Chichester Estates Area Update – 3rd Quarter

Chichester Estates Update

FHA Condo Buyers Get Relief Soon

HUD

In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) published a final rule which establishes a new condominium approval process. The polices become effective October 15, 2019. FHA’s new rule introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing; extends the recertification requirement for approved condominium projects from two to three years; and allows more mixed-use projects to be eligible for FHA insurance. “Condominiums have increasingly become a source of affordable, sustainable homeownership for many families and it’s critical that FHA be there to help them,” said U.S. Housing and Urban Development Secretary Ben Carson. The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA’s programs. As a result of FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually. Source: Forbes

Saratoga Springs Estates Update

saratoga springs estates update

The community of Saratoga Springs Estates has been quite busy over the past year.  There have been 28 sales with a median sales price of $499,000.  Days on market has averaged 79.  There are currently 6 active listings as of September 29, 2019 with two more properties in escrow.  Saratoga Springs has a Homeowners Association which is currently managed by Incline Property Management.  Dues cover common area maintenance and are currently $240 annually.  For more information contact Robert Stiles, REALTOR® at 775-309-8454.

Downtown Minden/Gardnerville Update

Minden Gardnerville RE Update

There were 30 sales in Downtown Minden/Gardnerville over the last 30 days. The Labor Day time period is typically the last big hurrah for many selling property. School has begun and most families will stay put till the end of the year or next summer. The median sales price was $389,500 with the average time on market of 75 days. Contact Robert Stiles, REALTOR® for Chase International to discuss your home sale at 775-309-8454.

Carson Valley Real Estate Update

Carson Valley Update

Here’s the latest Carson Valley Community update for our local real estate market. Sales activity listed below is for the dates between the 4th of July and Labor Day weekend. The Johnson Lane area had 15 sales during the time period. Prices ranged between $395,000 and $870,000. This is quite a departure from last year when the area had 25 sales. The Ranchos had 28 sales as compared to 23 last year during the same time period. Prices ranged between $279,000 and $595,000. It should be noted the Dresslerville area saw a substantial decline in the number of sales this summer by over 50% while the Downtown Minden and Gardnerville areas saw a total of 40 residential sales. This includes Chichester Estates, Heybourne Meadows and the La Costa At Monte Vista communities. The number of sales Downtown stayed steady with prices ranging from $285,000 to $596,000. The Ruhenstroth area had only two sales during the time period. The Pinenut area closed five. The north Minden areas of Sunridge, and Indian Hills had 16 sales as compared to 22 last year. Prices have ranged from $250,000 to $570,000. Lastly the Foothill and Genoa Lakes areas have seen an increase of over 50% in sales this summer. Lack of inventory has obviously been an issue in some communities. To obtain a value on what your home is worth give me a call at 775-309-8454. Thank you. Robert Stiles, REALTOR® Chase International

Coming Soon to Canyon Creek Estates

Canyon Creek Estates

I went to Canyon Creek Estates yesterday to check out this new construction coming on the market in September. The residence sits on just under 3 acres. It has 3 bedrooms + a bonus room, and 3.5 baths at approximately 3300 SF. The builder will come out soon with an asking price but it shouldn’t be over $1,500,000. It offers lovely views of Jacks Valley with the master bedroom located on the opposite side from the secondary bedrooms. Canyon Creek Estates is a gated community with HOA dues just under $450 quarterly for common area maintenance. Contact Robert Stiles, REALTOR® at Chase International for more information. 775-309-8454 NV BS.1001136

SB 121 & Tenant Rights

NV REALTORS®

SB 151 had been heralded by proponents as a landmark tenants rights bill for working families across Nevada.  However Nevada REALTORS® (NVR) stressed there would be negative impacts on tenants in the form of higher security deposits and more stringent timelines in leases. Now there are reports across the state that NVR predictions are already coming to fruition. Several property management companies are sending letters to thousands of local renters threatening to remove grace periods that allowed tenants to pay their rent up until the third day of the month. The companies blamed the new bill for the time changes.

SB 151, which was passed by the Nevada Legislature and signed into law by the Governor earlier this year does have some positives. It extended the time renters have to fight back against landlord eviction. It went from four and a half days to seven judicial days.

SB 151 also capped late fees at 5 percent of the monthly rent. It gave tenants 24 hours from the time they were notified of an eviction before having to vacate, and allowed tenants five days after eviction to return and retrieve personal belongings left behind.

Proponents in Clark County say evictions are down since the bill took effect July 1. Statistics pulled from the court show there were 2,075 eviction filings in July, down from 2,704 in June and 2,968 last July. 

However the booming economy and rising rents are placing a strain on seniors with fixed incomes. Nevada’s law allows for “summary evictions” that can be far faster and offer much less recourse for tenants than other states’ laws allow. NVR says the association is looking out for both landlords and tenants. However they would like an acknowledgement that landlords are not always the bad guy.

