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Real Estate Blog
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Monday, November 26 2012
According to the non-profit Demand Institute, this year nearly 35% of housing in the United States is now categorized as rental property. In our area as elsewhere, some of these properties belong to “accidental” landlords -- folks who had to relocate for professional or other reasons, but didn’t (or couldn’t) sell. Many others decided to buy investment properties when the prices of homes dropped so dramatically. One way or another, this fall a good many of our neighbors find themselves in the position of owning rental property for the first time.
What all new and long-time landlords have in common is the simple need to secure a trouble-free tenancy – which in many cases means securing professional property management. If you have a rental property yet are on the fence about the cost, some of the considerations that point to a professional for your property management solution look like these:
· A reputable localproperty management company knows how to find and screen qualified tenants at the same time they are complying with local and federal Fair Housing laws. It amounts to protecting you from potential lawsuits.
· Reputable property managers will take care of rental collections, protecting the cash flow that makes your investment worthwhile.
· Tenants who are handled professionally tend to stay longer – and that cuts down on costly turnover expenses.
· Experienced property management companies make sure that repair and maintenance work is completed promptly by licensed and insured professionals. This protects your asset while minimizing potential liability.
Property management may not seem to be the lowest cost solution, but for landlords who cannot spare the time to manage their property legally and carefully, finding one of the stellar property management companies in Evansville the best bet to protect that underlying asset and keep cash flowing. If you are one of those new ‘accidental’ landlords or are considering buying or selling an investment property, I am happy to share some of the best contacts in the industry! You can reach me on my cell phone at 812-499-9234.
Tuesday, November 20 2012
Things I am thankful for this year: health, of course -- for friends, family, myself -- and for the many things we all take for granted until something as devastating as Hurricane Sandy comes along to remind us of our good fortune.
And especially on Thanksgiving, I’m grateful for…my kitchen! Kitchens have become the center of activity in today’s home, whether during a casual weeknight family meal or a grand Thanksgiving feast for twelve. More and more of ourreal estate listings reflect just that: focused interest on the kitchen. Here are some relevant details that can draw interest to real estate listings in Evansville:
Floorplan – Is the kitchen open? Walled-off? Great yard view? Photos should be selected to highlight attractive layouts for effective real estate listings.
Appliances – New? Desired brand names? It’s amazing how prominent those concerns have become as interest in kitchens has been reflected in the real estate listings.
Finish – Have safety touches been added to the kitchen? Childproofed kitchen is a two-word real estate listings highlight worth featuring in any family-friendly neighborhood. One of the easiest updates is the addition of new hardware -- which can also make it harder for little hands to pull open cabinets while the adults are busy baking the world’s best pumpkin pie!
All kidding aside, I am thankful for all that we have here in Evansville. This Thanksgiving, Sandy has reminded us of all those who will be spending this holiday without a familiar place to come home to. If you would like to help Hurricane Sandy’s victims, a Red Cross page has been created to make donating easy: http://www.redcross.org/hurricane-sandy
Here’s to a safe and happy Thanksgiving!
Thursday, November 15 2012
When you search through the latest listings of Evansville homes, you first find those that fit your top-line needs. Then you winnow down that list. Some of the candidates will seem more appealing than others; and some will seem to be over- or underpriced.
Before making a final judgment on which homes bear a closer look, the most successful homebuyers also factor in qualities that may not be at the top of their own personal priorities list, yet which make a difference to the majority of homebuyers. In other words, they keep in mind the most important qualities that add value in market terms – that add investment value to homes that are principally your personal residential choice. Some of the more important ones:
· Location has a huge impact on a property's long-term price. Are amenities close by? Close enough to walk. Are homes in the immediate area well maintained? Is the property on a desirable block, or located next to a busy road?
· Taxes impact the overall cost of long-term cost – and when homes are listed, those figures are significantly displayed. Also important is whether there are any pending issues you should be aware of -- like a sewer bond or other pending taxes.
· Condition will become a major factor in years to come -- forward thinking will pay off in terms of overall value. A 20-yr-old water heater, for example, is going to cost sooner rather than later. Homes with excellent roof and foundation condition can add exceptional long-term value.
· Evansville homes with potential are homes with unrealized value. With smaller properties, it’s worthwhile to consider how doable it would be to add rooms or expand its square footage. Even if you don’t end up adding square footage, if homes are small for the neighborhood, a future buyer might.
This November’s historically low mortgage rates make it a terrific time to give me a call. Together, we’ll find the homes that are good fits for your family – as well as great long-term values.
Tuesday, November 13 2012
When anyone sets about readying a property for sale, some things are certain. By the time that home appears in the Evansville listings, its owner will have made sure that its overall appearance is neat, clean – generally well maintained.
