omaha market.

My new office address is 12720 I Street, Omaha, NE 68137, but my phone number 402.880.DIRT (3478) and fax number 866.622.0134 remain the same. My new email address is http://mailto:toddgraves@kw.com.

My new website is now up and running and has details on all my listings..

Feel free to call me with any questions you have or if you are ready to make a move!

Have a ball when agents don't show!

Todd Graves (Keller Williams Greater Omaha) — Wed, 26 Mar 2008 10:39:14 -0500

Frustrated not knowing if the agent who scheduled the appointment actually showed up? Here's a little trick to discover if anyone has been inside your house.

Before you leave the house, place a ball up against the door the agent will enter. When the agent opens the door, the ball will roll away. If the ball is in its original place when you return, you know no one entered the house. Even if the agent knew exactly where the ball was originally placed, it would be impossible to replace it to its beginning location.

How well do you know your neighbors?

Todd Graves (Keller Williams Greater Omaha) — Wed, 26 Mar 2008 10:30:52 -0500

Just because someone is a convicted felon doesn't mean they will be a repeat offender. However, it would be nice to know if your neighbor has done time.

Go to http://felonspy.com/ to find felons residing in your area.

For the Registry from the Nebraska State Patrol which lists High risk, Level 3 sex offenders, go to http://www.nsp.state.ne.us/SOR/find.cfm. Please remember this information shall not be used to retaliate against the registrants in any way.

State of the Omaha Market

Todd Graves (Keller Williams Greater Omaha) — Wed, 20 Feb 2008 12:18:24 -0600

Omaha appraisal company, Mitchell & Associates has recently released two reports on the Omaha real estate market.

The Midtown and West Omaha reports cover both the eastern and western sections of Douglas County. Whether you are buying, selling or just curious about the Omaha real estate climate you should access the full reports at: http://www.mitchellassociates.com/news/relnk/

Can I show your listing?

Todd Graves (Keller Williams Greater Omaha) — Sat, 02 Feb 2008 09:31:20 -0600

As a seller, you obviously want to get someone to buy your home. To do that, you need to get buyers to come look at it. How easy is it for that to happen?

Try calling your broker's company to set up an appointment to see your listing. What happens? Does the message say the office is closed even though it is an hour before they say they close? Is your agents phone forwarded to the office phone? Does the office message still say they're closed the next day during office hours?

You would be amazed how difficult it can be for an agent to show houses. Even vacant houses! Conventional wisdom would suggest making it as easy as possible for buyers to see the house for sale. As is often the case, conventional wisdom doesn't always prevail.

Omaha Home Prices Plummet 1/2%!

Todd Graves (Keller Williams Greater Omaha) — Tue, 22 Jan 2008 17:34:02 -0600

O.K. maybe one half percent isn't so bad. What about taking an extra week to sell, though?

As Satan rushes to the hardware store to stock up on mittens and ice melt, the real estate bubble has burst in Omaha. Not since 2001 when the average sales price dropped nearly 3%, has the Omaha real estate market been so gloomy.

According to recently released figures from Trendgraphix on the Omaha MLS, the median sales price has dropped .47% from $141,333 in 2006 to $140,667 in 2007. Market times have taken a toll, as well. Successful sellers found it took and average of 67 days to sell compared to 60 days in 2006.

If it's this bad at the middle of the pack, imagine how many million dollar homes have just sat there. Well, they all didn't just sit there. A dozen homes sold in 2007 for at least $1,000,000.

We realtors have been hit hard with the lower sales prices and longer market times. A real estate agent may have found collecting $20 less in commissions based on this drop in median sales price. The horror doesn't end there though. We also had to wait an extra week to get paid. Outlandish!

What's worse than a combination lockbox?

Todd Graves (Keller Williams Greater Omaha) — Mon, 05 Nov 2007 15:19:48 -0600

The lockbox revolutionized the real estate industry. Instead of driving around to real estate offices to collect keys to show listings, they can just access the key from the lockbox, usually hanging on the door knob of the listing.

There are three types of lockboxes in the Omaha area: The combination lockbox, the basic electronic lockbox and the upgraded infrared lockbox.

Several years ago, the Omaha MLS switched from a mechanical lockbox system where every member agent had an identical key. The new system featured an electronic lockbox that could only be accessed by a special pager sized device with an agent specific code.

Since the electronic lockbox rollout, an upgraded lockbox has been added to the system. This lockbox has an infrared eye that can read the beamed code from a Realtor's smart phone or be accessed the conventional method where the agent's device physically docks to the lockbox.

The combination lockbox works in a similar fashion, except to gain access to the key, a code must be manually entered via a dial or push buttons. The benefit of this type of lock box is that anyone with the code can enter the home. While perfect for contractors who need to get access to the house, it does not have any way of monitoring who goes in and when. Also, BEWARE some agents are not very creative with their code. 1-2-3-4 is an unbelievable popular combination!

Both combination and electronic lockboxes are great in facilitating the showing of properties, but there is one lockbox to look out for. If your house is for sale and you have a big beige lockbox on your door, BEWARE!

Everyday more and more agents are switching to the key operating on software on their smart phone. These tend to be the more active agents. NONE of these agents will be able to access your home because the beige lockboxes don't have the IR capability. How frustrating is it for you when you have a hot buyer on your front porch that can't come inside because your listing agent put up the dinosaur of all lockboxes?

Should you have a Flyer box?

