What's the Best Season for Home Buying?

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

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

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

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

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

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

Buyer Beware: Strategies That Get You Nowhere

Anyone who is buying a house in Evansville-- or even just checking up on the market -- is likely to find that some of the rules of the game seem to have shifted. Particularly anyone expecting to be deluged by the kind of amazing deals being offered in 2008 and 2009 should see what I mean.

As the latest housing statistics continue to paint an upbeat picture, at least when it comes to bargain-priced properties, the days of multiple bids and ‘offers over asking’ are back. If you are weighing the advantages of buying a house in Evansville before interest rates and prices rise in earnest, it should be useful to take a look at some strategies that work -- and some that virtually never work:

1) Blanket Low-balling – Running around writing up a bunch of low-ball offers is a surefire way to get yourself ignored, or worse, miss out on an otherwise great property. A better approach? Work with a knowledgeable agent whose expertise in neighborhoods will allow you to check on the most recent comps, then write a serious offer.

2) Dismissing Imperfect Properties – The degree of your success in buying a house in Evansville can depend on starting out with a reality check: only very rarely is a property totally perfect for you and priced absolutely right.

3) Highest and Best - Unfortunately, the tempting low prices listed for some local bank-owned homes also means that it’s increasingly common to encounter the dreaded “multiple offer situation.” If you find yourself there, be prepared to submit your highest and best offer first -- you may not have another shot.

This changing market doesn’t mean we are headed into the kind of fever-induced ‘bubble’ we saw in the mid- 2000’s. But for those seeking a deal and waiting for the bottom of the market before buying a house in Evansville, the market does not seem to be waiting. 2013 is clearly the time to jump in!

Fix-and-Flip or Buy-and-Hold: Which Are You?

With the Fed having announced its intention to hold interest rates near 0% until at least mid-2015, even very cautious investors are recognizing that this provides a rare opening. If ever there were a time to start a real estate portfolio, it’s hard to imagine a better one.

 

For many, the first question is whether there is still an opportunity to buy foreclosed homes in Evansville. That answer is yes, for sure – but that is not always the only strategy that will get you to your goal. It all depends on you.Before we can develop your strategy, you first need to decide which type of real estate investor you wish to be:

 

The Fix-and-Flip Investor  - This type of investor is handy (or has a lot of contacts who are), and is familiar with remodels and improvement projects. Usually, at least part of the goal is to create an income stream from the investments. This investor buys a property at the lowest price possible, improves it, and sells at a profit as quickly as possible. This investor may have one or more projects going at a time -- with or without loans on the properties. This is the more hands-on type of investor.

 

The Buy-and-Hold Investor – This investor need not have a high degree of familiarity with real estate (as long as he or she has a source for accurate market advice), and plans to use the real estate portfolio for its long-term wealth-building potential. This investor may or may not buy foreclosed homes – the goal is to buy property at a price that, when rented, will generate cash flow that makes financial sense. This investor often takes loans on properties. This can be the least-involved kind of investor after purchase – especially if a property management company handles the day-to-day details.

 

Whether you are looking to buy foreclosed homes in Evansville, or to capitalize on one of the bargains now available in the traditional market, cool-headed, informed decision-making is at the core. If you are also looking for an agent to be by your side supplying up-to-the-minute market data, give me a call. We can talk about your goals, and come up with a buying plan that matches your investing style. You can reach me on my cell phone 812-499-9234.

Winter Time is High Time for Remodeling Tips

“What doesn’t bankrupt us makes us stronger,” writes Josh Garskof, a serial remodeler and contributing writer and/or editor for Money magazine, “This Old House,” and Martha Stewart Living. Local property owners who have attempted a remodel anytime recently are likely to find the humor – and the truth – in his wisecrack.

With the spring selling season just over the horizon, this would be about the right time for Evansville homeowners who are considering bringing their property to market to finalize plans and firm up any remodeling arrangements. Whether the project is just to freshen up a bathroom or re-landscape a whole backyard, Garskof offers the following tips:

Plan to Overspend – Yes, we all hate to acknowledge it, but surprises happen with predictable regularity. If you don’t allow for that cushion, you may find yourself in a tight spot when your contractor discovers a missing drainage system under the house.

Magnet Sweep – If you’re planning exterior work, have your team do a magnet sweep of the outdoor space when they are finished. Dozens of old, rusty nails can find their way into your lawn and into the mulch – nothing you want bare feet to encounter when summer comes (and the last thing you want potential visitors or agents stepping on during Broker’s Tour!)

Permits – Be sure to secure copies of a Certificate of Occupancy or other local code clearances from your contractor before you issue the final payment. It’s one way to help ensure the work is safe, up to code – and to have the paperwork handled when a sale is being finalized.

If you are preparing for spring and plan to do some remodeling before bringing your local property to market, I hope you will feel free to consult me before spending a single dollar. I’m here to help my clients save money where they don’t have to spend it -- and make money where they can. Especially when it comes to property improvements in Evansville, knowing today’s homebuyers can make a real difference. Email me at RolandoTrentini@FCTE.com today!

Must-have kitchen trends for 2013

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

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

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

Trend #1: Refacing Kitchen Cabinets

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

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

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

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

Trend #2: Stone and Solid Countertops

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

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

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

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

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

Trend #3: Hardwood Floors

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

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

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

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

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

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

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

Trend #4: Stylish Sink

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

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

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

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

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

Trend #5: Appliances

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

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

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

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

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

Trend #6: Mixing Cabinet Colors

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

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

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

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

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

Builders Build at Fastest Pace in 4 Years

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

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

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

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

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

Four Ways Buyers Can Mess Up a Loan Approval

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

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

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