The 2010 Federal Census & Rural Development...

I was recently asked to write an article for "The Arkansas Realtor", which is a monthly periodical distributed by the Arkansas Realtors Association to its members state-wide.  That being said, with permission of the Arkansas Realtors Association, here is that article.  I hope you find it informative.

THE FEDERAL CENSUS AND RURAL DEVELOPMENT:

By Dwayne Hatt, ABR, SFR

Published in the February, 2011 Edition of "The Arkansas Realtor"

As many of you may know, the USDA Section 502 Single Family Housing Loan Guarantee Program (otherwise known as Rural Development or RD) plays an integral part in making the dream of home ownership become a reality for many low-income households and first-time home buyers not only in Arkansas, but across the nation.

The USDA Section 502 program has come under much scrutiny over the past several months, specifically regarding the depletion of program funds and Washington’s delay in making these funds available to the public.  Many would-be homeowners who were pre-approved by their lenders for Section 502 funds found themselves in situations where a closing was either postponed by several weeks or they lost the home to another buyer who was able to procure more stable funding options.  Fortunately, conditional commitments were finally issued which pulled many homebuyers out of limbo and placed them into their new homes.  But there is yet another challenge facing the rural real estate market:  the 2010 Federal Census.

The results of the 2010 Census could be the next challenge impacting the availability of Rural Development funding for Arkansas real estate.  According to data obtained from the Cooperative Arkansas Realtors Multiple Listings Services (CARMLS), which is the largest MLS system in the state, approximately 7.4 percent of all 2010 home purchases in the CARMLS user area were funded by Rural Development loans.  While this number may appear small, when one considers that these transactions are generated in rural areas such as Greene County, Batesville, Baxter County, Carroll County, and similar areas, the number is quite significant.  USDA guidelines state that in order to qualify for the Section 502 Program, the population of a rural community cannot exceed 25,000.  Many mortgage loan specialists speculate that before rendering these areas ineligible to participate in the Single Family Housing Program, the USDA will take into consideration the following factors:

1. The rate and percentage of increase in an area’s population between the 2000 and 2010 Federal Census.
2. The average income of a rural area.
3. The percentage of unemployment of a rural area.

However, these are merely speculations.  According to Linda McCaslin with the Arkansas USDA Office of Rural Development in Little Rock, if the 2010 census officially reports that the population of a rural area has surpassed 25,000, “...[the] national office will continue business as usual until otherwise stated”.  This provides a bit of hope for rural real estate markets such as Van Buren, Bentonville, Russellville, Paragould, and other cities which are just on the threshold of becoming ineligible for Rural Development funding.

If you have further questions regarding the 2010 Census and its impact on Arkansas Rural Development, contact Linda McCaslin at (501) 301-3235 or by email at linda.mccaslin@ar.usda.gov.

Here are a few other 2010 residential financing statistics according to CARMLS:

CARMLS Residential Financing Statistics for 2010*
Financing Type:	Units Sold:	% of Total:
Rural Development	800.00	7.39%
Cash	1,868.00	17.25%
FHA Fixed Rate:	3,046.00	28.14%
VA	924.00	8.55%
Conventional Fixed Rate:	3,045.00	28.13%
Bank Financing:	327.00	3.03%
Other:	813.00	7.51%
TOTAL:	10,823.00	100.00%
*Based on residential units sold between Jan-Dec 2010 in CARMLS.

Makeovers & Staging: IT MATTERS!!!

Making the decision to sell your home can often be very difficult and the entire selling process can be both frustrating and exhausting at the same time.  Once you've chosen the right Realtor, ask him or her if there's anything in particular that you should change in your home in order to make it more inviting, less cluttered, and aesthetically pleasing to perspective buyers...and ask them to give you an honest assessment of your home.  Keep in mind, however, that your Realtor is a professional and you've hired him/her to market and sell your property, so the advice that you're given should be given serious consideration.


Don't make the sale of your home personal; instead, think of it as a business transaction.  If you're truly serious about selling your home, it is your responsibility to make sure your home caters to the general buying population rather than your own personal tastes.  For example, if you owned a furniture store and you stocked it with items that appeal to your own personal sense of style, chances are that you wouldn't make very many sales and eventually close your business.  The same concept is true when trying to sell your home.  If you take criticism of your home too personally you may risk losing a potential buyer.  Should you decide not to heed your Realtor's advice and refuse to take the necessary steps to update and/or neutralize your home, then you could be setting yourself up for disappointment.  Many of today's buyers have very little time to spare, so they want to purchase a home that is move-in ready.  If a buyer thinks that a home may require more time and energy than they're willing to expend, they will either (a) move on to another house, or (b) make a low-ball offer...and that's not what you want.


Take a moment to watch this short video clip provided by the National Association of Realtors.  The video provides valuable insight on what you can do to make essential, low-cost or no-cost updates to your home without breaking the bank.  Remember, it's better to spend a little to gain a lot!!!

