Home Renovations to Invest In and Avoid In 2015

Home Renovations To Invest In And Avoid In 2015 Conventional wisdom tells us that any home renovation is a positive thing: money in is money out. Unfortunately, that’s not always the case. Some remodeling projects are a better investment than others, and the projects that yield the best return on investment can change from year to year. According to Remodeling Magazine’s 2015 Cost vs. Value Report, these five replacement projects will make the greatest percentage impact on the value of your home this year — accounting for cost-to-value ratio, the key to making smart home improvements with resale in mind:


1. Roofing Replacement

Roof replacement gives you the biggest bang for your buck in 2015, rising 5.9% over 2014 values at an average cost of $7,740. Roof replacement includes removing the existing roof and installing new shingles with underlayment, flashing, galvanized drip edges and trim.

2. Garage Door Replacement

A well-chosen garage door can make a powerful statement and add a beautiful accent to your home. Garage doors come in four basic types: swing-up, roll-up, swing-out or side-sliding. The cost to install a new garage door will vary depending on style and material, but average around $1,150. This cost generally includes the new door, galvanized steel tracks, rollers or hinges, and removal and disposal of the existing door and tracks.

3. Steel Entry Door Replacement

You can add elegance and security to your home by replacing your old entry door with a steel door. Not only is this the least expensive of 2015’s cost-to-value projects at an average of $923, but it also has the highest resale rating. This project includes the new door unit, jambs and threshold with composite stop. This also presents a great opportunity to choose a new lockset if you can’t reuse your existing one.

4. Vinyl Siding Replacement

While vinyl siding replacement is among the more expensive home renovations, it’s also the very definition of curb appeal. New siding and trim can transform the look and vitality of your home, increase resale value, and improve weatherproofing and energy efficiency. You can expect siding installation to cost between $5,600 and $8,000, depending on your location.

5. Fiberglass Entry Door Replacement


Fiberglass and steel offer superior strength and durability compared to their wooden counterparts. The cost-to-value ratio of replacing an entry door with a fiberglass door boasts an increase of 72% over 2014. The replacement process involves removing the existing door and jambs and mounting the new door unit and jambs along with exterior trim.

Projects to Avoid in 2015

2014 was the year of the major renovation; ironically, many of those projects are now at the top of the opt-out list for 2015. Opt-out projects for 2015 include:

Installing a Back-Up Generator: Last year’s biggest cost-to-value hero dropped like a stone in 2015. This one was hot after Hurricane Sandy but soon lost momentum.

Adding a Second Story: This big ticket renovation slowed in terms of investment by the end of 2014 — the result of an 11% drop in its cost-to-value ratio.

Home Office Remodel: The lowest reported return on your investment (reportedly 47.5%) is in converting a room into a home office. Potential buyers will be grateful not to have to pull out shelves or commercial grade carpeting when making your home their own.


Sunroom Addition: A potential buyer might see your sunroom as a heat siphon, maintenance nightmare or privacy concern. Like a backyard pool, a sunroom is a true matter of preference — and as an investment, it doesn’t even reach 50% on the cost-to-value rating.

Conclusion

All of these projects are worthy given the right home and the right conditions. Always make sure you’re using licensed, bonded and insured contractors for any projects you don’t want to take on yourself. Hiring a pro with a proven track record will more than pay off in the long run.

Written by Andrea Davis

Market Commentary for the Week of April 27th

This week brings us the release of six economic reports that may affect mortgage rates in addition to an FOMC meeting and a couple Treasury auctions. Two of the week’s reports are considered to be extremely important to the financial and mortgage markets and can cause a great deal of volatility. Throw in the FOMC meeting and we have the makings of a highly important week, not only for mortgage rates but also for the broader financial markets.

