There are some radon dangers most have not thought of.  While most houses in RI are tested for radon in the air, few are tested for radon in the water.  Radon can be a danger in water if the water comes from a well or a public supply that uses a well.  Both radon in the air and water are pretty easy to cure.  Radon in the air is usually cured by a vent pipe system with fan, which pulls radon from beneath the house and vents it outside.  Water radon can be cured by a system installed just before the waters enters the home.  Here is the link to the EPA report:

 http://www.epa.gov/radon/pubs/citguide.html

Another danger just recently discussed is from granite counters.  I never thought of this, but now that it has come to my attention, it makes sense.  Since granite is natural rock, it could contain uranium which is what produces radon gas.  This is the quote from the EPA, "At this time, however, EPA does not believe sufficient data exist to conclude that the types of granite commonly used in counter tops are significantly increasing indoor radon levels".  Here is a link to their report on this:

http://iaq.custhelp.com/cgi-bin/iaq.cfg/php/enduser/std_adp.php?p_faqid=5103&p_created=1212758208&p_sid=qQmTaU9j&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD0yMSwyMSZwX3Byb2RzPTM3MCZwX2NhdHM9JnBfcHY9MS4zNzAmcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MQ**&p_li=&p_topview=1

 So, the best advice is test, test, test.  Either hire a professional to test or purchase your own kit.  Don't take it for GRANITE:-)

It is too early to tell, but things may be looking up in the market.  According to the RI Assoc. of Realtors, there are 6693 single family houses on the market compared with 6874 last year; 1536 multifamiles compared with 1864 last year; and 1762 condos compared with 1793 last year.  It will be interesting to see if this trend continues.

Also, last week, mortgage rates dropped once again.  The 30 year rate dropped to 5.78%.  What a deal!!  That means people can afford more home.  The down payment assistance programs are still available to all buyers and RI Housing and Mortgage's website had rates for their 40 year mortgage as low as 5.125% with 30 year rates as much as .375% lower.  http://www.rhodeislandhousing.org/index.cfm

Many people see our ads, "buy this home with no money down".  Then of course our required disclaimer, "qualified buyers".  I am sure most don't call, they think it's the old bait and switch.

There are actually programs where they still only require 3% down.  There are also non-profit organizations that will help with the down payment up to about 10%.  Some such programs are:  Genesis, Nehemiah and Ameridream.  So, how do these programs work?  The seller must agree to participate in the program.  The contract is then written for the purchase price plus whatever the down payment must be plus the closing costs(It cannot be more than asking price, but what home is selling over asking now anyway).  The closing costs are reimbursed to the buyer at closing.  At the closing, the program wires the down payment money to the closing.  Out of the seller's funds comes that amount plus a few hundred dollars.  The prepaid insurance can also be reimbursed at closing.  Question is, can the $300-$500 inspection money(if the buyer has chosen to have one-not required but certainly recommended) be reimbursed as well?  I have heard yes and no so I don't have a concrete answer on that. 

So, with all this said, why would anyone rent?  When you own, you get the tax write offs.  Rent is basically burning money.  You also have something to sell at the end.  I'm not saying buy more than you can afford, we all know we don't need that.  But if someone can find a home that will cost around what their rental is, why not???

So, you want to buy a mobile home in Rhode Island?

People often think this is the most affordable way to buy in RI.  If you can pay cash, you often pay much less than you would renting.  There are several issues to think about.  First of all, there is financing. 

 If you don't have the ability to pay cash, you will need to find a way to finance. 

You can't just go to any bank and get your garden variety pre-approval for this.  Unless the unit is on it's own land, you will have to go to one of only a handful of lenders that will be willing to finance one on leased land.  For anyone interested, I have compiled a list of these, contact me.  The rate is usually about 2-4% higher than the current rate on mortgages.  The finance companies are usually more strict with credit, as well.  They require 10-20% down and will finance for about 20 years but that depends on the age of the unit.  For the most part a mobile home built earlier than 1976 cannot get financing, but some lenders will approve them if the unit has had substantial updating.

Insurance is fairly easy to get on them, for some reason people think that would be the difficult part, it is not.

Inspections are the same as with any other home, and the price for those is the same, too. 

The park restrictions are probably the most important consideration.  Many parks do not allow motorcycles,

dogs or renters.  Some have age restrictions which could mean no children or no residents under 55.  Typically the age restricted parks will make exceptions for handicapped individuals.  There can also be credit score and income requirements.  Even when paying cash some may require a substantial monthly income to get a lease with the park which can be an issue for those getting Social Security or Disability payments.

So is it more affordable than a typical single family purchase?  Let's look at the numbers:

Let's take a Coventry starter home with 2 beds:   $144900 purchase price 3% down with a 30 year fixed at 5.68%, taxes of $2276/yr., fire tax of $188/yr., payment for taxes & mortgage would be $1019.32 a month.

Now a 2 bed mobile home in a leased land park I am using numbers from a park that allows children:  $62211 purchase price 10% down with a 20 year fixed at 9%, taxes of $529/yr., fire tax of $123/yr., park fee of $368/mo., payment for taxes, mortgage and park fee would be $926.09 a month.

Not as much of a savings as most people think.  Obviously, there a a vast number of scenarios out there, some may come out much differently.  But I think it's always a good idea to do all the numbers to make and informed decision.

I saw a clip on CNN.com about a family in Maryland who has decided to try to raffle off their house that they have been unable to sell in conjunction with San Mar Children's Home.   

Here is the clip if you would like to view: 

http://www.cnn.com/video/#/video/us/2008/02/02/bolduan.family.raffles.home.cnn

They are selling the tickets for $100. and must sell 5,000 to have the raffle.  If they fail to sell enough, they must return all the money, which sounds like a major headache to me.

                                                               It makes me need aspirin just thinking about it!!

In Rhode Island, all raffles must be approved by the Rhode Island State Police Charitable Gaming Unit.  I assume it is probably similar in Maryland which is why they have teamed up with a charity. 

I once had an out of state seller who had a property he wanted to get rid of.  He didn't want to deal with the tenants any longer.  I did not know him or anything about the property when he contacted me.  He found me online.  I found that I was the 5th Realtor who had the listing in 2 years.  I had my work cut out for me.  I was determined to sell this home.  I did my comparibles and got the seller to agree to a reasonable price.  I then got ready to market the property and GET IT SOLD.  Unfortunately, luck was not on our side and the home had a fire the weekend after I listed it. 

I now had to coordinate with contractors to show the property.  The owner wanted to get rid of it more than ever.  This was not the market to try to sell a investment property in this condition.  The contractor was doing a great job but the seller was getting itchy and inquired about auctioning the property.  I explained to him that in this market people at auctions are looking for bargains.  While there was a little room on his price, his loan amount did not allow for that much room.  He insisted I should do this and would not leave it alone.  Finally, I called an auctioneer in the area.  He said they would start the price at 30% below the lowest price home in the area.  Once I told the seller that, he rethought the idea.  I told him to be patient, we were priced well and would find a buyer.

Once the work was just about complete, I was able to find a buyer.  There were a few fire code issues that needed to be done to bring it up to code, but they were done and we CLOSED!!!!

Recently, I have been made aware of a service called Realtybid.com. 

Here is a link to an article The Providence Journal wrote about it:

http://www.projo.com/projohomes/content/HO_online011308_01-13-08_728H94C_v44.1b9e277.html

It remains to be seen if it will work in our market.  Sometimes things that take off in other parts of the country just don't seem to work here, we shall see.

In the end, price is still king.