The foreclosure situation is a good deal different from what we were discussing a few years ago when the tidal wave of 7.3 million foreclosures and short sales swept the nation. When The New York Times “Dealbook” recently pronounced that the supply of cheap foreclosed homes in America is dwindling, it came as news to…well, no one.

Let’s face it: investors wouldn’t need to look up the latest statistics to guess that number of offerings would be down. The continuing rebound in home values, slow but steady improvement in the overall economic picture, and even just the passage of time has to mean that the glut of subprime-crisis-era foreclosures would have worked their way through the system. 

But there are always new foreclosures, and for anyone hoping to make a bargain buy in today’s foreclosure market, the same qualities that brought post-crisis success still apply today:

• Knowledge of (or willingness to research) comparable neighborhood values
• Realistic appreciation of rehabilitation costs
• Decisiveness (willingness to act swiftly)
• Ready access to investment capital

The principal difference in today’s foreclosure milieu is that far fewer are available, and the difference between market value and listing price has narrowed. There may be fewer competitors to worry about, but some are still out there, as always. Today sees fewer institutional investors—in fact, some are leaving the market altogether, taking their profits and selling out to groups more committed to long-term property management.  

Aside from the qualities described, there is still no blanket formula for landing the best foreclosure deal. But among other observations, there are two that are worth considering.

First, despite the lessening of the impact institutional investors previously had on the market, it may still be necessary to prepare to offer more than the listed price. The dwindling number of foreclosed homes tends to create an imbalance between supply and demand. If other buyers are offering higher amounts than the asking price, it can easily result in a bidding war situation. As always, by researching underlying values, the best investors avoid foreclosure buys that wind up being little more than break-even propositions.

Another wrinkle to be aware of is the possibility of future cost increases. For instance, it can transpire that an investor succeeds in purchasing a property significantly below its true value, only to find that a reassessment by taxing authorities raises its property tax bill through the roof! Canny investors prevent this surprise by finding out how the local Assessor’s office sets rates and schedules appraisals.

The foreclosure picture changes constantly. If you are interested in the investment possibilities—or are looking for a buy on your next home—don’t hesitate to give me a call to discuss the latest offerings! You can reach me on my cell phone: 812-499-9234 or email Rolando@RolandoTrentini.com

 Just about any investor on the lookout for a promising rental property has a number of assumed criteria in mind—often arrived at without bothering to sit down to list them. Remember, this is already a successful individual, usually with ample business experience—and always with the financial acumen to be able to make a substantial investment. For them, creating a written decision matrix really isn’t necessary.

Still, there’s a lot of literature on the web offering opinions on what are the most commonly agreed-upon factors for choosing a rental property. Quite a few “Top 10”s. Going over them, it turns out that some are only slight variations on a single theme, so I’ve boiled them down to a “Top Six.”

The first one is barely ever mentioned. It’s this:

1. Most investors have predetermined the price range that his or her rental property must fall into, but that can turn out to be a false step. If the goal is to garner the maximum return, it’s possible that some humbly-priced rental properties can actually turn a greater annual profit—even in absolute dollars—than some higher-end homes (particularly those that suffer extended periods without suitable higher-end tenants). So Number 1 is SET YOUR INVESTMENT GOAL. Cash flow return can be a very different goal than long term property appreciation.
2. LOCATION LOCATION LOCATION.  This is the one that combines a half dozen factors, variously listed as Neighborhood, Proximity to Jobs, Amenities (parks, malls, gyms, movie theaters, public transportation hubs, etc.), Crime, Schools, and even Property Taxes. This factor might be chosen for convenience, as when a rental property investor wishes to be able to supervise the property; or for an expectation of value appreciation in an area which is gaining popularity. As everyone has had heard from time immemorial, L.L.L. is always important!
3. HEALTH OF THE PROPERTY. If the underlying structure and mechanicals have been intelligently designed and well maintained, this one is of no importance. If not, a thorough inspection with top-grade recommendations and cost projections is a must.
4. VACANCY RATES. The number of rental homes listed and the number of vacancies should be considered highly important for determining a promising rental property. In newly expanding communities, sometimes you can spot a man parked near an intersection, clicking away on a counter as the autos pass by. He’s measuring traffic to see if the volume is great enough to support a gas station, or market, or mini-mall. The turnover of rental listings—how long rental properties stay vacant from week to week—can provide guidance about the same kind of information.
5. COMPETITIVE MARKET. The average rent amounts advertised for comparable properties can be the decisive factor for whether a rental home investment makes financial sense.

 Of course, another factor that can make a big difference is the experience level of your Realtor^®. That’s actually key factor #6—and (I hope) where I come in! You can call me on my cell phone 812-499-9234 or email: Rolando@RolandoTrentini.com so we can discuss your real estate needs.

Despite the improving economic outlook, for many families, finding an affordable house can still be a challenge. According to a study by the Joint Center for Housing Studies at Harvard University, more than a third of today’s families have had to devote at least 30% of their combined household income to the monthly mortgage payment—and that figure exceeds the generally accepted standard. In other words, even though mortgage interest rates remain pegged at historically low levels, landing an “affordable” house (just as in the rest of the country) can take some doing. Here is one five-step approach that has rewarded house-hunters in the past:

1. Define Affordable House in dollars   

The first step to finding an affordable house should be to work out a target budget. The Wall Street Journal currently recommends spending no more than 28% of monthly income on your house). Make sure to include additional fees such as legal fees, repairs, maintenance, and closing costs in your calculation. The bottom line you come up with isn’t one set in stone, but it’s a reasonable goal to have in mind.

2. Set space requirements

Space will be a prime consideration for the entire time you'll be living in your home. If you are planning on expanding the family in the near future, having a spare room is close to a necessity. If it's just something that would be nice to have, it’s not a requirement—and recognizing the distinction can be all-important.

3. Balance travel time against housing costs

Often you can offset the purchase price of a home by expanding your search radius to include a reasonable commute. Get out your pencil: you'll need to compare the savings in the house payment against the additional cost of an extended commute.  

4. Include properties that need some TLC

One of the best ways to zero in on an affordable house is to keep an eye out for otherwise-eligible "fixer-uppers." You can avoid any serious structural problems, such as plumbing, electrical, and roof issues, yet still focus on properties that just need a little cosmetic revamp can put you across the affordability finish line.

5. Investigate home buying programs

In a limited number of instances, there are some generally underpublicized home buying programs that might be available. For instance, there is the Good Neighbor Next Door program. For teachers, medical professionals, firefighters, and law enforcement officers looking in revitalization areas, as much as a 50% discount from a HUD-listed property can make a house more than affordable!  

            Most observers believe residential prices are likely to continue to rise—so it’s not outlandish to suspect that today’s affordable houses may become less so as time passes. Give me a call if you are thinking of taking advantage of this winter’s bargains in our area.  You can reach me on my cell phone 812-499-9234 or email: Rolando@RolandoTrentini.com

Good investors tend to be cautious souls. For those who prior to 2007 had never ventured into the realm of real estate investments, the ensuing downturn might have been enough to discourage any curiosity about that direction (even if their other investments had also suffered during the global financial crisis).

Nonetheless, at this juncture those same cautious investors might well assume that the value of real estate investments have rebounded so substantially that it’s now too late to bother looking into them. But as National Public Radio has just pointed out, there's an excellent argument to be made that conditions are now highly conducive for real estate—with real estate investments being no exception. I could tick off three solid reasons that immediately leap to mind, but stand corrected: NPR points to four:

1. Employment. Employers are hiring anew, and “when companies are hiring, would-be homebuyers feel more confident about taking on mortgage debt.” Unemployment rates have (finally!) come down to 5.6%, and with employers having added 252,000 jobs in December, consumer confidence is up nearly 20% over a year ago.

2. Prices seem more rational. NPR points out that from January to October, prices rose 4.5% nationally; a “subdued” gain compared with the 11% burst of the year before. They project that the slower price appreciation may have set the stage for a “buying surge in 2015.” From a local real estate investments standpoint, too, gains from last year’s run-up in equities markets combined with mortgage rates still holding below 4% would seem to create the key elements many investors would consider favorably.    

3. Demand for rentals is high. There is a healthy demand for rental accommodation across the country due to a tight supply of quality accommodations. USA Today tells us that between 2009 and 2013, the national vacancy rate for apartments dropped from 8% to 4.1%. Over the same period, the effective rent increased by 12% to $1,083. As one potential consequence vis-à-vis real estate investments, new landlords might expect to be more selective about the tenants that they choose. That would mean fewer headaches for landlords with troublesome and slow paying tenants. It is might also portend that investment properties will stand vacant for briefer periods.  

4. Millennials are sick of Mom’s basement. NPR points to a Census Bureau report that says only 36% of Americans under age 35 own a home, down from 42% just seven years ago. The recovering employment picture might not enable young people to save up for a down payment for a while yet, but renting quality digs should soon be more doable than was previously the case. That could set the table for a continuing robust rental environment, with real estate investments benefitting proportionately.

NPR’s four reasons for optimism in 2015 are actually only the tip of the iceberg. If you have ever had the thought that it could be worthwhile to take a look at real estate investments, this is a great time of year to give me a call! You can reach me on my cell phone 812-499-9234 or email:Rolando@RolandoTrentini.com

Market Watch December 2014

I realize that Thanksgiving has passed us this year but I wanted to mention several real estate specific results and other factors for which we should all be thankful.

Although 2014 is not yet finished, our local market is certain to close more real estate volume than we did in 2013 and that is on top of the huge recovery we made in 2012.  In fact, our multiple listing service will close more dollar volume in sales than the previous year for the 4th consecutive year and sales volume will be 36% higher than it was in 2010.  In addition, our average sales price has increased 6.2% this year and will be a whopping 15% higher than it was in 2010.

I believe that this slow, but steady, recovery is a result of both increased consumer confidence and a similar slow, but gradually improving job environment.  The housing market is tied directly to qualified homeowners.  A job is the first step in qualification and with over 300,000 net new jobs created last month, I’m confident that some will soon be first time buyers.

Another positive development is that the Federal Housing Finance Authority recently issued new more clear rules which will allow lenders to be more confident about the types of residential mortgage loans they make.  I expect more buyers will qualify for loans in the future than the recent past.  Clearly this helps the housing market.

From a strictly local perspective, I’m very excited about the new convention hotel and the Medical Center coming to Southwest Indiana.  Both of these projects will provide a significant economic boost to our area for years to come.  All of these give me plenty of reasons to be thankful and optimistic about real estate.

Finally, I can’t wait to give you a taste of what’s coming in January!  Although FCTuckerEmge.com is already the area’s dominant real estate website we are launching a newer upgraded FCTuckerEmge.com next month.  The enhanced site will have bigger, brighter pictures, a really cool mapping function and lots of other features I’m sure you will like.

Kathy and I extend our best wishes for a joyous holiday season.

You’re at home watching TV and trying to unwind, when all of a sudden here comes another baby boomer celebrity, looking into the camera, giving you his most sincere, trustworthy look, then assuring you that a “Reverse Mortgage” really isn’t too good to be true (even though it sounds like it is).

What could be better? Any homeowner 62 or older can apply: then the bank pays you instead of the other way around! You could even use part of the tax-free proceeds to pay off the other mortgage! Or go to Monte Carlo and break the bank! (The trustworthy celebrity only hints at that one). You don’t have to pay back the loan until blah blah blah, the property remains yours, etc. etc. etc. What could go wrong?

Short answer: quite a lot, actually.

Long answer: if you don’t plan for the long term consequences, this can be a potentially disastrous maneuver. As a quick and painless way to raise cash, it often is too good to be true.

For openers, the actual name of this loan is not ‘reverse mortgage’— it’s an HECM, Home Equity Conversion Mortgage—a much more descriptive name. It allows 62+-year-olds to ‘cash out’ the equity they’ve built in their home. Not all of the equity; just some.  As soon as they no longer live in the home, the loan must be repaid in full. The problems are all in the details.

Detail 1: Payback

Suppose a husband and wife live in a house owned by the husband. He applies for reverse mortgage, dies 11 years later, leaving the house to his wife. Because the reverse mortgage becomes payable when the mortgagee (the husband) “leaves” the property, the loan becomes due and payable. So the spouse may be forced to sell the home in order to repay the loan. But it’s also possible that the same thing occurs when the mortgagee is permanently relocated to a nursing home.  

Detail 2 (and it’s one you really have to take into account): Interest

Most often, no payments are made on reverse mortgages. Unless the trip to Monte Carlo ended well, it’s likely that the balance owed remains. However, interest accrues on the loan at the “prevailing rate”—which may be a misnomer, because reverse mortgage interest rates are often high. Over the long run, the amount owed could eat up most of the value of the house. The spouse could be left with very little to live on.

While the fees charged for a reverse mortgage are capped by the government, they’re still much higher than those for traditional loans (possibly why the trustworthy boomer celebrity got involved in the first place). Because credit scores aren’t used to determine eligibility, higher fees are charged to help cover lender risk. Then there are requirements for keeping up the property (what if illness causes a temporary lack of attention?), paying taxes on time…and other circumstances that could cause the loan to be called in, forcing sale of the home.

Yes, a reverse mortgage can be a valuable resource for some retirees on limited incomes. However, before even thinking about committing, it’s vital to sit down with a trusted financial adviser. If it turns out that selling or downsizing makes a lot more sense, calling me is the next step!  You can reach me on my cell phone: 812-499-9234 or email: Rolando@RolandoTrentini.com

If you had to come up with a single characteristic that the most effective home listings have in common, there are several good candidates:

 A really well-crafted listing catches your eye with superior photography, for sure. But that’s not possible with every property. Good photographers know how to select the best angles, use light effectively, and eliminate distracting details (or at least downplay them). But since all homes aren’t equally photogenic, there are built-in limits to how even the most skillful listing creator can count on visuals to make a listing stand out.

Careful attention to detail is common in superior listings. The best listings don’t skimp on the details, or on brief adjectives that further enhance them—especially when they serve to differentiate a home from the pack. You can test this for yourself by scanning through some of today’s listings in Evansville. The best ones often have one or two relatively insignificant details that give a property character; that make it memorable. “Spacious walk-in closet” may not be nearly as important as “completely remodeled kitchen,” but for a certain number of prospective buyers, that can turn out to be the one detail that strikes a responsive chord (and creates a mental note to check this one out!).

Descriptions that employ proven advertising principles almost always make superior listings. One standby: arouse curiosity (headline writers are experts at this). An example might be “Brick barbecue center.” ‘What the heck is that?’ prospective buyers will ask themselves. Even if outdoor cooking isn’t even on their list of priorities, they might not be able to resist scheduling a home tour to find out…and sometimes a buyer is created!

But if I had to pick the one single characteristic most likely to be found in truly effective local listings, it would be this: The best listings in some way tell a story—add character to the cold facts. They stand out from other listings by engaging more of the reader’s imagination than others which are merely an illustrated bunch of data.

The ‘story’ may be a phrase that hints at a property’s interesting past: its historical origin or that of the neighborhood; a prominent previous owner; or an unusual construction history. For a fixer-upper, the story might be an expansive invitation to imagine how a creative Do-It-Yourselfer will be able to transform the property. For a luxury listing, the story might be an appeal to experience the full array of lavish trappings as the suitable reward for the accomplishments of a lifetime. The story may be fleshed out or merely hinted at by a well-worded phrase—but when listings contain the elements of a story, they add memorability.

Creating a stand-out listing is only one of the many elements that go into a successful home-selling campaign. I hope you will give me a call when it comes time to get your own home into the hands of a new owner! You can reach me on my cell phone: 812-499-9234 or  email: Rolando@RolandoTrentini.com

For anyone who has looked into to buying a home several times—but kept getting discouraged every time because of a negative credit report—read on!

You probably already know that you are not alone—but so what?—it’s small consolation, especially when you consider how much financial ground you lose every year you continue to pay rent (the entire amount of which has zero tax deductibility). Many people mishandle credit in their teens and 20s, not knowing how it can come back to bite them when credit reports determine their credit worthiness. We see the fallout in the form of mortgage application turndowns or discouraging interest rate proposals.

But that just makes it all the more important that you stop letting past errors continue to keep you from getting the loans and rates you want. You can choose to take action now to clean up that credit score. Not only will it speed the moment when you become eligible for the significant benefits of home ownership—the actions you take now will serve to set you in the driver seat when it comes to credit management. You will become aware of any apparently minor oversights that can depress your credit score for years to come. It will put you ‘in the game’ of credit report management, instead of continuing to be a passive outsider.

Steps consumers can take now:  

Review your credit file for accurate information

The credit reporting bureaus’ job is to report the most accurate information possible, but in the past the Federal Trade Commission has found that 5% of reports have at least one mistake. Get your current credit report from any number of services (start with a free one: you can always subscribe to a paid service later). Check all the accounts and verify that the amounts reported and the account statuses are correct. If a creditor reported your information incorrectly, file a dispute through the credit bureaus’ online sites to get the inaccuracy fixed. The same FTC report says that 13% of consumers who reported an error saw a boost in their credit score.

Get old negative accounts removed

Credit reports carry negative information like missed payments or a collection account for seven years, but are required to delete it after that. If an account is lingering past the seven year mark, use the dispute tools available on credit bureaus’ websites to mark the account as too old for reporting. Note that the seven-year time period is calculated from the date of first delinquency, not the date the account was first opened.

Talk to collection companies about their input

Even when you pay off collection accounts, that history continues to hurt your credit score. Some lenders look solely at those details when starting the process, so even paid collections can disqualify you for a loan. Instead of dealing with this frustrating problem, while you are negotiating with collection agencies to pay off a debt, ask that they put in writing that they will remove their report as part of their part of the bargain for your satisfaction of the debt. Some agencies will and some won’t (but it can’t hurt to ask).

Once you have acted, and begun to see the negatives dropping off your current credit report, your path to local home ownership will open up markedly. Then it’s time to give me a call!  You can reach me on my cell phone: 812-499-9234 or email:Rolando@RolandoTrentini.com 

You’re about to close a deal to become a tenant. The landlord seems like a straight shooter and the place is a joy: immaculate and welcoming. Now all that’s left is to wait for the landlord’s okay after an evaluation of you as the new tenant, right?

Well, not quite. Just as the landlord should check financial or job references as part of their due diligence, you have some to perform for your own benefit. It’s up to you to assess the landlord’s system to determine whether this rental arrangement is the good fit you hope it is. Only by asking pertinent questions can you decide whether the landlord’s management style and expectations align with your needs.

1. Do you offer emergency maintenance services?

When a plumbing leak becomes uncontrollable or the heater goes out on a cold winter night, you need maintenance assistance quickly. Find out how quickly your landlord can respond—and how readily he or she answers. An experienced landlord is familiar with the inevitability of maintenance emergencies—and isn’t surprised (or put off) by the question. A great landlord is confident of the system he or she has put in place!

2. What are my maintenance responsibilities?

Lease language can be less than precise about the tenant’s responsibilities—most often when it comes to outdoor areas. A lease might vaguely state that the tenant is responsible for general lawn maintenance. Ask your landlord to pinpoint the specifics, and jot down notes that you can refer to later. Some landlords might expect mowing the lawn and weeding planted areas; others might expect you to attend to more, such as lawn treatments. Finding out your landlord’s specific expectations will give you a sense of the upkeep requirements for your end. It can’t help but minimize the possibility of any future conflict.

3. Is there a homeowners association?

As a rental tenant, most likely you won’t be responsible for any homeowners association dues. However, you might be subject to its rules and regulations. For example, if the association has strict lawn care requirements and you are responsible for garden maintenance, you should know about those details. If your landlord answers yes to this question, ask for a copy of the association rules.

4. What are my responsibilities before I vacate the property?

It’s not being overly negative to bring up the subject of the end of your tenancy. When you move out of a rental home, you want to leave the property in good condition so that you are not hit with any charges—or see your security deposit disappear without good reason. Find out if your landlord has any specific requirements, such as professional carpet cleaning or filling the holes in the wall.

5. How do I contact you on nights and weekends?

Problems with your rental unit do not always occur Monday to Friday, 9 to 5. By asking your landlord for contact information during non-business hours, you get a sense of how accessible he or she is. If he or she willingly gives you a cellphone number, you’ve probably found a landlord who will be easy to work with— and easy to track down should problems arise!

My work as a Realtor^® lets me help set the stage for tenants and landlords to create a mutually beneficial relationship. If you are looking to purchase an income property taking advantage of this fall’s very favorable terms, don’t hesitate to give me a call!  You can reach me on my cell phone 812-499-9234 or email: Rolando@RolandoTrentini.com

Despite what just feels like the right answer, buying a home in Evansville can be significantly cheaper than renting one. It’s one of those rare cases where, if you stop and make common sense judgments about the factors at play, the ‘just feels like’ conclusion is the opposite of the one common sense leads you to. Much of the reason has to do with short-term versus long-term considerations (buying a home starts with paying a sizeable down payment, after all); but over the long haul, the amount of cash at stake is so great it’s worth taking a hard look at this fundamental housing choice.

Four leading factors that currently come into play:

·       Increased Demand Has Made Rentals More Expensive

After the subprime mortgage mess-between 2007 and 2013—something like 6,200,000 people were added to the number of tenants. That boost created enough extra demand for rental units that owners had no trouble increasing monthly rates. It’s a simple case of too little supply chased by too much demand.

·       Low Interest Rates Make Homes Cheaper in the Long-Run

The current unusually low interest rates makes the tradeoff with renting an easier call. This fall, home buyers can expect to find 30 year mortgage packages at rates in the low 4% range. If interest rates rise considerably—which just about everyone expects—rental rates can be expected to rise proportionately as landlords cover the added expense. But those who buy a home lock in the lower interest rate: the ‘price of money!’  

• Buying a Home Yields Predictable Cash Flow

When you buy a home, your mortgage comes with a repayment schedule that shows you exactly how much you are required to pay each month until the end of the loan’s term. With a fixed rate mortgage, the monthly payment amount is an iron-clad guarantee of what you will need to budget. With a fixed rate loan, the dollar amount will usually stay the same (or even fall as the mortgage nears its end). Conversely, unless a major change occurs in the rental market, rental prices will continue going up. And the common sense of consumers knows what to expect, reflected in last month’s Mortgage Reports headline:

“Consumers Expect Rents to Rise 2x Faster Than Home Prices in 2015”

·       Buying is a Long-Term Investment for Stability

In addition to the price rise factor, renters will have to keep paying rent for a lifetime—while homeowners eventually get to stop making mortgage payments. Anyone buying a home in their 30’s can expect to have paid for it before they reach retirement. That’s very good news, because their living expenses will go down around the same time they start making less money. In contrast, renting just keeps getting more expensive…which can put extra financial pressure on retirees.

If you find yourself on the cusp of renting or buying a home in Evansville, today’s rates should weigh heavily in your decision. If you find that it makes financial sense to buy, the next step is easy: give me a call! You can reach me on my cell phone 812-499-9234 or email: Rolando@RolandoTrentini.com

Market Watch October 2014

     I have a lot of interesting information and statistics for this month’s Market Watch, but before I start that discussion I think I should share some basic real estate concepts.  First, basic economic concepts apply to real estate.  For example, increased supply results in decreased demand, which lowers prices.  Conversely decreased supply results in increased demand, which increases prices.  The catch to this basic principle is that other factors such as the general state of the economy, the job market, interest rates and consumer optimism also affect prices as well as buyers and sellers desire to buy or sell homes.  With this most basic background let’s now explore some interesting trends in the market.

     First, according to The Wall Street Journal, new home sales (as opposed to previously owned homes) were at their highest level in August since May of 2008.  These sales were up 33% compared to August of last year.  Although this is clearly good news, I think we should view this in context of very low new home construction over the past few years.  Good numbers in August suggest full year totals of between 400,000 and 450,000 new home sales for all of 2014.  Although this is clearly an improvement from less than 250,000 sales a few years ago, it still falls far short of the 1 million new homes that sold at the height of the real estate boom.  Increased new home sales have left only a 4.8 month supply of new homes on the market.

     A second fact, according to RIS Media, is that prices increased for the 30^th consecutive month when compared to the previous year.  This statistic seems pretty clear.  Home prices continue to rise at what has remained a pretty steady pace.  The median price of a home nationwide is now $219,000.

   My third fact, again according to RIS Media is that in the 2^nd quarter of 2014, 950,000 homes returned to a positive equity situation, meaning that these homes are now worth more than the outstanding mortgage balance on those homes.  As you may recall, when the real estate market was adversely affected by the last recession many homes nationwide lost value and owners owed more in mortgage loans that their homes were worth.  RIS claims that as of today, 14.9% of homes nationwide are still in a negative equity situation but that represents 2 million fewer homes underwater than just a year ago.

     I think we can draw several conclusions from this data.  First, the real estate market is on sound ground and continues to improve.  Second, new home construction continues to recover.  Third, prices continue to rise slowly.  And finally inventory levels are still lower than normal and there is demand for more listings.

    All of the information in this month’s Market Watch is national data although I believe that the same trends I’ve just discussed apply locally.  As is always the case with real estate, demand and price for homes is always specific to one individual home.  Please give me a call if you would like to discuss the value of your house or the home you are considering buying. You can reach me on my cell phone 812-499-9234 or email: Rolando@RolandoTrentini.com 

If you want to do some research before we talk, the most accurate information on our local real estate market is always at FCTuckerEmge.com.

Having a home for sale as autumn swings into full bloom has more than one advantage. First off, this is definitely not looky-loo season—the majority of home shoppers this time of year tend to be serious-minded (perhaps because many are hoping to be comfortably moved in by the holidays). Whatever the reason, because many other owners will wait until spring to put up their own home for sale, if you are listing now, you can usually count on a narrower amount of competition.

A subtler reason why fall is an exciting season to put up a home for sale has to do with what can be a presentation advantage—the same reason home décor professionals like this time of year. It’s the Autumn Advantage: a time of year loaded with eye-catching decorating ideas. When the leaves start to change, it’s time to take advantage of the autumnal decorations that can make any home for sale extra inviting.

• Pumpkins aren’t Just for Jack-o’-Lanterns

Modern Man may have cracked the atom and devised telescopes that can see to the very edge of the Universe, but it has still failed to come up with a way to spruce up a home for fall without adding a pumpkin or two. Why fight it? There are a thousand ways to use the ubiquitous squash in arresting placements. One example is to cut a generous hole in the top, then drop a fall-appropriately planted pot (think gold, red, orange and brown) through it, flowers and all. This “pumpkin plant pot” can work to add color both inside and outside any home for sale.