To Repair Or Not Repair?

Home Repair

Homeowners who sell their houses “as-is” may end up costing themselves more than they would have spent to make the necessary repairs — if they are able to sell their homes at all. For one thing, most buyers these days don’t want to buy a house that needs work. Fixer-uppers are OK for flippers, who are increasingly putting their own money into the houses they buy, as opposed to just relying on appreciation to make a buck, according to real estate analytics firm CoreLogic. But for the most part, families want a move-in ready place. They don’t want to mess with replacing worn carpeting, remediating a patch of mold or painting the walls. “If you don’t want to do the work,” says Jeanne Gregory of RE/MAX Southwest in Sugarland, Texas, “what on earth makes you think your buyer does?” Equally important: Most buyers have no idea what the necessary fixes might cost. So, they tend to double or even triple what it would cost the seller to do the work, and then reduce their offer by that amount. Consequently, sellers net less — sometimes far less — than if they’d bitten the bullet in the first place. And don’t even think about offering your buyer a credit to cover the cost of repairs. That usually doesn’t work, either. Credits rely on the buyer’s imagination, say Sally and David Hanson of eXp Realty in Brookfield, Wisconsin. A credit is “an open invitation,” they added, for an uneducated guess from an uneducated buyer. All the agents hit on a common theme: The eye buys. So, do what you have to do to fix up your place, even if it’s unpleasant or time-consuming. Otherwise, be prepared to wait a while for one of the few buyers willing to take on your headaches. Prepare yourself, too, to accept less than your asking price. Source: Lew Sichelman, The Housing Scene

Fiscal Year 2019-20 Property Taxes – First Installment Due

Douglas County Treasurer

The first installment of the 2019-2020 property tax is due and
payable on August 19, 2019. There is a 10 day grace period. If any
person charged with such fails to pay by August 29, 2019,
there shall be added thereto a penalty as provided by law (NRS 361.483).
Payments may be dropped off 24 hours a day, 7 days a week in our
drop box at the southwest end of our building at 1616 8th Street in
Minden or at 175 Hwy 50 in Stateline. Payments may also be
made through our web: http://cltr.douglasnv.us.

FHA ISSUES NEW CONDOMINIUM APPROVAL RULE

HUD

In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) today published a long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process.

Designed to be flexible and responsive to market conditions, FHA’s new condo rule and the new Condominium Project Approval section of the Single Family Housing Policy Handbook, provide a comprehensive revision to FHA condominium project approval policy.  In particular, the new policy will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved. The polices become effective October 15, 2019. Read FHA’s new condominium approval regulation.

FHA’s new condominium policy is part of a broader Administration objective to reduce regulatory barriers that currently restrict affordable homeownership opportunities. FHA’s new rule:

  • Introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing;
  • Extends the recertification requirement for approved condominium projects from two to three years;
  • Allows more mixed-use projects to be eligible for FHA insurance.

“Condominiums have increasingly become a source of affordable, sustainable homeownership for many families and it’s critical that FHA be there to help them,” said U.S. Housing and Urban Development Secretary Ben Carson. “Today, we take an important step to open more doors to homeownership for younger, first-time American buyers as well as seniors hoping to age-in-place.”

HUD Acting Deputy Secretary and FHA Commissioner Brian Montgomery added, “Today we are making certain FHA responds to what the market is telling us. This new rule allows FHA to meet its core mission to support eligible borrowers who are ready for homeownership and are most likely to enter the market with the purchase of a condominium.”

The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA’s mortgage insurance programs.  As a result of FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.

Single Family Policy Handbook Guidance

FHA’s new Single Family Handbook sections published today provide the additional requirements that lenders and other industry participants need in order to implement FHA’s new policy, including requirements for single-unit approvals, minimum owner occupancy requirements, and commercial/non-residential space limits. Read FHA’s changes to its Single Family Handbook.

Single-Unit Approvals

As of October 15, FHA will insure mortgages for selected condominium units in projects that are not currently approved.  An individual unit may be eligible for Single-Unit Approval under the following conditions:

  • The individual condominium unit is located in a completed project that is not approved;
  • For condominium projects with 10 or more units, no more than 10 percent of individual condo units can be FHA-insured; and projects with fewer than 10 units may have no more than two FHA-insured units.

Minimum Owner-Occupancy Requirements

FHA will require that approved condominium projects have a minimum of 50 percent of the units occupied by owners for most projects.

FHA Insurance Concentration in Condominium Projects

FHA will only insure up to 50 percent of the total number of units in an approved condominium project.

Commercial/Nonresidential Space Limits

FHA will require that the commercial/non-residential space within an approved condominium project not exceed 35 percent of the project’s total floor area.