There is nothing scheduled for Monday that is likely to move rates. April’s Consumer Confidence Index (CCI) will kick-off the week’s schedule at 10:00 AM ET Tuesday. This index is considered to be an indicator of future spending by consumers. The Conference Board surveys 5,000 consumers from across the country about their personal financial situations. If sentiment is strong or rising, it is believed that consumers are more apt to make large purchases in the near future. However, if they are concerned about issues such as job security and savings, they will probably delay making large purchases. The latter is better for the bond market and mortgage rates because the expected slowdown in spending would keep inflation and economic growth to a minimum. On the other hand, a sizable increase could hurt the bond market, pushing mortgage rates higher Tuesday. It is expected to show a reading of 102.2, which would be an increase from March’s 101.3 reading. The lower the reading, the better the news it is for mortgage rates.

Next up is the first of this week’s two key pieces of economic data. That would be the preliminary version of the 1st Quarter Gross Domestic Product (GDP). This is arguably the single most important report that we see on a regular basis. The GDP is the sum of all products and services produced in the U.S. and is considered to be the best measure of economic growth or contraction. I expect this report to cause sizable movement in the financial markets Wednesday and therefore the mortgage market also. Analysts are expecting it to show that the economy grew at an annual rate of 1.1% during the first three months of this year. That would be a much slower pace than the 2.2% pace of the final quarter of last year. A smaller increase or a decline would be considered good news for mortgage rates. But a stronger than expected reading would almost certainly cause stock prices to rise and bond prices to fall, leading to higher mortgage rates Wednesday morning.

This week’s FOMC meeting will begin Tuesday and adjourn Wednesday afternoon. It will likely adjourn with an announcement of no change to key short-term interest rates, but we may see some volatility in the markets following the post-meeting statement. If the statement gives any hint of change in their current forecasts on when they expect to adjust key short-term interest rates, we could see a sizable change to mortgage rates Wednesday afternoon.

Thursday has two reports scheduled that are worth watching. The first is March’s Personal Income and Outlays data at 8:30 AM ET. It helps us measure consumers’ ability to spend and current spending habits. This information is important to the mortgage market due to the influence that consumer spending-related data has on the financial markets. If a consumer’s income is rising, they have the ability to make additional purchases in the near future, fueling economic growth. This raises inflation concerns and has a negative impact on the bond market and mortgage rates. Current forecasts are calling for a 0.2% increase in the income reading and a 0.5% rise in spending. If we see smaller than expected readings, the bond market should open higher Thursday morning.

Also early Thursday is the 1st Quarter Employment Cost Index (ECI). This index tracks employer costs for wages and benefits, giving us a measurement of wage-inflation. If it shows a large increase, we may see wage inflation concerns rise as employers will need to pass those increases into the pricing of their products and services. That would cause the bond market to fall and mortgage rates to rise. A smaller than expected increase would be good news for the bond market and mortgage pricing although I doubt this report will affect mortgage rates. Current forecasts are showing a rise of 0.6%.

The week closes with the two more reports, one of which is considered to be a key piece of data for bonds and mortgage rates. The University of Michigan will update their Index of Consumer Sentiment for April just before 10:00 AM ET Friday. This report gives us an indication of consumer sentiment and their willingness to spend. Current forecasts are calling for little change from the preliminary reading of 95.9. This means that surveyed consumers were just as optimistic about their own financial situations as they were earlier this month. This data is relevant because if consumers feel better about their own financial and employment situations, they are more apt to make a large purchase in the near future, fueling economic growth. I don’t expect this report to have a significant impact on bonds and mortgage pricing unless it shows a noticeable revision due to the importance of the day’s second release.

The Institute for Supply Management (ISM) will post their manufacturing index for April late Thursday morning in the second highly important report of the week. This is usually the first important economic report released each month and gives us an indication of manufacturer sentiment. A reading above 50 means that more surveyed trade executives felt business improved during the month than those who felt it had worsened. This points toward more manufacturing activity and could hurt bond prices, pushing mortgage rates higher. Analysts are expecting to see a reading of 52.0, up from March’s 51.5. Ideally, bond traders would like to see a reading below 50.0 as it would hint at contraction in the manufacturing sector rather than growth, but a decline from March’s level would still be good news for mortgage shoppers.

