Rhode Island

Final numbers for the second quarter from Newport County, RI.

Single Family
	# Sales	Average List	Average Sale	Median List	Median Sale	Days On Market
2008	259	$ 585,575	$ 544,958	$ 395,000	$ 366,500	131
2009	221	$ 456,464	$ 412,612	$ 319,000	$ 294,000	146
# or $ Change	-38	$(129,111)	$ (132,346)	$ (76,000)	$ (72,500)	15
% Change	-15%	-22%	-24%	-19%	-20%	11%

First the bad news. Median sale price is down 20% from last year. Average sales price is down 24% from last year. Overall the average sales price is down over 30% from peak in 2004. Some analysts are calling for a total reduction in value of US housing by 40% before recovery. So, if you look at it on the bright side, we are nearly through this awful period.

I do think our market will recover a bit faster due to the significant job creation at the US Naval Base and General Dynamics. Defense spending isn't going to slow down in our world today, so I think we are at, or very very close, to bottom.

The pending index is approaching 5 sales per day in Newport County. This is the highest the pending index has been in over 3 years!

Keep Hope Alive!

Ok, so why pose this question? Well, it has rained for 40 days and 40 nights, so I have been thinking of Noah. Since I am a mortgage consultant, I couldn't help myself... I started to wonder about the financing of such a project and if I could classify it as my second home.

If I were just to have my immediate family on the ark, I believe I can own it as a 2nd home. Just like the boat owners treat their large live-on boats as 2nd homes.

If I invite two of every some type, I would have to own the property as an investment property, unless I do not charge for their living expenses. They can all be my guests.

Yes, I am TIRED OF RAIN!!!! My mind needs the SUN!

HAPPY 4TH EVERYONE!

Ann Sabbagh

Vice-President

Seacoast Mortgage

508-243-1190

"When you choose me as your mortgage consultant, you choose a financial professional who cares about YOUR future"

Banks have slowed down on processing; we all understand this. But, when a bank does not fund on time, one must begin to wonder about the stability of that bank. It is becoming very apparent to me how necessary it is to have many banks in your "arsenal" as a mortgage lender in order to service the public in the best way possible. 7 more banks failed this week. It is not over yet.

It is also very apparent the importance of being a mortgage broker AND a mortgage lender. Although it is very costly to maintain lender and broker licenses and all the insurances that go along with being a lender, the wave of the near future is being a lender. REO's are now asking for approvals from lenders.

The industry is changing rapidly and those that are adversive to change will be left behind.

Ann Sabbagh

Vice-President

Seacoast Mortgage

LENDER AND BROKER

508-243-1190

www.annsabbagh.com

IMPORTANT INFORMATION FOR PAWTUCKET BUYERS

Dear Prospective Homebuyer,

Blackstone Valley Community Action Program and the City of Pawtucket, Department of Planning and Redevelopment are pleased to introduce the 2009-2010 Starter Home Grant Program, funded by the Pawtucket HOME Program. The following program guidelines shall be effective immediately, until further notice. You may be eligible to receive as a grant:

$15,000 (for purchase of a 2 or 3 family property in the Woodlawn or Pleasant View Neighborhoods)

$10,000 (for purchase of a 2 or 3 family property outside above areas)

$5000 (for purchase of a single-family property anywhere in Pawtucket)

$3000 (for condos anywhere in Pawtucket)

These funds may be used towards the down payment and closing costs related to your home purchase. In order to apply for the program, you must meet the following eligibility requirements:

Household Income Guidelines

Household Size Gross Annual

Income Limit (80%)

1 $41,000

2 $46,850

3 $52,700

4 $58,550

5 $63,250

6 $67,900

7 $72,600

8 $77,300

The program requires homebuyers to make a minimum contribution toward the purchase of their home, as indicated below. Please see the above chart for HUD income categories.

Family Requirements

TOTAL household gross income below 60% of HUD median requires buyer contribution of at least $500.

TOTAL household gross income of 60% to 80% of HUD median requires buyer contribution of at least $1,000.

Single Person Requirements

TOTAL household gross income below 60% of HUD median requires buyer contribution of at least $1,000.

TOTAL household gross income of 60% to 80% of HUD median requires buyer contribution of at least $2,000.

Mortgage Requirements

Prospective homebuyers may apply for a mortgage loan at the lender of their choice. However, participating lenders must adhere to the following guidelines:

The required down payment on any loan product shall not exceed 5%. (Buyers may choose to put down a larger amount if they are able to do so.)

The maximum interest rate allowed for mortgage loans in this program shall be no more than 3% over the prime rate at the time of application, and must be a FIXED rate.

Total closing costs for the buyer, (including attorney fees, broker fees, etc.) shall not exceed 3% of the mortgage loan amount.

Participating lenders must abide by all applicable laws including Fair Housing, Truth in Lending, and the Fair Credit Reporting Act.

No second mortgages will be allowed (with the exception of “Silent Second” such as that offered by Rhode Island Housing).

The program does not allow buyers to receive cash back at closing.

Homebuyer Education

All participants in the Starter Home Program MUST COMPLETE the Homebuyer Education/Landlord Training Program at BVCAP or at another approved agency. Please contact BVCAP as soon as possible to enroll in a course session. Programs are offered in English and in Spanish.

