Technology Transactionsby Peter Miller
Peter G. Miller
OurBroker®
The road from Larmie to Fort Collins probably runs 75 miles and for the most
part you will see no townhouses, no condos, no subdivisions, and not much of
anything else. It"s a beautiful place; there are a few houses and ranches, and
if Manhattan-sized stretches of open space seem attractive this is one area to
consider.
Across America there"s a new real estate boom, one powered by changing
demographics, technologies and lifestyles. As the population grows we have a ready market both for the existing housing stock as well as demand for a new class of houses and a wider choice of locations.
It looks like 1998 will be a banner year for realty sales, with existing home
purchases topping 4.75 million units according to the National Association of
Realtors -- up more than 12 percent over 1997, a record year itself. These
are remarkable figures when you consider that most people already have a house,
so why all the moving and building?
*Demographics. The prosperous baby boom generation is getting older and now
wants homes more attuned to a changing lifestyle: first-floor master bedrooms;
less yard to maintain; bigger baths, kitchens, and closets; garage space for
two and three cars, a "great room" rather than a living room.
*Lifestyles. We"re less formal than our parents and grandparents, so new
designs tend to be roomy and relaxed. Bigger spatial volumes have become
practical because we have more efficient heating and cooling, better windows,
and new designs.
* Location. Faxes, modems and the Internet mean that telecommuting and home
offices have become real for millions of people. For many workers it"s no
longer necessary to locate near the factory or office -- living in remote
areas, the mountains, or near oceans is increasingly practical.
*Designs. Residences with built-in home office features -- extra phone
jacks, additional storage, separate entrances -- are now entirely common.
*Nesting. More and more homes are becoming sanctuaries where we not only
sleep and eat, but also where we vacation -- think of the homes built on golf
courses and ski resorts, the homes with spas and saunas, the communities which
offer extensive amenity packages.
As I drove from Laramie down into northern Colorado on a recent trip, I was not
certain so much solitude was for me. But no doubt I shall re-think such views
when next I visit a major city or encounter a huge back-up on a local highway.
Question Of The
Week
Q We financed the sale of our
home by providing a second mortgage to the buyer. How much risk do we have if
the purchaser defaults on the first loan?
A Your buyer has a first loan and
a second. In the event of foreclosure, the house will be sold at auction to the
highest bidder. It"s likely that the first lender will bid for the property,
offering at least as much as the borrower owes on the first loan.
The first lender makes such a bid to assure that any other buyer must offer at
least enough money to pay off the first loan.
Any bid above the first loan debt can then be applied to the second loan. If
there is no bid above the amount owed on the first loan, the second lender --
you -- gets nothing.
For details, speak with brokers and attorneys in your community -- and consider
that most borrowers will work hard to keep their homes.
Weekly Resource
What"s the commotion in Minnesota? Reading most news reports you might think
the citizenry there has opted to dismantle the state government by electing a
former wrestler as governor. Or is it a good thing to have an election won by
someone who did not accept PAC money or large contributions? Consider the
issues and views of the new governor for yourself by turning to the Jesse Ventura home page.