In addition to this week’s economic reports, there are two relatively important Treasury auctions that may also influence bond trading enough to affect mortgage rates. There will be an auction of 5-year Treasury Notes Tuesday and 7-year Notes on Wednesday. Neither of these sales will directly impact mortgage pricing, but they can influence general bond market sentiment. If the sales go poorly, we could see broader selling in the bond market that leads to upward revisions to mortgage rates. On the other hand, strong sales usually make government securities more attractive to investors and bring more funds into bonds. The buying of bonds that follows usually translates into lower mortgage rates. Results of the sales will be posted at 1:00 PM ET each auction day, so look for any reaction to come during afternoon hours.

Overall, I am expecting it to be a pretty active week for the markets and mortgage rates. We have several days that appear likely to be particularly volatile. Wednesday looks to be the best candidate for most important due to the GDP reading and FOMC meeting. The calmest day could be Monday, although I would not be surprised to still see some movement as investors prepare for this week’s activities. If floating an interest rate and closing in the near future, I strongly recommend maintaining contact with your mortgage professional this week.

Spring Cleaning Checklist

The weather has been glorious lately. Have you started airing everything out yet?

It’s important to regularly check on certain areas of your home for potential problems. Spring is also a great time to go through and do some decluttering. As you put away your winter wear, ask yourself if you really want to wear it next year. Look through all the holiday gifts you got. Are you keeping them because you feel obligated or because you really like them? You will feel better with less clutter.

Maintenance Problems To Fix Immediately

No matter what time of the year, if you see any of these problems, get them repaired quickly. The longer you wait, the more expensive it will be to repair it.

• Caulk in the kitchen and bathroom – replacing rotted walls or floors is very expensive
• Plumbing leaks
• Clean and seal outdoor decking
• Inspect for termites or other pests
• Inspect exterior paint and siding
• Inspect the foundation and concrete slabs for cracks

Other Basic Checks

Check on your roof for any missing shingles or tiles. Also, check to see if the shingles are turning up or down as they may need to be replaced. If you see any dark streaks, you probably have an algae problem. You can hire someone to pressure wash your roof to get rid of that.

Check the masonry for any places where you might need to repair the mortar. If you’re noticing that water is seeping in, look into getting sealer for the bricks.

Check your fireplace to ensure the spark arrestor is still in place, and that there are no cracks around it. You may not be using your fireplace, but the summer is a good time to do any repair work. Also if you used your fireplace a lot this winter, now is a good time to have it professionally cleaned.

Walk around your home looking for any cracks in the foundation.

Clean out your gutters and downspouts. Look for any leaks so you can get it repaired during the summer.

Check your attic for ventilation or any nests that may have been formed. You may want to consider getting a quote from an exterminator if you have squirrels, rats or mice nesting. You will need a professional if you have bats.

If you haven’t yet, change batteries in your detectors, and if you have battery backups for your sprinkler system. Test your sprinklers to ensure that they’re all clean with no nesting earwigs. Test the timing for your sprinklers. You won’t need as much watering during the spring as you will during the summer, so now is a good time to remind yourself how to program the sprinklers.

Replace filters in your heating and air conditioning units. Clean out any debris from the air conditioner. If you’ve had your ac unit under cover, take off the cover and clean dirt and leaves from around the unit. Store the cover somewhere dry and safe.

Prune your landscaping away from your house. Check how things are draining. They should drain away from the house so you don’t have standing water up against your foundation.

Power wash your concrete patios and driveways. Look into any repair work needed for your driveway, and look into giving it a good sealant whether it’s concrete or asphalt.

If you live where you need storm windows and doors, now is the time to take them down, clean them and store them safely.

Check the wood around windows and doors gently with a screwdriver. You may need to replace wood, or just hammer it down tighter. If there is a gap in your window or door larger than a nickel, it’s time to pull out the caulk and seal it up. Check weatherproofing strips for any holes or leaks. If there are, it’s time to replace them.

Wash those windows well and clean out the tracks using a vacuum cleaner and a soft brush.

Re-seal your basement and your wood deck if you have them.

