Mid-Atlantic Country....

SECOND HOMES IN THE MID-ATLANTIC:

IT'S TIME TO BUY

Taking seconds at the dinner table may be hazardous to your health. . . and your waistline. But taking a look at seconds when it comes to homes in the Mid-Atlantic may be just what the doctor ordered.

There are many excellent reasons to buy a second home, but the best reason is that it makes you happier. . .and healthier. For those with the desire and means to find that second home, there couldn't be a better time to buy.

"I don't know anyone that doesn't want a large log cabin in the woods or some other dream second home," says Patten Corporation's Jim Macri. His company lists property throughout the region and he agrees that it's a great time to buy in the Mid-Atlantic.

A BUYER'S MARKET

"There are currently some excellent second home values in the Mid-Atlantic," says Charles J. McCall, a real estate attorney based in Richmond, Virginia. He adds, "These values are due to many factors and that's great news if you're in the market for second homes."

These factors mean it's a buyers market. The predominant reasons that now is a good time to buy include: prices appear to have bottomed; mortgage rates have trended downward; mortgage terms with lenders are better than ever; and baby-boomers are now looking at second homes.

The rates and terms for second home mortgages are currently excellent. "We are actively soliciting all types of financing for second home buyers," says Stephen T. Thacker, a mortgage banker with regional banking giant Crestar. "We've found them to be extremely credit worthy borrowers and good customers." Some of the larger developers even offer their own financing programs.

No matter who's doing the lending though, baby-boomers are doing lots of borrowing. Real estate gurus see baby-boomers fueling the fire for second home purchases throughout the decade. During the 1990s, the number of buyers in the 45- to 54-year-old age group will jump 43% to 20.7 million.

Karen Spiker, president of A&A Realty/Better Homes and Gardens at Deep Creek Lake, Maryland, thinks the three "Is" are all currently in the buyer's favor. She says, "Interest rates, inventory, and investment potential are all positive points for the second home buyer."

All of these factors mean it's never been more in favor of the buyer. Just take a look at what's available.

THE BASICS

Buying a second home is as simple as finding the right place at the right price. It's the ultimate shopping spree. But before you buy, you need to understand some basics. The key is to find knowledgeable people and seek their advice.

You should buy with your head and with your heart. You need to consider the financial implications with your head and you need to consider the usage implications with your heart.

Financial implications include affordability, expenses, and taxes. Seek the advice of real estate agents, bankers, and tax consultants. It literally pays to place your head above your heart when you crunch the numbers.

"Tax law changes really complicated deductions for second home ownership and rental property," says Syd Wooding, a CPA specializing in the real estate investment area. "The key question is whether you're investing as a second home or as a rental property."

Simply stated, second home owners without any rental income are allowed a full deduction on mortgage interest and real estate taxes. A vacation home is currently defined as one that the owner uses more than fourteen days a year or more than 10% of the days it is rented.

Once you analyze the tax situation, start shopping. That's where your heart comes into play. If it makes sense financially, analyze what you want and find it. The buyer's market in the Mid-Atlantic makes it easy.

There's a second home location and layout for everyone. Lovers of golf, skiing, water, the mountains, and anything else available in this diverse region can find the ideal second home location and structure. Everyone says location is the most important factor, but just make sure it's the location for you and that it has the right house on it.

A second home may be a great investment, but it must first be for enjoyment. The most important basic to remember is that it's really an investment for your health more than an investment for your bank account.

LAND HO!

Many second home dreamers find the land and then build the house of their dreams. Many companies cater to these dreamers with land.

For instance, the Patten Corporation is a typical resource for land purchase without nightmares. "Patten's goal is to help fulfill the individual's desire for land ownership at affordable prices," says Jim Macri.

Patten Corporation was founded to bring together sellers and buyers of country land. They have offices in eighteen states and employ more than 500 people. Their average project contains just twelve lots that average fifteen acres each.

The company has been very successful with land sales in the Mid-Atlantic and this is attributable to four factors: they are able to finance their own sales; they offer outstanding customer service; they are environmentally sensitive; and they know how to develop land.

One of the most unique things about Patten is their guarantee. They provide a registered survey, a general warranty deed, continued customer service, excellent financing, no origination fee, usual closing within two weeks, septic site approval, no prepayment penalty, usual credit approval within four days, no commitment or application fees, and much more.

Jim Macri feels potential buyers should ask three questions. He says, "Do you like the property? Will you use it? Is it affordable? If they can say yes to those three questions, we ask them to buy it."

Thus, a company like Patten may be the first contact for that second home of your dreams. It's the ideal way to get exactly what you want from the ground up.

WILD AND WONDERFUL WEST VIRGINIA

West Virginia is without question one of the hottest states for second home buyers in the region. The price and location are both right. A recent American Demographics survey found that many counties in West Virginia rated in the top category for real estate growth in the coming years.