·       Re-purpose an old Window

Where a rustic touch is appropriate, another autumnal planter idea is to find a discarded wooden window (the more thoroughly weathered, the better: decorators call it ‘up-cycling’), secure a potted plant to it, then hang it on the wall in place of a family picture (remember: when you have a home for sale, it’s recommended to remove as many of the personal mementos as possible). This “outside inside” décor trick creates a seasonal feel you can add to by embellishing further with dried leaves and berries.

·       Scents of Autumn

Using scents can be central to fall decorating. These seasonal aromas can be counted upon to trigger positive memories for the visitors to your home. Scented candles are an appropriate way to add ambiance to your house. You can go further by tying cinnamon sticks around your candles, or adding a few drops of clove and cinnamon oil to your potpourri or fall arrangements (just don’t overdo it)!

·       Fall: a Season for Comfort

If you’re thinking warm fires, plump cushions and plush throws to emphasize the coziness of the season, you’ll make it happen. A comfortable home highlighted with fall colors sets a scene that boosts the beauty of a home for sale unlike any other time of the year.  

Whether you have already listed your home for sale, or are just now setting the stage, give me a call to put together a marketing blitz that will use the season to make that sale happen! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

AUGUST HOME SALES BEHIND PACE SET IN 2013, AHEAD OF FIVE YEARS PRIOR
Prices better than last year and continue to lead housing performance statewide

(INDIANAPOLIS, IN) – There were just 276 less homes sold statewide in August than during the same month of last year, a 3.6 percent decrease; however, last month's home sales outpaced the five years prior to 2013. This is according to the Indiana Real Estate Markets Report today released by the state's REALTORS®.

August home sale prices were better than last year. The median sale price of $130,000 is a 4.0 percent increase from 2013, and the average of $159,846 is a 6.1 percent increase.

Other year-over-year comparisons from the report show -

• The number of pending home sales increased 4.4 percent to 6,889
• The percent of original list price received increased 1.6 percent to 94.2
• The number of new listings decreased 6.7 percent to 10,327
• The inventory of homes for sale increased 4.8 percent to 47,901

"Activity may fall a bit short of the impressive levels it reached last year, but housing has performed much stronger altogether than predicted the first of the year, with prices leading the charge," said Karl Berron, CEO of the Indiana Association of REALTORS®.

"It's encouraging to see second quarter GDP growth revised upwards and stronger-than-expected jobs numbers in recent months," continued Berron. "Wage growth is the fuel necessary for recovery to really take off."

Source: http://www2.realtoractioncenter.com/site/MessageViewer?amp;autologin=true&dlv_id=342549&em_id=364213.0

Selling an elderly or deceased relative’s home can be one of the most selfless tasks anyone is ever called upon to do—and not just because it’s hard to let go of a place that has so many loved ones’ memories. What frequently adds to the emotional component is the condition of the house. Although your Aunt Elda might have loved the shag carpeting and the harvest gold kitchen appliances, those features can be counted on to turn off today’s typical home buyer. Bearing in mind that selling a home is first and foremost a business proposition, it’s frequently necessary to apply a few quick fixes to transform the storehouse of one family’s cherished memories into an appealing place destined to house another’s.

Ask: What Dates the House?

If a house reminds prospects of grandma’s place, unless they’re in a determinedly DIY frame of mind, they’ll move on to the next property on their list. Don’t let them overlook the many positive features of the house just because of a few old fashioned details. Scout out items that make the house look dated—and clear them out of there! Remove worn or discolored carpeting, then either replace with a bound carpet remnant or two, or leave the floors exposed. Selling a home can hinge on a few minor things like replacing old cabinet knobs and light fixtures with more modern versions, or repainting walls in neutral colors.

Replace Kitchen Appliances

Our elders may have drilled into us the wisdom that it’s wasteful to get rid of perfectly good appliances, but homebuyers may not be swayed. For selling a home in today’s market, replacing appliances can be an easy way to inject new life into an old kitchen (even if the rest of the kitchen will need further updating by its new owner). But before splurging on any appliances, consult your real estate agent about what type of appliances buyers expect in this price range. If the place could make a perfect starter home for a young family, inexpensive white appliances might be just as strategic as the stainless steel models.

Or…Embrace the Vintage Charm!

Realistically, sometimes it would take too much money to update an inherited house. If that’s the case (and time is not an issue), turn the problem into a positive by embracing the house’s vintage charm! Old is just the wrong way of viewing antique…and one person’s dated can be another’s classic. If you’re dealing with a home that could double as a set for TV’s “Mad Men,” consider playing up the ‘60s theme with furniture, curtains and even vintage magazines you find at thrift stores or yard sales. Kiplinger.com finds that today’s buyers particularly appreciate eat-in kitchens—so why not add a period-appropriate dinette set to emphasize that space? But don’t forget to thoroughly clean carpeting, curtains and other items that may hold odors. Selling a home may mean capturing the look of a bygone era—but never the smell!

A dated family home will sell faster and appeal to more buyers when you’re willing to make the right strategic changes. Spending just a little time and money can transform an overlooked house into one that demands a second look—that invites a new family to make it the site for another lifetime of memories.

Thinking of selling a home in the Evansville this fall? Calling me today for a price assessment is a solid first step! You can call me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

You’ve successfully located the home that fits your wish list! The listing agent says the home is in “great condition!” Financing is pretty much a done deal! Time to relax!

Er—maybe not just yet.

When you are buying a home, among the scores of thoughts that might be racing through your head (“Is this the best one for the money?” “Will everyone be comfortable in it?” “Will it be enough house over the long haul?”), one you definitely don’t need is “Will this house become a money pit?” 

The home that looks perfect may well be exactly that—but if not, you certainly don’t want to find yourself pouring hard-earned dollars into repairs that become apparent only after you have signed. Surprises are fine for birthday parties, but to avoid the sort no home buyer needs, getting a professional property inspection is the most direct way to tell if there are any significant underlying issues.

To alleviate the worry, you should make any offer conditional on a home inspection…then order up a professional property inspection done by an experienced home inspector.

When a home inspector arrives at the property, he or she will invite you along on the tour. However, you don’t have to accompany the inspector to some of the less-accessible areas like the roof, attic and crawl spaces (unless you want to). The inspector will likely start outside, checking for any suspicious areas that may allow water to penetrate, then move indoors for a thorough investigation of each room in the house. As the inspection moves along, definitely feel free to ask questions as they crop up: after all, inspector works for you!

It’s important to remember that any property inspection is not 100% certain to uncover every possible defect: a home inspector, no matter how experienced, is not clairvoyant. But you will receive a thoroughgoing assessment of the potential likely problems with the home’s systems—as well as an opinion on the condition of the home. You may be able to renegotiate your offer should conditions warrant it.

 Property inspection costs tend to differ depending on the size and condition of the home, and usually take anywhere from 2 to 6 hours to complete. Often, the verbal assessment made at the time will be very informative. Later, you’ll get the fuller detailed written report. If the inspection reveals a deal-breaking flaw, you will have saved yourself from a bad investment. Less commonly, more detailed property inspections could be in order—especially if you are also ordering sewer line, pool, fireplace or other specific inspections. Most inspectors offer discounted rates if subsequent inspections are in order.

Property inspections are not intended to offer warrantees or guarantees, but an experienced  home inspection is the next best thing. It’s something most homebuyers find makes their purchase a lot less stressful. If you’re looking at buying a home in the Evansville area this fall, call me today to discuss the market. And once you find a likely new home, I can recommend several of our most experienced and reliable property inspectors. You can reach me on my cell phone at 812-499-9234 or email Rolando@RolandoTrentini.com

Residents don’t have to have children at home to know when we’ve gone through the familiar back-to-school rituals. Just turn on a radio or TV, step into a retail store, or drive past a school and the calls to educational muster are evident. At the same time, it’s hard not to be reminded how significant education is when it comes to home buying—how likely it is for schools to be on the forefront of many buyers’ minds.

Most people know intuitively that top-notch schools carry significant weight in the searching and home buying processes—but the result of a survey done by realtor.com has spelled it out in black-and-white. Their research reveals that more than 60% of buyers consider school district boundaries during their home buying process. It’s a surprisingly weighty number.

The depth of interest that buyers registered was also illuminating. The same survey uncovered the fact that prospective homebuyers are willing to spend more—and give up other features—in exchange for a house located in a preferred school district. For example, many buyers said that they are ready to ignore access to shopping malls and parks to be in a district where their preferred school is located.

Prospective buyers are likely to also factor in the impact the same phenomenon could have on a property’s resale value down the line. That could be part of the reason why more than 23% of respondents said that are willing to pay 1-5% over their budget to be in a preferred school district boundary. Another 20% said they would pay 6-10 % above budget, while 9% would pay as much as 11-20% more!

When queried about which factors weigh most heavily on their home buying preferences, over 90% said that school district boundaries are either “important” or “somewhat important.” Only 7.4% said that school districts are “unimportant” or “very unimportant,” while 2% classified them as “neutral.”  

This level of unanimity should be of interest to anyone about to embark on their own home buying expedition—whether or not they have children of their own. It’s hard to ignore the proposition that when you go to resell a house in the future, its school district may carry the same importance to home buyers down the line. If today’s buyers give such importance to school district boundaries, it may not pay (to borrow Wall Street’s famous phrase) to “fight the tape.” In any case, it always pays to ask questions, do some neighborhood research—and to call me when you’re looking to buy or sell in Evansville!  You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

(INDIANAPOLIS, IN) – There were 60 less homes sold statewide in July than during the same month of last year. This is according to the Indiana Real Estate Markets Report today released by the state's REALTORS®.

However, the median price of the 7,803 homes sold last month ($132,000) is 1.5 percent higher than the median price of homes sold in July 2013. The average price of those same homes ($159,032) is also 1.5 percent higher. And, the number of pending home sales in July is 4.8 percent higher, possibly pointing to a stronger-than-expected late summer and early fall.

"After double-digit increases in closed sales for all of last year, it would be easy to get discouraged by recent year-over-year comparisons," said Kevin Eastridge, 2014 President of the Indiana Association of REALTORS® and Owner/Managing Broker of the Evansville-based F.C. Tucker Emge REALTORS®. "When you look farther back, you see that housing activity statewide is actually on par with 2007, proving that local markets truly have stabilized."

Year-to-date comparisons from the report show -

• The number of closed home sales decreased 5.4 percent to 42,466
• The median sale price of those homes ($125,000) is 2.5 percent higher
• The average sale price ($150,842) is 3.9 percent higher
• The percent of original list price received increased 1.5 percent to 93.3 percent
• The number of pending home sales decreased 2.7 percent to 44,561
• The number of new listings decreased 3.8 percent to 73,036

"Potential sellers should be motivated by the pricing figures in today's report and should also understand conditions could soon change with newly constructed homes presenting a competitive hurdle and economists predicting interest rates will rise in 2015," continued Eastridge. "At the end of the day, housing is always dependent on job creation, wage growth, and credit availability. Provided the economy and the lending environment continue on their current paths, IAR members expect for this report to be about the same for the next few months."

IAR represents approximately 15,000 REALTORS® who are involved in virtually all aspects related to the sale, purchase, exchange or lease of real property in Indiana. The term REALTOR® is a registered mark that identifies a real estate professional who is a member of America's largest trade association, the National Association of REALTORS®, and subscribes to its strict Code of Ethics.

Market Watch August 2014

The biggest news story in national real estate this past month has been the announcement of the merger between Zillow and Trulia.  Many consumers are familiar with both firms, but in case you are not, let me tell you a little about these companies.  Both companies are real estate advertising portals.  Many potential buyers and sellers visit these sites, under the impression that they are the best sites to visit to find a home to buy.  Zillow is ranked first and Trulia second in real estate internet traffic followed by Realtor.com in third place. 

I am certainly not privy to either Zillow or Trulia’s plans but both have publicly stated that they have no intention of actually selling or listing homes.  Their goal is to generate enough traffic to sell advertising and leads, primarily to Realtors. If these companies don’t actually sell real estate one might wonder why they get so much traffic.  Zillow is famous, at least in part, for it’s “Zestimates”.  In theory, Zestimates are estimated values for specific homes.  Theoretically anyone can go online, enter an address and get the value of that home.  Unfortunately, even by Zillow’s own admission, many of their Zestimates are significantly inaccurate.  Both Zillow and Trulia obtain information displayed on their sites from many different sources, some accurate, others not so much.  Sometimes information is updated promptly and accurately and other times it is significantly out of date and wildly inaccurate. 

I am not trying to tell anyone not to visit a particular site.  I am, however, very comfortable giving sound, accurate advice on local real estate websites.  If you are looking for homes listed for sale in this part of the world there is no site that is more accurate or up to date than FCTuckerEmge.com

Our site is designed to make shopping for homes as easy as possible without gimmicks or outdated, inaccurate information.  If you want to know the value of your home, ask me.  A website that has never seen your home, sold a home or visited your neighborhood will not be as accurate as a trained professional. Please feel free to call or email me if you are interested to receive the market analysis of your home. You can reach me on my cell phone 812-499-9234 or email at Rolando@RolandoTrentini.com

Try to stay cool and enjoy the remainder of your summer.

Market Watch July 2014

The halfway point of the year is a good time to see where we are this year compared to last year.  Before we look at this year compared to last I think it is important to remember how strong last year was.  Both unit sales and dollar volume increased over 21% last year.  This was by far the biggest year over year increase we have ever had.  It is not surprising that our results this year have been much more mundane.  Unit sales this year have declined by 6.3% while average prices have increased just over 2%.

     While I would never say I’m happy with a reduction in sales, the truth is I’m not really that disappointed.  Increases like we saw in 2013 are clearly unsustainable.  A moderate decline in unit sales this year demonstrates that the market has fully recovered from the housing recession.  I believe that by the end of this year we will be closer to 2013 levels than we are now.  There are two specific reasons I feel this way.  One is that the last two months of 2013 were very weak compared to the first ten months. The second is that the first two months of 2014 were significantly slower than the March through June period.  

     The two biggest factors affecting the housing market going forward are job growth and inventory levels.  Job growth has clearly been sluggish for the past few years but has begun to show some improvement in recent months.  Inventory levels are still significantly below historical levels.  The best way to increase inventory is to build more new homes.  I do believe that construction levels will continue to increase but not as fast as fast as the market demands.

     Over the second half of the year I do not expect to see the dramatic monthly swings we saw earlier this year.  I expect inventory levels to remain a challenge and I believe that if job growth improves, so will real estate sales.

     If you are in the market to buy a home you must be prepared to make an offer on a home as soon as it is listed and you had a chance to see the home. Homes that are updated and priced right sell within days. If you are in the market to sell your home you are in a good position. We have very low inventories. In either case, if you are buying or selling, call me on my cell phone 812-499-9234 or email at RolandoTrentini@FCTE.com

When you determine to sell your house, one of the first choices that comes up is tactical: do you try to sell it yourself as a “For Sale by Owner” property—or do you enlist a real estate agent? Since your object is to maximize your profit, you might think that most thrift-minded home owners would decide to eliminate the agent’s commission and do the work themselves. But that’s not the case.

The majority of sellers ultimately team up with a real estate agent. Sometimes they go the For Sale by Owner route first, but after testing that method, change courses. The statistics show that the selling price of Realtor^®-assisted home sales is higher (a $40,000 difference, according to the latest study) which certainly would explain part of the reason. But other factors come into play, too:

1.Pricing:   If you aren’t immersed in the area’s real estate business five to seven days a week, there’s no way you can have the intimate knowledge about the current market that comes with daily work in the field. A real estate agent comes armed with extensive knowledge of the local market and all the changes that have brought it about. It’s extremely important to price your home correctly to sell it on the first go-round. It’s a demonstrated fact that the longer a home sits on the market, the lower its final sale price. 

2.Time and Energy:   A For Sale by Owner sign in the front yard means you are in charge, 24/7! That’s despite any other demands on your time—for example, your job! One of the benefits of using a real estate pro is that selling your property is our singular focus: our job! It means marketing, networking, working with buyers. Doing whatever it takes to get your house sold is our first priority. Lacking the same kind of time and resources, a For Sale by Owner seller is at a clear disadvantage in the competition to sell houses. It’s a marketplace where one missed buyer can mean the difference between a listing that turns into a sale…and a listing that turns stale.

3.Objectivity:   The house is yours: you designed or decorated it; you’ve fixed and painted and mowed and swept it. If you took your work seriously, you feel at least some pride in how it’s presented. Unfortunately, that’s a problem. Lacking objectivity in the sales milieu can be one of the biggest hindrances to actually selling your house. It makes it hard for you to negotiate—to see and acknowledge the flaws a buyer sees. And it can make buyers wary of even wanting to negotiate with you in the first place. Either factor can prove costly. Separating owner from sales agent opens communication. It’s a relief for everyone!

4.Paperwork:   This is the most obvious point. If you choose to wade into the paperwork/deadline process yourself, you’d be wise to count on needing a bit of extra attention from a good real estate attorney—if only to avoid potential litigation down the line.

5.Security:   It’s unfortunate, but putting your house up For Sale by Owner in can make you a target. Less-than-honest folks are out there—creeps who may specialize in sellers who might not follow the proper measures for letting people into their homes.

If you are looking into selling your own home this summer, I’d like to offer you a complimentary property evaluation. Whether or not you decide to go the For Sale by Owner route, it’s sure to be well worth discussing what to expect from today’s market! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Wasn’t it just yesterday that we seemed locked into a classic home buyer’s market in Evansville? Bad economy, bad job numbers, tanked real estate values were all we heard about…until it eventually shifted. Over the past year or so, it’s become a very different landscape. If you’ve been out looking to become a home buyer, it’s possible that you’ve found yourself putting in offers on multiple houses…and also possibly watching from the sidelines as another home buyer walked away with a deal. If this isn’t a true seller’s market, to you the difference may not be apparent.

In any case, when a prospective home buyer in Evansville finds themselves vying for one of the plum homes that are now appearing in this summer’s listings, there’s no need to passively watch as others get the nod. If you are sure of the value of the property you are going for, there are straightforward tactics for improving your chances of winning the day:

-Offering at or above list price is the time-tested way to give you the best shot of getting your contract accepted over bidders who offer less than list. Real estate prices are again on the rise, increasing your likelihood of being able to recoup the extra money if you decide to sell several years down the road. Look at the comps with your agent to determine what an aggressive—yet realistic price—will be.

-Ask your real estate agent what the recommended earnest money amount would be; then double or triple that deposit amount. It’s a sure way to signal that you’re a serious and financially able home buyer. This tactic has the advantage that it doesn’t really cost you anything in the long run, assuming you hold up your end of the contract. It is a way to stand out from other home buyers without actually spending more.

-In a buyer’s market, it’s almost expected to ask for add-ons like fixing a staircase or leaving the swing set. But in a seller’s market, you can beat the competition by not asking for extras beyond what is offered in the listing. Home sellers may be fully occupied with many outside details (like looking for their own next home!) and often assign high value to an offer that looks uncomplicated.

-Along the same lines, another way to set yourself apart from every other home buyer is to offer to give the seller more than the usual time to move out of their house. Many other bidders won’t think of this—but it can make the deal if the sellers are having to cope with difficult deadlines for their own move.

Above all, don’t let yourself get discouraged. The right house is out there, and you will get an offer accepted! Particularly in a seller’s market, any home buyer will be rewarded by just remaining patient and cool-headed. First step if you will be looking to buy this summer: call me today to get started! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

For real estate investors (BTW, that includes homeowners and soon-to-be homeowners of all stripes), there’s some long wished-for news: the solid reputation of real estate as an investment is back! After years of falling off, the latest Gallup poll on the economy and personal finance finds that Americans are now convinced that their best long term investment is in the housing market. Real estate won out against all other alternatives: bonds, gold, stocks, mutual funds and CDs.

For the past few years, gold had been investment #1—but see-sawing gold price movements have whiplashed public sentiment. Just as takes place everywhere in the nation, whenever real estate market improves, so does its reception by potential buyers who view their home as a savings vehicle as well as a place to hang their hat. As Gallup Economy’s headline put it, Americans Sold on Real Estate as Best Long-Term Investment.

Public sentiment by itself is, of course, not reason enough to change long-term investment strategies. But when any investment class is on the rise in public’s estimation, the effect is to create competition among buyers—and further price improvement often follows. It can make a difference when it comes to real estate.

One possibility for those selling real estate this summer might be to consider capitalizing on the investment trend by including a marketing approach: one that targets investors. You can have your agent or a local property manager provide a rental evaluation for the property, along with approximate leasing fees and property management fees. Having such an evaluation at the ready lets investment-minded prospects evaluate the potential cash flow and return. It’s even possible to post the information on your sales website, and to display it along with other marketing materials at showings and open houses.

In many neighborhoods, real estate prices have a lot further to go to near their previous high water marks; if you look at neighborhoods individually, you can find some plum opportunities to make a sound investment. If you are thinking of buying or selling in Evansville this summer, contact me to discuss your ideas—and how you will make the most of America’s new Number One investment opportunity! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Especially when it comes to major decisions like buying or selling your home, human nature seems to tilt toward delaying action until it’s the end result is absolutely certain. After all, nobody wants to make a life-changing move that turns out to be anything short of fantastic!

So even when you’ve outgrown your current home…or found yourself in a daily long-distance commute because work has moved…or any number of other reasons why you know you should be looking for a new house…it can be difficult to commit to such a looming decision. Adding to that is one of the most common assumptions many homeowners believe: that they have to spend a boatload of money to increase their home value.

The truth is: it ain’t so! You can strategically update your house before you put it on the market without depleting your bank account.

Items that only seem to require costly fixes:

· Make it Spacious

Adding space to a room increases any home value. Tearing out walls isn’t necessary when there are so many other ways to achieve the same thing. Simple options include removing built-in shelves, enlarging windows, or (the simplest) just removing “stuff” that’s hogging perceived space.

· Go Green

More and more, you can improve your home value by installing modest “green” upgrades. Today’s buyers may not necessarily be eco-focused—they may simply have a good sense of the increasing cost of water and power. “Going green” as a way to add  home value to your area property can be no more costly than switching to low-flow toilets, adding a WiFi thermostat with “smart” technology, or putting in a low cost drip watering system.

· Window Update

Have a room that comes across as outdated…or just plain ‘blah’? Consider how much extra home value a new window treatment might add. It could be as simple as installing a stylish valence over a window or two.

· Change the Doors

Remember your first apartment with its flimsy, hollow doors? A quality door can make a disproportionate difference to a property’s perceived home value. Changing out your front or back doors for more a more weighty or modern selection can be well worth the expense. 

· Paint

Paint is the number one way to alter the look of a room inexpensively. Instead of painting the entire room one color, another option is to make a “statement wall” in its own neutral color that compliments a painting’s or picture frame’s palate.

These are just a few suggestions that can increase the value of your home without a straining the family finances. Even in an older home, many times it’s the little touches that can make the greatest difference.

Looking for specific suggestions to improve the value of your home before listing it for sale? Call me today for an in-home market evaluation! You can reach me on my cell phone

812-499-9234 or email Rolando@RolandoTrentini.com

Homeowners who had been bracing themselves for sharp rises in mortgage interest rates must now be scratching their heads. As the online Mortgage News Daily put it last week, “…rates have been extraordinarily sideways, and right in line with the lowest levels in 11 months.”

Since historical averages are still significantly higher, it’s no wonder that most observers still believe the greater likelihood is for rate increases. But recent Fed happenings show a crack in their avowed determination to let that happen by tapering off purchases of mortgage-backed securities. The hemming and hawing is notable. It’s all pretty much up in the air.

In any case, one thing I can guarantee is that mortgage holders will benefit if they take advantage of savings opportunities when they present themselves. Among current possibilities—

1. Refinance Your Mortgage

Mortgage holders who haven’t already refinanced should at least consider doing so. Refinancing means taking advantage of the still historically low interest rates—often the most meaningful step in reducing your monthly mortgage payments. Before deciding to refinance, make sure that the mortgage costs involved will be less than the resulting savings. If you agree with the prevailing wisdom that it’s unlikely we will see a significant drop in interest rates in the near future, today’s levels still look inviting.

2. Cancel Private Mortgage Insurance (PMI)

According to the National Association of Realtors^®, mortgage down payments have fallen over the past decade. Their figures show that the average mortgage down payment in 2013 was 10% – compared with 16% just ten years earlier. Homeowners who put down less than a 20% deposit are typically required to take out Private Mortgage Insurance. But once the Loan-to-value (LTV) ratio falls below 80%, homeowners can ask for the PMI insurance to be removed—and they should, because the lender isn’t responsible for keeping track of that for them. If you are close to the 20% threshold, it may be worthwhile to make a one-time payment that will reduce the principal below 80%.

3. Extend the Length of the Mortgage

Many homeowners have made significant reductions in their principal by opting for shorter-term mortgages. But should rising interest rates make a property you are trying to buy unaffordable, extending the length of the mortgage can reduce monthly payments to a more comfortable level. Although over the long term this will end up costing significantly more in interest, moving from a 15-year mortgage to a 30-year can sometimes be the right move—especially when the property at stake represents one of the terrific values currently out there.  

While interest rates in Evansville may rise or fall or, as we’ve seen lately, hold surprisingly steady, sudden leaps or plummets are unlikely…and with a little preparation, unpleasant future surprises in interest rates are avoidable. Thinking of buying a home in Evansville this summer?  Call me today to start laying the groundwork! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

 When Evansville residents hear about floods, images of homes tumbling into the sea or half-submerged along the banks of a raging river probably leap to mind. But the risk of flooding isn’t confined to those headline-grabbing catastrophes—which is why the recent passage by Congress and signing by the President of the Homeowner Flood Insurance Affordability Act (HFIAA) will be of interest to many people thinking of buying a home.

Sellers are required by law to disclose if a property is in an officially-designated flood zone; and banks typically check this information as well. While it can certainly be off-putting to be informed of this when buying a home, the availability of flood insurance can keep it from being a deal-breaker. But “available” doesn’t necessarily mean “affordable”—which is where HFIAA comes in.