If you do your own lawn maintenance, now is the time to sharpen the blades on your mower. And give it a little love with some well placed oil. Also, if it’s gas powered, follow your manufacturer’s directions for a tune up including changing out the spark plug.

Clean out the vents in your dryer. Hopefully you’re cleaning the lint out of the lint trap, but twice a year, it’s time to do some deep cleaning. You can hire someone to come in and vacuum it all up, or you can buy a kit to help you get rid of the big ball of yuck. To minimize the lint trapped, run your dryer for 20 minutes on air dry or no heat after every load. The moist duct is a magnet for trapping lint, and running on air helps dry it out so the lint can be blown through.

What to Do When Your Appraisal Is Low

Whether you’re refinancing or you’re selling, few things are more heart stopping than having a low appraisal. There may be real reasons why your home valued lower than you expected, and there are some things you can do to get it re-evaluated. Lenders rely on appraisals to determine whether the size of a mortgage being sought by a homebuyer is justified by the market value of the home they’re looking to buy. They want to ensure that they will be able to recover their funds in the event they have to sell the home should the borrower default on their mortgage.

There are things you can do to ensure your home has the best foot forward before the appraiser arrives. If you did that and it’s still low, read on.

What Is An Appraisal

So what is an appraisal? Is it really the value of your home? In truth, the value of your home is what someone would be willing to pay for it. So an appraiser has to estimate based on the size of your home, the condition of your home, and the value of homes that sold nearby.

The appraiser reaches a value through three methods. The first is the cost approach – what would it cost to replicate the house in its current location? The second is the Sales Comparison Analysis. The third, the income method, is typically used only if the home is in an area with a lot of rental properties.

The cost approach is a best estimate of what it would take to replace the existing structure at current market rates. Next the appraiser depreciates the value of the existing house using a variety of methods. This is where you may have some wiggle room.

Then, the appraiser compares your home to other home sales in the area. Ideally, they are within the last six months and are in close proximity. If you live in a rural area, this could be difficult, and again, could provide you with some negotiation.

What Else Can You Do?

Point out and have documentation for all home improvements that may not be obvious to the appraiser. When they compare your house to the comps, they’re evaluating improvements. They want to know the quality of the update. So, if you added in a back porch with a roof, and another house didn’t have that, the appraiser would adjust the value of the other house to what it might have been had they provided the same updgrade. It seems a little backwards, but they need to do an apples-to-apples approach.

You could talk to the buyer and see if they’re willing to pay what you feel the house is worth. Many buyers do not want to pay more than the appraised value, but you can always ask. Additionally, you can get the buyer to put some pressure on getting the appraised value adjusted.

Review your appraisal. Federal law requires lenders provide the appraisal upon request within 30 days. Look for potential factors that the appraiser may have missed when comparing the property to similarly priced homes that sold recently. It’s possible your lot size is larger and wasn’t taken into account.

With the buyer’s permission, contact their lender and review any discrepancies or information that the appraiser didn’t consider in the assessment. Another option is to ask the lender to order a second appraisal for comparison purposes. If the lender agrees, that can run from about $200 and up, depending on the home. And there’s no guarantee the new appraisal will turn out any different.

Have you had an appraisal that you felt was off?

Spring Cleaning Checklist

The weather has been glorious lately. Have you started airing everything out yet?

It’s important to regularly check on certain areas of your home for potential problems. Spring is also a great time to go through and do some decluttering. As you put away your winter wear, ask yourself if you really want to wear it next year. Look through all the holiday gifts you got. Are you keeping them because you feel obligated or because you really like them? You will feel better with less clutter.

Maintenance Problems To Fix Immediately

No matter what time of the year, if you see any of these problems, get them repaired quickly. The longer you wait, the more expensive it will be to repair it.

• Caulk in the kitchen and bathroom – replacing rotted walls or floors is very expensive
• Plumbing leaks
• Clean and seal outdoor decking
• Inspect for termites or other pests
• Inspect exterior paint and siding
• Inspect the foundation and concrete slabs for cracks

Other Basic Checks

Check on your roof for any missing shingles or tiles. Also, check to see if the shingles are turning up or down as they may need to be replaced. If you see any dark streaks, you probably have an algae problem. You can hire someone to pressure wash your roof to get rid of that.