Drilling down further, two of the areas prospective homebuyers focus most on are the kitchen and bathrooms. That’s why everyone puts the dishes away, sets the fluffy white towels out – perhaps even lights a scented candle or two. After that, most sellers settle down to see what happens…what the ‘luck of the draw’ will bring…Hold it! Luck?
Not really! The only luck that’s called for is the kind we make for ourselves -- the kind where preparation meets opportunity!
I take care of the opportunity: a good part of my job is creating it by executing a marketing plan that works! So all that is left is preparation: in this case, going the extra step by attending to some less glamorous (and less obvious) details. One example – a surprisingly impactful one – is a minor detail in those two focal rooms, the kitchen and bathrooms.
While the clean lines of nice tile work in either can increase the value of a home, soiled or broken grout will always work the other way. Even worse, if the grout shows mold or mildew, that detail can decrease the value of a property for sale by as much as ten to fifteen percent! (That daunting figure comes via research from the Microsoft Network’s web site).
The takeaway: if you are planning to list yourproperty for sale with a realtor this fall, here are some simple tips for creating some of your own “luck”:
· When repairing grout in a marble tiled-surface, avoid using sanded grout – it is hard to avoid scratching the marble’s surface.
· When cleaning grout, do not use brushes with metal bristles: they damage or erode the grout. Experts recommend using a 50/50 solution of vinegar and baking soda to clean the grout with a stiff (not metal) bristled brush.
· Using a grout sealer when installing tile or replacing grout can help keep it clean and in good condition.
· If you need to replace grout, bring a sample to the hardware store so you can closely match its color. Precise color is impossible to remember, and a poor match makes repairs stand out.
I always start new clients with an in-home evaluation -- we compare notes on areas that may need attention as we bring the home to market. If you are considering a sale, I hope you will put a call to me at my office right at the top of your to-do list! You can reach me on my cell phone at 812-499-9234.
Monday, November 12 2012
Last week’s annual National Association of Realtors® get-together opened with a grand gathering to hear what some economics heavyweights would say about coming conditions in the country.
You could hear a pin drop through most of it – despite the huge size of the auditorium. Our local real estate market is never in total lockstep with the national picture – but it certainly is affected by it. Economists are forced to play a guessing game, but the best are pretty good at it.
Wells Fargo’s senior economist Mark Vintner had good news and bad news. For those who have local real estate already in their ‘owned’ portfolio, despite the downturn of recent years, he thinks they own one of the few top-notch inflation-proof investments. “Real estate and gold,” he said. He gave convincing reasons why, despite almost any curves the middle-term future may send, the value of real estate (“housing”) should grow even if the economy unexpectedly weakens.
The not-so-good news was Vintner’s suspicion that the disparity in incomes will continue to widen, partly because rising rents and tough lending conditions make it hard for first-timers to make that first home purchase (of course, that’s good news for investors who own the rentals).
Of equal interest was NAR’s Chief Economist Lawrence Yun’s rapid-fire delivery of real estate stats and forecasts. He thinks mortgage interest rates will stay at their current historic lows for a while longer, but perhaps not so long as the Federal Reserve has been indicating. Longer term, Dr. Yun expects interest rates to rise gradually, but hold at the historically normal 5%-6% range. There were visible signs of relief as he went through the slide show of charts and graphs which illustrated why a return to double-digit inflation is unlikely.
The only moment of anything like humor came when one of the experts was asked about the global economy, and what will happen if no action is taken. “Europe has ‘kicked the can’ down the road until there is no road left,” he said, “and no can, either.”
Then he paused thoughtfully before adding, “But they’re still kicking.”
Friday, November 09 2012
Fifty percent of Americans recently surveyed say they expect home rental prices to rise in the next year, and it’s making them lean more toward home ownership, according to the Fannie Mae October National Housing Survey, which surveyed 1,000 Americans.
"This has been a year of steady growth in the percentage of consumers with positive home price expectations," says Doug Duncan, Fannie Mae’s senior vice president and chief economist. "Increasing household formation, encouraged by an improving labor market, is adding additional momentum to the housing recovery and putting upward pressure on rental price expectations. Expected increases in both owning and renting costs may encourage more consumers to buy and add further strength to the housing recovery already under way."
Rental price expectations continue to rise and are much higher than home price expectations, according to Fannie Mae.
More Americans say that with rising rents, home ownership is looking like a better option. Seventy-two percent of those surveyed say that now is a good time to purchase a home. Eighteen percent say it’s a good time to sell.
Still, the optimism over the direction of the housing market is met with some caution and predictions of a slow recovery--not a high speed one, according to Fannie.
Source: Fannie Mae
Friday, November 02 2012
Knowing how to evaluate, buy, and store firewood is key to the safe, efficient operation of your fireplace, wood stove, or fireplace insert.