Because of the easy access to the Washington, D.C. area, the Panhandle region of West Virginia is very active in the second home market. The simpler lifestyle, friendly people, small towns, and mountains are all drawing buyers.

In some respects, the second home market in West Virginia is still in its infant stages and this can make for excellent shopping. For instance, many potential buyers are not aware that the famous Coolfont Resort also has real estate available.

The Coolfont Mountainside Association is the property adjacent to Coolfont Resort and is the location of a 138 lot community. Two-thirds of the land is preserved as a nature park for use by homowners. One selling point is potential rental income. Coolfont's Jan Wilkins says, "One important feature of owning property at Coolfont is the ability to rent your house to vacationers or conference participants. Often, this has made the difference between being able to own a second home or not." But most importantly, the prices and amenities must be seen to be believed.

The Panhandle and the rest of West Virginia have many such surprises. Second home buyers looking for a slice of "Almost Heaven" should consider small towns, resort areas like Canaan Valley, and almost anywhere else in this wild and wonderful state.

FORE!

For the golfer, a second home at a golf course community is hacker heaven. There are, however, some special considerations when buying golf course property.

"It's unbelievable how many people are interested in living at a golf course community," says Edward J. Bergin, president and host of the Mid-Atlantic Golf and Travel Show. "Almost half of the exhibitors at a recent show we arranged were involved in real estate."

These exhibitors, mainly from the South, were showing prospective buyers the advantages of golf course living. Besides convenient and great golf, you're buying a new life of leisure. But the large number of exhibitors means a wide range of decisions on where to live.

The choices are almost unlimited and the research can be enjoyable. You view a golf course differently when you're considering living by it. Even more than most types of real estate, the three most important considerations are: location, location, and. . .location.

Do you want a pristine and natural setting along the water? What about enjoying fresh mountain air during your rounds? There are golf course communities almost everywhere in the Mid-Atlantic. Just about the only place you won't find a golf course community (yet) is on the moon (but just think of the sandtraps!).

Once you decide on the state or region of choice, you need to look at specific communities. Arrange comparison visits to several in one area and plan to spend many days taking close looks. This means eating, sleeping, and playing your way around potential properties. Representatives of the community are experienced at helping golfers visit their own little piece of golf heaven.

As with any second home purchase, a short-term look at life on the links is the best way to determine what it would be like to live at a specific golf course community on a long-term basis. Most developments have some sort of visitor program to make this short-term look easy, enjoyable, and, most importantly, educational.

During the visit, inspect every aspect of living in that community, from the holes on the greens to the holes in the carpet. Try to visualize daily life there by doing everything you expect to do if and when you live at that particular community.

There are many factors to consider when choosing a community. These include: homesite locations; building possibilities; previously-owned home possibilities; community support facilities (schools, shopping, etc.); golf support facilties (clubhouse, pro shop, etc.); other recreational facilities; dining possibilities; and much more.

Of course, a deciding factor for duffers is often the quality of the golf available. How many courses are there? Who designed them? Could it be too difficult or easy to play there on a regular basis? How crowded is it or could it get? Do you like the pro? Are playing partners easy to find? Is cold beer readily available or do you have to head back to your refrigerator?

Golf is growing so quickly and the golf courses are being built to meet this demand. If your dream is to live on a course designed by Tom Fazio or some other famous golf course architect, your dream can be just a chip shot from your back porch. If your dream is to break eighty, you'll probably do it when you play and live on a favorite fairway.

Future golf course development should also be taken into consideration. Are there plans for another eighteen? If two communities are equal in other respects, an additional place to play should come into play during decision time.

Three properties in Virginia serve as ideal examples of living on the links. Potential second home purchasers should try to visit Wintergreen, Shenandoah Crossing, amd Ford's Colony for a feel of the types of real estate available in the region.

Wintergreen offers some of the region's most popular second homes on mountain lots. Golf (and ski) nuts couldn't do better. Over near Charlottesville, land sales are booming at Shenandoah Crossing, where golf course and waterfront property is luring second home dreamers from throughout the region. In Williamsburg, Ford's Colony offers luxurious golf resort living in elegant homes and facilities.

JUST BUY IT

With so many positive factors in the buyer's favor, many people are buying into the second home life in the Mid-Atlantic. That ideal second home may be just around the corner or up that mountain road. Just buy it.

CONTACTS

1--Linda Hitchcock 301/840-1377

2--David Barudin 703/772-6640

3--Wayne Wickman 804/565-0288

4--Karen Spiker 800/336-LAKE

5--Betsy/Cary Reid 800/448-0074

6--Jan Wilkins 800/888-8768

7--Jim Macri 800/334-3916

8--Ford's Colony 804/565-4000

9--Shenandoah Crossing 703/832-9400

10--Wintergreen 804/325-2200

11--Syd Wooding 804/353-9288

12--Steve Thacker 804/794-9025

13--Jeff McCall 804/355-1600