Evansville Real Estate News Letter for October 2013

Market Watch

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

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

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

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

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

Secrets To Successful Showings the Second Time Around

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

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

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

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

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

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

Smart Renovation Moves Before Listing Your Home

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

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

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

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

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

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

Buying a Bank-Owned Home Takes Preparation, Patience

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

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

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

Get Pre-Qualified

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

Beware Potential Property Issues

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

Be Patient!

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

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

Comps are Real Estate Values' Incomparable Tool

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

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

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

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

• The structure
• Condition
• Amenities
• Location
• Neighborhood

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

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

Boomers’ Housing Choices Show Tilt Toward Comfort

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

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

• Home offices

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

• Large windows

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

• Wide hallways and doors

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

• Unified technology

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

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

Evansville Real Estate News Letter for September 2013

MARKET WATCH

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

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

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

One interesting thought I had after looking at this data was that it all made sense to me except I would have thought our days on market would be lower than it is, given all of the other market conditions. I asked another Realtor in our office what she thought and she said
“It’s simple. Houses priced right in excellent condition sell quickly. Houses that need work or are a little over priced just sit on the market”. She is right. If you want to know the right price for your home or if you need some tips on getting your house ready to sell give me a call today. If you want to see some homes visit FCTuckerEmge.com or give me a call. You can reach me on my cell phone at 812-499-9234.