Whether you burn fires as a supplemental heat source for your home or strictly for ambiance and pleasure, it’s important to know how to properly buy and store firewood. For homeowners looking to fuel a traditional masonry fireplace, fireplace insert, or wood stove, the goal should be the same: to get the best quality firewood for the best possible price.
Before picking up the phone, it’s important to know exactly what you want to purchase so that you can clearly express that to the wood seller, says Matt Galambos, a Maine arborist certified by the International Society of Arboriculture. This includes determining the quantity, species, and condition of the firewood, all of which affect its price.
How much to buy
Homeowners who intend to heat their homes through the use of a wood stove naturally will require more firewood than those who burn only the occasional fire for pleasure. A person living in the Northeastern U.S. who burns firewood as his or her primary heat source, for example, may require up to five cords of wood to get them through the season. In contrast, a weekend-only fire builder can likely get by on as little as a half-cord. Galambos estimates that for the casual but steady fire builder, one cord of wood should easily last through winter.
Measuring a cord of wood
A cord of wood is defined as a stack of cut firewood that measures 4 feet tall by 4 feet wide by 8 feet long, or any other arrangement that equals 128 cubic feet. The individual pieces must be stacked side by side rather than the looser crisscross style. Other measurement terms, such as ricks, racks, face cords and piles, have no legal meaning and are often banned by state weights and measurements agencies. Regardless what the load is called, says Galambos, it should always be converted to cords or fractions thereof so that homeowners can determine if they are getting a fair price.
Seasoning the wood
Freshly cut wood is composed largely of water. Not only is this “green” wood difficult to ignite, but burning it can lead to a dangerous buildup of creosote, the cause of chimney fires. Properly “seasoned” firewood is wood that has been cut to length, split, and allowed to air dry for at least six months until the moisture content dips to around 20%. Dry wood will appear grayish in color and the pieces will begin to exhibit splits and cracks on the ends. Compared to freshly cut wood, seasoned wood feels light for its size.
Though seasoned firewood is the only choice for immediate use, green wood shouldn’t be completely ignored, says Galambos. “If you have the room to store it and the time to dry it, buying green firewood can save you up to 25% compared with seasoned wood,” he says.
Hardwood vs. softwood
It’s a common misconception that burning soft woods, such as pine and cedar, leads to dangerous creosote buildup. As long as the firewood is properly seasoned, it can safely be burned in a fireplace or stove regardless of species, says Dr. John Ball, Professor of Forestry at South Dakota State University. But that doesn’t mean that all wood is created equal.
“Tree species differ widely in the amount of heat they produce when burned,” says Ball. Hardwoods like oak, maple, and madrone produce almost twice the heat compared with softer woods, such as spruce, pine, and basswood. Fires built with hardwood not only burn hotter, they last longer, meaning the wood pile won’t get depleted as fast. Homeowners can expect to pay a premium for 100% hardwood, but Ball cautions against purchasing cheaper “mixed-wood” loads that may contain little actual hardwood.
Storing firewood
Homeowners should consider storage long before the firewood delivery truck appears in the driveway, cautions Galambos. A cord of wood takes up a significant amount of space, and if not properly stored your investment will quickly begin to rot. Firewood that is not stowed in a protected space like a garage or shed needs to be six inches off the ground. Firewood racks or simple pallets work well. If exposed to the elements, the wood pile should be at least partially covered with a waterproof tarp. Experts caution against storing the wood too close to the house for fear of inviting pests.
Average prices
Homeowners can expect to pay $75 to $150 for a half-cord and between $150 and $350 for a cord of hardwood delivered and stacked. To save some money, a person with a large truck may elect to pick up his or her own load at the wood lot.
To verify the quantity, species, and condition of the firewood, it’s wise to arrange the delivery for a time when you’re home. Experts say, inspect the wood for type and condition before it’s unloaded, though quantity can only be accurately measured after it’s stacked.
Maximize your fireplace efficiency
It’s true that a traditional wood fireplace can never rival the energy efficiency of a wood stove or even a fireplace insert, but there are ways a homeowner can trim heat loss. Fire-resistant glass doors not only reduce the volume of heated home air that escapes up the chimney, they help radiate heat back into the room. Similarly, a thick cast-iron fireback is an old-fashioned device that absorbs and emits energy in the form of radiant heat. Check the fireplace damper for leaks and always tightly seal it when the fireplace is idle.
Read more: http://www.houselogic.com/home-advice/fireplaces-chimneys/buying-firewood/#ixzz2AzjlwPLk
Thursday, November 01 2012
It’s a guiding principal among Realtors that superior landscaping adds value to any housing for sale. In Indiana, different studies arrive at differing answers for how great that incremental increase actually is, but most agree that it lies somewhere in a range between 5% and 14%.