Many prospective homebuyers are only vaguely aware that flood and water damage are not covered under traditional homeowner policies, something that’s newly relevant when buying a home. Part of the reason is because only 5% of the U.S. population lives in an officially designated “Coastal Flood Plain”—so it’s not a much-discussed issue in most parts of the country.

But the coastal areas that do get attention whenever disaster strikes are not the only kinds of flood plains that are relevant. FEMA assesses and maps areas that are subject to flooding, and assigns them letters denoting the likelihood of flood damage. Some of the provisions of the new HFIAA deal with overhauling those procedures, but the most immediately significant parts deal with (you guessed it) cost.

Here a little history will be helpful. In 1968, the National Flood Insurance program was created to help some property owners secure insurance in areas where it had been prohibitively expensive. But, as one might expect, the cost of the program soon became a problem. That in turn triggered passage of another Act—the Biggert-Waters Flood Insurance Reform Act of 2012—intended to allow premiums in covered areas to rise to offset their real costs.

The new HFIAA now partially reverses that yet again, because policy-makers fear the effect on the housing market. The new act delays some of the price rises for four years and allows homeowners who sell their homes to pass the lower premiums on to the new homeowners. It’s also relevant that there are two different types of coverage available: dwelling only and dwelling/property. Although dwelling only coverage is cheaper, as you might expect, there’s a good reason: it doesn’t cover the personal belongings that a flood could destroy.

Some zones, like Zone X, are as inexpensive as a few hundred dollars per year. The zones that flood more regularly can run into thousands…and all flood insurance premiums are in addition to the regular home insurance costs. For those buying a home in an area where properties might be classified as within a flood zone, it’s a good idea to check with one of the local insurance companies that offers flood coverage. When all is said and done, only you can decide if it’s worth the risk or not.

If you are thinking of buying a home in this summer, flood insurance is only one of the details you’ll want to consider. Call me today and we can begin by putting together a list of your search criteria. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

When you’re selling your home, keeping it ready to show at a moment’s notice can sometimes make a major difference. In a perfect world, prospective buyers will always have time to schedule showings in advance—but exceptions do occur. That’s why experienced sellers know how to juggle living a normal life at the same time they are keeping their place ‘show-ready’ by calling on a few organizational tricks. They really aren’t all that difficult (but do take a commitment to stay organized). When you follow them, it makes showing your home a snap!

Supplies at the Ready:

The easiest way to stay on top of messes is to nail them when they start. Stock up on wipes and ready-to-use supplies (think pre-soaked wipes and erasers instead of rags, sprays and mops)—and stash them in key locations around the house. Between showings, you can even keep them in plain sight: it reminds you to wipe down surfaces after each use without making it a major project. Regular quick wipe-downs will keep your home shiny and inviting—even when showing your home comes as a last-minute surprise. 

Simplify Storage

Place a few attractive bins and storage ottomans strategically in rooms that are prone to clutter (playrooms, bedrooms and dens). Encourage everyone to make a habit of throwing the odds and ends into them before the end of the day, and removing things only as they are needed. Showing your home on a dime becomes a no-brainer when the clutter lives out of sight.

Start Packing

If you haven’t already started packing, get going early. Pack up everything you don’t use regularly—like those shelves of books you haven’t touched in years. And deal with the off-season wardrobe: when you’re actively showing your home in Evansville this spring or summer, those fall and winter items should be headed into storage.

Make Small Adjustments

This idea is optional—but it really works! Encourage everyone to remove their shoes at the front door. Place a decorative mat at the entrance (and include a coat rack if the weather calls for it). This temporary house rule works to get everyone in on the act, and subtly helps keep them conscious that showing your home is partly everyone’s responsibility. It’s also a reminder to keep packages and bags from building up near those doorways.

When showing your home is part of a well-planned and systematic project, just a few of these relatively minor adjustments can keep you and your family cool and collected—and make even last-minute showings a breeze. My clients make the rules for what the minimum heads-up time for scheduling a showing will be, and I stick to it. But when they are able to create an environment when the odd last-minute showing is a no-stress possibility, it does seem to have a way of increasing the odds that the latest showing…becomes the last! 

                                           Market Watch April 2014

As you may be able to tell from your allergies, spring has certainly sprung in Southwestern Indiana.  The real estate market is heating up right along with the warmer temperatures.  We are witnessing a significant increase in sales activity and anticipate that will continue through the spring.  Lawrence Yun, the chief economist for the National Association of Realtors, said a gain was inevitable, following a dismal winter.  (We certainly agree here!) On a national level, showing activity is increasing and sales activity is expected to follow suit as more inventory reaches the market. And in our office, the homes that are priced right and in good condition are getting lots of attention and in some cases, multiple offers. 

The key challenge will continue to be inventory.  We continue to see a shortage of homes for sale, with inventory rates near record lows.  While this shortage will drive an increase in median existing-home price, continued positive momentum is dependent on the availability of homes for sale.  Opportunity’s knock is getting louder on the doors of potential sellers, who at this point will dictate the performance of the local housing markets for the next couple of months. 

While need for listings is high, sellers must present a home that is in good condition and priced right. Working with a real estate agent from the beginning ensures you have a knowledgeable professional that knows the market and can help get your home sold in the shortest amount of time.

If you’ve considered selling your home, now is the time.  With many active buyers, you don’t want to miss this market surge!  And if you’re ready to buy, I’d encourage you to visit www.TheTrentiniTeam.com , where you can use our interactive map search to perfectly define your search area.  Until next month!

For decades, the three-bedroom house has been a cornerstone of the American dream. Now, as with the rest of the nation, our area’s real estate profile for new single family homes seems to be changing. And last year we may well have reached a turning point in the national new home market: now four bedrooms seems to have become the new norm!

 Last year, a full 48% of new homes—nearly half—were built with at least four bedrooms. That’s quite a jump when you compare it with just four years earlier: in 2009, the figure was 34%. We asked ourselves why the nation’s preferences would have undergone such a sizable shift. A little research revealed some likely answers—and some interesting history behind them.

  The Rise of Bigger Homes

The footprint of the average new home built in the U.S. went Yeti in a very short time. In the late 1940s, Postwar America began producing single family homes on a massive scale—with an average size of about 750 square feet. As the economy expanded, so did house sizes until by 1973 the three-bedroom home dominated the new home market (Evansville included). By 2013, average new home sizes had reached 2,701 square feet according to the Census Bureau.

It may seem counter-intuitive, but at the same time the number of bedrooms was increasing, the size of the American household was heading in the opposite direction. The 3.6-person average of the 1940s had, by 2013, contracted to 2.58. That means the living space for each individual had grown by 80%!

House Sizes Shrink, Then Expand Again

In 2009, as a side-effect of the last decade’s real estate market downturn, single family home sizes had retreated by about 6%. But now the economy’s slow recovery has reversed the reversal. According to the most recent report from the National Association of Home Builders, the average size of a new home built in 2013 was 2607 square feet— a 300-square foot increase over just two years earlier.  

Fewer New Buyers = Bigger Homes

One of the reasons for the new home market shift toward larger four-bedroom designs can be ascribed to a decrease in the number of first-time homebuyers. Largely due to previous tightening in lending criteria and rising mortgage rates (both trends have at least momentarily stalled in the new home market), the smaller homes favored by first-timers claimed a proportionately smaller chunk of the market.

It’s hard to avoid the general conclusion that what were once considered luxurious additions are effectively today’s norm. The en-suite bathrooms, two-car garages and even three-bedroom homes that would have been out of reach for most of the new home buyers of the past are practically standard fare in 2014. But another fact is that every area differs from every other. If this has you wondering how your home compares with what today’s buyers are looking for in your own neighborhood—why not give me a call? You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Last week’s Rasmussen Reports survey reported that the majority (52%) of Americans consider their home to be a family’s best investment at the same time that the number of people who are choosing to remodel their home is on the rise. According to the Houzz & Home survey, the number of people who planned improvement projects rose a dynamic 12 % last year. Of those, 40% wanted to remodel their home or build an addition.  

While remodeling may be becoming more popular, there are still plenty of advantages to the alternative route: purchasing a new home in. Here are some of the pros and cons of each route:

• Before you start your remodeling project you should take a personal inventory. Do you have the experience and skills to manage the project…and is the prospect appealing? Remodeling your home will require that you deal directly either with tradesmen, contractors, architects— or the whole bunch! It may be the greatest advantage to purchasing a new home: getting the additional space and amenities without the work.
• The loss of privacy during a remodeling project is not something to be underestimated. Depending upon the scope of the project, it may be months before the dust settles and you have the house to yourself again. There is also the inconvenience of not having access to multiple areas of your home while work is proceeding
• For most of us, there really is no place like home. If you’re like me, even when you’ve been on a terrific vacation, eventually you begin to yearn for the comfort and familiarity of your good old home base. Although one or two irksome features of your current house make moving seem like a no-brainer…before you commit to a move, be sure that you really want to leave. History, a sense of community, and the roots you’ve established in your current neighborhood are all reasons to opt for a remodel rather than a new home.
• Selling your existing home and buying a new home is a sizable financial commitment. Moving costs, transaction fees, commissions and taxes are part of the equation to weigh against remodeling costs. A sharp pencil is definitely in order before the dollars and cents can be realistically reckoned—particularly if your finances have improved, and the remodel is meant to bring your home up to an improved standard of living.

The danger lies in overcapitalizing a property in a location where the resale won’t support the expense. Even a great home will still fetch a price that’s relative to other properties in the neighborhood, obliterating the wished-for ‘investment’ value of extensive remodeling.

While it’s important to be informed about the factual tradeoffs of your decision, it’s likely the end choice will also be influenced by what just feels right—as it should be. Whether you’re considering a remodel or a purchase, if you’d like to run some numbers, call me today for a confidential price evaluation! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Mortgage rates may rise or fall this spring (lately they seem to be falling!)—but that needn’t prevent you from saving even more money when it’s time to structure your own mortgage. The underpublicized fact is that mortgage rates are only one of the factors that affect how much you wind up paying. No matter what happens to mortgage rates in 2014, here are some keys to making mortgage decisions that result in significant savings:

Tailor the term

Evaluate your budget and see whether it is possible to increase the amount of your monthly payment. By increasing monthly repayments, you reduce the term of your mortgage. Over the course of the loan, this can save tens of thousands of dollars.

Refinance for five years instead of two

The interest you pay on a refi loan isn’t the only cost. The origination and other fees can easily end up costing four figures. It’s a numbers game: simply calculate the anticipated savings from refinancing, then subtract the amount of the fees. The difference tells you your net savings…and demonstrates why one of the easiest ways to grow those savings is to refinance less frequently.

Change to biweekly  

Changing to biweekly payments instead of monthly payment can save you more than small change. The reason is on the calendar: there are 52 weeks in a year, but only 12 months. If you make 26 1/2 payments every year, that equates to 13 monthly payments. It’s a stealthy way to make an additional month’s payment every year without really noticing it. When choosing a loan, opt for one where the bank allows you to choose biweekly payments (as long as they don’t want to charge an additional fee). Also request that the extra payments be deducted from the principle.

Improve your credit score

On this count, every mortgage guru sounds like a broken record. Although the average quoted mortgage rate may rise or fall, that’s not necessarily the rate that you pay. Your FICO score is the primary determinant of your mortgage rate. The difference between a good FICO score and a bad one can be significant, so get a copy of your credit card record and challenge any damaging inaccuracies. Lenders want to see a long history of paying on time with a mixed use of credit.

 Mortgage rates will almost certainly increase in the future because they’re still well under historical averages. But there are plenty of steps you can take to cut thousands of dollars from your ultimate mortgage costs. And if you are ready to buy a house in this spring, contact me today—I’m ready to show you what’s coming up at your price point! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Buying a home in Evansville is sort of a modern day adventure. At first there’s the intrigue of figuring out the advantages and disadvantages between the neighborhoods and listings competing for your attention; then there are all the challenging, sometimes exhausting—then, ultimately, exhilarating steps that lead to home ownership.

But even after the previous owner has handed over the keys, there’s more to come: a few extra steps new homeowners can decide they wish to take. Here are five of those—things you can choose to do after buying a home:
#1 Change the Locks  

Who knows how many people have a copy of those keys?  It’s a good idea to change the locks on all exterior doors, because it’s not just the previous owners who have had access to the property; there may also have been guests or tradespeople with access to the keys. By installing new locks, you can be sure that you are complete control of the keys to your new home.
#2 Have the House Cleaned

While the previous homeowners are obliged to leave the home in reasonable condition (usually “broom clean”), consider scheduling a professional cleaning crew before you move in. If your budget and schedule allows, it can be a plus to know some serious deep cleaning has been performed on counters, plumbing fixtures, carpets, etc.
#3 Smooth Transfer of Utilities

After buying a home, it’s usually possible to transfer utilities into your name without having to live through a break in service. Contacting all utility companies ahead of time will ensure that the transfer is orderly and scheduled in a manner that will be convenient to your move. It’s also an opportunity to be sure that utility bills have been fully paid before closing on the property.

#4 Store the Settlement Papers

At the end of the process of buying a home, a host of details come fast and furious, making it doubly easy to misplace things—even important things, like copies of the papers you execute  during settlement. Later, when it’s tax time (or in the future should you sell the property), you’ll save yourself a lot of desperate rummaging if you’ve prepared a secure place to keep them from the start.

#5 Take Photos of Your Household Items

It’s important to keep an accurate list of your household contents in the case of theft, fire or other mishap—records to act as verification of your belongings and their condition. Buying a home is the perfect time to take that inventory. Go from room to room snapping digital pictures of everything you own. It will never get easier!

Like anything worth doing, buying your new dream home probably came with its own set of stresses. But it should stand as one of the most rewarding financial moves you will ever make. If you’re thinking of buying or selling a home in Evansville this spring or summer, do give me a call! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

It’s one of the skills a successful local rental property investor needs to cultivate: if or when to sell. With property prices on the rise, some Evansville landlords may in fact be asking themselves whether now is the time to cash in. Especially for most everyone whose rental property investment was made during the last few years, it’s already been a profitable gambit. According to the Case Schiller Index, by last year’s close, property prices across the nation had risen at the fastest rate in the previous nine years.

But if—and then when—to sell a rental property can be a tough call. As a relatively illiquid investment, it takes a great deal more commitment than the decision to sell a stock or cash in a bond. But sometimes there are circumstances that can make the decision a little easier. For instance:

-Cash flow
One clear reason why you might choose to sell is if the rental property is losing money. The rental may have been vacant for too long, or the rent level may not have been sufficient to cover expenses. In many cases, other real estate investors will be willing to lose money in the short term on a property they believe will appreciate in the future. It’s also possible that a full-time rental property professional may be able to tap economies of scale that are not possible for every individual investor.

-Greener pastures
Your rental property may be doing fine—making money and showing substantial value growth—but now an unusually promising alternative investment has appeared. With the strong spring market, it may make sense to sell now to reinvest the profits elsewhere.

-Taxes

Everyone’s tax situation is different, and the tax environment is subject to change. Even if that weren’t the case, there are some years when personal finances mean that a sale would be a much better idea than others. As with any substantial financial decision, your accountant or other financial advisor will have the relevant input.

-Landlorditis
Being a landlord is not for everyone. Sometimes a professional property manager can alleviate nearly all the stress for an investor who doesn’t relish the vocation, but even then, there can be other chores: bookkeeping, manager management, a leak-through of tenant personality issues…that prompt a landlord to decide he or she would rather direct energy elsewhere. Opting for more passive forms of investment is always a possibility.

Our area has already benefitted from some of the fruits of the national real estate recovery – but that alone doesn’t answer whether this spring is an opportune time for you to consider selling your area rental property. We currently face a shortage of listings and there are many buyers and investors in the market. Call me today for a comprehensive property evaluation—the key piece of information that will help you decide! You can reach me on my cell phone

812-499-9234 or email Rolando@RolandoTrentini.com

With spring in the air, you don’t have to have your home for sale to catch the spring cleaning bug. Whether or not you’ve been cooped up inside for a longer-than-usual siege of the wintertime blues, as soon as the weather turns the corner, there seems to be a natural urge to open the windows and start freshening your place up.

Spring also brings the traditional hot selling season, and if you’re among those getting ready to list your own home for sale to take advantage of it, you’ll want to add extra attention to the traditional cleanup. Home for sale or not, you can channel some of your annual sprucing-up energy with one of these light renovation ideas. Each can add new zest to your living areas without breaking the bank:

• If you want to liven up your kitchen or bathroom but don’t want to shell out for the full cost of replacing the cabinets or doors, consider what simply changing the hardware would do. Take a trip to the hardware department, pick out a sample knob or pull, then test what the change would look like. Sometimes this simple transformation adds a surprising degree of sparkle!
• If your lighting fixtures are looking a bit dated and dingy, one simple fix is to buy new lampshades. Replacing a whole lamp is expensive and often unnecessary—and new shades can make a much more resounding impact, anyway. If you are planning to put your home for sale on the market anytime soon, best opt for white or cream. Keeping the look bright yet neutral gives you a proven selling advantage.
• In any room where years of wear and tear have created smudges that no amount of elbow grease can remove, think about painting with a change of color.  It may be a bit more ambitious and costly, but whether you hire pros or do it yourself, the result can make you feel like you’re in a whole new home. As with the lampshade selection, resist the temptation to get overly exuberant and creative: choose neutral color combinations. 
• If new furniture is not yet called for (or beyond this year’s budget), consider calling in the pros for some upholstery cleaning; then adding new accent pillows.  If your existing pillows are in good shape, sometimes just a few new pillow covers can freshen up a room’s whole look. Designers sometimes recommend picking just one bright color and keeping with it throughout the house.

You don’t have to be planning to list your home for sale in Evansville to make 2014’s spring cleaning efforts a self-satisfying success. And if you’re planning to list, I have a host of other preparation tips…and a marketing plan designed to bring top results! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Right at the start of the year, Google announced a surprising move. It said it was purchasing a home appliance maker most of us had never even heard of…for $3.2 billion in cash! It was a gambit that every homeowner should note, because it signals where some very smart money is headed: right where we live!

Remember, Google isn’t just famous for its search engine; it’s also frequently in the news for its forays into any number of futuristic enterprises (those mysterious barges, for instance). The appliance maker that now has Google’s billions in its pocket is called Nest Labs, Inc. Nest makes smart devices that reinvent the traditional ones every homeowner has to deal with, like thermostats and smoke detectors. “Unloved but important devices” was how the press announcement put it.

The unique feature of Nest’s products is that they collect “user behavior” data (i.e., homeowner actions) in order to provide a more tailored response. Google CEO Larry Page explained, “They’re already delivering amazing products you can buy right now–thermostats that save energy and smoke/CO alarms that can help keep your family safe.”

  The move of Google into the realm of smarter homes is part of a broader trend. In the most recent American Institute of Architects Home Design Trends Survey, there was a dramatic increase in the use of technology solutions in the home. The survey noted an increase in requests for entertainment, security and energy management systems. Energy management systems are becoming increasingly sophisticated as households are given the ability to manage their lighting and temperature over a wireless network. As electronic cars become more prevalent, electronic docking systems in the garage may also become commonplace.

How does this affect the average Evansville homeowner? As the minimum price of these systems decline, automated homes will eventually become the norm. If today it costs around $2500 to automate your home, it’s all but inevitable that similar features will fall in price (and grow in sophistication). Then, when it comes to buying a home or listing your own for sale, the amount of smart automation is bound to become a key selling point—trust Google!

The ability to operate and manage your house from a wireless devices such as your smartphone or laptop is already here…and Nest’s learning technology signals a future where our home and appliances are able to learn from our behavior and predict our needs. Keeping an eye on the future is a good idea for any homeowner, especially when you’re thinking of replacing one of those “unloved but important” devices— and most especially when you’re contemplating listing your home anytime soon. If that’s in your future, why not give me a call? As Google is in the habit of demonstrating, it’s never too soon to prepare for the future! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

It just might be that a groundswell is spreading throughout the home-buying public. In Evansville, smaller houses that used to be difficult to sell are rising in popularity, and I can guess why.

First, a little history. Back in 1950, what we would consider smaller houses were the rule: the average square footage came in at just 983 (try to imagine the ‘average’ family with 2 kids, 2 adults and Lassie all shoehorned in there!). By 2006, that figure had blown up to 2,248 square feet—and we all know about the bigger McMansions—just in time for the financial meltdown. Within the next few years, for the first time ever, the upsizing trend had begun to reverse. Only three years later, average square footage was 2,135.

In terms of size, today’s buyers and sellers are meeting in a much more balanced market. Smaller houses are no longer automatically spurned. In fact, smaller houses are the first choice for a growing number of buyers. Why?

When you really analyze it, a surprising amount of housing space is seldom used. Lifestyle changes dictate that formal dining and living rooms are much less frequently occupied. And it’s a fact that we only use a small percentage of the things that we own, so in actuality, some of many homes’ area amount to extremely high-end storage space. By getting rid of some of that unused stuff, the space it takes up can become unneeded.

The old rule of thumb nationally is that property taxes average about 1% of the value of a home. Smaller houses mean lower tax bills.

Maintenance bills can be substantially lower in smaller houses. It varies greatly by age and style, but one estimate has it that annual maintenance bills usually run between 1%-3% of total value.

Whether your hire help or handle it yourself, a smaller home can be much faster to clean. This may be less true when clutter is allowed to take over, but for those who are vigilant clutter-clearers, it means freeing more time for doing the things that you love. If you are paying someone else clean your home, it can easily equate to significant savings over the course of a year.

According to the American Psychology Association, money is the largest single contributor to stress. Nearly three-quarters of Americans admit that financial problems are their biggest source of stress. Purchasing a smaller house with an accompanying smaller mortgage can directly translate into a mellower quality of life.

A smaller house may not be for everyone, but today’s buyers are considering the advantages with a much more open minds. If you are giving some serious thought to buying or selling a home, let’s talk about the wide range of possibilities on the local market today. We are experiencing very low inventories right now. This plays out to the advantage of sellers. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Veteran housing economist David Berson, formerly of Fannie Mae and PMI Group, shares his thoughts on what the public needs to know about the housing market this year. 

First, he predicts that 2014 will be the strongest year for housing activity since prior to the recession. Most economists expect an improved job market in the months ahead, with employment growth accelerating and the jobless rate continuing to fall. This will be the key factor improving housing demand in 2014, even if mortgage rates climb and affordability declines. 

Additionally, demographics should start to favor housing activity. To this end, the demographic factor most affecting the residential property sector is household formation. "Household formations are affected by the job market, as people 'double-up' when worried about their job and income-earning prospects," Berson writes. "The Great Recession and the modest job recovery in the years following induced many people who might have lived independently to move in together." 

Berson and colleagues estimate the economy is short by more than 3 million households. If the economy expands at a faster clip in 2014, bringing a more rapid rate of job creation, that should translate into more households, which in turn should raise housing demand.  

Finally, Berson says mortgage availability should not worsen between now and the end of December and may actually expand.

Source: http://realtormag.realtor.org/daily-news/2014/03/20/economist-what-2014-holds-for-real-estate

You don’t have to tell anyone who is self-employed that there are extra costs that go with the benefits. In addition to the long hours and weight of responsibility that come with the job description, getting a home loan has always added special challenges. Now that we are into the new Dodd-Frank era of federal oversight, some of the changes warrant an early heads-up.

The 2010 legislation that went into effect on January 10 created the Consumer Financial Protection Bureau, with the function of tightening the rules lenders follow in order to discourage the issuing of mortgages that borrowers can’t be reasonably expected to be able to repay. To deliver on that worthy purpose, more proof and more paperwork will be required to support the income claimed on loan applications (here you might well be hearing an imaginary smacking sound from self-employed persons reading this and whacking their foreheads—paperwork is the bane of the self-employed).

If you are your own boss and getting a loan in Evansville is on your horizon, take heart! Just because it may be more difficult to apply for home loan doesn’t mean it’s impossible.

The new lending rules describe eight specific factors lenders should verify and document before advancing home loans. They includes the borrower’s assets, credit history, employment status and other debt obligations. The penalty for lenders who fail to do so adequately is that they may be legally liable if a borrower proves unable to repay.

For the self-employed, the extra burden can come with the requirement that borrowers be able to show consistent income (hear that forehead-smacking sound again?) The general rule is that borrowers be able to provide at least two years’ worth of personal tax returns. Since self-employed people getting a loan often have perfectly valid reasons for fluctuating annual incomes, it’s vital to talk with a broker and lender as early as possible to establish the taxable income level needed to qualify for a loan.

That talk should cover other areas. For instance, self-employed people have greater flexibility than most when it comes to reporting deductible expenses on their income tax forms. Since those same deductions result in lower net incomes, that can be problematical when it comes to getting a loan. One way to counter that problem is to demonstrate that the expenses incurred were used to buy things that will improve their business in the long term. Another approach is demonstrate that similar expenses are not likely to re-occur (particularly apt when a business is just starting up).

If you are among the self-employed—and plan on getting a loan—planning is key.  Get your ducks in a row now so the loan process doesn’t derail you later. It’s never too early to call me as an early resource before we get to move on to the fun stuff—your home search!  I can get you in touch with competent loan originators who will walk you through every step of the way.                   

You can reach me on my cell phone: 812-499-9234 or email Rolando@RolandoTrentini.com

Keeping your kitchen looking up-to-date doesn’t have to be difficult or expensive. Contemporary home design in is all about knowing what the latest trends are and which to choose when regular maintenance calls for a change in appliances or décor.

This year, eco-friendly appliances are definitely ‘in’—as are the pops of bright color meant to create a vivid and welcoming kitchen. And as convenience features continue to evolve, those are increasingly prominent factors influencing design choices. Especially if you are planning to sell your home in the near future, there are a few home design directions that are most likely to impress prospective buyers who’ve been exploring the latest kitchen trends:

Going green is a pronounced trend, not just in home design. Using renewable, Earth-friendly materials can be a way to update a kitchen while minimizing environmental impact. A sample idea would be a sustainable bamboo parquet butcher block to grace the kitchen counter or table. They come in beautiful, rich wood tones, and when large enough to cover a substantial counter area, can warm the feel of the entire room.

