PERFECT Time to Build Your Home!

What, are we crazy to suggest such a thing? Nope. Actually, like a good market contrarian, we can list a few very solid business reasons to build NOW.

1. Architects and Home Designers are either totally slammed working on major renovations for their top clients who may have decided to stay put or age in place... or extremely grateful for a nice plum ground up custom design to work on.
2. Builders are largely under-employed right now, so you will enjoy a choice of builders who are more willing negotiate your price and expect fantastic service.
3. Borrowers with high credit scores (720 or better) and sufficient assets to back up their project will have banks falling all over themselves to assist a custom project.
4. Builders can forget funding their own spec or custom homes (unless their client is taking on the financial risk) so you, Mr or Ms. Borrower will have all kinds of respect and control of your custom project coming your way.
5. Land values have plummeted due to the lack of developers able to fund construction projects so you will have more choice of lots going for rock bottom prices.
6. Materials costs are down for sheeting products, i.e., OSB board, plywood and other locally accessed products due to lesser demand.
7. Subcontractor labor costs are lower: $3.50 per square foot to frame a custom home now down from $6.50 psf last year (local source our region).
8. Green technologies are enjoying some very cool stimulus energy tax credits for solar and other alternative energy systems, so you can add some hot new upgrades to your home for great energy savings and better quality of life.
9. Energy efficient appliances are also enjoying local rebates from the appliance manufacturers as well as your local Public Utilities companies.
10. Better lighting design, including super efficient LED products are coming on the market that present huge energy and health benefits over current high efficiency models.

Whats not to like about all these advantages to building your home the way you want it for less $ per square foot? Just don't wait for the next wave of contrarians who can't find a nice spec home with all the perks of custom homes to get the message!

Happy custom building! Loannetter

© copyright 2009 susan templeton loannetter

Green is UnGreed!

"The greed that led the world economy into crisis will not defeat our commitment to good work." Rick Fedrizzi

This quote came in a letter from the the CEO of the US Green Building Council, Rick Fedrizzi, offering the hope for homeowners and those in the green building industry who are concerned about the viability of our Green Movement during tough economic times. With everyone questioning the viability of the housing market in general, he reminds us that good is always valued. In fact, when you come right down to it, good equals value. We tend to choose better things that last longer and forego short term gratification when the dollars really matter.

He reminds us that we cannot wait for change to be effected by our legislators, our bankers, our employers or our mentors. It's up to us to create these positive changes for ourselves. By voting for officials we can support and then NOT just leaving it up to them but to get to work behind them and speak about, write about, blog about and take our need for positive change into the center of our real lives.

Change is hard. Not changing and waiting for things to get better is harder. We can create our own agenda, our own thinking, our own actions, as ultimately our abundance and our freedom!

Good ideas, and good trends eventually do take hold once proven. I posted a basic green blog on a real estate interactive site a while back and there were very few comments. Since then, I've helped initiate more discussion on these values in my circle of influence, attended several Green Living and Building Expos, taught a Green Mortgages workshop, participated in a Green Home Bus Tour, visited a couple of New Green Home and Renovation Open Houses, started foward planning for a Better Living (shades of green) seminar, and been party to a conversation on LEED and local Health Inititaves with my local officals and University. I have been speaking with more clients who are interested in building smaller better, greener homes. The conversation with banks (fewer, leaner) about ways to fund these projects is an open dialogue...we aren't there yet but with the 2009 Housing Bill I am pushing hard for updates to the traditional Energy Efficient Mortgage including air quality, more dollars and ways toincorporate the Alternative Energy Tax Credits. This trend is certainly catching fire and is NOT a trend we will see reversed any time soon (while there is breath in my body!)

Good news catches on for a reason: In recent months, I have witnessed a number of great new technologies and models coming to the fore. Given that the 2008 Congress Bailout Bill did include some tax credit extentions for solar and alternative energy --that very fact may help folks with their acceptance levels. Trends I have witnessed coming online locally include prefab modular home companies, new alternative energy products, new publications and networks supporting green concepts in various forms. The sheer enthusiasm for things green is contagious. It's gaining momentum. As better home and lifestyle trends become more the norm, these concepts are gaining acceptance with appraisers, realtors, underwriters, and lenders. Perhaps because green choices make both economic, social and environmental sense!

The upshot of all this for homeowners who are building or renovatiing and want to do a better job is more choice and more options with more willing participants. So remember the new mantra of our times: Green is Good!

Catch the wave! Loannetter

For more on green building http://www.usgbc.org

Renovators Celebrate Summer!

RENOVATION SEASON IS HERE!

