2014 Trends in Home Design Bring Fresh Notes to the Kitchen

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

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

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

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

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

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

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

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

Slow and Steady Price Rise Boosts Housing Market Outlook

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

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

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

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

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

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

"Endless Winter" Fails to Deter Listing Rebound Outlook

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

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

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

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

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

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

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

Buying a Home: What About Flood Insurance?

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

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

The Zone Matters

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

Figuring Out the Cost

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

Making Your Decision

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

Getting a Loan Means Adapting to New Rules

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

QM: “Qualified Mortgage”

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

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

Ability-to-Repay Rule

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

Risky Business

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

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

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

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

Why Smart Homes May Not Be Such a Dumb Idea

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

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

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

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

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

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

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

Buying an Home Sight-Unseen Isn’t Always a Blind

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

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

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

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

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

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

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