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!!!