Summer FIXUP Season has arrived! Need a new roof, paint, landscaping, updated appliances or more? Many folks are staying put and fixing up rather than moving up these days-- in line with more sustainable values.

Look Before You Leap!
Many builders specialize in renovations so check around. Ask to see examples of their work and interview their clients...you want to know a contractor respects your family during the process! An architect or home designer can help you see your way through the planning phase and if needed, oversee the process for you. Some design centers offer a great range of one stop shopping for things like flooring and cabinetry and their sales staff can specify their products. However, this does steer you to a particular product range so you may benefit from the help of a consultant who will bring you samples for your specific needs.

Does Size Really Matter?
Before you blow up your house to enormous proportions ask yourself: how much space do you really need? Consider multiple use spaces, i.e., a family room with built in study zones. An extra closet with great shelving means your kids can put toys away rather than need that extra room to mess up. Better lighting or furniture is always a great way to freshen up your lifestyle.

As always: Get your building permits! Any renovation, whether you do it yourself or hire a contractor without a permit means the addition cannot be legally valued. The small addition of property taxes paid on your extra space or improvements will more than compensate for your home being sellable later on!

A Loan or a Line?
We offer a range or Equity loans and Lines for quick fixes. Renovation Loans work for 6 month terms on bigger projects. We offer all renovation programs including FHA Rehab loans which can help you buy and get rehabilitation funds at the same time.

Hint: Don't fall into the DIY trap, run up your Home Depot card, extend yourself with contractors all over town and kill your credit score!

Some lenders offer Bridge Loans for quick funds (3 months minimum) and high interest rates if you are into buying and flipping. Word of caution: beware the prepayment penalty...and have an exit strategy you can live with! The cost of doing business as a buy and sell renovator is worth finding a lender who is a) real and b) has funds to complete the contract. Most bridge funds to build or renovate include a decent funded contingency fee, no payments during the term, charge 5 points plus up front for their trouble AND (the best part) perform their obligations without quibbling.

Check out Dwell magazine this month: Renovate It! Modern Homes With Old Bones www.dwell.com

Contact Loannetter for your Free Construction Survival Kit. Our budget sheet can assist your Renovation or Custom Build project. A tight budget it the key to a happy end result for everyone concerned!

Stated Loans Still Around!
Great credit equals more trust and less documentation. With 740+ FICO scores we offer several stated income programs as long as you can verify assets necessary to close i.e., a few months cushion (2-6 months PMI depending on lender). Verified assets can be any form of liquid funds including your pension, 401K or other investments. Jumbo loans are still very affordable. Given recent rate hikes it pays more and more to guard your credit!

Click this Credit Link to order your lender report and analysis on our secure site or call and we can review your report over the phone. Don't underestimate the importance of your FICO score!

Happy Fixin! Loannetter

copyright 2008 susan templeton

Gliding Toward Green!

Manufactured and Modular Homes have come long way, baby!

History Lesson
If you happened to grow up in a Mobile Home park in the early 50's it was probably a lot of fun compared to previous sub-standard housing offered to waged farm and factory workers. These mass produced affordable homes were a fact of life in many rural communities. They meant home ownership and a lot more room for your buck. People lived in closer proximity to each other and were less isolated. In many ways they created a sense of community that felt more like a village where people looked out for each other, actually knowing and caring for their children and elderly.

What we didn't know then and we do know now is that Mobile Homes, now kindly referred to as Manufactured Homes, were quickly constructed with price in mind. Naturally corners were cut on things like materials. You were lucky if your roof lasted ten years. The real problems that have been identified since those early years have more to do with safety and health matters arising from those cut corners.

Hint: You know you have a Manufactured or Mobile Home when you note a red license plate affixed to each section. These registration numbers are recorded with Housing and Urban Development. If the home has been re-sided (and tags were covered) another label should be located inside the electrical panel. Once a home has been installed onto a privately owned parcel (rather than a rented lot) the title may be 'eliminated' to the land. If your home turns up elsewhere than its original location you have a problem. The fact it was moved indicates to lenders an increased risk of damage or unknown structural issues and you will have a very hard time getting a mortgage.

You see, a metal box welded to a metal chassis that has been moved down a highway and installed on a questionable foundation has a habit over time of becoming 'wobbly'. In some areas where building codes were a tad lax or didn't exist, these homes were set up by retailers in a hurry--actually set on crates or wooden blocks on dirt without proper tie downs. You could understand why the resulting photos after hurricanes show littered mobile homes strewn around like doll houses. Unfortunately people were in those houses what the time. In our area, snow loads could cause a poorly tied down home to topple!

