David Matney, CRS ~ Omaha NE Real Estate ~ (402) 490-6771

When a developer buys land for development a Sanitary Improvement District or SID is used to install streets, sewers, power, and the SID can also be used to buy land for public parks. In order to pay for these items a SID will issue bonds and assign special assessments to individual lots in the subdivision.

SIDs were established by the Nebraska Legislature in the 1940's to help with the huge influx of building that took place after World War II. Sanitary Improvement Districts are good because it keeps the cost of development lower which helps the builder and the buyer. Also, investors like SIDs because they issue tax free bonds and are generally a very stable investment.

When you buy a home and if the property is located in a SID you are required to receive a copy of the SID statement. This will show you the amount of the indebtedness of the SID. If you have questions about the SID it is best to contact the SIDs board of trustees and/or attorneys involved to ask about the SID's financial situation.

Taxes in SIDs are typically higher than in established parts of the city. This means a higher mil levy. The city generally requires a base level and the higher mil is used to pay for items such as a intersection in a development that is used by all inhabitants of the development. Codes for sewers and streets in a new development are stricter and the cost is higher which will also raise the mil levy.

A special assessment is assigned to items that are particular to a specific individual lot. For example, the street directly in front of the property and the sewer connected to the home benefit that particular home and these items are assigned special assessments.

Some buyers are concerned about what about if a development or a particular builder goes bankrupt. What does that mean for the SID? Does the buyer have to pay a higher assessment? No. It is extremely rare for a SID to go bankrupt, but it can happen. If it does it could mean a higher mil levy. Generally, if a SID goes bankrupt the indebtedness is reorganized to pay the bond.

This is just a general overview of SIDs if you have specific questions it may be best to consult an attorney. I also realize that this may not be the most exciting topic. Today's topic is courtesy of the KKAR and the real estate reality hour hosted by Steve Smithberg and Tori Lynn Ross. Steve Smithberg and Tori Lynn Ross host a local real estate radio show and Steve is owner of Homes by Design One and Tori is owner of Ross-Designs - Omaha's premier home stager.

Thanks,

David Matney, CRS,GRI

Alliance Real Estate

Considering selling your home? CLICK HERE for a list of questions to ask when selling your home.

Alliance Real Estate has some exciting news! We are proud to announce that we have added new and improved map search technology which incorporates Web 2.0 into search criteria. Web 2.0 is the next generation in web technology. This type of search will enable buyers to get a better picture of the overall layout of an area to include items such as nearby restaurants, schools, parks, ball fields, etc. This will save buyers time and is the leading edge of map technology. It really is fun to use and can be kinda addictive.

At Alliance, we are relentless in our quest to enhance the buyer experience. This will be available to anyone searching for a home in the Omaha area. There is no registration required and we are excited to have this tool available. Alliance has also given access to our agents to utilize this IDX technology. We believe that this should be available to each of our agents in order to build their individual brand and enhance their individual websites.

Thanks,

David Matney, CRS,GRI

Alliance Real Estate

CLICK HERE for the "Ultimate Map Search"

Omaha Real Estate Contributed by David Matney with Alliance Real Estate

What you should ask when you interview with a brokerage.

As a new real estate licensee it is important to interview several firms before choosing a brokerage to hang your license. Real estate firms come in all different shapes and sizes. Keep in mind the most important ingredient to your success as a new licensee is YOU. However, not far behind is TRAINING. YOU is listed first because a brokerage may offer the best training in the world but if you do not attend training, the training is worthless.

When you first obtain your license you will be bombarded with brokerages calling and sending you their marketing pieces. Save them. You will want to interview with several firms. As a Realtor, you are now an independent contractor. YOU are interviewing the company, not the other way around. Before you decide which company to interview it a good idea to do some preliminary research. First, go online and look at their websites. I can not imagine any company without a web presence.

Step 1: Call several agents (not from a list) from that firm or visit a random open house and talk to an agent from that company. Be leary if they try to "sell" you on the company because some companies have incentives for bringing agents on board. Ask about the training. Ask what they like and what they do not like about the company. Keep in mind, some agents will have an ax to grind and some will be trying to "sell" you in order earn an incentive. Do not eliminate any company at this point. I did this just to get a feel of the culture of the company. Most agents are thrilled at where they are at. I think what is important to see what they really like about the firm. If they mention something like, "be sure to mention my name" they are going after an incentive. That's fine, I would rather meet someone who is just passionate about a company without the "incentive" involved.