Needless to say, that is huge! Since there isn’t anything like a universal way to define ‘good,’ ‘bad,’ or even ‘average’ landscaping, you can’t pin down its precise value. Nevertheless, what is certain is that in offering any housing for sale, the result will be greatly influenced by the first impression the property makes – its ‘curb appeal’. Landscaping is a great part of that.
The landscaping term covers a wide swath of meanings including just about every part of a property that isn’t physically part of the house itself. Improving it can be simple and inexpensive – or not!
· A well-maintained lawn is commonly the first ‘must’ for improving the value of any housing for sale. A messy yard will put off most potential buyers immediately: that can make an otherwise sparkling property seem old and run-down. When you think of landscaping as a frame or prelude to what a home's interior has to offer…but your buyer has to get past it first!
· Adding and improving ornamental detail is one of the least expensive and most impactful ways to upgrade housing for sale. Professional landscapers know how splashes of color placed in appealing places can please the eye and distract from features that would otherwise detract from an overall impression. Long story short: be willing to freshen up over-the-hill plantings and planters before they become visual liabilities.
· Taking the long view, the time/budget tradeoffs are fundamental realities when it comes to more major plant landscaping. A tree planted now can mean a great improvement to any housing for sale five or ten years from now. Just ask a nurseryman what is involved in transplanting a mature tree!
Attractive landscaping adds a welcoming factor to any housing for sale. Moreover, there is another real benefit we don’t often think about: the increased pride of ownership that enriches the homeowning experience beyond its dollars-and-cents value.
This fall, with inventories trending lower, some homeowners may suspect that now could be the right time to list their Evansville home. If you are one of them, do give me a call to talk strategy and the best way to take seasonal advantage of your own property. You can reach me on my cell phone at 812-499-9234.
Friday, October 26 2012
Lately you may have noticed that it has become more of a pleasure to open the newspaper when you are checking up on real estate news. In addition to the Internet news feeds, I do still subscribe to some of the old-fashioned kind, too: the ones printed on actual paper (so you can tear interesting articles out and carry them around rather than just Ctrl+C and Ctrl+Ving them).
Given the definite possibility that paper papers won’t be around much longer, I enjoy them while I still can. The Wall Street Journal is one. I opened it up on Saturdayto find a headline at the top of the second page that got my attention: “Home Sales Rise For 15th Month,” it fairly screamed.
If you are a frequent visitor here, you know that I follow and comment on home sales and associated topics regularly -- but even I hadn’t realized that the trend has been going for such a long time. I took a look at the charts, and it is so!
Others noted the mark, too. The NY Times seems in a permanently grouchy mood of late, so it had a less ebullient take on the statistics (which originated with the NAR). But even they were forced to note that higher prices have become the rule rather than the exception. “The nation’s stock of existing homes for sale fell 3.3% last month…tight inventories have helped support home prices…,” the Grey Lady mumbled.
The Journal was more cheerful in approaching the latest numbers. “The markets need inventory right now,” they quoted the president of a leading appraisal firm. “The pent-up demand is enormous.”
You certainly can appreciate observations like that – especially if you are a homeowner who is keeping an eye on home sales since you might list soon. If you fall into that category, I hope you will check in with me to get a more precise readout of the Evansville home sales market, and what you might expect from this fall’sselling season. The Journal says, “…there are signs that demand could be picking up.” Since they also noted that national median home prices rose 11.3% from a year ago, you would have to say that’s a pretty safe assumption. You can reach me on my cell phone at 912-499-9234.
Tuesday, October 23 2012
Inventories of for-sale homes aren’t the only thing that is dropping. The amount of time homes are staying on the market is growing shorter as well—down 11 percent in the last year—according to the latest Realtor.com data.
Homes were listed on average 95 days, according to September housing data. That is down from 107 days a year earlier.
Homes are selling the fastest in Oakland, Calif., in which the median age of the inventory averages 21 days, which is 57 percent below what it was a year ago. Denver, Colo. boasts a median age of inventory of only 38 days, followed by fast-selling markets of Stockton-Lodi, Calif., with 43 days, and San Francisco with 44 days.
As the median age of the inventory is falling, inventories of for-sale homes continue to hover at record lows too, dropping 18 percent last month compared to a year ago.
“There’s a recovery,” Curt Beardsley, vice president of Realtor.com, told BusinessWeek. “Our market times are low and there’s actually a compression of inventory.”
Home buyer demand is increasing, with housing affordability still high and ultra low mortgage rates that have pushed home buyers’ purchasing power higher. The rise in demand has caused asking prices to also rise. Last month, the median asking price was $191,500, which is up 0.8 percent compared to a year earlier, Realtor.com reports.
Source: "Listings of Homes for Sale Drop as U.S. Housing Recovers," BusinessWeek (Oct. 15, 2012) and REALTOR® Magazine Daily News
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