Over time leaking roofs allow water to seep into the walls, soaking into the drywall, insulation and floors; building up mold and mildew and creating air quality and resulting health problems. Not to mention dry rot, followed by opportunistic insects...you get my drift. Many early Mobile Homes used substandard plumbing and electrical systems. In fact, if you have such a home built prior to 1978 it is practically unfundable due to the facts of it's lessened value. Things like roofs and siding tend to fall off or blow off. They had a certain shelf life. I hope I don't get any hate mail over this one (!)

Saying all this, Manufactured Housing was a giant leap forward from the dirt floor shanties many children in my rural area lived in. They served a very important purpose to help foster greater home ownership. In fact the Department of Housing and Urban Development, the FHA and Veterans Association (VA) endorsed Manufactured Housing and still do the majority of lending on these homes. There have been improvements since those early days with many companies providing a much greener and cleaner end product that is unquestionably more affordable.

Modular is Better
So-called Modular Homes were the first major upgrade on this model. Built in sections similar to a manufactured or mobile home, they are constructed on wooden floor joists just like a stick built home (not a steel chassis) and once installed on their foundations, they are classified as stick built. This is a real advantage for the homeowner as they do not tend to lose value over time in the same way a Manufactured or Mobile Home does. Assuming a Modular Home is correctly built and installed it should last as long if not longer than a traditional stick built home.

The Modular factory built and Kit or Panelized Homes offer both speed of installation and resource efficiency. Often built to Energy Star standards and many such homes feature "green label" design standards. For more on these trends visit the US Greenbuilding site: www.usgbc.org and search their database for Modular Homes.

Cost and Efficiency
These days, the costs of true custom construction elude most of us. Architects and builders are looking more closely at modular methods that can offer the options of mass production, clean factory (under roof) environments paired with higher quality design and materials. For one thing, being built under cover means you don't get your materials wet...a very good thing!

Factory built structures consume far less energy than standard buildings. In many ways, they deliver a cleaner product with less toxic materials due to modern prefinishing of floors and cabinets prior to installation. Common flooring and cabinetry emit VOC's (volatile organic compounds) including formaldehyde-laced particle board and dioxin off-gassing vinyl flooring which create health risks for residents, especially young children and the elderly.

Homes consume a vast portion of our energy...with heating and cooling using 20% of our national energy resources. Insulation is a big factor in saving energy. High performance green homes are 30 to 50% more energy efficient than “standard” homes built to code. They use less water and because are constructed without toxic building materials they are more pleasant and healthy to live in.

Enter the Glide House
A 'Glidehouse', designed by architect Michelle Kaufmann, has been selling throughout the USA and Canada in a range of floor plans and sizes from 672 to 2,016 square feet. The home has glass curtain walls, bamboo flooring, features nontoxic paints and uses carpet tiles and counter tops made from recycled materials. It features natural ventilation and maximized daylight, water conserving plumbing fixtures and offers consumers a choice of high efficiency energy appliances and heating/energy generating systems. The cost? From $120 to $160 per square foot!

Traditional home building can easily cost much more depending on your area and resources. We seldom see homes built for under $160 per square foot in our area. I know one very effiicient green builder reporting $135 per square foot-- but this is rare.

The one thing the Modular or Glide Home companies don't address in their sales pitches is foundation methods. Foundations are the very bedrock of any home and methods will vary with your soil grade (slope) and climate. True green homes should take into account Low Impact methods of foundation design....and there are many! After all, why cause more harm to the land than is necessary...we are only visitors here!

Hint: Enterprising builders who become familiar with Low Impact and Modular installation will enjoy a great end result and very happy clients. Endorse and support this worthwhile sustainable trend!

Go forth and prosper! Loannetter
© 2007 susan templeton

40 Acres and A Mule?

Hobby Farming Trend: Green Acres

Did you read your US History about Reconstruction after the Civil War? 40 acres was considered a livable farm for newly freed slaves who were willing to work for themselves. These days, a corporate farm is usually several thousand acres as small farms are being gobbled up. However, if raising a few herbs, lavenders or horses is your thing, you might do with much less. The trick for buying agriculturally zoned land for your gentle person's farm is to buy land that is not currently being farmed. Farming is a business--so land in production may be harder to finance up front.

Hint: If the land you love has an old farm house worth renovating, check out buying it with additional funds to renovate the homestead. A Renovation Loan gives you 6 months to renovate and is similar to a Custom Perm Loan in how it's managed. Specialist Construction Lenders handle this best. If a log home, modular or glide house is your dream, there are lenders who that specliaze in so-branded Green building methods including panelized, advance framing, and associated verdancy. Appraisers are the key here and Realtors who actually LIST these green home features are making green improvements much easier to value.