Step 2: Determine which companies you would like interview. Some large firms have a centralized recruiter that will interview you with first. They hired guns and they are extremely good at what they do. However, who you really want to interview is the manager of the office you will be at. The interview does not start with the recruiter it starts with the particular manager at your potential office. Also, with a large firm you are interviewing with a MANAGER not the company. In a small firm, you will may interview with a Manager or with the designated Broker. It might be a good idea to interview several managers even within a large firm. The recruiter is very smart and might try to match you with a certian manager or a certain office. Before your interview "google" the name of the manager. Can you find the name of the manager online? This will give you an indication of their internet ability. Better yet, if they have a blog - read it. Do they have quality content or just hype? Misspellings? No blog at all?

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Here are some questions to ask to ask the MANAGER

1) TRAINING is the single most important aspect when you begin your career. If YOU want it and you are properly trained then you will be successful. Ask about the training program. Ask who actually does the training. Do they have a mentoring program? How are mentors determined? What designations do the TRAINERS hold? The Manager might have an entire alphabet soup behind their name. When you first start all those letters do not mean much. In reality ... they do. You want TRAINERS that are qualified and you want to learn from the best. Be leery, if anyone dismisses the importance of designations. Designations mean further education and it may be tied to production. However, most managers are at the top of their game and know what is going on.

2) What is my commission split? Personally, I like simple commission splits that are not dependent on some complicated matrix. It should not take a degree from Harvard to determine what you will bring home to your family. Some splits are higher than others and you should not base your decision solely on who has the higher split. If you have a high split but no support that is the same as having good support and a lower split. However, it should be easy enough to determine what the split is. A matrix based off of your average rolling production is just to complicated. I sell a home, the commission is X out of that the company gets what percentage?

3) What fees do your charge? Is there a franchisee fee? Having a fee is not all bad, it depends on what it is for? What am I getting for that monthly fee? Some brokerages charge a fee some do not? The ones that do not charge a fee may STILL offer the same service. Some firms charge a fee for something they should be providing anyway.

4) What do you provide? Be specific. Does your company have a showing desk for listing agents? When you first start this will not be something that means something ... yet. Once you begin taking listings this will mean alot. Do you have color copies? No color copies, I'm sorry that is unacceptable. The consumer demands color copies. What virtual tour platform do you provide and can I see an example? If they do not provide a virtual tour program then this begins to indicate the level of support you are receiving. This might be an expense that you will have to incur. Do you provide signs for free? Do you provide any leads? What other services or unique services do you provide? Do you provide the lockboxes for free? Do you provide directional signs? Who pays for business cards? These are items that CAN be negotiated. The company wants you ... negotiate these items. If you have the potential to be a hitter, a company will gladly pay for your first set of directional signs or business cards. Take notes and ask for itemized list of what is provided.

5) Ask who you would call if you had a question on a Saturday night at 8:00 PM? This is important and this is done AFTER the interview. Call that number on a Saturday night at 8:00 PM and see who you can get in contact with. This is important especially when you are new because you will have questions and it will be on a Saturday at 8:00 PM.

6) Ask what is necessary if you want to change brokerages? Some folks fit better at some firms and some folks fit better at other firms. Some folks want to be a part of a franchisee others do not. Are their any fees if I switch? Ask for that in writing.

7) Ask what commission you could charge if you were selling your own home? If your spouse is a builder do you have to charge yourself a commission or can I pay a certain flat fee to the company instead and pay out to the buyer's agent? If your spouse is a builder, it may be important to be with some firms for obtaining lots in certain developments. This is something you should be paramount in your decision if your spouse is a builder. Do you have a company policy as a minimum commission or do you have flexibility? Having a minimum commission is not bad, it helps to maintain a certain standard. Keep in mind, you are a business and as the business owner it is important to make money.

8) Ask how they feel about print advertising? If they talk about the merits of the newspaper and the company's magazine, be leery. The average age of last year's buyer in the mid-thirties the average age of the newspaper reader is 52. The newspaper not where today's buyer searches for a home - today's buyer is ONLINE.

9) Ask about relocation? Some firms tout their relocation affiliations. However, as a new licensee it will be very difficult to break into that aspect. It can be done, but it depends on you. YOU will have to prove yourself first, it is not automatic just because you are with a firm that has a relocation program. Relocation leads are cherry picked and distributed to certain agents within the firm.

10) Do you have a suggested reading list? This question completely eliminated a firm for me. The person looked at me with a completely dumbfounded look. That was 5 years ago. Now, I would ask if they had a recommended networking website. Activerain perhaps?

Pick the best firm that YOU think will be the best fit. There are great firms both big and small. In the end, if you work hard, play by the rules and look out for your clients then you will be successful. This is a FANTASTIC business and I truly love what I do. Work hard, get educated, have fun and the money will follow.

Thanks,

David Matney, CRS,GRI

Alliance Real Estate