Check the masonry for any places where you might need to repair the mortar. If you’re noticing that water is seeping in, look into getting sealer for the bricks.

Check your fireplace to ensure the spark arrestor is still in place, and that there are no cracks around it. You may not be using your fireplace, but the summer is a good time to do any repair work. Also if you used your fireplace a lot this winter, now is a good time to have it professionally cleaned.

Walk around your home looking for any cracks in the foundation.

Clean out your gutters and downspouts. Look for any leaks so you can get it repaired during the summer.

Check your attic for ventilation or any nests that may have been formed. You may want to consider getting a quote from an exterminator if you have squirrels, rats or mice nesting. You will need a professional if you have bats.

If you haven’t yet, change batteries in your detectors, and if you have battery backups for your sprinkler system. Test your sprinklers to ensure that they’re all clean with no nesting earwigs. Test the timing for your sprinklers. You won’t need as much watering during the spring as you will during the summer, so now is a good time to remind yourself how to program the sprinklers.

Replace filters in your heating and air conditioning units. Clean out any debris from the air conditioner. If you’ve had your ac unit under cover, take off the cover and clean dirt and leaves from around the unit. Store the cover somewhere dry and safe.

Prune your landscaping away from your house. Check how things are draining. They should drain away from the house so you don’t have standing water up against your foundation.

Power wash your concrete patios and driveways. Look into any repair work needed for your driveway, and look into giving it a good sealant whether it’s concrete or asphalt.

If you live where you need storm windows and doors, now is the time to take them down, clean them and store them safely.

Check the wood around windows and doors gently with a screwdriver. You may need to replace wood, or just hammer it down tighter. If there is a gap in your window or door larger than a nickel, it’s time to pull out the caulk and seal it up. Check weatherproofing strips for any holes or leaks. If there are, it’s time to replace them.

Wash those windows well and clean out the tracks using a vacuum cleaner and a soft brush.

Re-seal your basement and your wood deck if you have them.

If you do your own lawn maintenance, now is the time to sharpen the blades on your mower. And give it a little love with some well placed oil. Also, if it’s gas powered, follow your manufacturer’s directions for a tune up including changing out the spark plug.

Clean out the vents in your dryer. Hopefully you’re cleaning the lint out of the lint trap, but twice a year, it’s time to do some deep cleaning. You can hire someone to come in and vacuum it all up, or you can buy a kit to help you get rid of the big ball of yuck. To minimize the lint trapped, run your dryer for 20 minutes on air dry or no heat after every load. The moist duct is a magnet for trapping lint, and running on air helps dry it out so the lint can be blown through.

Living Single: Buying a House Without a Spouse

Home purchases among single people are a growing trend, as buyers take advantage of low rates and available funds to transition from renting to homeownership.

And by and large, those singles are not men.

“A few decades ago, a single woman buying real estate on her own was a rarity. Before the Fair Housing Act of 1968, few women could get approved for a credit card, much less a mortgage, without a husband’s or father’s signature,” said US News. “Now that’s all changed. In fact, the National Association of Realtors reports that since the mid-1990s, single women have purchased homes at nearly twice the rate of single men. Last year, single female homeowners made up 18 percent of household composition in the association’s Profile of Home Buyers and Sellers, compared to 10 percent for single men.”

Think you’re ready to take the leap?

“By educating and empowering themselves, single women have acquired a sense of homebuying confidence, making the dream of homeownership a reality,” said the Shriver Report. “It’s a process that doesn’t necessarily begin with love first – unless it’s for her dream house. She just needs a good real estate agent, an educated understanding of navigating the homebuying process, and a glass of champagne to celebrate after signing on the 50,000 dotted lines at closing.”

Here are a few things to consider:

Make sure you have enough money to make the purchase

First-time buyers may be saving for a down payment and not thinking about the other costs of buying a house, like closing costs, which can add thousands of dollars that you pay upfront. Be prepared to come up with an additional 2–5 percent of the purchase price of your home to cover them.