Another (almost diametrically opposed) current direction is to deck the kitchen out with a few of the latest high-tech gadgets. Even if you resist an ultra-modern look, a few chic techie touches can add a dash of luxury to your home. One example: Siemens makes a multimedia ventilation hood that has a 17-inch LCD screen with options for listening to music or watching TV.  It’s a creative way to make cooking more entertaining—and one that would certainly help make your listing stand out!

Bright colors have not always been popular in kitchens, but lately, appliance manufacturers have been less shy about offering exuberant finishes. You can find dishwashers, blenders, toasters, microwaves and refrigerators in bright blues, pinks, yellows, greens and oranges. It can be an inexpensive way to add a splash of color to your kitchen…although if you are planning on selling soon, in many instances I’d recommend caution: perhaps confining the color pops to bright accent pillows or colorful floral arrangements.

Copper is also an increasingly popular trend in kitchen design this year. Its natural antibacterial properties make it a practical home design element, and that cool, rustic hue looks great in warm, gold-toned kitchens. Copper sinks and faucets are both practical and stylish (although keeping them bright and shiny can be another story!).

If you are thinking of selling soon, consider incorporating one or two current home design ideas if your kitchen could use a decor infusion.  Looking for more ideas?  Contact me today to discuss what is making today’s homes S-E-L-L!

You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

The details seem stubbornly worrisome. Mortgage requirements have grown stricter. The Federal Reserve may or may not turn off the cheap money spigot—and if anything causes the stock market to sputter, it’s uncertainty. Occasional bits of good news in the labor picture can’t overcome the fact that unemployment remains stuck on high in many states.

All of this should be bad news for the housing market in Evansville, except for one overriding factor: apparently, American consumers aren’t buying it.

Despite uncertain economic news, consumers’ overall expectations for the housing market remained steady. The Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations, issued last week, found that most expect home values to continue to climb through 2014. The uncertainty factor remains largely stuck in neutral, pretty much as it has for most of 2013.

The survey found more nuggets of good news likely to affect the local housing market. There was no reported change from last month’s report that close to 20% of respondents say they are likely to change residences in the coming year…similarly, the previous month’s finding that 44% predict their personal wealth will increase remained steady. Taken together, the two factors could likely indicate that a healthy number of home buyers will be looking for housing of greater value than that at their current address.

Fannie Mae’s most recent monthly National Housing Survey echoed the positive findings among consumers: “Notably, respondents’ home price expectations climbed significantly in February—with 50% saying home prices will go up in the next year…” Their finding of more volatile consumer attitudes was mainly attributed to momentarily high energy expenses caused by unexpectedly frigid winter weather.

Whether or not the national statistics accurately reflect local consumer dispositions, they provide a backdrop that bodes well for the impending spring selling season. Soon we’ll be entering the time of year which traditionally results in a considerable uptick in Evansville’s housing market activity – which may be prime time for determining whether this is the moment to make a change in your own residential outlook. For more pinpointed, up-to-the-moment details about your own neighborhood’s housing market profile, give me a call! You can reach me on my cell phone 812-499-9234.  

Real estate offices have been gearing up for the imminent spring selling season, the time when local listings swell to meet the expected surge in buying activity. I sometimes put quotes around ‘selling season’ because so many factors go into home sales that it can be slightly misleading—we do sell homes all year long, after all!

But there is a lot of truth (and historical verification) to the idea that springtime brings a burst of new listings and accompanying selling activity. There can be lots of reasons why that happens, but this past weekend, area homeowners who were reading The Wall Street Journal might have seen some extra reasons to hurry up and add their homes to the local listings.

Some of those reasons have to do with weather; some with the economy.

The front page of WSJ’s Weekend Edition headlined the first piece of long-awaited good news: “Job Rebound Eases Fears of Spring Stall.” It explained that Friday’s payroll numbers showed upticks despite the widespread harsh weather that should have knocked them down.

Most economists had been on the fence about whether the years-long weak economic recovery would continue. Even though the previous two months of slowing growth had been attributed to the ‘endless winter’ blanketing much of the nation, it wasn’t clear that underlying weakness wasn’t also present. But the sudden improvement in the job picture, even as the weather failed to lighten up, was an unexpected event—one that could “ease worries” about the likelihood of a fundamental slowdown. In fact, forecasters were beginning to project that the negative economic effects due to the unusual weather (estimated at a loss of 1%) may be more than restored when the sun returns. Spring conditions are now expected to add an additional 1.2% to second quarter growth.

Even a slight rise in the unemployment rate was greeted as hopeful news. What sounded like a negative turns out to be the opposite: more people were returning to the workforce, a sure sign that workers see jobs beginning to reappear. Jobs have always been tied to real estate listing and sales activity, so this year, the NAR’s website truism may be on the mark:

“Spring brings rain and flowers – and possibly extra green in the final sales price of your home.”

It can be perplexing—and not least because it’s one of the least-discussed details you run into when buying a home. The issue is flood insurance, and it’s sometimes first brought to the fore when you are buying a home in Evansville that you would not have thought was on a “flood plain.” If it is, it’s going to require flood insurance before the bank will sign off on a loan.

As we only see from time to time, devastating floods can strike when and where least expected: sometimes, in areas where that ruinous flooding is unprecedented. In 2005, when FEMA paid out over $17 billion in flood claims, it once again became clear why flood insurance is absolutely necessary. Here’s what you need to know about flood insurance if the home you are looking at is in a flood plain.

The Zone Matters

FEMA assigns different zones within a single flood plain. For example, homes that are located on the bank of a creek may be assigned to Zone A, ( floods highly likely). Homes that are further away from a water source may be assigned to Zone Z, (lower risk). Naturally, Zone Z premiums are a good deal more affordable than premiums for Zone A. In fact, if your home is in a Z zone, you may even qualify for a special price break for two years before full premium goes into effect.

Figuring Out the Cost

Unlike car or home insurance, you won’t find a better rate on flood insurance by shopping around. The federal government sets flood premium rates based on factors like the zone, the home’s value, and the value of its contents. You may choose to insure the home only, but it’s seldom a good idea to leave contents without coverage. Any local insurance agent specializing in flood insurance will be able to assist you in determining the cost of the policy; they will also answer any questions you may have about the process.

Making Your Decision

Buying a local home that turns out to be on considered within a flood plain means factoring in some added insurance expense, and possibly even potential risk to your personal items. But when the house is right, and your heart is absolutely set on the property, it’s a dollars-and-cents calculation. I’m always at the ready to help my clients clarify this and all other the other details that go into buying a home in Evansville. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

January presented us with major changes to mortgage lending rules. These new guidelines aim to curb some of the excesses that occurred during the sub-prime years—hopefully resulting in a lower risk of default and foreclosure by borrowers and a healthier real estate climate for everyone.

QM: “Qualified Mortgage”

This all came about as one offshoot of the Dodd-Frank legislation that went into effect in 2014. It creates a new category, “Qualified Mortgage.” Lending institutions are required to document each loan they deem to be a QM; when they do, they benefit by being able to sell them to Freddie Mae and Fannie Mac, and are protected from legal action in the event of a future default.

The reason that these changes won’t keep most borrowers from getting a loan is that loans that don’t qualify (“Non-QM” loans) will still be offered by some banks—they’ll simply keep them on their own books.

Ability-to-Repay Rule

The bedrock requirement for a QM is an evaluation of the borrower’s debt-to-income ratio. That’s the projection of debts divided by income on a month-to-month basis — especially important when getting a loan with a variable interest rate. If it seems to you that this calculation makes common sense for any loan—I’m in your camp! The reason a bank might choose to issue a loan that does not meet the letter of this requirement could be their analysis that the percentages dictated by the rules are too strict for a particular borrower.

Risky Business

A Qualified Mortgage can’t have any of the risky factors that were hallmarks of the mortgage meltdown. Included are “no” or “low-doc” loans; loans with terms longer than 30 years, interest-only loans, and those with minimum payments that don’t keep pace with interest rates, causing the loan balance to increase.

So: what’s the bottom line for buyer’s intent on getting a loan this year?

The good news: most loans will go through as before (estimates are about 95% of them). But more paperwork and longer processing times are likely, and since fees and charges for a QM cannot exceed 3% of the mortgage, getting a smaller loan might become more difficult if banks determine they can’t make a profit.

In any case, coming prepared is still the best insurance that your loan goes through as smoothly as possible. If you’re looking to buy a home in Evansville this season, I’ll help make sure your preparation is first-rate! You will be able to take advantage of my extensive network of different mortgage providers in order to make the purchase of your new home as seamless as possible. You can reach me on my cell phone at 812-499-9234 or email Rolando@RolandoTrentini.com

With cars, TVs—even watches—getting connected through WiFi and wireless telephones, it’s small wonder that “Smart Homes” are here, too. According to Forbes, companies offering smart homes technology will be a $35.6 billion industry within just three years. They already offer homeowners an array of connected appliances, security systems and even HVAC systems.

From what I’ve seen, their marketing has highlighted the convenience factor—but if that seems to be more sizzle than steak, here are some surprisingly substantial reasons why you might consider upgrading your own place into a smart home:

Your current security system gives you peace of mind whenever you’re out of town. But have you ever wondered whether you remembered to lock the back door? Smart homes let you click a function on your phone that commands the home to lock itself! The same app can also send you a live video feed of the interior and exterior of your home.

In addition to securing the premises, smart homes can help you prevent home accidents. Smart appliances can be controlled via mobile apps which allow you to turn off ovens, stovetops, microwaves and even washing machines from anywhere you establish a WiFi connection. This minimizes the risk of the kind of home fires which can be caused by unattended appliances. (If you’re thinking that homeowner insurance premium discounts may soon be offered for connected homes: the Wall Street Journal reports that they already are!)

Major manufacturers GE, LG and Samsung have introduced complete lines of connected appliances controlled via mobile phone, eliminating the need to physically get up to adjust settings. Think how, especially for the elderly and handicapped, this would meaningfully enhance their quality of life—maybe even extending their ability to live at home without assistance. For all age brackets, being able to effortlessly control lighting, heating and air conditioning at the touch of a device screen will inevitably result in practical energy savings; and that raises perhaps the most important selling point for smart homes technology—

Increasing the value of smart homes when they come up for sale. The practicality of smart homes is already especially appealing to the growing number of tech-savvy buyers.

If you’re comparing home upgrades prior to putting your own  home on the market, I’m here to help you choose which (if any) are likely to add the most value. Call me anytime to discuss your short and long term plans! You can reach me on my cell phone 812-499-9234 or email: Rolando@RolandoTrentini.com

One of the unusual situations that sometimes crops up in real estate is one where the buyer purchases a house without ever seeing it. This may sound nuts—but there are circumstances (more than you’d think) where it can be the only practical solution.

Wholesalers and house-flippers, for instance, sometimes simply haven’t time to visit every property they suspect is a great buy. Other times, buyers might be relocating to Evansville from out of state (or even out of the country) under a timetable that doesn’t allow them an extra visit—or even a first visit! According to the latest full-year data from the National Association of Realtors^®, home sales to foreign buyers amounted to $68 billion!

As you’d guess, the risks of purchasing a house sight-unseen when relocating to Evansville remain stark. Nonetheless, there are ways such buyers can protect themselves: 

Adding a contractual walk-though contingency—one which allows a final walk-though before signing at closing—is the surest protection. Sellers aren’t obligated to accept such a contingency (and in a competitive market it’s less likely to be acceptable), but if it’s allowed, it’s also a sign that the property is likely to pass muster.  

The odds of a good “sight-unseen” result when relocating to Evansville grow significantly better when you present your agent with a clear list of requirements. Some important factors outside of specific house metrics could be the quality of local schools, transportation links and commuting times, crime rates, shopping and entertainment and recreation area access.

It is especially important to hire a first-class home inspector. When you can’t visit the property yourself, your inspector can be the trained eyes that prevent your inheriting unneeded maintenance issues. If the listing doesn’t give you a clear idea of how the home is laid out, requesting a video of both interior and exterior of the property is a good idea. If one isn’t available, don’t be shy about asking your agent to make a walk-through video for you.  

For anyone relocating to Evansville when a ‘sight-unseen’ home purchase is necessary, choosing the best-qualified Realtor and inspector couldn’t be more important. In that situation, they become your ears and eyes on the ground! Please feel free to call me at 812-499-9234 or email Rolando@RolandoTrentini.com and I will be more than happy to assist you with your real estate needs. Our motto is “With an Accent on Service”

Part of the recovery in Evansville’s real estate scene is the increasing likelihood of multiple offers on a listed property. This is every seller’s dream— but if you are one of the bidders, it’s important that you don’t allow it to become your nightmare.

There is one way— the only sure way—to keep the specter of competing multiple offers from upsetting your home buying prospects. Summed up in one word, it’s “preparation.”

Preparation starts with assembling a strong financial package. If your target property attracts multiple offers, you want yours to stand out. By the time you learn that other offers are at hand, it’s probably already too late to begin putting together documents—they should be in hand before you even identify a property. Getting pre-approval for your loan, having a letter that says so, and being able to show you have funds available can be persuasive.

When it comes to making the offer itself, although including “Subject to” clauses will protect you from unforeseen problems with the property, when multiple offers are on the table, the fewer contingencies the better. Again, only preparation will make this reasonable. If you’ve had an advance home inspection, and also made sure that there aren’t any right-of-way or easement issues, your offer can be significantly more attractive.

Personal preparation can be another positive. Visiting the property on several occasions at different times of the day should give you added confidence for what the home is truly worth to you…and when the listing agent and owner can put a face to your offer, it tends to strengthen its validity.

When multiple offers on a property occur, it’s possible that someone is going to bid more than the home is really worth. If you’ve done thorough research and know precisely what its value is in today’s market, that won’t be you. Having your bottom line number unshakably in mind means that in any bidding war, you’ll be able to sweeten your offer without hesitation. You can be creative, perhaps by offering to reduce the seller’s costs by picking up escrow fees, transfer fees or title policies; perhaps by offering the seller a few additional days to move without seeking financial compensation in return; perhaps by increasing the down payment or earnest money. When you know your bottom line, the arithmetic is uncomplicated (and your less-prepared competitors are more likely to throw up their hands!)

And then…should the bidding go over what you know it’s worth, you’ll be ready to walk away. There will be other properties to bid for – and I’m always here to help keep all your options open!   

Market Watch January 2014

Before we talk about 2014, I think this is an excellent time to compare the real estate market in 2013 to the previous year.  My ulterior motive is that from virtually any perspective 2013 was a great year!

Unit sales in our market increased just over 10% from 2012 to 2013, while the median price increased 2.2% over the same time frame.  While these increases did not improve quite as much as our statewide increases of 13.6% in units and 4.2% in median sales price this was still an excellent year.  If you remember Market Watch from a couple of months ago, I pointed out then that the decline in unit sales and median prices was not as great as the state as a whole so I did not expect the increase to be as strong either.  2013 was the best year we have ever had in sales volume.  This was the first time that F. C.  Tucker Emge Realtors closed over $400 million in sales volume.

In addition to the increase in both homes sold and in prices, there was even more good news.  Both days on market and the list price to sales price ratio also improved.   Homes are now selling, on average, about 100 days after they are listed, down from 122 days at the beginning of 2012.  The final list price to sale price ratio averaged just under 96% for all of 2013.  Both of these numbers are sustainable and are good indicators of a stable market.

One statistic that is outside the normal range is the number of homes currently for sale.  As of mid December there were 2,326 homes for sale in our MLS.  This is the lowest number of homes on the market since May of 2005.  The message here is that if you are considering selling your home, get it on the market now.  The spring selling season always starts sooner than most sellers think.  On average, buyers look for 10 weeks before buying a home.  Since it takes 30-45 days for a typical transaction to close, buyers who will actually move in April or May are looking for homes online today.  Don't miss the best time of year to get your home on the market, and keep in mind the most visited local website is FCTuckerEmge.com.

If you haven't already registered to receive email notifications of new listings in you geographic area or price range give me a call and I can help you register.  You can even help friends or family find what they are looking for. Give me a call if you have any questions about our market or specific questions about the value of your home. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

It can take years for first-time buyers to save up for their first home’s down payment, but even after that hurdle has been cleared, it can take even more time to secure a mortgage -- if they have neglected the other part of the equation. Their credit rating.

Before first-time buyers in Evansville will be able to move forward with that initial home purchase, they need to ensure that their credit score does not raise the kind of questions that sometimes derails an otherwise well-qualified home loan applicant. This has always been true, but may become even more likely as lending limitations grow increasingly strict.  

But it’s the occasional recording error or misstatement that is most easily preventable. Ironically, those often affect perfectly well-qualified buyers—precisely because they have no reason to suspect that a problem could crop up.

The upshot: first time buyers should start reviewing their credit history one year to six months before they intend to buy a home. Since the credit agencies provide upon request free copies of every individual’s report once each year, the only hassle is having to check the details line-by-line (a single reporting error can have a big impact on an overall score). And since it’s not unusual to take 90 days or more to cure a disputed entry, the earlier a first-time buyer begins the process, the better. Individuals can file a dispute online with the credit bureaus, or can hire a credit repair company to assist with disputes. In all cases, claims should be documented and correct information provided immediately.   

Once a first-time buyer is certain that his or her reports are accurate, is it time to relax? Hardly. It’s important to continue to monitor those scores to ensure against accidental surprises. Especially, after wholesale credit card thefts sowed confusion and disruption throughout the system, it’s probably wise to assume nothing. Several online services offer credit monitoring (and it’s possible that your bank might provide free monitoring).

From first-time buyers to seasoned investors, I’m here to help my clients every step of the way. Call me today! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

For most of us, the appeal of new construction—a brand new home which your family is first to own—is undeniable. The idea of being able to select your own floor plan with a layout you like and upgrades built to order is hard to beat.

But home shoppers looking for new construction in Evansville should be particular. If their future home is to meet expectations, some sophisticated questions should be asked and answered before any agreements are reached.

Home models are usually decked out with the best and most expensive furnishings and finishes, unlike more modest packages, where the unadorned dwelling is delivered without any fancy stuff. When you are viewing a home in a new construction development, be sure to ask how much that specific model costs—as-is. You can bet that the figure will be substantially higher than the most widely-advertised low-end price…and when you question what features create the price differences, you’ll readily determine if those are features you consider indispensable. A little arithmetic, and you’ll know how much your home will run.

Some developers have better reputations than others, and you’ll want to work with the very best. Ask for references, of course, and do your own online investigation. Look at the previous new construction projects the developer has worked on and check whether they’ve had numerous complaints filed against them. Don’t necessarily trust every grumpy comment; but you can tell from the general level of satisfaction what you’re likely to experience.

New construction proceeds as a complex process—one where it pays to monitor progress to confirm that you’re getting exactly what you want (with no changes or alterations accidentally slipping through). Before signing on the dotted line, be sure you understand exactly what the construction process entails, and when and how often you’ll be able to enter the site to monitor progress.

Asking the right questions and monitoring finishing work is key in preventing unwanted surprises when it comes to new construction. If you’re interested in learning more about new homes and developments in our area, I’m just a phone call away! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

The signs are positive for those who will be putting their home on the market this winter. Demand is there, mortgage rates are still low, and across the nation, prices are pointing higher. If you will be selling a home in Evansville anytime soon, there are some extra steps you can take to strengthen your position. 

Clarify Your Finances

Getting a home loan will be the concern of the buyer, not you. She or he will have to fill out the forms, go through the credit checks, etc. More subtle is the impact your own financial picture can have on the process of selling a home. If you will be moving to a new home yourself, it’s a good idea to get pre-qualified for that transaction even as you begin selling your home. When you are secure in the knowledge that you have qualified to buy your next home before your current property is sold, it solidifies your bargaining position. If not, you need to know that so you can time your sale’s closing appropriately. Knowledge is power—clarifying your finances will make for smoother sailing. 

Repair Early

Selling a home for the best price requires presenting it in its most favorable light. Even minor fixes that are clearly trivial should be tackled before the first prospect crosses the threshold, First impressions are hard to erase, and the psychological impact of even minor problems can influence the apparent value your property commands. Some experienced homeowners even pay for their own advance inspection before selling a home just to identify problem areas it takes an expert’s eye to uncover.

Find the Right Agent

Your choice of Realtor^® will have ongoing consequences, so taking the time and effort to find a compatible agent will be well worthwhile. Selling a home in Evansville is a many-faceted project, so find a partner you will enjoy working with— one who communicates openly and honestly about everything from today’s market profile to which service professionals are the most dependable.

Thinking of selling a home in Evansville this winter?  Call me for a complimentary consultation.  I’m always here to offer the best current marketing ideas! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

If there is one question that homeowners and prospective shoppers have in common as we enter the New Year, it’s about the direction of local real estate values in 2014. Small wonder: the financial market meltdown of the last decade had such a profound impact on all forms of real estate that it still has many people looking nervously over their shoulders. How likely is another tumble in the coming 12 months? Will real estate values in Evansville continue to rise? Knowing the answer could make a big difference to anyone planning to buy or sell a home in the area this year.

Of course, absolute certainty on that score is not possible for anyone without a time machine in their basement. But, as we look back over last year, we might gain a little bit more confidence by hearing from the experts who got it right in 2013.

Foremost among them was Dr. Lawrence Yun, the chief economist of the National Association of Realtors^®. Last year, he was dead-on. 

Dr. Yun is calling for a continued rise in prices—pretty much in line with the past year’s gains. To compensate for expected mortgage interest rate gains—the likely effect of the Federal Reserve’s easing of policies that fueled 2013’s financial markets—he suspects that lending institutions will ease borrowing strictures. That’s something we can all applaud!

Overall, if local real estate values in 2014 follow the NAR’s national prognostications, we would expect real estate value increases either like the Wall Street Journal’s quoted prediction of 6%, or of Dr. Yun’s 5%. Either would not be surprising, given last year’s real estate values numbers. What the NAR experts and the Journal also agree upon is a flattening of residential housing sales volume in line with 2013 levels.

How much credence can we give to what the seers predict? Perhaps a little more than usual. “The NAR forecast could be viewed as restrained in light of the housing market’s gains in the past two years,” says the Journal; and “…other 2014 forecasts are fairly close to Mr. Yun’s predictions.”

Thinking of selling a home in Evansville this winter?  Call me for a complimentary consultation.  I’m always here to offer the best current marketing ideas! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

You’re nearing your goal of buying a home in Evansville! You have zeroed in on a property, submitted your offer, and heeded your agent’s advice and ordered a home inspection.  

Soooo…what if the inspector finds major issues nobody expected? While most home inspections only uncover small problems that can be fixed easily, some do turn up serious issues. In 2013, 16% of Realtors^® reported sales that went off track due to the inspector’s findings. What’s your best course of action if that happens?

Buying a home after major problems have been identified should only proceed after you know how much time and money it will take to solve them. Whether you are dealing with foundation, roofing, electrical, HVAC or plumbing issues, call a few companies that specialize in dealing with structural home repairs, and gather some free quotes. Depending on what you hear, you can then decide to move to modifying your offer or you can walk away and look for another home.

Your agent will be able to assist you in modifying the original offer to the seller. If the issues are truly major and expensive, you may need to negotiate back and forth with the seller to see what they are willing to do. Be prepared to make some concessions, and don’t get frustrated with the process. It may take some time to come to an agreement that satisfies both parties.

As everywhere, buying a is peculiarly both a heavy-duty financial decision as well as one fraught with emotion. People can find themselves tempted to ignore thorny issues simply because they have fallen in love with the home. But since you could end up spending tens of thousands of dollars on repairs, it’s vital to isolate your emotions from the decision.

If the bids you’ve received are astronomical, it could be time to find a better house. But you needn’t despair. This is all part of the process of buying a home—and a big part of why I’m here to help my clients.  If you’re buying a home this winter, I’ll look for your call! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

This year, the first early signs of Christmas season didn’t seem to arrive too early, maybe because it rushed in so soon after Thanksgiving (which somehow also landed smack dab at the start of Hanukkah).

Still, by now the familiar Christmas carols have been playing long enough that it’s hard to believe there is a man, woman or child left who hasn’t had at least one moment when some familiar chord didn’t summon up a sudden flood of memories. Whether those memories were of a family gathering just last year or of one from the distant past, the holiday season means something unique and special to all of us.

However your family celebrates Christmas or Hanukkuh or Kwanza or simply the Holidays, you have to agree there is something about this corner of the year that borders on magic. Little kids don’t have to be reminded of that: just mention the word “December” any time between April and November, and the eager chatter about presents, or visiting plans, or Santa (or presents again) are bound to erupt. December without the Christmas tree and the decorations, the cheerful colored lights, the cookies (thanks everyone, for those cookies!), the candy canes and gatherings of family and friends…without those, December would be just another month.

Even when the shopping and traveling and all the other sometimes too-frenetic preparations threaten to drive us half to distraction, I for one have to admit this time of year serves as a replenishing break from the relentless march of everyday. And whether it results in a deeply spiritual pause to remember Christ’s birth, or simply a festive celebration (or both!), it also creates an occasion when families allow themselves a special excuse to just be together — if events allow, at the same table — or even if not, in spirit…and nowadays, likely also on jammed-to-capacity cell phone and internet circuits!

So please allow me to wish you all the warmth and good cheer a Christmas can bring. Thank you for making my and my family’s year as bright as it has been. And for you and yours, may this year’s Christmas season bring a Santa’s sleighful of warmth, peace, joy and love!

The kids are gone. Your big house seems either dreadfully empty or just plain wasteful.  Congrats: you are officially in possession of a empty nest! Now it’s time to consider where and how you want to live next.

When Do You Sell?

It's not a bad time to be selling in Evansville—but since you will be buying, too, you would have to deduce that it might not be the perfect time to be on that side of the table. When you are swapping your full-sized family home for a snug nest for two, you want to get full value for your old home without paying too much for the new one. If you can swing it, you may want to buy before you sell. That puts you in control of the time factor, providing freedom to hold out for a prime offer while you find new digs at a reasonable price.

What Will You Need?

Another challenge that goes with the empty nest situation is the need to accurately foresee future needs. One of the great things about downsizing is the possibility of trading size for features that used to be impractical. According to the Des Moines Register, developers there had rushed to lay new home foundations before winter set in. Anticipating a strong spring buying season, they were building townhome communities—smaller homes with maintenance packages and ranch-style designs ideal for empty nesters and retirees who favor more accessible layouts and community amenities.

How Do You “Dispose” of Your Stuff?

