Evansville Real Estate News Letter for December 2014

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.

Reverse Mortgages May be Great for Some; Not for All

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

Creating Listings That Stand Out from the Pack

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

Clean Up Your Credit Report, then Buy that Home!

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 

5 Questions a Tenant Should Ask Their Next Landlord

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

Autumn Advantage: Rich Décor Ideas for Homes for Sale

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 in Indiana

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

A Property Inspection Shows What You're Getting Into

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

School Districts Rate Highly in Home Buying Survey

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

Evansville Real Estate News Letter for 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

For Sale by Owner Can Be Risky Business!

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

How a Home Buyer Makes the Most of a Seller's Market

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

Real Estate: America's New Favorite Long-Term Investment

For real estate investors (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

Inexpensive Upgrades Boost Home Values

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

Interest Rates: All Quiet.for the Moment

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

Buying a Home: What’s New in Flood Insurance

 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

Evansville Real Estate News Letter for April 2014

                                    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!

New Home Market Reflects Shifting U.S. Patterns

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

Tradeoffs for Remodeling vs. Moving to a New

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

Simple Steps to Reduce Your Mortgage Costs

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

Five Useful To-do's After Buying a Home

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

Spring Market Tempts Some to Sell Their Rental Property

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

Beyond Spring Cleaning: Inexpensive Renewal Ideas

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

Evansville Real Estate News Letter for April 2014

Homeowners Watch Google's Latest Acquisition

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