If the upfront money is hard to come by, FrontDoor advises that down payment assistance may be available depending on where you live. Some states have affordable housing programs that that can provide “first-time homebuyers with $7,500,” they said.

Make sure you can afford it monthly

Figure out the monthly payment of a house on any number of online mortgage calculators, and you might think it’s far more affordable than it is, because you’re only calculating principal and interest. Now factor in taxes, insurance, homeowner’s association fees, and Private Mortgage Insurance if you’re putting down less than 20 percent. This can add hundreds of dollars to your monthly payment. Even if you are approved by a lender, can you really swing it?

“Mortgage lenders may approve borrowers with good credit and other favorable factors for a home mortgage that—combined with their other regularly occurring debts—takes up one-third or more of the borrower’s gross pay. However, experts caution it could be a mistake to borrow as big a home loan as a lender will approve.”

Forbes recommends that the “home’s principal, interest, taxes and insurance not exceed 28% of your net income,” and Bankrate adds that “You should not have a mortgage that’s so big you still don’t put at least 10 percent of your income in a retirement plan.”

Be realistic about your goals

If you’re looking for pride of ownership and to improve your way of life, homeownership can be a great move. If your goal is fast cash, maybe not.

“It is a mistake to expect a quick run-up in property values,” said Bankrate. But “Owning a home can help women enter a more secure retirement if they pay down their loan balance over time.”

Don’t be afraid to shop for mortgages

You might be loyal to a friend who is a loan officer, but it doesn’t hurt to look around. Especially when “A Consumer Federation of America study in 2006 found that women received an outsized share of subprime mortgages,” said Bankrate. “Mortgage lenders may not provide women with all loan information and options because of stereotypes about women’s alleged lack of financial sophistication. Have the loan officer lay out all the options.”

They recommend “checking rates with several mortgage lenders, and don’t simply select a lender based on a recommendation from a friend. A recent study “found women head of households pay 40 basis points—nearly 0.5 percent – more on home mortgages than other borrowers. The co-author of the study asserted that, “The cost variance is due to the fact that 41 percent of women say they relied on a recommendation, while only 25 percent of men did.”

No matter which lender you go with, it’s important to get pre-approved before you shop.

You want to know what you can afford before you fall in love with something that’s way out of your budget. Being pre-approved will also mean you can move forward quickly when you find the right house instead of potentially losing out to another buyer who was better prepared.

3 Tips for Selling Your Home This Spring

3 Home Sale Tips

A rise in rents is encouraging American’s in their 20’s and 30’s to look into buying a home instead of paying the high rents. Now is a good time to look into selling a home. Mid-March to mid-April is the best time to hang the sale sign nationally, with homes selling 15% faster and for 2% more than the average sale, according to Zillow. There is still a very tight inventory here in California, and new homes being constructed haven’t flooded the market yet. And mortgage interest rates are still low and affordable.

If you decide that now is the time to sell your home, we offer these three tips to make the process smoother.

Declutter and Spruce Up

Rent a storage unit and store in it all those boxes of college textbooks that are hanging out in the garage or an office. Stow away all of your photographs and memory books and yearbooks. Pack away all the extra sets of china that are hanging around. Maybe now is the time for a garage sale, or a large donation to your favorite charity. Get your home down to a very minimal amount of stuff. Then add in plants and flowers in the front to add a pop of color.

It’s important to depersonalize your home, and this may be difficult if you’re still living there. The people looking at your home need to be able to visualize themselves living there, not how you lived there.

Work With Your Real Estate Agent

You hired them for their expertise. Now help them to get the home sold to the best qualified prospect for the highest amount of money. Listen to them if they have suggestions about making some updates, or if they have opinions on the home sale price. Small projects that you may have been putting off could have huge returns on the sale price.

Keep the House Comfortable

If it’s cold out, you may be tempted to turn up the heat. Don’t. If people come in with their heavy coats or sweaters on, they won’t take off the jackets. Instead, they’ll leave quickly. And you want them to spend time in the house looking at how great it is.