OH--and forget buying nice land with a mobile home unless it's post 1978 and a double wide home with a decent foundation. Older manufactured housing or a single wide home won't be fundable except at nosebleed rates.

Yes, there are Rural Loans and local banks who specialize in this area so that's a good start if what you really want is producing farmland. Residential lenders tend to balk anything over 50 acres or so unless it's typical for the area. Of course you WILL build that dream home they will be happy to have in their portfolio...so plan your investing accordingly. If you do need a second building for utility needs it you may be able to fund the second structure in your construction loan up front to save costs financing several projects.

Having grown up in rural farmland, I know farmers will do anything to keep their land and naturally banks count on this motivation. What that may mean is that farm houses sometimes fall into disrepair as a result of this over focus on land production. After all, you spend most of your time in the milking shed or on your tractor if that's your livelihood. Agriculturally zoned land is also harder to foreclose upon due to the land being your source of income so many banks won't touch rural land in production. 'Highest and best use' is the main determinant for land value. Banks like your house to be worth more than your land on a residential loan. That would suggest buying fallow land or land with pulp trees and then clearing it for your hobby farm. Do watch that little trap; land clearing is NOT cheap or easy. Not to mention wetlands mitigation (another very long subject). Just be sure to investigate permitted uses and build-ability. In this area we seem to have a new rash of flood mapping being handed down by FEMA much to the surprise of existing land owners. If you decide to buy a large parcel with plans to subdivide it later that will certainly increase the land value. Just be sure the lot sizes are allowed and timing is on your side as many areas have long term plans regarding subdivision.

In some farming areas, old apple orchards or dairy farms are being turned under for housing developments creating a political dilemma. Family farm groups may often protest this trend. Yet the need to pay for infrastructure for things as roads and schools depends on people paying taxes. It's a catch 22 for many rural areas. The conservation trend recently has been to preserve farmland in favor of cities and towns growing up rather than out. Sustainability means making choices that next serve the next generations so planners are struggling to catch up in areas where population is over-stressing their 50 year plan that became outdated in 10.

Many people will pay royally for their patch of green with a bucolic view. If you buy a nice home in a development next to a pig farm and the wind blows your way, it will be hard to complain to the pre-existing farmer. There are many cases on the books of just such disputes, so be sure you like the smell of ripe silage if you are moving near a dairy farm! Fortunately, the sanitary handling of animal wastes require farmers to take extra precautions to keep contaminants out of waterways., etc. but smells are harder to legislate! This tension between farmers and developments is a classic struggle. As cities move out, farms get squeezed. You may have noticed a increased urbanization going on in your town. Inner development helps to eliminate sprawl, reduce carbon waste of vehicles and convert brown fields and redeveloped lands to housing rather than put good farmland under houses forever.

Whatever you choice, if you do want to raise a crop or tend livestock, you'll find the effort of good dirt really worth it in the long term. Call your local County or State farm agency or check out their websites for local resources Their soils maps are quite a resource. Rural land and soil consultants abound to help you decide just what do to with your fine spread. Of course if you want to buy land and build your dream home/farmlette...call me...I love this stuff!

Happy growing! Loannetter

Winter Building Advantages

While colder winter temperatures and wet conditions may cause delays on some aspects of building, the benefits of starting your project in winter may outweigh the inconveniences:

Financial Advantages:
• By starting the building process before March, you can often take advantage of the previous year’s material supply prices and avoid price increases that often occur by April.

• An earlier start means you can lock in your mortgage interest rate sooner, which protects you should rates rise before spring.

• Subcontractors are less busy and easier to schedule (negotiable?) during the winter months

Forward Planning
• Ideally, have your basement dug before February, after which time the deep frost of winter has usually settled into the ground.

• Have your construction scheduled so that the work that requires warmer weather – exterior masonry, and roofing, for example – occur during the warmer months of early spring.

Lot Research and Purchase
• By researching lots during the winter months, sites are more ‘revealed’ by the lack of tree foliage and undergrowth. Wetland and drainage issues will also be more obvious than in dry months.

• Precisely because few buyers enjoy looking at sites during winter months, you will find less competition and more willing sellers.

Design and Permitting
• Winter is the best time to design and permit your project because most architects, engineers and planning departments have fewer projects in progress. They also have more time to discuss your concerns so it's a great time to investigate your options.

Happy building! Loannetter

(c) copyright Susan Templeton 2007