Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program.

• The FHA’s 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence.  Investors are not eligible for this program.  Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.
• A common misperception about the program is that the house needs to be unlivable.  Realistically, the property just needs to be outdated, according to a lender familiar with the program.  The property “just has to appraise below market value and then at market value with the repairs.”
• Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.”  Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.
• In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs.  One list of approved businesses can be found at 203kcontractors.com.
• Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable.  Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.

For additional information about the FHA 203(k) rehabilitation program, please visit http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

Ask your agent to give you a form called Termination of Buyer Agency. It will cancel oral or written agency agreements.

If you are an agent who wants to cancel the agency agreement, you may want to soften the blow and suggest that your client would be better off working with another agent who could more readily meet the client’s needs. Then refer that client to an agent in exchange for a referral fee.

If you are unhappy with the work being done by your agent, here are some tips to cancel the Listing Agreement:

• Ask the agent to cancel the listing. Be aware that Exclusive Right-to-Sell listings contain a safety or protection clause.
• If the agent refuses, call the agent’s broker and request a cancellation.
• If the broker refuses, ask the broker to assign another agent to you. Most reputable brokers who want to maintain good community relations will cancel a listing if the seller insists.
• If there are no workable solutions, call a real estate lawyer for termination assistance, but first, tell the broker of your intentions to do so. Sometimes that’s enough to get a release.

Leaving a vacation home outright to your loved ones can create more family conflict and problems than you might think.

While a vacation home may have been a peaceful haven for you and your spouse throughout the years, your children may not look at the house the same way when it becomes theirs to manage and maintain.

In fact, many heirs of vacation homes are simply unable to afford the yearly property taxes and related maintenance costs.  What mom and dad meant as a blessing actually becomes a burden to the children who were not prepared to assume these new responsibilities.

And what about those heirs that live too far away to enjoy the vacation property regularly?  Should they be held just as responsible for its upkeep as siblings and cousins who live nearby and are able to use it on a regular basis?  What kind of alternative might be available for them?

This is where working with a Silicon Valley wills and trusts attorney can be extremely valuable for families that need more flexible options when passing down a vacation home.

What appeals to a good second home candidate?   It’s all about these potential buyers assessing personal needs and desires.    Many of these second-home markets fall outside of extreme metropolitan jurisdictions and into just-off-the grid suburban areas with lush art scenes, recreational opportunities like golf, hiking, mountain biking, horeback riding and nearby national parks that lure in buyers.  For some cities, universities draw in homebuyers, whose children often live in the home while enrolled in school.

Another fact in second-home consideration is finding a place that may eventually turn into the primary home.  NAR reports that 34 percent of vacation homebuyers said that they plan to use their property as a primary home in the future.   For the prospective retirees, this is particularly common.

I am seeing many baby boomers who are planning to retire in the next few years take advantage of our low market prices with intent to move here after retirement.

One thing is certain:  Prices will go up.   It’s just a matter of when.   Our prices are at bottom, but how long it will take for them to start going up is uncertain.    So for the second-home curious types, it may be now or never.   If one is interested, you should start poking around now as the inventory is very low right now, which should be putting some upward pressure on prices.

The low supply and the low prices are about the same as they were in 2000.    If you are on the fence, I would recommend buying now because in two or three years when the prices go up, you’ll look back and think “I should have bought then!”

Where’s home for you?       If there was ever a definition of home, it no longer applies.    For many in this country, where they live is not their home any more than a house is a home.

Finding your home

So how do you make a strange place home once you land there?      This new place will only feel like home if you decide to make it home.   You have to put in the effort.   Here are some ways to do that:

• You make the place.     To make a place home, you need to make a conscious decision to be engaged and to connect with your community.
• Find some you know.    Having at least one friend or acquaintance in the new community makes a big difference.
• Make it click.  To be positively attached to a place, you will need a good social network.   This can be done through professional colleagues or through children’s schools.
• Create your patterns.   When you hit a new city, put a lot of initial energy into establishing your way around town and having your living rhythms in place.
• Get settled, then get connected.    Surround yourself with your familiar furnishings to create a nest, then work on the points you live between – school, work, stores, gym and that will begin to get people familiar with you.
• Loss is inevitable.  Try to anticipate what you’ll miss about your old ‘hood, beyond the friends and neighbors.    Think about the bookstore, coffee shop, small theater, fresh flower stand, sushi place, nail salon, etc.     Be proactive about replacing them and appreciate what the new town offers that your old one didn’t.
• Re-create what you love.   If that is a book club, start one of your own and invite new friends to join you.    Do you love art or gardening, find a new group to join and see what they have to offer.

KEY TO COMFORT IS BECOMING PART OF THE NEW COMMUNITY!

Sponsored by HI-12 and the Senior Resource Services in The Villages Golf & Country Club

Saturday, April 14, 2012

9 a.m. to 11:30 a.m.

Cribari East Parking Lot

Document Shredding On-Site

$8.00 for up to 20 lbs. with a Minimum fee of $8.00

Also, any flags needing to be retired will be collected.

Over the next two decades, baby boomers and their children, the echo boomers, will be the major players in the housing market.

It’s boomers and their babies that are going to have the major impact on U.S. housing over the next 20 years, according to new report from the Bipartisan Policy Center titled “Demographic Challenges and Opportunities for U.S. Housing Markets.”

Over the next two decades, the aging baby boomer demographic will boost the nation’s senior popular by 30 million, according to Census Bureau projections.   The demographic shift likely book the supply of housing, since people over age 65 typically release more housing than they absorb.

This creates a huge opportunity for the echo boom generation – the nearly 65 million born between 1981 and 1995. This group has been hit hard by recession at the same they’ve entered independent adulthood.  Reduced employment and income has limited their ability to form households and attain homeownership.

The increased supply could mean additional buying opportunities for the echo boomers, according to Lawrence Yun, chief economist for the National Association of Realtors (NAR).  Yun notes echo boomers could absorb 75 to 80 percent of the available inventory of owner-occupied housing by 2020.

The current market continues to favor homeowners, as rental-housing vacancy rates have declined over the past two years, and rents have been increasing, according to the report.

Spring is in the air and as the residential real estate market continues to improve, the Sellers are still looking for the highest price.

To improve your resale value, a smart home renovation can add value.  Some good ideas for relatively low-budget yet fruitful home improvement projects are adding an attractive front entry door, getting energy-efficient windows, installing new siding, or perhaps the most effective and rewarding option, replacing your garage door.

A new garage door is one of the best ways to improve your home with the confidence of receiving a solid return on your investment (ROI) when it’s time to sell.   Replacing a garage door offers the second-highest ROI at 83.9 percent, out of 35 midrange improvement projects listed on the 24th annual Cost versus Value report.  In some cities such as San Francisco, the ROI is 100 percent.

There’s no doubt that a new garage door is an affordable replacement option that improves your house’s curb appeal while also offering higher energy efficiency, safety and security to both you and future homeowners.

A new garage door not only offers a solid return at resale, but also beauty and functionality that help you to enjoy your home today.

The Villages Association, San Jose, California 95135, has been FHA approved and assigned condominium ID: S003717, with an expiration date of 03/19/2014.