Ensure that the house smells neutral or like baking cooking.

And keep lights on. You don’t want any dark corners. Make the home seem warm and inviting.

Don’t Make These Mistakes

These are some common mistakes home sellers make.

• Skipping the home inspection- Don’t let the buyer’s home inspection find something that you could have fixed first.
• Overpricing your home – “If you price it too high, it will just sit on the market, agents will stop showing it, and buyers will assume there’s something wrong with it,” says Jeanette Cook, a real estate agent in Burlingame Hills, Calif., a suburb of San Francisco. Your agent should show you comps of at least five homes in your area.
• Overpaying the commission- 63 percent of the real estate agents in our survey admitted that they negotiate their fees at least half of the time. And despite the widely held belief that 6 percent is the standard broker’s commission, almost half of the agents we surveyed typically charge just 4 percent or less.
• Hiring the first agent you meet- Talk to different people. You may still go with the first person, but you’ll have a stronger understanding of your options.
• Neglecting to do a Google search for your address – Make sure nothing negative comes up, such as an old lawsuit or public records that have inaccurate information about your home’s number of bedrooms. Also, ensure Google street view shows any upgrades you may have made.
• Putting your home on the market before it’s ready – Get it ready to put its best foot forward.

Tech to Attract Affluent Home Buyers

HGTV reported 46 percent of consumers see smart-home technology as important for their current and future residences. But luxury homebuyers are willing to make the ultimate sacrifice. According to Digital Interiors, 94 percent of buyers surveyed would sacrifice 1,000 square feet of living space for more technology in their new home. Oversized houses are no longer the driving trend in the luxury real estate market and agents are under pressure to respond to the demand. Here’s what affluent homebuyers are looking for and which gadgets are must-haves.

Get a Smart Thermostat

Outfit your listings for luxury with smart-home additions like a smart thermostat. The Nest programs itself based on your preferences and can adjust whenever you leave to conserve energy. Your clients can control the system right from their smartphones. Owners can warm up the living room before an evening entertaining clients. Talk about how they can jet set to their vacation home and simply check-in on their property as needed. The idea behind a smart thermostat is really about controlling the overall climate of the home as opposed to an exact temperature.

Enhance your Home Surveillance

Home security systems have always dabbled in the high-tech world of smart automation. In the past, most alarms simply triggered an annoying sound and contacted the police at signs of danger.

Today, home security cameras keep an eye on the inside and outside of the home with wireless cameras. A wireless camera system can be mounted to the wall or ceiling and monitored remotely. Home buyers are sure to be wowed by its sleek and discreet design. Some home security companies, like Lorex Technology, even offer subscription-free monitoring options, yet another attractive feature for potential buyers.

New owners can keep an eye on their home from vacation, at work or on a spontaneous outing without worry.

Go High-Tech Culinary

Updating a kitchen has always been a recommended way to raise a home’s price tag and attract buyers. But affluent home shoppers are looking for more than just new appliances and chef’s kitchens. The latest technology trends include no-touch faucets and smart refrigerators that can alert you when you’re running low on groceries. The LG model features an internal camera to check on its contents, built-in Wi-Fi to connect to your mobile device and offers available accessories that can be 3-D printed. Other high-tech touches like Bluetooth smart cooking thermometers tell your mobile device when your food is ready to create perfect dishes every time.

Upgrade your Luxury Entertainment

Just about every home has a flat-screen television; some piped for surround sound and home theaters. Let your clients take entertaining to a new level by controlling everything from one device like Savant. Your clients can adjust the lighting, change the channel on your smart TV and turn on music. A system like Savant can also help monitor your home’s security and adjust the climate as needed. While clients are getting ready upstairs for an evening with friends, they can adjust the entertainment area and living room downstairs to create a luxurious atmosphere.

Written by Realty Times Staff

Market Commentary for the Week of April 6th

This week has little in terms of economic reports scheduled that are expected to influence mortgage rates. We do have two Treasury auctions and the minutes from the most recent FOMC meeting that have the potential to affect rates though. Corporate earnings season also kicks off this week, which could be instrumental in driving stock prices significantly higher or lower. Since stock movement often affects bond trading, we will also be watching the earnings releases from some of the bigger names and bellwethers to help gauge bond direction and mortgage rate movement.