When you think about saying goodbye to your empty nest, you soon realize it’s not quite empty enough. You just don’t need all that accumulated stuff—so after you’ve offered the kids the opportunity to take what they’d like, the best strategies usually combine charitable giving and auctions or yard sales. There’s a lot of utility left in many of the things you don’t need any more, and it would be a shame for it to end up in a landfill.

If you're considering buying or selling in Evansville in the coming year, it's not too early to contact me for a consultation. Good luck…and happy nesting!  You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Imagine that you have just moved into your new property, and suddenly you are up against some serious flaw you knew nothing about. Added on top of the normal moving turmoil: now there’s this! You didn’t have a chance to fix things up before you moved in because you were totally in the dark concerning the problem.  Imagine the frustration, disappointment, and anger… Enter: lawsuit.

In other words, for you as a seller, there are some pretty convincing reasons to do unto others as you would have them do unto you.

A disclosure is a written statement describing your obligations under state and local laws regarding property flaws you know about. Your disclosure might include structural defects—like leaking windows or cracks in the foundation. It might include landscaping problems, like a branch that endangers a power line; and in some areas could even include air pollution or other environmental factors beyond your control. Any local property issues that the law specifies must be disclosed before the sale is finalized.

The consequences for not following the law can be serious: they could mean a lawsuit seeking the cost of repairs and other damages. In any case, you will want to insulate yourself from these risks by making sure you’re informed about the state of your property in Evansville and by disclosing issues whether or not they are discovered during inspection.

Full disclosure isn’t just the surest way to protect yourself from future legal action — it also lets you rest easy knowing you’ve done the right thing. Don’t assume a buyer will lose interest in your property because there are flaws. All properties have them, and by helping your buyers make informed decisions on what they want to do before they move in, chances are you’ll boost their confidence about the transaction. You’ll feel good knowing that you treated your buyer as you’d want them to treat you, and you’ll feel even better knowing that some non-disclosed property issue won’t come back to haunt you.

Preparing to sell this winter?  Call me today to get your home listed and sold! You can reach me on my sell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Buying a home in Evansville is hardly a do-it-yourself kind of project. Having confidence that the all the i’s are dotted and the t’s crossed requires the input of professionals whose daily dealings keeps them in touch with the current legal and financial arenas.

Call them the “Fundamental Four” — the four groups of professionals you will want to have on your team when buying a home in Evansville this winter.

First and foremost, you need to be sure the money factor is handled in an advantageous way. By far the most popular route is via a mortgage: a home loan. Your specialist here is the professional mortgage broker. He or she will advise you on the types of mortgages available this winter; will work with you to determine the amount you qualify for, the different payment plans you can choose, and guide you through the maze of paperwork.

A real estate agent does more than just sparing you the trouble of going through the listings to find a suitable home. Yes, your agent will help you identify homes for sale that suit your budget and preferences, but will also be a vital part of the negotiating process and the disclosure and associated paperwork. Your agent is actually the professional who ties together the work of all your other consultants.

The inspector is your expert when it comes to verifying the quality of the property itself. He will inspect and prepare a comprehensive report on every critical physical aspect. Buying a home can’t be a guessing game when it comes to the state of the structure itself: your inspector will help you determine if it fits the price tag.

The title/escrow company facilitates the actual transaction itself, which can be a bit more complicated than you might think. They will prepare all the legal documents after inspecting the title of the property, and, via contract, oversee the timing as the home is transferred from the seller to you.

Thinking of buying a home in Evansville this winter?  Start with the information that’s just a phone call away.  Contact me today! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

It’s easy to be caught off guard when the mercury drops before winter has even begun. And this year a visit from unusually early icy blasts of cold from up north has been the rule almost everywhere in the country. This Holiday Season, even local house owners who don’t have to worry about their own house safety may be visiting relatives unprepared for the sudden December tundra; so it’s a good time to go over the Red Cross cold weather Preventive Action guidelines:

• Open kitchen and bathroom cabinet doors to allow warmer air to circulate around the plumbing (but: move any harmful cleaners and household chemicals up out of the reach of children). And keep garage doors closed!
• In very cold weather, let the cold water drip from the faucet served by exposed pipes. Running water through the pipe - even at a trickle - helps prevent pipes from freezing.
• If you will be going away, leave the heat on in the house, set to a temperature no lower than 55° F.

       Following those tried-and-true guidelines should mean you’re home free. But if you turn on a faucet and only a trickle comes out, suspect a frozen pipe. Trace the culprit: likely places for frozen pipes include against exterior walls or where your water service enters the house through the foundation. To thaw frozen pipes:

• Apply heat to the section of pipe using an electric heating pad wrapped around the pipe, an electric hair dryer, a portable space heater (kept away from flammable materials), or by wrapping pipes with towels soaked in hot water. Do not use a blowtorch, kerosene or propane heater, charcoal stove, or other open flame device—no matter how tempting.
• Keep the faucet open. As you treat the frozen pipe and the frozen area begins to melt, water will begin to flow through the frozen area. Running water through the pipe will help melt ice inside the pipe.
• Check all other faucets in your home to find out if you have additional frozen pipes. If one pipe freezes, others may freeze, too.
• Apply heat until full water pressure is restored. If you are unable to locate the frozen area, if it’s not accessible, or if you cannot thaw the pipe, you’ll have to call a licensed plumber. If you need a reference, call me anytime for this or any other house questions.

You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

According to the National Association of Realtors^®, nearly 40% of home buyers will be first-timers this year. In other words, if you are new to the housing market you are certainly not alone. Since first-time home buyers in Evansville  experience the same learning curve as anyone everywhere, reviewing some of the more common missteps can spare them some of the angst those common mistakes cause. Some examples:

 1) They Don’t Check Their Credit Score

New home buyers focus on the seller’s asking price, but don’t realize how greatly their credit score will affect how much they actually pay. They know their score is important to qualify for a home loan, but not how a low credit score can result in a higher down payment and interest rate. A single percentage point of higher interest over a 30-year timeframe is…you get the picture! The takeaway? Start improving your credit score as soon as possible.

2) They Don’t Lay Out a Budget 

First-time home buyers frequently don’t realize the impact of secondary costs. In addition to administrative, insurance and legal costs, there are also closing and other fees which can add 2%-5% to the purchase price. Add in property taxes and possibly monthly neighborhood homeowner’s association fees, and you can see why experienced home buyers first determine their maximum monthly budget figure — then stick to it.

3) They Don’t Double-Check the Neighborhood

Once you’ve set your sights on an exciting new home, it’s natural to quickly proceed to the purchasing details without second-guessing your choice. That’s all well and good — unless you have only visited it a few times, and all at the same time of day or day of the week. Make several return trips to the neighborhood on weekdays and weekends, daytime and nighttime: you want to be sure that your family will be comfortable with the neighborhood (and your future neighbors).

If this winter will find you searching for your new house, I want you to know that I’m here to help my clients every step of the way. Calling me for a consultation is your first step! You can reach me on my cell phone at 812-499-9234 or email Rolando@RolandoTrentini.com

According to the National Association of Realtors^®, nearly 40% of home buyers will be first-timers this year. In other words, if you are new to the housing market you are certainly not alone. Since first-time home buyers in Evansville  experience the same learning curve as anyone everywhere, reviewing some of the more common missteps can spare them some of the angst those common mistakes cause. Some examples:

 1) They Don’t Check Their Credit Score

New home buyers focus on the seller’s asking price, but don’t realize how greatly their credit score will affect how much they actually pay. They know their score is important to qualify for a home loan, but not how a low credit score can result in a higher down payment and interest rate. A single percentage point of higher interest over a 30-year timeframe is…you get the picture! The takeaway? Start improving your credit score as soon as possible.

2) They Don’t Lay Out a Budget 

First-time home buyers frequently don’t realize the impact of secondary costs. In addition to administrative, insurance and legal costs, there are also closing and other fees which can add 2%-5% to the purchase price. Add in property taxes and possibly monthly neighborhood homeowner’s association fees, and you can see why experienced home buyers first determine their maximum monthly budget figure — then stick to it.

3) They Don’t Double-Check the Neighborhood

Once you’ve set your sights on an exciting new home, it’s natural to quickly proceed to the purchasing details without second-guessing your choice. That’s all well and good — unless you have only visited it a few times, and all at the same time of day or day of the week. Make several return trips to the neighborhood on weekdays and weekends, daytime and nighttime: you want to be sure that your family will be comfortable with the neighborhood (and your future neighbors).

If this winter will find you searching for your new house, I want you to know that I’m here to help my clients every step of the way. Calling me for a consultation is your first step! You can reach me on my cell phone at 812-499-9234 or email Rolando@RolandoTrentini.com

Consumer confidence certainly seems to wax and wane in a not-totally-predictable manner. What does seem clear is that when the future is cloudy, homebuyers tend to tighten up their purse strings. It’s logical: if you can plan ahead with a greater degree of certainty, you feel better about making the kind of commitment buying an home entails.

If you plan on selling your home in Evansville this winter, you may not be able to do much about whether the economy grows or tanks, or the Federal Reserve expands or shrinks the money supply. But there IS at least one thing you can do to remove uncertainty from the minds of your prospective buyers. Just offer a home warranty!

A home warranty in is an inexpensive plan that provides coverage for items that typically fall outside a traditional home insurance plan. The major kitchen appliances are generally only covered by your home policy if they are damaged in a fire, stolen, or suffer damage resulting from some other covered peril. A home warranty provides reassurance for a much broader scope of damage and mechanical breakdown. Warrantee buyers can also opt to include other large items in the home — like the HVAC system, boilers, water softeners and water heaters.

H.U.D. points out that a home warranty is an increasingly popular inclusion because it offers protection during the period immediately following a home’s purchase — the time when most local home buyers know they will “find themselves cash-strapped.” Although payment can be monthly or annual, most home sellers choose a one-time payment option.

In an uncertain world, are homebuyers reassured when a home warranty is part of your offer? Statistics from the National Home Warranty Association provide their own reassurance: they show that including a home warranty as part of the sale can help a home sell for up to 50% faster. 

Even though a home warranty is an added expense, it’s an investment that can pay off in helping your home sell faster — possibly at a higher price, as well. Thinking of selling this winter? Call me today to discuss this and many other ways we can make it happen! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Market Watch

     Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), recently gave his annual forecast for home sales for 2014.  Dr. Yun has been the chief economist for NAR for several years and was recognized last year by USA Today as one of the top 10 economists in the country.

     His estimate for sales of existing homes in 2014 is 5.12 million homes, virtually identical to 2013’s 5.13 million sales.  He expects new home sales to reach 508,000 in 2014 compared to 429,000 in 2013.  This forecast says total sales will be essentially identical to last year.  Although sales may remain flat he expects prices to rise 6% over last year.  Steady sales with healthy a price increase is actually pretty impressive when one considers how much sales and prices have improved over the past two years.

     Over the past two years cumulative unit’s sales have climbed 20% and prices have increased 18%.  Those kinds of increases are clearly not sustainable which make this year’s prediction very positive.  Although prices are up Dr. Yun points out “We’ve come off record high housing affordability conditions in the past year, and are now at a five year low, but conditions are still the fifth best in the past 40 years.”  Dr. Yun also said that limited inventory; exacerbated by low numbers of new home construction, as well as a tsunami of new federal banking regulations, would hold back home sales.

     As is always the case, national statistics are interesting but your home or the one you are thinking about buying are even more interesting.  Trends in our market have been similar but less pronounced that the national numbers.  What is accurate locally is that although sales and prices have increased, homes are still very affordable.  If you would like to know the market value of your home or you are ready to start looking for a new one give me a call.  Although real estate is somewhat seasonal, homes do sell during the holidays and in January.  There is less competition in the winter and buyers planning to buy in the spring usually start looking months before they buy.

If you’re house hunting over the holidays, you’re likely a serious buyer with an immediate need. Perhaps you have to relocate for a new job opportunity, or there’s been a change in your personal life? Regardless, while you may assume it’s not an ideal time to be looking — namely because there isn’t much to look at — there are some advantages to buying this time of year.

Less competition

Let’s start with the obvious one: less competition. This lowers the chances of multiple offers and bidding wars (something we saw a lot of last spring/summer), and should translate into a bigger discount for you. Know your market! This is where sites like Zillow come in handy. Start your research here for comps in your area and to see what homes are selling for.

Serious home sellers

Why would sellers pick such an inconvenient time — while everyone is busy entertaining family and friends and enjoying the spirit of the holidays — to list their properties? Probably because they need to sell and may feel compelled to do so before the end of the year for tax purposes. What this means for you: less hassle when it comes to negotiating; a greater willingness, on the part of the seller, to agree to concessions; less chance of the seller waffling; and greater respect for your offer, even if it’s a little lower than the seller was perhaps expecting.

Faster mortgage approval

Lenders aren’t as busy this time of year, and less volume could mean faster approval. Some lenders might even be willing to reduce fees during the off-peak season in hopes of gaining your business. Regardless, don’t just go with the first lender who comes along. It pays to shop around. Get multiple quotes and check out lender reviews on Zillow Mortgage Marketplace.

Greater affordability

Sure, home prices have been rising, but they’re typically lower in December than during any other month (so you don’t have to be as aggressive with your initial first offer, compared with buying during peak to high season). Zillow’s third quarter Real Estate Market Reports showed home value appreciation slowing. As we enter the slower home shopping season many overheated markets are moving away from bubble brink and ultimately becoming more affordable than they have been historically. If you want to take advantage of low interest rates, the time to act is now.

Source: http://www.zillow.com/blog/2013-11-19/what-you-need-to-know-about-buying-a-home-during-the-holiday-season/

When a first-time home buyer begins hunting for the prize that has to serve both as a satisfactory home base and a solid investment, most feel a mixture of excitement (a home is a landmark achievement!) and maybe just a touch of apprehension. Like any expense you’ve never encountered before, it’s appropriate to take extra care the first time out — and to pay attention to what experience teaches. Along those lines, here are some mistakes that are easy for a first-time home buyer to make. Fortunately, they’re also easy to sidestep:

1. Waiting for a better rate

Adjustable rates may well be about as low as they’re going to get right now – and some signs point to an increase in the coming months. For a first-time home owner who will be taking out a loan, if the property is right, hesitating to make a commitment based on a loan rate gamble is seldom a good idea.

2. Thinking short term

Consider thinking of a home as a lifetime investment. Even for those who are single or newly-wedded, it’s possible that being open to a house with extra rooms could end up saving considerably on moving, transaction and agent fees, taxes, etc. It’s equally important to look at neighborhoods and how they are changing and developing. If you do resell your home, location can make a big difference in how.

3. Underestimating hidden costs

The monthly mortgage payment isn’t the ultimate bottom line. When a first-time home buyer comes across a property that fills (or exceeds) everything he or she has been looking for, if the mortgage payment looks to be right, it’s easy to overlook other homeowner expenses. Experienced buyers make hardheaded estimates of maintenance fees and property taxes — they will be every bit as consequential as the mortgage bill.

For a first-time home buyer in Evansville, when thoughtful perspective goes into your final decision, it’s that much more likely to be a decision that pays off in the long run. If you are preparing to buy this fall, I’ll be standing by to help get you started! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

 Conventional wisdom dictates that home sellers prefer cash offers. So what is a typical would-be buyer in Evansville to do when the competition comes forward with an all-cash offer? Cash offers may come from any of a variety of deep-pocketed parties: institutional investors, foreign investors, wealthy families or individual investors.

Beyond doing basic due diligence — gathering as much intel as you can about the property and the seller’s needs — if you’ve found the perfect home and are convinced it is the best property for your family, consider one or more of these tactics:

Bidding over asking — even by as little as 2% or 3% — can sometimes win the day, according to Noah Rosenblatt, founder of Urban Digs, a real estate analytics company. Cash buyers typically factor in opportunity costs, making it less likely that they will go beyond a certain price threshold. No one wants to pay more for a property than necessary, but going “over asking” may be the only way to secure an ideal property when cash offers are competing.

Removing any contingencies from your offer will help strengthen your position and may well convince a local seller that you are the party most likely to close successfully. The downside is that you will be assuming whatever risk had been the subject of the contingency in the first place. For example, if you were to submit an offer less any inspection contingencies, you might have to pay more than budgeted down the road if undiscovered repairs crop up.

The seller’s goal is maximize net return, so any term you add that puts more money in the seller’s pocket can sway the decision in your favor. Creative thinking pays. You might offer to pay the seller’s closing costs, cover your own Home Warranty policy, or any other add-on that has the desired effect.

While cash may be king in most cases, there are ways to compete with cash offers in Evansville. If you are looking for an agent with constructive solutions to help you find and secure the right property, why not call me today to take advantage of this fall’s inventory? You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

When you step outside and feel a crisp chill in the air, you know it: winter is on the way. If events have so ordered themselves that you find yourself selling your home in Evansville during the winter months, you’re probably aware that it is not the preferred real estate season. Prospects are less likely to be out and about touring properties when the weather can interfere; the holidays take huge chunks out of everybody’s schedule (not to mention the havoc wreaked on family budgets) — plus, the aura of optimism that arrives at springtime won’t arrive until far in the future…

Nonetheless, selling your home during the winter months is eminently doable! In fact, because fewer offerings will be competing for the quite determined corps of would-be homebuyers, selling your home during the winter months can actually yield an outstanding result. Veteran sellers know how to maximize that prospect:

1. Advertise with spring or summer photos

Showing what your house looks like when the weather’s prettiest will be warmly received. Don’t rely on prospective homebuyers’ imaginations to do it as well.

2. Make your home cozy 

Selling your home in Evansville during the cooler months is actually an opportunity to show it at its “homiest.” Light the fireplace; turn on all the lamps; bake those chocolate chip cookies (or light scented candles — cinnamon is a holiday favorite).

3. Fine-tune the thermostat

People are turned off when a home feels chilly — just as they appreciate stepping into a warm and cozy listing (especially if they were just touring a vacant home).

4. Set a reasonable asking price

If you are going to be selling your home in Evansville during the approaching holiday season, it’s not the best time to “test the market.” Selling in a timely manner requires pricing the property accurately. You want to motivate the serious buyers to take a break from holiday obligations to turn out to view your house. 

If you’ve been contemplating the idea of selling your home in Evansville, know that there will be winter buyers out there. Call me today — let’s find them! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Market Watch

     The national landscape for real estate has changed over the course of this year.  Clearly 2013 has been an excellent year for real estate sales nationwide.  Nationally year-to-date unit sales through September climbed 15%, while statewide units were up 14% and our local market increased 16%.  Although these numbers are excellent the market is experiencing some other changes.

     The mix of buyers has changed over the past few years. Investors represented about 34% of all buyers so far this year, while the percentage of first time buyers is fewer than 30%, a significant drop from historical levels, which have been closer to 40%.  This relatively high percentage of investor buyers suggests that professional investors still feel real estate is a good investment.  First time buyers have not declined because they don’t want to own their own home.  Contrary to some articles you may have seen, the desire to own a home continues to be a goal across age groups.  Survey after survey shows that if buyers have the ability to own a home they have a strong preference for owning vs. renting.  There are two very clear reasons that the number of first time buyers has declined.  One reason is the difficulty in obtaining mortgage loans.  Increased banking regulations have made borrowing money an onerous process. Lenders have money and want to lend, unfortunately they are required to comply with expensive regulations making the entire process more cumbersome for everyone.

     One additional positive in the housing market is the continued improvement in homeowner equity.  Short sales and foreclosures have unfortunately been a significant portion of the market the past few years.  With improved prices and more buyers the number of homes “underwater” has declined significantly.  Current estimates suggest that over 8 million homeowners who currently owe more than their home is worth will be in a positive equity situation over the next 15 months. 

     Strong demand from investors, a strong desire to own vs. rent, and an improved equity situation all suggest that housing will stay strong for the foreseeable future.

     Best wishes for the upcoming holiday season and please let me know if I can help with any of your or your friends housing needs. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

After buyers move in to their new home, they should be prepared for some home fixes to present themselves each season, says Rich Escallier, a handyman in Chicago. "If you can go six months without finding something that raises your blood pressure, you're lucky,” Escallier says.

CBS MoneyWatch recently released a checklist of routine maintenance and small home repairs that home buyers should expect to do their first year to help avoid more costly problems from surfacing later on:

During move-in week: Turn on all major appliances and run them for a complete cycle. Even if the buyer already completed a home inspection, they should test again, experts say. After all, “if you have a minor leak under the dishwasher, that water leaks into the subfloor and you can't see it," says Daniel Cipriani with Kade Homes & Renovations in the Atlanta area. "But you'll start to notice the hardwood floor buckling."

45 days after move-in: Change the HVAC system filter and vacuum out the air intake vents. “Capturing dirt and dust with the right filter can go a long way toward preserving the new home appeal for a few years,” CBC MoneyWatch notes.

Six months after move-in: Inspect the exterior of your home in both the summer and fall to ensure rainwater is draining away from the home properly. Also, clean out clogged gutters and downspouts. "Landscaping should be negatively graded away from the house," Cipriani says. "People don't think it's a big problem, but otherwise water pools against the foundation and doesn't have anywhere to go."

Every year: Inspect the home’s roof for any missing shingles and gaps around the chimneys. Also, check the ceilings inside the home for any water spots and indications of potential leaks.

Experts also note that every two years, home owners would be wise to hire a professional HVAC contractor to inspect their furnace, air conditioner, and hot water heater. A ruptured reservoir could potentially spill 40 gallons of water in a mere few hours so experts recommend home owners install a water alarm with sensors in the collection pan underneath the hot water heater. The sensors cost about $25 and can help save home owners from costly water damage.

Source: http://finance.yahoo.com/news/repairs-every-new-homebuyer-should-make-183804213.html

Even though local property prices continue to recover, the current market can still present challenges. No one understands this better than homeowners who are re-listing this fall. For some of them, surrounding seas of “For Sale” signs created a less-than-appealing neighborhood setting. Others drew buyers who weren’t able to secure financing in the uncertain mortgage environment. Whatever the reason, it can be disheartening for anyone who has to re-list their property.

Once you undertake a repeat attempt to sell your home, you want to be certain the job gets done right. A key part of that will be ensuring successful showings. It’s estimated that well-staged homes sell as much as 50% faster than those not “dressed for sale.”

Most buyers begin their search online, so take a look at its online marketing. A buyer who dismisses your property outright without a visit means one less chance to close a sale. Be sure you show multiple photos that show the property in the best possible light. If that's not the case, and professional photography might provide the solution.

Give the property another thorough cleaning. You cleaned your home for your first open house, but now that time has passed, your house certainly needs deep cleaning again. In particular focus on the two areas that get messiest fastest: bathrooms and kitchen ­ rooms buyers look at first.

Take a look at timing: specifically, the times you choose to show your home. Try holding an open house between 3-5pm. This will make your home one of the last that prospects view. If they are still looking at day's end, chances are they are serious about buying a property. This slot also helps avoid viewing conflicts with other homes.

Sure, it's disappointing any time a home doesn't sell immediately, but that needn't mean it won’t succeed the second time around. In most parts of the country, real estate has been trending upwards ­ and more buyers are entering the market. You're only looking for that one person who appreciates your property. Ready to get a fresh start? Then call me: let's get going! You Can reach me on my cell phone 812-499-9234 or email at Rolando@RolandoTrentini.com

In Evansville's competitive housing market, shrewdly targeting which (if any) renovations to make prior to listing your home can sharply affect not only its DOM (days on market), but the price it ultimately brings. After making any obviously needed repairs ­ any that would be standout deficiencies left untended ­ you must still decide, what else?

Of the welter of possibilities you could choose before your property appears in the local listings, recent studies show some renovations have the greatest impact on selling prices.

An inviting outside entertainment area is a significant plus for many prospects, so the addition of a wooden deck heads the list. A deck is relatively quick and easy to install, so when Remodeling Magazine reports a 77% return at sale, being able to add “entertainment deck” seems an economical way to add appeal to any listing. If you already have a deck, you might consider expanding or improving it.

Since the kitchen is the heart of a home, even a modest improvement ­ like freshening up cabinets or upgrading an appliance or two ­ can make a dramatic impact on salability. If your home is already priced at the high end of the market, simply adding granite countertops is an investment that's not likely to add significantly to the bottom line...whereas the return on minor kitchen improvements is measured in the neighborhood of 75%.

For an older home, changing out questionable windows with new, environmentally advanced ones can create a listing feature that's ads appeal to utility cost-conscious home buyers. Window replacement is a quick fix; and if you already have newer windows, an upgrade to siding can add one fewer thing potential buyers find to worry about...and one more reason to choose your offering.

Such easy fixes are ways to increase the instant appeal of your listing without severely denting your pocketbook. Being conscious of the way your listing compares with others in town will put you ahead of the pack. Another way: call me for more ideas to make your home an irresistible buy! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

If you’re looking for a superior deal on a new home, you may find that a local bank-owned home is a serious contender. Today’s real estate market includes a variety of foreclosed homes, some of which can be had at prices well below baseline levels.

Adding to the activity in that sector is the virtual disappearance of any degree of the stigma formerly attached to the bank-owned home market. By May of 2012, Realtor Magazine was already reporting how the rise in distressed inventories had brought about an increased appetite for the sector: “Nearly 65% of buyers say they’re likely to buy a foreclosure today compared to 25% who said that in October 2009.” And 92% of those surveyed were interested in a bank-owned home as their primary residence, rather than as an investment vehicle.

If you think a local bank-owned home could be a serious contender for your attention, you should be aware of how to best prepare for the opportunities to be had among them.

 Get Pre-Qualified

Pre-qualification not only speeds up the purchase of a bank-owned home, it also produces a concrete range for your home-buying budget. Some banks charge a fee for the credit-checking procedure, while others simply build that into the bottom line.

Beware Potential Property Issues

The biggest issue facing the buyer of a foreclosed home is the potential for damage to the property. If it’s been vacant for some time, issues tied to improper weatherization or pest infestation can have resulted. A bank-owned home is typically sold as-is — so ordering a thorough, professional home inspection is an absolute must. 

Be Patient!

Buying a bank-owned home in Evansville can proceed on a different timetable than does a regular home buy, so be prepared to be patient. It’s also particularly helpful to have a buyer’s agent on your team to help answer questions as they arise.