Eligible Properties

This program is intended for owner-occupied homes only. You must live in the home and use it as your primary residence upon completion of the purchase.

Displacement

You will not be eligible for any assistance if you plan to displace a currently occupied unit for any reason other than those stated in the current lease. If you plan to ask a tenant to move after you purchase the property, you may not use these funds.

Inspection, Repair and Lead Paint Requirements

In order to ensure that the property chosen for purchase is safe as well as affordable, a property inspection will be conducted at the beginning of the application process. If necessary, a lead inspection will also be conducted by a licensed lead inspector. These two inspections will be arranged by BVCAP and the City of Pawtucket. In addition, buyers must have, at minimum, a structural/mechanical and pest inspection performed.

(IMPORTANT: THESE INSPECTIONS MUST BE CONDUCTED WITHIN 10 DAYS AFTER A PURCHASE AND SALES AGREEMENT HAS BEEN SIGNED. FAILURE TO NOTIFY BVCAP IMMEDIATELY UPON SIGNING A PURCHASE AND SALES AGREEMENT MAY DISQUALIFY YOU FROM THE STARTER HOME PROGRAM!)

If any housing violations are discovered, particularly lead paint, you will receive notification and a time frame in which these violations must be corrected.

Federal regulations now require that all properties purchased with this type of grant assistance be certified as “lead safe”. If lead paint hazards are present, you will be required to have the necessary lead hazard reduction work done in order for the property to receive certification as “lead safe” upon re-inspection. You will be referred to available resources for funding the cost of lead hazard reduction work. Low interest home improvement loans may be available to qualified program participants to fund lead work, as well as other violations. Existing violations must be corrected in order for you to participate in the Pawtucket Starter Home Program. In cases of severe violations, the property may be determined ineligible for grant assistance.

Application Procedure

The first step in the Pawtucket Starter Home Grant application process involves pre-qualification to determine income eligibility. THIS SHOULD BE DONE BEFORE YOU BEGIN LOOKING FOR A HOME TO PURCHASE. In order to complete the pre-qualification, you must make an appointment with the BVCAP Housing Department staff and supply all of the following documents:

Birth certificates and Social Security cards for all household members. If household members are not U.S. citizens, proof of legal residency is required.

Income tax returns (copies of Form 1040) for previous tax year.

2 current pay stubs for all household members who work.

Current verification of all supplemental income (for example, FIP, SSI, Unemployment, TDI, Workers’ Compensation, Child Support, etc.).

Most recent checking and savings account statements.

Pre-qualification letter from mortgage lender.

Certificate of Completion from BVCAP’s Homebuyer Education Program (or approved equivalent).

Pre-qualification data is valid for up to six (6) months. If you have not found a home to purchase within that time, you must re-submit the pre-qualification information.

FUNDING FOR THE STARTER HOME PROGRAM IS LIMITED!! WHEN FUNDS HAVE BEEN DEPLETED, APPLICANTS WILL BE PLACED ON A WAITING LIST UNTIL ADDITIONAL FUNDS ARE AVAILABLE. Please note that income-eligibility alone is NOT a commitment that you will receive grant funding. Although you may have been pre-qualified, please remember that the property that you choose to purchase must meet all of the requirements outlined above, the mortgage loan product must comply, and there is no guarantee as to how long funds will be available. In all documents regarding the home purchase (offer form, Purchase and Sales Agreement, etc.), you should state as a condition of purchase “Subject to approval by the Pawtucket Starter Home Program”.

Please set up an appointment to complete the pre-qualification procedure for the Starter Home Grant Program as soon as you have all of the above documents. If you have questions regarding the program, please feel free to call me at 723-4520, ext. 264. We look forward to assisting your family in reaching the goal of home ownership!

Sincerely,

Daisy Luciano

Housing Coordinator

What does a buyer really know about the home they're buying?  Sure, inspections are done and you learn about any structural or safety issues.  But when you're buying a home you're not just buying the structure and land, but you're also buying the neighbors, the trash collectors, the mail carrier and so on. 

I know you have a lot to think about when selling your home, but after you go into contract, there is usually period of several weeks before you close.  Why not take a moment while your sale is pending to make the transition easier for the people buying it?  It's helpful to leave a list behind for the new owners with neighborhood info.  It will take you 5 minutes, and will make life so much easier for them. 

Here is a list of 10 suggestions:

1. When is trash/recycling day?
2. What is the mail carrier's name?
3. What are the friendly neighbor's names?
4. Where can they find the best pizza/Chinese/Italian food in the area?  It might be nice to leave behind any menus you have hanging around.
5. Where is the nearest grocery store?
6. Location of nearest hospital/fire station/police station and phone numbers
7. If you use a landscaper, what is their name, number and rate?  Or, if a neighborhood kid mows lawns, what is his or her name and number?
8. Local babysitters names and numbers
9. Are there any existing service contracts for pest control/boiler service, electrical service, etc? If so, provide contact information and paperwork.
10. Where are the nearest playgrounds, dog parks and walking trails/bike paths?

 

Bob Black REALTOR Williams & Stuart Real Estate 870 Oaklawn Ave Cranston, RI, 02920	Work: 401.942.0200 ext 28 Mobile: 401.261.1599 Bob@BobBlackOnline.com www.BobBlackOnline.com
Your Friend in Rhode Island Real Estate