There is nothing of importance scheduled for release Monday or Tuesday. However, with the stock markets closed Friday due to the Good Friday holiday, they have not had an opportunity to react to March’s surprise employment numbers. Therefore, we can expect a very active day for stocks Monday and quite possibly bonds. I would not be completely surprised to see bonds extend Friday’s gains as a result.

The first events of the week will come Wednesday afternoon. One is the release of the minutes from the last FOMC meeting. Market participants will be looking at them closely as they give us insight to the Fed’s current thought process and individual Fed member opinions. Any surprises in the 2:00 PM ET release, particularly about inflation, economic conditions or when the first rate hike will take place, could cause afternoon volatility in the markets Wednesday and possible changes in mortgage pricing.

The two Treasury auctions are scheduled for Wednesday and Thursday. There is a 10-year Treasury Note sale Wednesday and a 30-year Bond sale Thursday. We could see some weakness in bonds ahead of the sales as participating firms sell current holdings to prepare for them. This weakness is usually only temporary if the sales are met with a decent demand. The results of the auctions will be posted at 1:00 PM ET each day. If the demand from investors was strong, the bond market could rally during afternoon trading, leading to lower mortgage rates. If the sales were met with a poor demand, the afternoon weakness may cause upward revisions to mortgage pricing Wednesday and/or Thursday afternoon.

Overall, look for the most movement in rates the latter part of the week. Wednesday could be the most active day of the week if the FOMC minutes reveal any surprises. If not, the best bet would be Monday. Tuesday appears to be the lightest and will probably be the calmest day for mortgage rates. Look for the stock markets to also influence bond trading and mortgage rates a good part of the week as traders react to the corporate earnings news. I am expecting it to be an active week for the mortgage market, so please maintain contact with your mortgage professional if still floating an interest rate.

April Fools!

Did you love playing practical jokes on people on April Fools Day? (And do you still enjoy it?)

Well, you wouldn’t be the first. Many big companies enjoy playing games as well. In fact, once upon a long time ago, the company Sun rewrote its homepage so no matter where the user clicked, it wasn’t where the cursor was. And the employees of Sun loved playing tricks on the founders including the time they managed to move Bill Joy’s car into the center of a pond behind the main campus.

Even the media enjoys hopping on the bandwagon. In 1957, the BBC ran a story about how spaghetti is harvested from trees. Quite a number of viewers contacted the station afterwards to find out how they could buy and grow a spaghetti tree. The BBC reportedly told them to “place a sprig of spaghetti in a tin of tomato sauce and hope for the best”.

So how did all of this tomfoolery get started? (You knew we’d get to the history lesson sooner or later).

In the Middle Ages, up until the late 18th century, New Year’s Day was celebrated on March 25 (Feast of the Annunciation) in most European towns. In some areas of France, New Year’s was a week-long holiday ending on April 1. Many believe that April Fools originated because those who forgot and celebrated on April 1 were considered fools for not remembering the new date. The use of January 1 as New Year’s Day was common in France by the mid-16th century, and this date was adopted officially in 1564 by the Edict of Roussillon.

However, the earliest known historical reference to April Fools’ Day occurs in a Dutch poem published in 1561, which predates the adoption of the Gregorian calendar by some 21 years.

Another problem with the calendar-change theory is that it doesn’t account for a historical record replete with traditions linking this time of year to merriment and tomfoolery dating all the way back to antiquity, and not just in the west.

So, we just don’t know. But we do like that the French call it Poisson d’Avril which translates to “April Fish.” How can you go wrong with that for such a whimsical and fun day?

And if you want a total productivity waster, go to the Museum of Hoaxes and see Top 100 April Fool’s Day Hoaxes of All Time, As judged by notoriety, creativity, and number of people duped. We apologize in advance.

April Fools. We don’t really apologize. Have a fun filled day.