...A Christmas Greeting

It appears that as we get older, the years seem to go by faster and faster.  I remember quite clearly what my mother told me on my 21st birthday: "You think the first 21 years went by fast?  Just wait!  Now they'll fly by even faster and you'll be 40 before you know it."  At the time my mother made that statement I remember thinking to myself that her statement was so cliche'...that I have all the time in the world.  However, as we all know, mom and dad are usually right when they give us advice...AND RIGHT SHE WAS!!!

When I turned 30, I was so excited.  I was looking forward to my 30s and that decade hasn't let me down one bit.  Have I had a few trials and tribulations along they way?  SURE I HAVE!!!  But the great times and experience I've acquired (and still acquiring) in my 30s has far outweighed any trial or tribulation that came, or will come, my way.

In less than three months, I will hit "THE BIG 4-0", and I must say that I'm a bit scared.  It's not until you hit that 40-year mark that you begin to realize that you truly are getting older, that almost half of your life is already gone, and what do you have to show for the first 40 years of your life.  The 19 years that have passed since my 21st birthday have been but just a flash in the frying pan, and my plan to retire at 50 is only ten years away.  THERE'S NOT ENOUGH TIME TO DO EVERYTHING I NEED OR WANT TO DO!!!  But then I stop, slowly count to ten, and realize that I have all the time I need.  Why should I rush things?  I should just continue to live life the same way I've been living it with no regrets and no expectations of how my future will play out for me.  As a matter of fact, that's EXACTLY what I'll do.

I am very thankful for everything that God has given me.  I have a great job, a roof over my head, a comfortable bed to sleep in, a car to drive, a wonderful and supporting set of parents, great friends/clients/co-workers, three handsome dogs, food on my table...I could continue on, but I'll stop there. I challenge each and every one of you to STOP what you're doing RIGHT NOW, think of someone who is less fortunate than you, and do something very special for that person.  In other words, PAY IT FORWARD.  If you can't think of a particular person or family that needs help then go to the local homeless mission and make a donation, ask them for the name of a family who is in need and buy them groceries so they can have a nice Christmas dinner, or even give a $20 bill, a smile, and a Christmas wish to that homeless person on the street.  God will bless you for your efforts, and that blessing will be returned to you when you least expect it...when you need it the most.

In the meantime, I would like to sincerely wish each and every one of you a VERY MERRY CHRISTMAS SEASON!!!  May each of your homes be filled with love, hope, and happiness.  

From my heart,

Dwayne

2504 Pruetts Chapel

Take a look at my listing at 2504 Pruett's Chapel here in Paragould.  This beautiful 3.56 acre estate within the city limits boasts 3,205 square feet and is sure to tickle your fancy.  Give me a call at (870) 476-2601 for more information.  THANKS!!!

Fielding a Lowball Purchase Offer on Your Home

By: Marcie Geffner*

Published: June 10, 2010

Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale.

Check your emotions

A purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that’s a counteroffer or an outright rejection. Remain calm and discuss with your real estate agent the many ways you can respond to a lowball purchase offer.

Counter the purchase offer

Unless you’ve received multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.

A counteroffer signals that you’re willing to negotiate. One strategy for your counteroffer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.

Consider the terms

Price is paramount for most buyers and sellers, but it’s not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is preapproved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.

Review your comps

Ask your REALTOR® whether any homes that are comparable to yours (known as “comps”) have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

Consider the buyer’s comps

Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counteroffer information about those homes and your own comps that justify your asking price.

If the buyers don’t include comps to justify their low purchase offer, have your real estate agent ask the buyers’ agent for those comps.

Get the agents together

If the purchase offer is too low to counter, but you don’t have a better option, ask your real estate agent to call the buyer’s agent and try to narrow the price gap so that a counteroffer would make sense. Also, ask your real estate agent whether the buyer (or buyer’s agent) has a reputation for lowball purchase offers. If that’s the case, you might feel freer to reject the offer.

Don’t signal desperation

Buyers are sensitive to signs that a seller may be receptive to a low purchase offer. If your home is vacant or your home’s listing describes you as a “motivated” seller, you’re signaling you’re open to a low offer.

If you can remedy the situation, maybe by renting furniture or asking your agent not to mention in your home listing that you’re motivated, the next purchase offer you get might be more to your liking.

*Marcie Geffner is a freelance reporter who has been writing about real estate, homeownership and mortgages for 20 years. She owns a ranch-style house built in 1941 and updated in the 1990s, in Los Angeles.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®

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My Inaugural Post...

Well, this is my very first attempt at starting a blog.  I've put off doing this for quite some time because I was always so afraid that I wouldn't have anything important to say, that my followers would find my posts uninteresting, or that I would end up posting once or twice then just letting it fall by the wayside.  So, I decided that my New Year's resolution would be to finally get over my fear, get over myself, get a jump-start on 2011...AND JUST DO IT!!!  All that being said, I sincerely hope that everyone will enjoy my blog.  I am very much looking forward to your comments, insight, conversations, concerns, etc.


So, until my next post...MERRY CHRISTMAS EVERYBODY!!!