If you are in the market for a new home this fall — whether it be a bank-owned home or not — I’m here to advise my clients from beginning to end. Getting started is just a phone call away! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Believe it or not, it takes home-seekers an average of 12 weeks to find a home. To shorten that time, there is nothing more useful than the Internet’s Multiple Listing Service. When you are working with a buyer’s agent, the lion’s share of the work will be done for you — but when you participate in the online search, too, it makes a dynamite combination!

Starting out with a clear idea of the features you think of as “must-have’s” will save the most time and effort. This doesn’t mean every feature you would ever consider a plus; these should be the items that you must have. Your deal-breakers.

Use these to pare down the MLS listings you examine more thoroughly. Chances are you’re going to find many homes that match your broader requirements, so narrowing the field will let you channel your time toward the best potential candidates.

MLS listings are available either by city or by region. If you’re open to examining a wider area, you’ll find a greater number of properties within your price range that list your key features. If you can’t find regional MLS listings near Evansville of interest, your agent will help expand your search. Sometimes this broadening of horizons uncovers the ideal property.

The local MLS listings are updated on a regular basis, so staying on top of the market involves revisiting the listings every few days. In case that sounds overly labor-intensive, your agent can sign you up to receive auto-alerts via email whenever a new qualified MLS listing comes online. It’s also a fact that not all real estate firms keep every one of their MLS listings absolutely current, so calling your agent as soon as you see something you like will keep you ahead of the crowd.

The MLS listings in Evansville offer a one-stop destination for identifying numerous candidate properties — as well as the ability to efficiently filter the results you find. If you’re in the market for a new home, using the local MLS listings will be a welcome aid. Call me today to help organize a comprehensive search effort! You can reach me in my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Rushing to sell your home is never desirable — but circumstances sometimes require it. To sell your home in Evansville quickly, the most important factor is finding the right price. Too high a price will dampen buyer interest — but of course you don’t want to set the price too low, either. Here’s one way to find the right price:

First, complete all repairs. They’ll have to be addressed at some point, so getting them out of the way first clears the deck for your sale. To sell your home quickly, you want to feature it in the best possible light…meaning that all of the little (as well as major) repairs have to disappear from the picture. A few hours or days of hard work can have a disproportionate impact on the ultimate selling price.

Next, familiarize yourself with local competitors. Scour the listings for homes in your area and attend any open houses you find. Get a feel for the way homes in the neighborhood are being listed, and which features look to be adding the most value.

It’s also a good idea to consult a qualified appraiser. Most homes will be appraised before sale anyway, and a certified appraiser will offer an unbiased view of your home’s value. Having a recent certified appraisal can also serve to encourage buyers to write an offer quickly.

At this point it will be possible to set the value. There are differing approaches to setting the price for a home, but they share a few things in common. Each generally takes into account average prices paid in recent comparable area sales combined with the appraiser’s feedback. To sell your home speedily, consider setting your price three to five percent below that formulation. While this may seem unnecessarily low, the idea is to encourage immediate interest from multiple buyers, setting up the potential for competing offers. One thing is nearly certain: a lower-than-average price will get more buyers through your door!

Planning to sell your home in Evansville this fall? Contact me today to learn more about building a sales attack designed to get results! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Whenever you hear that a neighbor’s house is on the market, the same question flashes through nearly every homeowner's mind: how much are they asking?

That's because of the nature of residential markets: our own homes' real estate values (in fact, all local real estate values) are connected with one another, and that asking price is an estimate of the current state of affairs. It has to be reasonable in order to attract the attention of serious buyers —  but if it’s too reasonable, on closing day the seller will walk away with a lighter bank account than necessary.

 Real estate values in Evansville are determined in large part by what other similar homes have recently sold for. These comparable sales show what a real world bank was willing to lend, and how many dollars a real life buyer was willing to pay. “Comps” are to real estate values what the Dow Jones is to securities: a trustworthy reality check, no kidding around.

How 'comparable' a comp is depends on a number of factors to be taken into account:

• The structure
• Condition
• Amenities
• Location
• Neighborhood

The structure of a comp sale will have similar square footage, number of bedrooms, etc. Its condition is a value judgment best made by professional appraisers. Amenities can include everything from upgrades in a development to added features like central air conditioning or a Jacuzzi. And location means a great deal (is it in a high crime area?) — as does the similar but more precise neighborhood (are the neighbors taking care of their yards? Are the schools first-rate?).

Ultimately, when determining real estate values for area homes, appraisers take into account much more than just the house itself. That’s why when you set out to find a home for your family it’s important to look beyond the physical facets of the house alone: should you later decide to sell it, the whole host of factors will come into play. Whether you are buying or selling a home in Evansville this fall, contact me today for a pricing evaluation. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

If the area’s baby boomers are echoing national demographics, they are either already enjoying retirement or are preparing for it. But for soon-to-be seniors, that word retirement has taken on some new connotations. Today’s seniors may be headed to a retirement with some major differences.

Taken as a whole, boomers remain a markedly active group — one less likely to consider a 65^th birthday the end marker for their working life. Yet for those buying a home in Evansville that will make their senior years as comfortable as possible, their choices are bound to differ greatly from those they’ve made in years past. According to the National Association of Home Builders, the 76-million-strong boomer generation is already registering some new preferences:

• Home offices

Semi-retired is the new retired. Instead of giving up on work completely, many retirement-age homeowners choose to start small home-based businesses to supplement their income (or follow up on their passions). The home office is also a fine command center for researching vacation ideas, running household affairs — or whipping up the next Great American Novel.

• Large windows

Big windows and superior lighting not only bring home a cheery look, but that light makes everything easier to see and navigate around. Accidental fall prevention may not be the top priority for a member of the 55-plus group who’s buying a home in Evansville, but if the health statistics are correct, it ought to be a major consideration.

• Wide hallways and doors

Chances are increasingly good that a typical boomer will live a long time, but that also means arthritis and age will come into the picture, as well. Buying a home with wider doorways and halls mean buying a home that’s potentially wheelchair-friendly!

• Unified technology

Future retirees have an increasingly sophisticated relationship with technology, so in addition to Internet access, remote-controlled lighting and alarm systems are becoming more commonplace.

Whether or not you are approaching retirement, when you set about buying a home in Evansville, it’s my job to help you find one that will fit your needs for the long term. Contact me today! You can reach me on my cell phone 812-499-9234 or by email Rolando@RolandoTrentini.com

MARKET  WATCH

 There are a lot of positive things to discuss about real estate in this month’s Market Watch, both locally and nationally.  Although from both perspectives the news is good, the news is not necessarily the same.

     According to Lawrence Yun, chief economist for The National Association of Realtors, sales prices nationally are 13.7% above last year’s levels.  Prices are still 7.3% below their all time high (July 2006).  Days on market data is more difficult to obtain accurately but best estimates are in the 60-70 day range.  There is currently a 5.1 month supply of homes on the market.  Several factors influence these statistics.  Cash buyers represent 31% of the market.  This segment is largely represented by investors, who obviously view real estate as an attractive long term investment.  Distressed properties represented 15% of all sales in July.  That percentage is down about 40% from its high but is still almost double the historical average.  This suggests that shadow inventory is disappearing, which is good, but it will still take a couple of years to get back to historically normal levels.  Finally, first time buyers currently represent about 29% of the market, substantially below the normal 40-45% of the market.

     Locally, our market is very similar to the rest of the nation in terms of month’s supply of inventory.  We currently have a little under 5.3 months supply and have been under six months supply since April.  Our days on market is higher than most of the country and is still just over 100 days.  The most interesting comparison however is sales price and how it has changed.  While year-to-date sales prices are only up 4.7% from last year’s average our market is now at the highest level of both average and median prices we have ever seen.  The median price in our market declined for 4 consecutive years and our low point was in 2009.  Since that time our median price has increased every year with this year representing the highest average and median prices we have ever experienced in this market.  While it may not feel that way our market simply did not decline as much as the nation as a whole and our market has, at least in terms of price, completely recovered from the recession.

     One interesting thought I had after looking at this data was that it all made sense to me except I would have thought our days on market would be lower than it is, given all of the other market conditions.  I asked another Realtor in our office what she thought and she said

“It’s simple.  Houses priced right in excellent condition sell quickly.  Houses that need work or are a little over priced just sit on the market”.  She is right.  If you want to know the right price for your home or if you need some tips on getting your house ready to sell give me a call today.  If you want to see some homes visit FCTuckerEmge.com or give me a call. You can reach me on my cell phone at 812-499-9234.

Have you ever driven by fantastic-looking homes one week, only to notice that they have lost their appeal only a few weeks later? Chances are such a nosedive in curb appeal could be due to an unrealistic approach to front yard landscaping. Especially as  homes approach fall weather changes, and even more notably for homes that are about to be put on the market, reality (instead of fantasy) should rule when landscape design changes are being decided.

The key is maintenance. Taking care of lush landscaping is a time-consuming activity, so if you are not a garden hobbyist dedicated to the mowing, fertilizing, spraying, pruning, and weeding that elaborate greenscapes require, your choices are to be willing to pay a pro to keep on top of it all, or…actually, that’s your only choice!

Yesterday’s impressive front yard can turn ragged in days if it is neglected. Whether you’re a busy professional or overscheduled soccer mom, homes for sale require constant attention to the front yard landscaping. That curb appeal either invites a call to your Realtor® — or a drive past without a second look.  

That same reality factor that may prompt a decision to install a modest, less-expansive lawn and plantings can affect the number of potential buyers. That’s especially true if your target market weighs heavily with retirees, busy professionals, active families, or folks looking for second homes to use as vacation getaways or income properties. Many of those buyers will gravitate toward  homes that won’t cost a lot of money to re-landscape to lower maintenance requirements.

Local homes with easy-maintenance yards that still present a natural feel can be big winners in today’s market. Along the same lines of less is more, having gnomes, deer or other ornaments on your lawn is generally a turnoff. You can add to that list too much “stuff” in the backyard.

If you’re planning to list your home for sale in Evansville this fall, it’s time to do some serious planning. I offer pre-marketing consultations to help prepare area homes for the market. Call me today to schedule yours! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

The advance home inspection process in Evansville plays a pivotal role to both seller and buyer. Correcting problems at an early stage increases a home's appeal — and its selling price. An advance inspection also sets the stage for a favorable final inspection report for the buyer (and the buyer’s lender), expediting a sale.

Yet according to home inspection experts, approximately half the homes on the resale market today have at least one significant defect! Advance knowledge of imperfections or malfunctioning systems in a property helps buyers commit if the house is a worthwhile buy. And knowing trouble spots in advance helps a seller set an attractive price.  

 Whether you are buying or selling, here are a few tips to help you have a trouble-free final inspection this fall:

Minimum scope for a home inspection in Evansville should include roof, plumbing, foundation, electrical wiring and central heating and/or air-conditioning. Except under special circumstances (those would include REO or estate sales), sellers are uniformly required to provide disclosure information about the property. Present these disclosures to your inspector, so he can double-check known issues first, and go over them with you during the inspection.

A pest control inspector is sometimes considered optional, but is really highly recommended. This inspector makes a specialized report for any areas infested with pests that could damage the home. Even if the home looks terrific and was recently serviced, underlying pest issues can be some of the most expensive to correct. They can derail a loan in no time.

Mold, asbestos, radon and other potentially harmful substances are not always included in a home inspection: they require a specialized license. If you are concerned about these elements, or live in a neighborhood where they are known to be a problem – consider adding additional inspections. 

Knowledge is power when it comes to home inspections in town: the more you know in advance, the stronger your negotiating position will be. If you are preparing to buy or sell this fall, give me a call! I’m here to protect and advise my clients every step of the way. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

     Last month I said I would make this month’s Market Watch a comparison of the first six months of 2012 to the first six months of 2013.  I knew this would be fun because by every measure, the first six months of 2013 have been better than the first six months of 2012.

• Number of sold homes increased from 2095 units to 2390 units é 14.1%
• Average sales price increased from $125,838 to $131,171 é 4.2%
• Dollar volume of closed sales increased from $262.1 million to $310.8 million
  é 18.6%
• List price to sale price ratio increased from 95.40% to 96.36% é .96%
• Days on market decreased from 124 to 111 days ê 13 days

     Our area’s increase is in line with statewide changes.  Nationally we exceeded unit increases and trailed price changes.  Statewide unit sales increased 17.8% and the average price increased 4.3%.  Nationally unit sales increased 13% and prices jumped 15%.

     We are very proud of our performance at F.C. Tucker Emge Realtors through the first six months of the year.  As a potential seller you should be very happy to know that our days on market and our list price to sale price are significantly better than our competition.  Our days on market for the first six months of this year were 97 days (compared to the market of 111 days) and our list price to sale price ratio for the same period was 97.36%, a full percentage point higher than the competition.  This means that on the average transaction at F.C. Tucker Emge Realtors our clients sold their house 12.6% faster and our seller received over $1,600 more for their house than did clients of our competitors.

     Enjoy the rest of the summer and please call or email if I can help with your or any of your friends real estate needs. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Buying a house for the first time! It means you’ll be joining the club: the home ownership club that Americans have traditionally recognized as emblematic of the fullest community membership. It’s an exciting endeavour — one that ushers in a whole new realm of pride, maturity…and of a truly major commitment.

It’s the show of responsibility that’s the reason home ownership bestows automatic respect from the community. It is, after all, unmistakable evidence of long-term stability, as well as commitment to deal with the future with all it holds — known and unknown. That commitment is something all homeowners share.

Today, buying a house in Evansville means entering a changing market. Still-historically low interest rates continue, but now they have started to rise. Broader lending prospects are improving along with that rise (which is the good news). But especially for first-time buyers, it should also mean that it is doubly important to think of the long term, and to let caution and prudence lead to a buying decision that will prove to be the right choice for the future.

What that means when buying a house in Evansville, especially when taking advantage of an attractive adjustable interest rate (ARM) loan, is to plan for the likelihood that monthly repayments will eventually increase. Before taking advantage of a great deal, consider whether you will be able to manage monthly repayments if they jump by 1, 2 — even 3%. Although it’s only natural to expect that your family income will grow as time passes and professional experience broadens, cautious buyers keep their budget in line with actual current finances. And they make hard-headed estimates of the upkeep expenses that accompany home ownership.

If the past seven years have taught anything about buying a house, it’s the advantage of tempering optimism with realism. I’m here to help my clients make educated real estate decisions for the short term and long term.  If you’ve been preparing to make that exciting first buy, I hope you will give me a call to meet and discuss your goals and the current market – I’d love to hear from you! You can reach me on my cell phone 812-499-9234 or by email Rolando@RolandoTrentini.com

Last month’s RealtyTrac foreclosure roundup showed that for the first time in a while foreclosure activity across the nation was on the increase. Largely due to an 11% month-over-month increase in bank repossessions (REOs), U.S. foreclosure starts increased 4% from the previous month. It wouldn’t be surprising if that kind of news winds up resulting in renewed buyer interest in the area’s bank-owned home market.

Daren Blomquist, RealtyTrac’s vice president, had previously pointed out the state of the market. “While distressed properties — whether bank-owned, pre-foreclosure or short sales not in foreclosure — are still selling at a significant discount compared to non-distressed properties, average distressed property prices are increasing in many markets thanks to strong demand and limited inventory.” 

Achieving the best end result from today’s REO prospects does take skill in dealing with the bank. Naturally, it’s a good starting point to team with an experienced agent. Knowledge is power, and being able to rely on a professional with a recent history of successful negotiations is the surest way to approach a bank. The guidance you get can make all the difference when it comes to writing a winning proposal.

Do consider properties that have been slow to move. Even if some bank-owned homes in Evansville are flying off the market after multiple offers, properties with a history of failing to sell can be your ripest targets. Don’t automatically be put off by the prospect of homes that clearly need some repairs. It may be possible to still save handsomely after adjusting for refurbishment and maintenance.

If you find a bank-owned home with potential, it’s important to steel yourself for the possibility of being outbid by a less cautious buyer. If you’re also prepared to take your time – to really play hardball with the bank — you may lose any given property, but are in the right frame of mind to make the most of a local bank-owned home opportunity.

Whether you’re looking for a bank-owned home in Evansville – or just a great property – I’m here to help my buyers get the best deal possible! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

For Evansville homeowners and soon-to-be homeowners, it looks like the end for deeply depressed mortgage rates. Nationally, rising rates have temporarily created a downdraft in home loan applications.

According to the Mortgage Bankers Association, mortgage applications fell 4% in the first week of July after plummeting 11.7% the week before. ‘The Market Composite Index’ is the measure of mortgage loan application volume — and it decreased 4.0% from a week earlier (on a seasonally adjusted basis).  Altogether, national mortgage applications so far this July are about a third below their level of a year ago.

The drop in applications comes as no surprise to those of us who keep a steady watch on mortgage rate trends. But there is one accompanying fact that wouldn’t have been as predictable. As USA Today notes, “Despite the rise in rates…the four-year average for home purchases continues to climb since it turned upward in November 2011.”

So what do these apparently contradictory stats mean for local residents preparing to sell or buy a house? 

Whichever part of the equation you fall into, it’s certainly time to get moving!  If you’re considering selling, you will want to put your home on the market to take advantage of the still historically low mortgage rates.  It’s often the case that rising mortgage rates spur a last-minute home-buying rush. If you’re planning on buying in, rising mortgage rates are a pretty good indication that it’s time to put the pedal to the metal. 

Either way, if you’re thinking of buying or selling in Evansville this summer, I’m standing by to lend a hand. Give me a call to discuss the full picture — including the latest price movement in area neighborhoods.  You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

A good first impression is important in real estate. Online appeal gets buyers to view the home in person, and curb appeal gets them in the door.

With 90 percent of buyers looking for homes online, listing photos are crucial and should not be blurred or distorted, taken at the wrong time of day, or overly focused on furniture or other items.

When it comes to curb appeal, here are some suggestions for sellers:

Add plants at the front corners of the yard, along driveways or walkways, and in front of the house

• Fertilize grass and shrubs
• Replace worn gutters
• Patch driveway cracks
• Spruce up or replace the front door
• Install exterior lighting
• Ensure that entry hardware matches

To jazz up the entryway, sellers should remove clutter and personal items, remove dated carpeting, and ensure that the home smells nice. As for other improvements, experts say sellers should pay close attention to return on investment, spending most of their money in the kitchen and bathrooms but avoiding major overhauls given that buyers are likely to make changes when they move in.

Source: http://realtormag.realtor.org/daily-news/2013/06/25/first-impressions-matter-more-ever?om_rid=AAEBaY&om_mid=_BRydt3B8zibJ7M&om_ntype=RMODaily

On Thursday, Bloomberg’s online news service confirmed what we had been hearing in more general terms: “Sales of previously owned U.S. homes climbed more than forecast in May…and prices jumped, indicating more progress for residential real estate.” Agents here in Evansville would also not have been surprised at the national surge in selling prices “by the most since October 2005”. If you were already inclined to sell your own  home, it looks more and more as if this summer will be a propitious time to jump on the opportunity.

As real estate agents gear up to maximize the market’s improvement, homeowners are also weighing some of the more popular alternatives for boosting valuations when it comes to selling —

• Prospective homebuyers are increasingly energy savvy, so when new appliances need to be updated prior to sale, the more energy-efficient they are, the more worth highlighting they will be. Real estate agents know how to emphasize a property’s ‘green’ attributes. 
• If you have an attic or a basement that is currently serving little purpose, conversion can pay off. Basements are often the more affordable option since they call for little structural remodelling. Conversions can be into a games room, office, or utility area. Attics are often best converted to bedrooms or office space (or at least staged to suggest the possibility).
• In Evansville, real estate agents love to offer properties with decks ­— especially in the summertime.  If you are prepared to engage in a little DIY, adding a deck can be among the most cost-effective of improvements. According to HGTV, the cost of a professionally built deck starts at about $15 per square foot, with more elaborate installations featuring costly hardwoods or composite materials running closer to $35. 

Even if you do not intend to sell, a little extra money invested in your home may be a dollar-wise idea. Thoughtful investments can enrich your own living experience AND attract higher prices when the time comes to move on. If you’re looking for a real estate agent in Evansville, call me today to go over other improvement ideas. You can reach me on my cell phone 812-499-9234 or Rolando@RolandoTrentini.com

With housing prices on the rebound, it’s easy to see why some homeowners find buying an additional property an increasingly attractive possibility. Getting into the landlord business offers the appeal of a growth investment coupled with the possibility of a favorable cash flow situation.   

That said, make no mistake about it: renting a home in Evansville is its own business enterprise. Becoming a landlord means making business decisions that carry elements of risk as well as reward. When renting a home in Evansville, there are a number of common — but avoidable — first-time landlord mistakes:

Fair Housing Violations

From the moment you begin marketing your income property, the language in your ad can easily run afoul of the fair housing rules that prohibit discrimination. Avoid phrases that single out any particular group or profile, such as “family-friendly,” “suitable for a couple,” or “singles only.” Since violations can run up to six figures, make sure your ad simply describes the property and the neighborhood in generic terms — and be prepared to accept the first qualified applicant who meets your terms.

Credit Report Mistakes

Another common mistake when renting a home in Evansville is to fail to adequately qualify applicants. Today, accepting credit reports supplied by the applicants themselves is a gamble. Run credit reports yourself (including an eviction check for every applicant over the age of 18). You want to see the history of ALL applicants who will be living in your  income property.

Security Deposit Mistakes

When it comes to the security deposit, taking too much – or not enough – is another common first-timer misstep. Too little and you won’t have enough protection; too much, and you risk violating state regulations (with the possibility of jeopardizing your right to use any of the funds!).

Renting a home can be an outstanding wealth-building venture, but your responsibilities as landlord must be taken seriously. For anyone unsure about legal requirements, hiring a professional property management agency can make good business sense. I’m here with recommendations for my clients on these and all other matters that accompany your real estate opportunities. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

The graduations are just finishing up, most summer getaway are booked, and with the end of June soon to be coming our way, many homeowners may be thinking more about holiday weekends and BBQs than home maintenance. But for those selling a home this summer, keeping ahead of upkeep issues will become an important part of the project. Some items that bear watching: 

The best time to clean air conditioners is before you fire them up for the first time…but since the AC always seem to be needed sooner than expected, few of us do. Never mind: sooner is better than later — and if you're selling your home in Evansville this summer, you'll want to keep the home comfortable at all times for potential buyers. Your owner's manual should explain how to change filters and clean coils and fins.

Everyone knows how important clearing clutter is for selling your home, but don't forget to stash the winter's heating paraphernalia. While you’re storing any portable heaters, pull the filters from the central furnace and pick up replacements next time you’re at the hardware store. When potential buyers see the new replacements neatly placed where they’ll be handy come winter, they are likely to register that this is one property owner who is well ahead of maintenance issues.

Cleaning the windows and window coverings is a chore none of us looks forward to. But when you're selling your home in this summer, few touches pay off like windows that shine, shine, shine! Choose one of our sunny days and see if you can get someone to work with you — and if you can spare an extra hour or so, hose off the screens and lay them out in the sun to dry.

Selling your home in Evansville is less taxing when you put yourself a step ahead on maintenance. Then call a hard-working agent like me to put the rest of a well thought-out marketing plan into action. I’ll be working all summer to help bring you top dollar for your home. You can reach me on my cell phone at 812-499-9234 or email: Rolando@RolandoTrentini.com

Market Watch

     Although home sales have improved across all regions of the country, including our local market, I believe there are some subtle differences in both the results and the reasons.  First, from a national perspective, existing home sales increased again in April to an annualized rate of almost 5 million homes.  This is up 9.7% from the same time last year.  According to the National Association of Realtors (NAR) median sale prices for existing homes were up 11% in April compared to April of 2012.  Nationally foreclosures and short sales accounted for 18% of sales in April, down significantly from 28% last April.  Finally the days on market number nationally has declined significantly to only 46 days this April compared to 83 days last April.

     Locally we have seen improvements in all of the same areas but for the most part they have not been as dramatic.  For the first four months of this year unit sales, (both existing and new combined) have increased 9.1% over the first four months of last year.  I am confident that trend will continue for the next couple of months based on pending activity which has already occurred.  Our improvements in days on market and average prices have been much less spectacular.  Both have improved but not by statistically significant amounts.  We have however seen a .67% improvement in the list price to sale price ratio or just over $1,000 on a sale price of $150,000.

    There is a big difference in the reason for today’s sales figures and the real estate boom of 2005 and 2006.  In 2005 and 2006 the market was fueled by “easy money”, meaning lending standards were too lenient and a significant number of buyers were ultimately foreclosed upon.  Today’s market is based on a more tested economic reality, supply and demand.  Nationally in April there was a 5.2 month supply of homes on the market.  Locally April supply was similar at 5.65 months supply.   Three reasons for this decline in inventory are reduced foreclosures, a return to a more normal level of buying activity and new construction has not caught up to current demand.

     What does all this mean to you?  If you are a buyer, interest rates are at bargain prices and local home prices have not increased dramatically. Both interest rates and home prices will ultimately rise. If you are a seller, housing supply has decreased and new construction has not caught up so there is less competition.  If you would like to know what your house is worth give me a call and I can help you determine the market value of your home.  If you are thinking about buying you can see what’s on the market at FCTuckerEmge.com or just give me a call.  You can reach me on my cell phone at 812-499-9234 or email Rolando@RolandoTrentini.com

When I update local readers about the latest news in housing prices, it’s usually not as ‘latest’ as I’d like. The reason is that there is a delay in most of the truly reliable indexes that measure housing prices. The big indexes are national (local housing prices are another matter), and they have a built-in two-month delay.

We can look at trends and directions, but if there is a change afoot, we won’t be sure of that for about 60 days.

Last week, The Wall Street Journal found a way to present unusually fresh numbers. Reporter Nick Timiraos ignored the S&P/Case-Shiller Index, which reported statistics from back in March, and leapfrogged into April with the first solid news about our much-anticipated spring selling season.

It shows a startling 2.7% one-month increase: the largest March-to-April gain in any of the 17 years since the series was first reported.

“The monthly gain blew away all past Aprils,” said an economist at Credit Suisse. The basis of the reports comes from last Wednesday’s release of the Bureau of Labor Statistics’ producer-price index, which measures prices in the whole economy (at least as seen by manufacturers and wholesalers). It’s a backdoor way to gauge housing prices when you examine prices received by real estate agents.

