SOURCE: Guenther Building Company

December 01, 2008 11:38 ET

62-Year-Old Guenther Homes in Ann Arbor Sees Bright Spot in New Home Sales for October, More to Come?

ANN ARBOR, MI--(Marketwire - December 1, 2008) - Guenther Homes, a 62-year-old new home construction company based here, reported three new home sales in October, and Natalie Ceccolini, third generation member of her family to run the company, thinks that might be a good sign that the current slump in real estate "may be ready to show an uptick in 2009."

"The three sales we finalized in October, combined with closings on five other homes sold previously, are typical of some positive signs in new home sales," Ceccolini said. "One buyer was a veteran, who qualified for a Veterans Administration (VA) loan, another was a single buyer who needed $6K down for an FHA (Federal Housing Administration) loan on a $190K home deposit, and the third buyers were a young couple, who let us sell their old home for a 3 1/2 percent commission giving them enough funds for a local bank loan while their old house was being sold and the new one was being built.

"The lesson learned here is there is financing available, and there are buyers who can qualify for mortgages," she said.

Guenther, which has new home construction sites in Saline, Dexter, Brighton/Green Oak Township, Adrian, Clinton, Monroe and Boyne Mountain, offers potential buyers a special program to sell their homes at a 3 1/2 percent commission, which often enables the buyer to qualify for the down payment and make a new home purchase possible.

According to Ceccolini, who runs the family business with her dad Bob and brother Rob, there are some tips for new home buyers in today's economy:

--  Talk to your bank first. There are legitimate and tried and true
    mortgage sources available including FHA, where a three percent down
    payment is the norm, and VA loans, which require zero down payment.
--  Consider the location that suits your lifestyle, "rural vs. urban"
--  Research your builder. There has been a fallout during the current
    economic downturn
--  Decide on a floor plan that meets the needs of you and your family
    (like a Ranch First Floor Master Bedroom or Two Story Colonial)
--  Get everything in writing and in a contract including a warranty and
    list of all items to be included in your new home
--  Select a builder with a good history and performance
    

"Unlike a year ago, if anything, the recent downturn has leveled the playing field and demand for new homes is starting to outpace supply," she said.

Formed in 1946, Guenther homes has developed 30 major subdivisions and has constructed apartments, office buildings and other commercial buildings.

Additional information is available at www.guentherhomes.com

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