Todd Graves (Keller Williams Greater Omaha) — Mon, 05 Nov 2007 14:17:50 -0600

Conventional wisdom says you should promote your listing anyway you can. Newspaper ads, flyers, agent tour, open houses... anything and everything. However, some methods are better than others. Some even work better when they are not done at all.

In the optimal world, potential buyers drive by a house they like and take a flyer from the box, decide they like it and call to find out how to see the inside and write an offer. Unfortunately, the optimal world doesn't exist.

Usually, the flyer gives the buyer some reason to move on to the next house. Was there too much information on the flyer? Is it 1,000 sq ft too small? Or is it 100 sq ft too small? Is it $5,000 over their price range? Or is it $50 over? What if there wasn't a flyer in the box? Are the buyers now slightly irritated towards the house?

What if there was no flyer box at all?

The buyer WILL call or check out the house on the internet if they are even slightly interested. Finding a buyer is like finding a needle in the haystack and sorting through less hay makes it easier. Forget the flyer box so you can separate the contenders from the pretenders and do it with less effort.

State of the Omaha market

Todd Graves (Keller Williams Greater Omaha) — Fri, 07 Sep 2007 12:26:50 -0500

Mitchell & Associates has just released two reports on the Omaha real estate market.

The Midtown Omaha report analyzes recent activity in the eastern section of Douglas County by breaking trends into three different price segments ($150,000-$250,000, $250,001-$400,000 and $400,001-$600,000). The condo market, corporate relocation activity and single family homes are analyzed.

The West Omaha report breaks down five price segments over $75,000. Both reports are must reads if you have any interest at all in the Omaha market.

To access the full reports, go to: http://www.mitchellassociates.com/news/relnk/

What do you want your rental property to do? Part 2

Todd Graves (Keller Williams Greater Omaha) — Wed, 05 Sep 2007 14:22:48 -0500

The most common excuse for not getting into the real estate rental business is property management headaches. Everyone can recite a horror story about some tenant tearing up a rental or never paying their rent. But it in reality, it doesn't occur all that often. Ask any landlord you know how many middle of the night maintenance calls they get. You will find it is not nearly as often as they imagined.

Can you recall the last time someone was came up to you and mentioned how things are going completely normal? Real estate investing is really quite boring compared to everything else in life. Buying carpet and paint every few years is about as exciting as it gets.

Yet it DOES take some time commitment to operate a successful real estate business, as in any successful business. However, that doesn't mean you have to field calls at three in the morning or become a repair expert to enjoy the benefits of owning rental property.

Whether or not you have the time to devote to the day to day care of your real estate business, you should look for a quality property manager. A good one will be worth their weight in gold, saving you time and making you money.

Some property managers will do as much or as little as is asked and charge you accordingly. For about 6-7% of the gross rent, you can have them do it all, from collecting rents and making repairs to fielding phone calls and filling vacancies. You can spend the same amount of time on real estate as you do reading monthly statements from your stockbroker when you have a great property manager in your corner.

A strategic use of Home Warranties can alleviate some of the maintenance surprises associated with owning rental property. For $400-425 a year you can purchase a one year home warranty that covers your appliances, plumbing, electrical & HVAC, etc. Making one call to the warranty company for repairs for the price of the deductible is well worth it to many landlords. It also makes it easier on the budget when you don't have to worry about plunking down a few grand on a new furnace or air conditioning unit.

Even though the beginning investor should spend time learning the business, consider the big picture. If you are spending significant time managing your rentals, your portfolio is limited by your time. By teaming up with a competent property manager, there is no limit to the number of rentals you can have in your portfolio.

If you are interested in establishing a real estate investment portfolio, give me a call at 402-880-3478 or shoot me an email. todd.graves@cbshome.com With the increase in bank owned foreclosures, there are some great opportunities out there!

What do you want your rental property to do? Part 1

Todd Graves (Keller Williams Greater Omaha) — Fri, 03 Aug 2007 13:51:12 -0500

The daunting task of finding investment property fitting your financial criteria can sometimes be overwhelming.

Before venturing very far, investors need to know what they want to get out of the investment. Is monthly cash flow the objective or would a handsome appreciation be more appealing?

Like the sound of a 15 year retirement plan? Buy a property with a break even cash flow on a 15 year note and BINGO! 15 years from now you get to keep that principal and interest payment you've grown used to making. This strategy works great for a college savings plan for those with young children. Even better as a retirement plan.

Retire on Easy Street!

Buy a property every year for 15 years. On the 16^th year, take out a new mortgage on the newly paid off property for 75% of the value. That money is yours and even better: tax free because it's not income. It's your equity! If your properties are all worth $100,000 you can tap $70,000 - $75,000 every year because each year you have a property that becomes free and clear. And you don't have to pay any income taxes on it. (Try doing that with $1.5M of stocks!). And believe it or not, it gets better. This retirement income stream is protected by inflation because it is all based on the value of your real estate which automatically adjusts based on inflation.

Not patient enough to wait 15 years for the reward? Buy an undervalued property, improve it, (along with the rents, of course) and then sell it. By increasing the net operating income on the property, you exponentially increase its market value.

Improve a 4 plex enough to justify raising the rent from $500 to $600 / month and WHAM! Your property's value jumps from $300,000 to $360,000 (based on a 8% cap rate)

Interested in finding out how you can take advantage of real estate's benefits? Contact me via email at todd.graves@cbshome.com or call me at 402-880-3478.