The numbers showed a 9.1% gain over housing prices from a year ago…and remember, big price rises were already happening by then. The takeaway, per the Journal, “Don’t be surprised to see continued increases in prices and sales in the next batch of housing reports.”

Professors Case and Shiller are certainly standing by to give us those. And in case you would like a more locally focused update on our recent area housing prices, I’m standing by, too — why not give me a call today? You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

David R. Leopold, owner of Pillar to Post Home Inspection in Fairfield County, Conn., says home sellers and their real estate professionals have an important role in preparing for a home inspection to help ensure it goes smoothly. Leopold offers up some of the following tips in a recent article in RISMedia, including:

1. Don’t hide what isn’t working: If an appliance isn’t working, leave a note that indicates what isn’t working and how you’re getting it fixed. Don’t try to conceal defects because it can make the inspector start to view you as dishonest and wonder what else you’re hiding.

2. Make things accessible: Ensure the location of the attic and crawlspace are identified and easy to access. Don’t make a home inspector move your belongings in order to gain access.

3. Check the lightbulbs: If a lightbulb isn’t working, the inspector will need to determine if the fixture is inoperable. Save them time by making sure all the lightbulbs in the home operate, including those in the crawlspace, attic, and furnace rooms.

4. Note septic systems: If you have a septic system in the yard, be sure to leave a sketch that includes the location of it. It’ll avoid home inspectors, buyers, and real estate professionals having to conduct prolonged searches for it, Leopold says.

5. Keep appliances clear: Don’t leave dirty laundry in the washing machine or dryer because the inspector will need to test the appliances, and he doesn’t want to have to pull out dirty clothes in front of everybody, Leopold says. “Also, make sure your oven and stovetop are clear and clean, so we can easily test them without setting off the smoke alarm,” he adds.

Source: “Ask the Experts: What Should Home Sellers Do to Prepare for a Home Inspection?” RISMedia (April 16, 2013)

Lenders are more optimistic about the direction of the housing recovery, with 71 percent recently surveyed saying home prices are “rising at a sustainable pace,” according to a quarterly survey of U.S. bank professionals conducted by FICO.

Nearly 60 percent of the bankers surveyed say they expect the supply of credit for residential mortgages to meet demand over the next six months.

What’s more, 39 percent say they expect mortgage delinquencies to fall in the next six months, while 45 percent of those surveyed say they expect delinquencies to remain flat. According to FICO, that represents the most optimistic data on delinquencies in the 12 quarters since the survey began.

"The latest survey results, combined with data that indicates the real estate market is improving in many regions, paint a positive picture for a sector of the economy that has been slow to join the recovery," says Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. "Mortgage lenders have been understandably guarded over the past five years. The improvement in their sentiment should be welcome news, and I wouldn't be surprised to see lenders cautiously expanding their mortgage and home-equity lending businesses."

Source: FICO

Flooring is a major component of a house — and its real estate value.

Whether it’s carpet, tile, marble, or hardwood, the flooring of the home serves as an important financial and practical asset. Quality flooring can increase the home’s value, and it’s vital to take proper care of it.

Some ways to accomplish this:

Tile: Many people have tile in bathrooms, laundry rooms, and kitchens. However, the material is not limited to these areas and it’s important to maintain them. Particularly in high traffic places such as kitchens — regular maintenance is essential.

One way to maintain tile quality is to mix baking soda and water as a make-at-home cleaning option, or simply find a cleaner with a very neutral pH level.

With tile, it’s crucial to avoid harsh and abrasive chemicals. They can alter the polish and stain the tile.

Carpet: If you have carpet in your house, make sure to keep up on the cleaning. This floor material is very dependent on the environment of the house. Do you have pets? Do you live in a climate with snow? Do you have children? Is your kitchen table on carpet?

There are so many factors that this category is going to naturally be subjective, but the principle is the same: Stay up to date, regardless of how often it’s required.

Carpet in nice condition not only makes a house more comfortable, but helps hold the value of the house together.

Marble: Due to its permeability, marble doesn’t react well to acid, the care of marble floor is extremely important in holding not only value, but appearance. Stained marble is very noticeable and unattractive in a house.

It’s best to mop with strictly warm water and be gentle. With marble floorings, it’s even more imperative to regularly clean, as dirt can — and will — scratch the surface.

Inside each door, make sure to have a mat. These small practices can go a long way in maintaining the surface and increasing longevity.

Hardwood floor: Similar to marble, it’s important to maintain hardwood floor. If this type of material isn’t regularly and correctly cleaned, seals break and cleaning then becomes detrimental as water seeps in the cracks.

This is a very common floor material option for home owners across the country, and it’s easy to tell when an area of wood floor is cared for. A neutral product is best when mopping and make sure to sweep the floor before cleaning to avoid dragging sediments around the finish.

The flooring of a house covers the entire walkable surface, and it’s important to keep it clean. Flooring is an expensive and significant part of a property, and it should carefully be looked after. Don’t underestimate how well-maintained flooring can help home owners maintain their home’s value during resale.

Source: http://styledstagedsold.blogs.realtor.org/2013/03/11/take-note-of-the-floor-buyers-certainly-will/

Changes in the availability and pricing of technology have brought the "smart home" from the richest tiers of homeownership to a quickly growing group of users.

According to the Atlanta Constitution-Journal, smartphone and tablet apps let homeowners "turn lights on and off, let in a delivery person or see whether their kids are doing their homework — from anywhere in the world."

The Digital Life system developed by AT&T Mobility, now available in eight markets, lets you do everything from operate the garage doors to make sure your children are doing their homework, company executives say. And Comcast's XFinity package offers features from home security to Internet features like Facebook and Internet radio service Pandora on your TV.

Insurance companies are even getting into the act, giving users of these systems discounts on their insurance, with the amount based on the type of monitoring service and features, industry officials say.

"The moment that the savings are really showing (on insurance and utility bills), that's when this really becomes a no-brainer," says telecommunications analyst Roger Entner.

Source: "New technology monitors home from phone" (Chicago Tribune, 3/31/2013)

The Pending Home Sales Index,^* a forward-looking indicator based on contract signings, slipped 0.4 percent to 104.8 in February from a downwardly revised 105.2 in January, but is 8.4 percent higher than February 2012 when it was 96.6. Contract activity has been above year-ago levels for the past 22 months; the data reflect contracts but not closings.

Before January, the last time the index showed a higher reading was in April 2010 when it was 110.9, shortly before the deadline for the home buyer tax credit.

Lawrence Yun , NAR chief economist, said limited inventory is holding back the market in many areas. "Only new home construction can genuinely help relieve the inventory shortage, and housing starts need to rise at least 50 percent from current levels," he said. "Most local home builders are small businesses and simply don't have access to capital on Wall Street. Clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market."

The PHSI in the Northeast declined 2.5 percent to 82.8 in February but is 6.8 percent above February 2012. In the Midwest the index rose 0.4 percent to 103.6 in February and is 13.2 percent higher than a year ago. Pending home sales in the South slipped 0.3 percent to an index of 118.8 in February but are 12.1 percent above February 2012. In the West the index increased 0.1 percent in February to 101.4 but is 0.8 percent below a year ago.

Yun projects existing-home sales to rise about 7 percent in 2013 to approximately 5 million sales, which is near the current level of activity. "The volume of home sales appears to be leveling off with the constrained inventory conditions, and the leveling of the index means little change is likely in the pace of sales over the next couple months," he said.

The national median existing-home price is forecast to rise nearly 7 percent this year, while mortgage interest rates should remain historically low, but trend up slowly and reach 4 percent in the fourth quarter.

The National Association of Realtors^®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. For additional commentary and consumer information, visit www.houselogic.com and http://retradio.com.

Read more here: http://www.realtor.org/news-releases/2013/03/pending-home-sales-slip-on-constrained-inventory

More home owners are planning to renovate their houses this year, according to Houzz, a remodeling Web site. The company recently surveyed approximately 100,000 home owners, and 53 percent of them reported that now is a good time to remodel.

More home owners getting motivated to increasing the values of their houses by improving the “look, flow, and layout” of these residences.

The most popular renovation projects were centered around bathrooms and kitchens. Twenty-eight percent said they were planning a bathroom remodel or addition, while 23 percent of those surveyed said they were planning a kitchen remodel or addition in the next two years. Over the last five years, home owners have spent $28,030 on average to remodel their kitchens, according to the Houzz survey.

Source: “Interest in building, remodeling homes picks up,” Inman News (March 28, 2013)

The University of Evansville has held a groundbreaking for an $8.5 million on-campus housing project. The townhouse apartments will provide space for approximately 150 students. The effort is part of the school's facilities master plan.

The University of Evansville today held a groundbreaking ceremony for new townhouse apartments, which will provide attractive on-campus housing options for approximately 150 upperclassmen.

The kickoff for the $8.5 million project took place at a 10:30 a.m. news conference in the Class of 1959 Gallery and Lounge in the Ridgway University Center.

“We’re thrilled to break ground on this project, which represents the next phase of the University of Evansville’s facilities master plan,” said UE President Thomas A. Kazee. “We look forward to offering our students a sophisticated, convenient living experience while enhancing the neighborhood around our campus.”

Two townhouse buildings will comprise the “Frederick Commons” (between Frederick Street and Weinbach Avenue) and four buildings will make up the “Walnut Commons” (on the north side of Walnut Avenue and Rotherwood Avenue). Half of the townhouses will be complete and available for move-in in August 2013, with others following in October 2013 and January 2014.

The new townhouses are part of UE’s facilities master plan, announced in March 2012, which will guide the University’s building projects and renovations over the next decade. After an assessment of needs, which included interview and focus group sessions with UE students, faculty, staff, administrators, and alumni, student housing emerged as one of four priority areas.

Each two-story townhouse apartment will house four students and includes the following amenities:

• Four private bedrooms and two bathrooms
• New furniture and appliances (including washer and dryer, dishwasher, full-
size refrigerator, and sink disposal)
• Granite countertops
• 37” digital flat screen TV in living room
• Ethernet in living room
• Free WiFi and digital cable
• All utilities included
Students signed up to live in townhouses during the housing application process in February and March. All townhouses have been filled for the 2013-14 academic year.
UE has contracted with Buckingham Companies, an Indianapolis-based developer, to coordinate the construction and design phases of the project.
“We are thrilled to be a part of the University of Evansville’s team in its efforts to provide an enhanced environment for learning, living, and community,” said Brad Chambers, president and CEO of Buckingham Companies. “Our focus for this project is to assist the University of Evansville in fulfillment of its current and long-term vision for campus growth and innovation and to make the University of Evansville a first-choice educational option."
Participants in today’s groundbreaking ceremony included UE’s Larry Kremer, chairman of the Board of Trustees; Thomas A. Kazee, president; Jeff Wolf, vice president for fiscal affairs and administration; Dana Clayton, vice president for student affairs and dean of students; Tyler Best, president of the Resident Students Association and a religion and political science major from Elizabeth, Indiana; Melanie Bacaling, member of the Student Housing Committee and a music performance and psychology major from Gurnee, Illinois; Brad Chambers, president and CEO of Buckingham Companies; and Jeff Beidl, development manager with Buckingham Companies.

Read more here: http://www.insideindianabusiness.com/newsitem.asp?ID=58473

Prices are rising and inventories are falling in markets throughout the United States, which has led financial reporting and forecasting firm Kiplinger to declare the housing recovery “firmly” in motion. Moreover, the company says housing will help carry the overall economy at a time when U.S. exports are decreasing, says Karen Mracek, a Kiplinger editor and real estate analyst.

“The biggest reason we think we’re on firm ground is that we’re seeing every indicator on the way up,” Mracek says. “As with the overall economy, it’s kind of hard to call the bottom or the pivot point. But we’re seeing a range of indicators that suggest pretty solid growth going forward.”

In addition to home values and supply, positive indicators include the number of multiple-bid situations, new-home construction, and credit availability, she says. Solid improvements in these fundamentals will lead to formation of more new households and will also help more borrowers come out from underwater — and trade up to a new home. They’ll also create new jobs in real estate and construction, Mracek explains.

The recent gains made in housing have some concerned that real estate could be entering another bubble market, but Mracek disagrees with that assessment. “There might be [a bubble] in some concentrated markets,” she says. “But I don’t think it will be a bubble that’s as widespread and disastrous as the one that happened in the last decade.”

Improvements have been — and will continue to be — uneven. The turnaround will probably be slower in metro areas in Florida and the Midwest.

Nationally, Mracek says the current housing recovery is real and sustainable, but she also acknowledges that the rise in home values and decline in inventories won’t maintain their current pace.

“We see prices leveling out a bit more [in the future] from the late jumps in 2012,” she says. “There are still foreclosures for the banks to work through. As prices improve, you’re going to see banks get rid of REOs.”

Source: http://realtormag.realtor.org/daily-news/2013/03/12/kiplinger-housing-recovery-firmly-underway

Rumors about the 3.8% Medicare tax continue to circulate. Here's the definitive word on what's true and what's not on how the tax impacts real estate.

Ever since health care reform was enacted into law more than two years ago, rumors have been circulating on the Internet and in e-mails that the law contains a 3.8 percent tax on real estate. NAR quickly released material to show that the tax doesn’t target real estate and will in fact affect very few home sales, because it’s a tax that will only affect high-income households that realize a substantial gain on an asset sale, including on a home sale, once other factors are taken into account. Maybe 2-3 percent of home sellers will be affected.

Nevertheless, the rumors persist and the latest version that’s circulating falsely say NAR is advocating for the tax’s repeal. But while NAR doesn’t support the tax (it was added into the health care law at the last minute and never considered in hearings), it’s not advocating for its repeal at this time.

The characterization of the 3.8 percent tax as a tax on real estate is an example of an Internet rumor, says Heather Elias, NAR’s director of social business media. Elias and Linda Goold, NAR’s director of tax policy, sat down for a discussion of how the tax works and how Internet rumors work and you can find their remarks in the 6-minute video below.

Goold says the tax will affect few home sellers because so many different pieces must fall into place a certain way for the tax to apply. First, any home sale gain must be more than the $250,000-$500,000 capital gains exclusion that’s in effect today. That’s gain, not sales amount, so you really have to reap a substantial amount for the tax to even come into play. Very few people are walking away with a gain of more than half a million dollars today, even in the high-end home market, so right off the bat only a few home sellers would be a candidate for the tax.

For the few households that do see a gain of more than the $250,000-$500,000 exclusion (that’s $250,000 for single filers and $500,000 for joint filers), only the amount above the exclusion would be factored into the tax calculation, and that would still only apply to high-income households, which the law defines as single people earning $200,000 a year and joint filers earning $250,000 a year.

So, if you are a households with annual income of $250,000 or more and you earn a gain of more than $500,000 on your house (again, that’s after the $500,000 exclusion), any amount of gain above the exclusion would be plugged into a formula to see if it’s taxable. If it turns out that it’s taxable, then the amount could be subject to the 3.8 percent tax. If the household had a gain of more than $500,000 but only earned $249,000 a year in income, the tax wouldn’t apply.

(Note that these are just hypothetical examples. To know if a case would really be subject to the tax, a professional tax preparer or tax attorney has to look at all the particulars of the tax filer’s case. Only a tax professional is in a position to say the tax is applicable, but the examples cited here could help you get a sense of how the tax works.)

The other thing about the tax worth noting is that, although it takes effect in 2013, any impact on taxes wouldn’t happen until 2014. That’s because the tax filer would do the calculation in 2014 for the 2013 tax year. Because it’s not a tax on a real estate sale but rather on a capital gain, it’s not calculated at the time of an asset sale, whether that asset is a house or something else. It’s calculated at the time the filer figures his or her tax.

This is all explained clearly in the video, so if you have questions about how the tax works, or if you’re still hearing rumors about the tax and you’re not certain of the accuracy of what you’re hearing, the video should prove helpful.

Source: http://realtormag.realtor.org/news-and-commentary/feature/article/2012/10/38-tax-whats-true-whats-not

Sinkholes are a lot more common than many home owners realize—particularly in Florida, according to CoreLogic, a real estate analytics firm.

A Florida man is presumed dead after a large sinkhole engulfed his entire bedroom last week, capturing headlines across the country. The incident has prompted many home owners wonder if a sinkhole is a threat to their homes too.

In a CoreLogic analysis, Florida appears to be most at risk for sinkholes, with 15,000 verified sinkholes. Pasco County—along the West Coast of Florida—has about 6,000 of those sinkholes, according to CoreLogic.

"It's important to note that not all sinkholes are prone to a sudden collapse like this, and they all obviously represent various levels of risk to people in the area," CoreLogic writes. "It's also interesting to know, however, that general homeowners insurance often does not cover sinkhole losses."

Source: “CoreLogic: Sinkholes More Common, Costly than Home Owners Realize,” HousingWire

About 30 home buyers — all pre-qualified — have lined up in tents and camped out in order to be first in line for an opportunity to buy a new home in Huntington Beach, Calif. The homes are still under construction by Brightwater Capri development and are priced between $800,000 and $900,000.

The first home in the new development still doesn’t go on sale until March 2. Five homes are set to be released this weekend. Only pre-approved buyers on a first-come, first-served basis will be able to preview the homes.

The homes feature four bedrooms, ocean views, and range from 1,992 to 2,685 square feet. Buyers have 11 floorplans to choose from.

"If you want the opportunity, you gotta make the sacrifice," says Terry Torline, a hopeful buyer who is camping out. "Based on what's out there in the marketplace, it's a good deal right now."

Source: “Huntington Beach Homebuyers Camp Out for Chance at New House,” AOL Real Estate

There is a long list of household chores the beginning of each season. If you break it down with one chore a day and bundle a short, easy list on a day off from work, then it can become manageable. After all, you can only eat an elephant one bite at a time!

So first, think of your personality. If you put the worst chore first, would you be happy to get that one over with, or would you simply never start working on the list at all? Order the list to fit your comfort zone.

Spring

• Walk around the yard and take a notebook with you. Write down any lawn or outdoor buildings which require maintenance. Be sure to make specific notes, so you will not be scratching your head later trying to figure out your notes. Remember painting as well.
• Get rid of all the old stuff you have not used in a year. Garage sales are great motivators.
• Switch the clothes in the closet from heavy winter to spring.
• Check the roof. Are there any loose or deteriorating shingles? Are the gutters in need of repair?
• The outdoor furniture is calling; pull it out of storage and enjoy watching the flowers begin to grow!

Summer

• It may seem silly to think of the upcoming frost, but checking the furnace or heaters now makes sense, instead of having a failure at the worst possible moment.
• Check the screens on all the doors and the assemblies for the sliding glass doors.
• If you use contractors for replacing gutters and other outside household services, now is actually the time to take advantage of that. The fall is when they are typically the most busy.
• The kids will be spending a lot of time on the swing set, is it well maintained?

Fall

• The leaves are falling, sigh, time to rake. Make the activity more festive and have a contest to see which family member can gather the most. Remember the gutters!
• When is the last time you checked the insulation in the attic? Do any shingles need replacement after the summer sun?
• Now is the time to aerate the soil, in the front and back yards.

Winter

• It’s a perfect time to get a lot of the detailed “spring” cleaning done inside the house. Holidays are approaching and folks will be dropping by for short visits and lengthy meals. Move furniture, vacuum underneath, check the foyer closet for clutter, to make room for heavy coats and umbrellas. Give the whole house a white glove test!
• Change clothes in the closet from summer to winter.
• Check supplies to keep the walks free of ice; shovel, dry ice, salt, etc.
• Check decorations for the holidays.

Inventory levels in 2012 reached an 11-year low and fell yet again last month, further limiting the number of homes for sale nationwide. Inventories of for-sale homes were down by 16.5 percent in January year-over-year, and fell 5.6 percent from December, according to the latest data compiled from Realtor.com.

Inventories typically fall in December and January in preparation of the spring buying season.

“But the shortage of homes for sale in a growing number of U.S. markets is maddening for would-be buyers who frequently complain that there aren’t enough good choices,” The Wall Street Journal reports. “Bidding wars are becoming more common.”

At a time when buyer demand is strong, inventories remain constrained as banks slow their pace of foreclosures and home owners delay selling until they regain more equity in their homes.

Metro areas posting some of the largest monthly declines in inventory levels are San Francisco (where inventory levels are down by 21 percent in January compared to December and down 47 percent year-over-year) as well as Seattle (where levels dropped 9 percent from December). The two have also seen some of the largest price increases in the nation. Median asking prices have risen by 16.4 percent and 23.7 percent in those places, respectively.

Source: “Housing Inventory, Already Low, Dropped Further in January,” The Wall Street Journal

After a meteor struck western Siberia and more meteors threatened the entire globe on Friday, CNNMoney asked the question: Who pays for damage to a home if hit by a space object?

Rest easy, “your insurance covers falling objects," says Robert Hartwig, president of the Insurance Information Institute. In the rare events when meteors have crashed through home owners’ roofs over the years, insurers have paid the damage for those insured, Hartwig says.

“Blue ice” — the frozen sewage that sometimes falls from airplanes — is more common and is also covered if it falls from the sky onto your home, Hartwig told CNNMoney.

A remnant of a meteor struck in the Urals region of western Siberia Friday injuring more than 700 people and damaging nearly 300 buildings. It was referred to as a “once-in-a-century” event.

"The earth is pelted with 40 tons of space debris a year," says Laurie Leshin, a former NASA scientist. "Most of that is in teeny dust particles" and rarely does it injure people or damage property.

Source: “Who Pays for Damage From a Meteor?” CNNMoney (Feb. 15, 2013)

Updating the outside of a home pays off, according to this year’s Cost vs. Value Report. Real estate professionals ranked exterior improvement projects as winning the buyers’ eye and providing sellers with the most return on investment.

If your clients are wondering what home improvement projects will give them the best return on the sale of their home, tell them to think “curb appeal.”

When buyers are shopping for a home, the exterior can make (or break) the first impression. According to the 2013 Cost vs. Value Report, exterior replacement projects are among the most valuable home improvements that sellers can currently invest in, starting with the front door.

A steel entry door topped this year’s survey with an estimated 85.6 percent of the costs recouped at resale. The steel door replacement is also the least expensive of the 35 midrange and upscale remodeling projects included in the survey, costing $1,137 on average.

This is the 15th year that Remodeling magazine — in cooperation with REALTOR® Magazine — has released the Cost vs. Value Report. This year’s survey included more than 3,900 appraisers, sales agents, and brokers across the country who provided their opinions and estimates.

Exterior projects dominated the list with six of the top 10 most cost-effective midrange projects and eight of the top 10 upscale projects.

Read more here: http://realtormag.realtor.org/home-and-design/cost-vs-value/article/2013/01/2012-13-cost-vs-value-make-first-impression-count

Ultra-low mortgage rates mixed with housing affordability has made investing in a rental property pay off for investors. Many investors have eyed foreclosures, snagging them at rock-bottom prices, and turning them into rentals. Some home owners have also used the downturn in housing to purchase second homes and then rent out their first property, the Associated Press reports.

Demand for rental housing remains strong. "In this market, at this point, it's a sweet spot," says Chris Princis, a senior executive at financial advisory firm Brook-Hollow Financial and owner of two rental properties in Chicago. "You're getting the market where it's just starting to rebound, but still at the bottom, with what's looking to be a great recovery."

In earning a profit on a rental investment, Princis uses a formula: He charges 15 percent above monthly mortgage and maintenance costs. But it’s also important to know what comparable apartments are going for, and to be flexible in case you’re unable to find a tenant for months, experts note.

The best investments for rentals typically prove to be in areas with a strong history of rental demand, such as neighborhoods near universities or homes in residential areas that are near schools to attract families.

Source: “Got Cash, Good Credit? Experts Say Owning Rental Housing Can Pay Off Even as Market Recovers,” The Associated Press (Feb. 6, 2013)

After years of sluggish growth, home remodeling is rebounding and more home owners are tackling long-delayed house projects to spruce up their homes.

The growth in remodeling is coming at a time when more home owners are once again seeing equity in their homes as the overall housing market picks up. “Home improvements can further boost home values and help sustain both the housing recovery and economic growth,” Realty Times reports.

Spending on home improvement projects rose 9 percent in 2012 — the first increase since 2007, according to a study by the Joint Center for Housing Studies at Harvard University.

"With the U.S. economy and housing market now recovering, investment in the nation's housing inventory is also picking up,” according to the JCH report. “Lenders and new owners are rehabilitating millions of foreclosed properties. Older home owners are retrofitting their homes to accommodate their future needs... And with the huge echo-boom population moving into the home buying market over the coming decade, the remodeling industry can look to an even more promising future.”

The National Association of the Remodeling Industry expects growth to continue in home remodeling, particularly as more clients feel more stable in their finances and employment situations.

Source: “Home Improvement Growth Latches onto Housing Recovery,” RealtyTimes (Feb. 5, 2013)

After the holidays, buyers tend to start getting more aggressive with their house hunting. Search activity usually peaks around March or April in most states, according to a new study of home searches from 2007 to 2012 conducted by Trulia.

In September, searches slow down. By December buyer searches ebb to their lowest point of the year.

“Home-search activity swings with the seasons in every state,” says Jed Kolko, chief economist of Trulia. “Buyers and sellers can use these ups and downs to their advantage. Sellers looking for the most buyers should list when real estate search traffic peaks. Buyers, however, should think about searching off-season, when there is less competition from other searchers.”

The study revealed seasonal patterns of search activity state to state. Here are the months when online real estate searches peak in every U.S. state:

• January: Hawaii
• February: Florida
• March: Arizona, California, Delaware, Georgia, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Pennsylvania, Virginia, Washington
• April: Colorado, Connecticut, District of Columbia, Illinois, Indiana, Kansas, Minnesota, New York, North Dakota, South Dakota, Utah, West Virginia, Wisconsin
• May: Real estate activity does not peak in any state
• June: Mississippi
• July: Alabama, Alaska, Arkansas, Louisiana, Maine, New Hampshire, New Jersey, New Mexico, North Carolina, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Wyoming
• August: Montana and Oregon
• September-December: Real estate activity does not peak in any state

Source: “Trulia Reveals Best Home-Searching Season,” HousingWire (Jan. 29, 2013)

Is your kitchen begging for an update? Does that green and purple tile make you cringe on every trip to the fridge? If so, now might be the time to explore the latest trends in kitchen remodeling.

According to the National Association of the Remodeling Industry’s website, planning out exactly what you want out of your kitchen remodel will help you set realistic budgets.

And if you’re still not sure what you want or even where to begin, don’t panic. Here are some ideas from our country-wide panel of design and contracting experts who agree these are the six hot kitchen remodel trends for 2013.

Trend #1: Refacing Kitchen Cabinets

Do you want a fresh look for your kitchen cabinets, but don’t want to go through the hassle of actually replacing them?

Good news: Kathleen Donohue, an award-winning designer with Neil Kelly Designs, says that refacing cabinets - not replacing - is in. Donohue says this trend is in because people are watching how they spend their money. And since refacing is the process of just changing cabinet doors while maintaining the original cabinet structure, it’s a much less expensive option.

And when it comes to cabinet refacing, think simple and sleek, says Donohue.

“When refacing cabinets, a clean, simple contemporary look is winning out, both from an updating standpoint, and a trend to eliminate unnecessary clutter and fussy details that equate to high maintenance and complicated living - both unpopular trends,” says Donohue.

Trend #2: Stone and Solid Countertops

Are you dreaming about a gleaming new countertop to spruce up your kitchen? Consider quartz countertops, which experts say will be the material of choice in 2013 due to its durability.

“Stone countertops are losing ground to quartz composite countertops that are no-maintenance and the closest thing to bullet-proof countertop materials available today,” says Donohue.

Florida-based kitchen and bath designer, Patricia Davis Brown, says another reason for quartz’s popularity is that it has less fussy patterning than granite.

But quartz isn’t the only trendy material for counters in 2013, according to Mark Fies, board of directors member for the Metro D.C. chapter of the National Association of the Remodeling Industry.

Fies says more homeowners are asking for concrete countertops to create a custom and eye catching look. “With concrete you have endless colors to choose from, the ability to shape the surface as you see fit, and you can even embed materials and/or designs right into the surface,” he says.

Trend #3: Hardwood Floors

Are you thinking about replacing your worn and ripped kitchen linoleum with gleaming hardwood floors?

Good, because our kitchen experts agree that hardwood floors remain a hot kitchen remodeling trend for 2013, with a few new developments.

For example, “I am starting to see lighter shades of wood floors again - something that hasn’t been seen in a while,” says Chappaqua New York interior designer, Cami Weinstein.

And Brown sees the same trend in Florida. “The washed wood floors are back but, with a twist - wider planks and hand scraping, giving a beachy feel,” she says.

But hardwood floors can be a lot of work in terms of both installation and maintenance. Luckily, there are some options to give you that classic wood floor look - without the hassle.

For example, Goldberg and Donohue are seeing a trend in hardwood-looking floors made from durable and easier-to-install materials, such as engineered wood flooring, which is made from a plywood base with a real hardwood veneer.

“Engineered wood continues to be popular, but so is porcelain tile that looks like wood, with less maintenance and better water tolerance,” says Goldberg.

Trend #4: Stylish Sink

Adding a stylish sink can drastically change the look of your kitchen. So what will be trending in 2013? Fies says the answer is deep bowl sinks.

“Deep bowls are still the rage,” he says. “Although there are endless possibilities with today’s sinks, our homeowners want large, deep sinks to accommodate their larger pots and pans. The debate between single or double bowl is still in full effect, but we tend to see homeowners choosing the one bowl option.”

[Planning to remodel your kitchen? Click to find the right contractor now.]

After you’ve decided on the style, the next thing to consider is the material of the sink. And in terms of what will be trending for 2013, Weinstein believes stainless steel sinks will be hot due to their durability and flexibility.

“They just look great for a very long time and work with both modern and traditional cabinetry,” he says.

Trend #5: Appliances

If you’ve been thinking about investing in new appliances, this could be the year to justify buying that commercial stove. According to Weinstein, incorporating commercial-style stoves and other useful built-in appliances in kitchen remodeling projects is a hot trend for 2013.

“Commercial stoves and stainless steel appliances continue to be used and enjoyed,” she says. In addition, features that save homeowners time and space are becoming increasingly popular. “One of her favorites is a hot water dispenser. “They are great for a quick cup of tea, hot cocoa, or mixing with boullion cube for a stock,” she says.

Adding to that concept, Goldberg says kitchen features that do double-duty and save valuable kitchen space are also must-haves for 2013.

This includes microwaves that double as second ovens and warming drawers, and refrigerators with convertible drawers that can act as the fridge, freezer, or wine fridge.

“Multi-taskers that serve more than one need are hot,” says Goldberg.

Trend #6: Mixing Cabinet Colors

Is dark brown too bland, but red too vibrant? Will white cabinets turn a dull shade of gray after the kids put their hands on them? If you can’t decide on a color for your kitchen cabinets, never fear - our experts say it isn’t just one color that will be trending in 2013, but rather a combination of colors.

“Homeowners no longer need to choose between white, medium, or dark tone cabinetry,” says Fies. He adds that a variety of colors will provide visual interest, and can immediately give your kitchen an updated, modern look.

So what are some ways you could incorporate a combination of colors into your own kitchen?

“I am starting to see kitchen cabinetry painted in shades of cream, taupe and gray, often mixing in a darker wood for an island or the lower cabinets,” says Fies

Source: http://cavco.tumblr.com/post/41297332267/must-have-kitchen-trends-for-2013

Builders broke ground on new homes in December at the fastest pace in more than four years offering a “solid ending to 2012 and a promising start to 2013,” according to the National Association of Home Builders.

Housing starts soared 12.1 percent in December, reaching a 954,000 annual rate and the fastest pace since June 2008, the Commerce Department reported Thursday. Most of the jump was attributed to a 20.3 percent increase in multifamily construction last month, helping the sector return to a nearly normal production pace by historical standards. Housing starts for single-family homes rose 8.1 percent in December.

"With inventories of new homes at razor thin levels, builders are moving prudently to break ground on new construction ahead of the spring buying season to meet increasing demand," says Barry Rutenberg, chairman of the National Association of Home Builders.

Permits for future home building — an indicator of future building — also rose slightly in December to its quickest pace since July 2008. Permits rose by the greatest amount in the Northeast by 19 percent and 6.6 percent in the West. The Midwest saw a 5.7 percent decline in housing permits, while the South saw a 3.4 percent decline in December.

Source: National Association of Home Builders and “Housing Starts Climb to Highest Rate Since June 2008,” Reuters (Jan. 17, 2013)

Your home buyers have gotten approved for a mortgage and now they’re just waiting to make it to the closing table. Make sure they don’t throw their loan approval into jeopardy by making one of these common mistakes:

1. Making a big purchase: Tell your buyers to avoid making major purchases, like buying a new car or furniture, until after they close on the home. Big purchases could change the buyer’s debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy.
2. Opening new credit: Inform your buyers that now isn’t the time to open up any new credit cards.
3. Missing any payments: Home buyers need to be extra vigilant about paying all their bills on time, even if they’re disputing one.
4. Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your buyer's lender.

Source: “How to Keep Your Mortgage Approval Approved,” Realty Times (Jan. 14, 2013)

Homebuilders are changing their floorplans to accommodate more people living under one roof. As adult children and aging parents move in, home owners are finding the need for more defined, separate housing corridors within their homes.

For example, homebuilder Lennar is expanding the offerings of what it calls the “Next Gen” house. Introduced in western states like California, Arizona, and Texas, Lennar is now taking its “Next Gen” floorplan to North Carolina. The single-family home features a second door, separate from the main entrance, that leads to a 500-square-foot suite for a private residence. There’s also a door inside the main house to access the suite.

“We market it as two homes, one payment,” says Trish Hanchette, Lennar’s Raleigh division president.

Homebuilders also are finding flexible first-floor space is in high demand. The spaces can be used as a mother-in-law suite or changed into a nursery, extra bedroom, or home office.

Some in the housing industry are also calling some flex rooms “bounce back” rooms — so named for adult children who have moved back in with their parents because they're struggling to make it on their own.

“The number of 22- to 30-year-olds that are still living at home is at a record high right now,” says Hampton Pitts, an executive vice president with Ashton Woods Home. “So you have that college graduate that’s back at home looking for a job and maybe got their first job but not ready to be in an ownership or rent situation.”

Source: “Builders Target Families with Multiple Generations Under One Roof,” RISMedia (Jan. 8, 2013)

Want your kids to pitch in and help save energy? Green parenting bloggers weigh in on getting kids to flip the switch and stop wasting energy.

Kids have more important things to think about than turning off the lights. But discovering the lights blazing in an empty room for the umpteenth time is enough to make any parent scream, especially when the power bill arrives.

The good news is, you can train your kids about the importance of saving energy right from the start. Here’s great advice from some of our favorite bloggers who know a thing or three about kids.

1. Let them take charge.

Jenn Savedge, who blogs at The Green Parent, practices a little reverse psychology — she urges her kids to remind her to turn off the lights.

“They get such a kick out of ‘telling Mommy what to do’ that it’s first and foremost on their minds,” Savedge said. “If I walk out of a room without doing it, they’re happy to point it out and then dash back and do it for me.

“Works like a charm and keeps the whole thing from becoming just one more thing that Mommy nags them about.”

The key to getting children to do anything is to make it “theirs,” says Monica Fraser, a mother of two who blogs at Healthy Green Moms.

“I get them to police me because they get inspired to turn off the lights ‘better than me,’” she said.

2. Find their motivation.

For Sommer Poquette’s 8-year-old son, it’s money.

“If I have to ask more than three times for my son to do anything in particular, he loses $1 out of his piggy bank,” says Poquette, who blogs at Green and Clean Mom.

“I do this so he learns that leaving the lights on costs me money, but also because he’s very motivated to earn money and spend money, so I hit him where it hurts the most: the wallet! Amazingly, he listens very well and never lets me get to the fourth ask!”

Fraser’s kids are motivated by the idea of helping out friends and neighbors.

“Because my children are quite young, I have said that we must remember to turn lights off and shut water off when brushing so that our neighbors have enough,” she says. “They know their neighbors, and certainly wouldn’t want to use all the water.”

3. Incorporate non-verbal reminders.

Gentle reminders, such as stickers on the light switches, help kids remember to turn off the lights when they leave a room.

“They’re each in charge of shutting off their bedroom lights each morning and during the day,” Poquette says. “We have stickers above the light switches to remind them. As a family, we all offer each other friendly reminders.”

Sticky notes don’t just apply to light switches, either. Tiffany Washko, who blogs at NatureMoms, places Post-It Notes labeled “Turn Me Off” and “Unplug Me” all around the house as reminders.

“Putting them by the light switch, on the side of the TV, on the wall next to the power bar that controls game consoles, etcetera, is a great visual reminder,” Washko says.

“We also require each child to do a walk-through each morning before they leave for school and turn off anything that may have been left on. Once they consistently remember, we stop requiring it ... that is, until they have a few lapses, then we rinse and repeat.”

4. Explain to them why it’s important.

The full implications of saving energy may not immediately be clear to kids, but they’ll be more likely to remember to turn off the lights if they understand why it’s important.

“To teach them about the importance of turning off the lights and saving energy, we’ve read them several children’s books,” says Poquette. “My son understands the value of a dollar, so I’ve shown him our energy bill and explained to him what this means and how energy is produced.

“I think being up front with your kids, and explaining things to them in simple ways they can understand, is the best policy.”

How do you get your kids to turn off the lights when they leave a room?

Source: http://members.houselogic.com/articles/how-to-get-kids-to-save-energy/preview/e-energy/preview/

Here are a few surprising and simple ways to cut your energy bill this season.

Put lamps in the corners: Did you know you can switch to a lower wattage bulb in a lamp or lower its dimmer switch and not lose a noticeable amount of light? It’s all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.

Switch to a laptop: If you’re reading this article on a laptop, you’re using 1/3 less energy than if you’re reading this on a desktop.

Choose an LCD TV: If you’re among those considering a flat-screen upgrade from your conventional, CRT TV, choose an LCD screen for the biggest energy save.

Give your water heater a blanket: Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A fiberglass insulation blanket is a simple addition that can cut heat loss and save 4% to 9% on the average water-heating bill.

Turn off the burner before you’re done cooking: When you turn off an electric burner, it doesn’t cool off immediately. Use that to your advantage by turning it off early and using the residual heat to finish up your dish.

Add motion sensors: You might be diligent about shutting off unnecessary lights, but your kids? Not so much. Adding motion sensors to playrooms and bedrooms cost only $15 to $50 per light, and ensures you don’t pay for energy that you’re not using.

Spin laundry faster: The faster your washing machine can spin excess water out of your laundry, the less you’ll need to use your dryer. Many newer washers spin clothes so effectively, they cut drying time and energy consumption in half—which results in an equal drop in your dryer’s energy bill.

Use an ice tray: Stop using your automatic icemaker. It increases your fridge’s energy consumption by 14% to 20%. Ice trays, on the other hand, don’t increase your energy costs one iota.

Use the dishwasher: If you think doing your dishes by hand is greener than powering up the dishwasher, you’re wrong. Dishwashers use about 1/3 as much hot water and relieve that much strain from your energy-taxing water heater. Added bonus: you don’t have to wash any dishes.

Source: http://members.houselogic.com/articles/energy-money-savers/preview/

The Indiana Association of Realtors is reporting increases in November closed home sales. The organization says that number jumped 26.2 percent, compared to the same month in 2011. The average sale price throughout the state increased 5.1 percent.

The Indiana Real Estate Markets Report today released by the state’s REALTORS® shows that statewide, when comparing November 2012 to November 2011, the following occurred:

• The number of closed home sales increased 26.2 percent to 5,566,
• The median sale price of those homes increased 8.6 percent to $119,500,
• The average sale price increased 5.1 percent to $139,688,
• The percent of original list price received increased 0.9 percent to 90.2 percent,
• The number of pending home sales increased 17.2 percent to 4,640, and
• The number of new listings increased 4.9 percent to 7,055.

“Home sales continued to increase through the end of November suggesting that Hoosiers’ belief in homeownership remains strong as the year comes to a close,” said Karl Berron, Chief Executive Officer of the Indiana Association of REALTORS®. “But the biggest story of today’s report and perhaps the whole year is that homes have not only held their value, but also made price gains.”

The good news made last month is part of a trend that proves local residential real estate markets across the state continue to strengthen from the worst of the recession. November 2012 marks the following consecutive year-over-year gains in home prices and market activity:

• The number of closed home sales has increased year-over-year for 17 consecutive months,
• The median sale price of homes has increased for 12 consecutive months,
• The average sale price has increased for 11 consecutive months,
• Sellers received a greater share of their original list price for the ninth consecutive month, and
• The number of pending home sales has increased for 14 consecutive months.

Anyone looking to buy or invest should start with the sortable county tables of this report and then talk to a local REALTOR® who can give the most insight into what’s happening in a neighborhood, city or school district.

More about the Indiana Real Estate Markets Report

Established in May 2009, the Indiana Real Estate Markets Report was the first-ever county-by-county comparison of existing single-family home sales in Indiana. In March 2010, IAR added statistics on other types of existing detached single-family (DSF) home sales – condominiums, duplexes, townhomes, mobile homes, etc. – to the report.

The report became even more robust in August 2010. It now tells how the statewide housing market is performing according to eight different indicators, each with one-month and year-to-date comparisons, as well as a historical look. It also provides specific county information for 91 of Indiana’s 92 counties in a sortable table format, allowing for consistent comparison between local markets. IAR obtains the data directly from and releases this report in partnership with 26 of the state’s 27 Multiple Listing Services (MLSs), including the Broker Listing Cooperative® (BLC®) in both central and southwestern Indiana.

IAR represents approximately 15,000 REALTORS® who are involved in virtually all aspects related to the sale, purchase, exchange or lease of real property in Indiana. The term REALTOR® is a registered mark that identifies a real estate professional who is a member of America’s largest trade association, the National Association of REALTORS®, and subscribes to its strict Code of Ethics.

Source: Indiana Association of Realtors http://www.insideindianabusiness.com/newsitem.asp?ID=57258

New single-family home sales soared to its fastest pace in 2 1/2 years, jumping 4.4 percent over last month, as median prices also rose, the Commerce Department reported Thursday.

The sales pace in November for new-home sales was the highest since April 2010, the same time when the federal home-buyer tax credit had expired, the Commerce Department reported.

The median home price of new homes jumped 14.9 percent year-over-year, reaching $246,200.

"New-home sales are gradually picking up momentum as the economy improves," says Barry Rutenberg, chairman of the National Association of Home Builders. "Prospective home buyers who have been sitting on the fence for years are moving back into the market due to continuing low mortgage interest rates, attractive pricing and the improving economy.”

NAHB is projecting new-home sales to post a nearly 20 percent increase for 2012 over the previous year. NAHB’s Chief Economist David Crowe says he also expects a similar gain next year, but the “fiscal cliff” could set the housing market back and affect new-home sales and other aspects of the housing market.

Still, the pace of new-home sales is about a quarter from the high reached in July 2005.

For the first time since 2005, new-home construction is expected to add to economic growth this year.

Source: National Association of Home Builders and “New Home Sales Hit Highest Rate Since April 2010,” Reuters (Dec. 27, 2012)

The housing market is poised for a “gradual but steady” recovery in 2013, with housing starts, permits, prices, home sales, and builder confidence all on the rise, the National Association of Home Builders reports. But how close to “normal” is the housing market?

Remodeling has returned to normal levels, says David Crowe, the NAHB’s chief economist, using the 2000-2002 period as a benchmark for normal levels. Mutlifamily production is 69 percent of normal.

"It's the single-family market that has the farthest to go, standing at only 40 percent of what is considered a typical market," Crowe says.

The housing market is expected to make big strides to getting closer to more normal levels, due mostly to a rise in home prices and household formation that is adding to demand, the NAHB reports.

Single-family housing starts are forecasted to reach 534,000 units this year, up 23 percent this year from 2011. For 2013, single-family housing starts is expected to jump 21 percent in 2013 and another 29 percent gain in 2014 to 837,000 units.

Multifamily production is forecast to jump 31 percent this year to 233,000, and gain another 16 percent in 2013 to 270,000.

New single-family home sales are forecast to post a 20 percent jump this year to 367,000 and to rise another 22 percent in 2013, and reach 607,000 by 2014.

Source: National Association of Home Builders

http://realtormag.realtor.org/daily-news/2012/12/26/how-normal-housing-market

By taking preventive measures before cold weather arrives, you can prevent freezing pipes and the costly damage that goes with them.

Where the trouble lies

"Some pipes are more prone to freezing than others because of their location in the home," explains Paul Abrams, spokesman for Roto-Rooter.

Pipes most at risk for freezing include:

• Exposed pipes in unheated areas of the home.

• Pipes located in exterior walls.

• Any plumbing on the exterior of the home.

Preventative measures for outside

A frozen garden hose can cause more damage than a busted hose; it can actually burst an interior pipe. When the water in the hose freezes, it expands, increasing pressure throughout the whole plumbing system. As part of your regular seasonal maintenance, garden hoses should be disconnected, drained, and stored before the first hard freeze.

If you don't have frost-proof spigots, close the interior shut-off valve leading to that faucet, open and drain the spigot, and install a faucet insulator. They cost only a couple bucks and are worth every penny. Don’t forget, outdoor kitchens need winterizing, too, to prevent damage.

Exposed interior plumbing

Exposed pipes in the basement are rarely in danger of freezing because they are in a heated portion of the home. But plumbing pipes in an unheated area, such as an attic, crawl space, and garage, are at risk of freezing.

Often, inexpensive foam pipe insulation is enough for moderately cold climates. For severe climes, opt for wrapping problem pipes with thermostatically controlled heat tape (from $50 to $200, depending on length), which will turn on at certain minimum temps.

Under-insulated walls

If pipes traveling in exterior walls have frozen in the past (tell-tale signs include water damage, mold, and moisture build-up), it’s probably because of inadequate or improperly installed insulation. It might well be worth the couple hundred dollars it costs to open up the wall and beef up the insulation.

"When nothing else works, say for a northern wall in a really cold climate, the last resort is to reroute a pipe," notes Abrams. Depending on how far the pipe needs to be moved — and how much damage is caused in the process — this preventative measure costs anywhere from $700 on up. Of course, putting the room back together is extra.

Heading south for the winter?

For folks leaving their houses for an extended period of time in winter, additional preventative measures must be taken to adequately protect the home from frozen pipes.

• Make sure the furnace is set no lower than 55 degrees.

• Shut off the main water supply and drain the system by opening all faucets and flushing the toilets.

In extreme situations (vacation home in a bitterly cold climate), Abrams recommends having a plumber come to inspect the system, drain the hot water heater, and perhaps replace the water in traps and drains with nontoxic antifreeze.

Source: http://members.houselogic.com/articles/prevent-freezing-pipes/preview/?nicmp=rcrnl&nichn=link4&niseg=122012

Your home is probably your biggest investment. To manage it, create a financial plan that takes into account repairs, upgrades, mortgages, insurance, and taxes.

Use our home financial plan budget worksheet, and start by writing a list of expenses, such as:

• Mortgage

• Taxes

• Home insurance, including liability

• Repairs and maintenance, such as new furnace, roof, painting

• Voluntary upgrades, such as a swimming pool, a premium range, a new powder room

What will you learn from this home financial plan weekend exercise?

• How much you have to spend

• How much you need to allot in the short- and long-term for necessary maintenance and voluntary improvements

With this newfound grip on your home’s expenses, you can create a home financial plan that’ll help you there for years with maximum enjoyment and minimum anxiety.

The mortgage: Pay it—and then some

Yup, you already shell out a lot for your mortgage, but can you pay more? Even a little extra each month can add up to an earlier payoff. Let’s say you have $200,000 in outstanding principal and a 20-year fixed-rate mortgage at 5%. Your monthly payment is $1,319.91. But if you can manage to pay another $100 a month, you’ll save $14,887 in interest.

Run the numbers yourself for your home financial plan.

Advantages of an early payoff, says Alan D. Kahn, a financial planner in Syosset, N.Y.:

• Less debt means more money to spend later.

• It feels darn good to own your house outright as soon as possible.

• Minimal tax loss. Toward the tail end of the life of a loan most of your payment goes to the principal, not the interest, so you’re getting only a small tax break anyway.

Of course, if you’re still saving for retirement, put the 100 bucks elsewhere:

• A retirement plan

• An account for the inevitable home repairs

• An account for discretionary improvements, which can raise your home’s value

Insurance: Protect your property

Your vegetable garden is pointless without a fence to keep out rabbits; likewise, your home financial plan will come to nothing without an insurance “fence”:

Homeowner’s insurance. Basic coverage for your home and everything in it. The average cost is $636 per year but this varies widely by state.

Liability coverage. Protects you from a lawsuit if someone gets hurt on your property, for example. Your best bet: An umbrella policy. For about $300 a year you can by a typical $1 million policy.

Various disaster insurance policies. Optional policies cover flood, earthquake, and hurricane damage. As part of your home financial plan, you have to research to see what disaster coverage, if any, you need in your area, and what your standard policy already covers. For $540 a year you can buy flood insurance, for example.

Don’t under- or overbuy insurance

For your basic policy, get homeowners insurance with full replacement coverage in case your house burns to the ground.

That sounds simple, but heads up on calculation. Remember that you own a house as well as the land on which it sits. So even though you bought your home for $300,000, it may cost only $100,000 to rebuild it. Your policy limits should reflect this. This difference will vary widely by region.

Another heads up: Don’t make the common and potentially disastrous mistake of thinking that because your home has fallen in value you need less insurance. If you bought a $1.2 million townhouse in Florida during the boom, it’s true it now may only sell for $600,000. But the replacement cost of the townhouse hasn’t changed much, so you can’t improve your home financial plan by cutting insurance costs that way.

Other ways to cut your insurance budget:

• If you make structural improvements, such as adding storm shutters, your insurer may give you a break.

• If you belong to certain groups, such as AARP or veterans’ organizations, your premiums may be lower.

Repairs and renovations: By choice or necessity

You own a home, so you’ll be spending money on everything from a new faucet to—surprise!—a new roof. Freddie Mac and other authorities say as part of your home financial plan, you should be prepared to spend 1% to 3% of the market value of the home annually on maintenance. To be extra-prudent, open a savings account and make regular payments until your account reaches 1% to 3% of your home’s current value.

To help you budget:

Start with the inspection report you received when you bought the house. Did the inspector indicate that you would need a new roof in five years? A new furnace in 10?

Keep a log of your major appliances’ age so you can estimate when they’ll need replacing. Some estimated life spans:

• Roof: 20-25 years

• Heating systems: 15-20 years

• Range/ovens: 11-15 years

• Water heaters: 8- 13 years

Then get estimates on what replacements will cost and start saving.

Consider ongoing non-emergency maintenance, too. Do you live in New England? Price a snow blower and get bids from plow services.

Resist the siren call of the home equity loan to take care of everything. That just defeats your efforts to pay off the mortgage early.

Separate out what you want from what you need. A $50,000 kitchen remodel is nice, but you’ll recoup only 76% of the project cost your home’s resale, according to Remodeling magazine.

If you can afford to redo, go for it. Just don’t confuse your necessary repairs (new oil furnace—about $4,000) with your discretionary upgrades (Viking range—$6,000 and up).

Taxes: (Almost) no way around them

Even if your lender handles your property taxes from an escrow account, you need to budget for them in your home financial plan. They creep up almost every year, it seems. Take responsibility for tracking the changes in your area: Look over past tax bills to get a sense of how quickly they’ve risen in the past.

Or if your lender handles escrow and you haven’t saved your bills, ask for an accounting. The median annual property tax payment is $2,198, but that hides the enormous range in medians from state to state:

• New Jersey: $6,320

• New York: $3,622

• California: $2,829

• Alabama: $383

• Louisiana: $188

You can generally deduct property taxes on your federal return. A tax pro can tell you how much of a tax break you’ll get, to help you fine tune your home financial plan.

You may be able to reduce your tax burden by getting a reassessment. Do your homework first: Are comparable houses taxed less than yours? Ask the local assessor what formula is used to set tax rates. You can challenge the assessed value and get yourself a rollback.

If you’re in a special group, you might get some help from state or local programs. Check around to see what’s available in your area. New York State, for example, has its Star Program for giving senior citizens some relief from school-related property taxes.

Soyrce: http://members.houselogic.com/articles/home-financial-planning/preview/