Q & A about the Grand Forks Homes, Inc. Project in Congressional 1 & 2 Subdivisions

Presented by 1ST Realty, 772-1000

(to the best of our knowledge as of 5/31/98, please verify to your satisfaction)

Where are the Congressional 1 & 2 Subdivisions located? These are generally located in the northwest part of Grand Forks. Specifically, Congressional 2 is located immediately off to the south of University Ave on the west side of I-29, just SW of the weather station. Congressional 1 is located 3 blocks north from the corner of University Avenue & North 51st Street, approximately 3 blocks North & West of the Congressional 2nd subdivision.

Where is the Burdick Subdivision?. It is located within a block of the NE corner of the Congressional 2 Subdivision on the North side of University Avenue and east of North 48th St. and west of the Interstate. There is possibly just one home left for sale in Burdick Ct. It is a two bedroom split foyer with 2 bedrooms and one bath. It has 988 square feet of finished area and sells for $100,000 which includes a $10,000 2nd mortgage. There were 8 other houses in this subdivision that were part of the Grand Forks Homes, Inc. post flood recovery effort but they are now sold or have deal pendings on them. All the following comments will refer to the houses in Congressional 1 &2.

What about the schools? Busing is provided to the local public schools. It costs $.50/one way fare.

Are there plans for a school in this area west of I-29? At this point in time there is only talk. It will take a considerable amount of political will power to move that idea forward. It will help as more people move into Congressional 1 & 2.

What types of houses are they? There are ranches, two story homes & split level homes. 1ST Realty would like to point out that some of the split level homes actually are tri level homes & some of the 2 story homes are actually 1 1/2 story homes.

How are these homes built? 1ST Realty has learned the bulk of the homes are stick built on site & a few are stick built in environmentally controlled factories & then moved to the sites.

How many different builders are there constructing homes? There are 20 different builders.

What is the average price per square foot? Over all it is about $104 per square foot: For the ranches it is about $102 per sq ft; for the split levels it is about $106 per sq ft; and for the two story homes it is about $101 per sq ft.

What is the price range of homes offered? It is from $94,000 to $144,000. (There are 15 under $100,000 with the bulk of them from $100,000 to $120,000.)

What is the average price of a home? It is about $117,364.

What is the median price of a home? It is about $117,000.

What are the major components of these homes? They all have full lots, poured concrete foundations, vinyl siding & double attached garages. At this time the lawns will be seeded to grass but note that the 13 houses on 6th Ave No. are going to be sodded. It also includes two trees on the lot and whatever the Park Board intends for the berms. For a detailed list on what is included ask a 1ST Realty agent, 772-1000, or visit our web site at www.1st-realty.com.

What is not included in these homes? The most significant items not included are stove, fridge, dishwasher, patio deck, air conditioner and air to air exchanger. For a pretty thorough list of the more common household items not included ask a 1ST Realty agent, 772-1000, or visit our web site at www.1st-realty.com. We can also give you some general ideas of what these components cost and direct you to suppliers. If you wish 1ST Realty can help you arrive at what your particular "completed product price" is that you will spend to make the home you choose livable to your standards.

Say more about what the average price per square foot of the finished product means? In trying to determine comparative value, price per square foot can be a useful general guide, but to use it effectively it is important to define what it includes so you can make an effective apples to apples comparison between different options. Otherwise, depending on who you talk to, you will hear radically different prices quoted for what a house costs to build per square foot - which sheds very little useful light on your efforts to comparatively shop. Some quotes mean just the house, without amongst other components; a foundation, lot, garage, air conditioner, appliances, window treatments. Most notably, the quote may not include the cost of the special assessments which can be considerable and which the home owner must eventually pay off. Other quotes include various combinations of the above costs. At 1ST Realty we try to discuss a "completed product price per square foot" that will come as close as possible to reflecting what you the consumer will have to ultimately pay for the house of your choice. In any case whatever perspective you take in comparing houses, we'd like to suggest you clarify exactly what people are quoting you. If you wish, 1ST Realty can help you determine your particular "completed product price per square foot" of the home you choose using our add on list that gives estimates for many of the components you may wish to purchase above the Grand Forks Homes Inc. price.

As stated earlier the houses being completed by Grand Forks Homes, Inc. are running about $104 per square foot as an over all average. The $104 is a price that reflects a package that includes the lot, all the paid specials and the actual construction costs of the house but does not include the items mentioned in the question just above such as central air, eves troughs, deck or appliances.

So how does that $104 per square foot figure stack up to other options in the market place? There aren't any comparable 1100 sq ft new construction homes being offered in our local Multiple Listing Service at this time (which has been an ongoing problem for a long time). However, there are two bigger and desirable south end new ranch houses that are being offered for about $107 and $110 per square foot once they are adjusted back (as discussed in the previous question) to have pretty close to the same components as the Grand Forks Homes, Inc. ranches which as you may recall are running about $102 per sq ft.

Have these homes been appraised? Yes, some of them were appraised at the beginning of the project. 1ST Realty recommends that as a reasonable safeguard each buyer pay to have the house they are buying appraised which costs about $300. The city is standing firm on their asking price so that is a reseanable protection for you

How many homes are going to be built and how far along are they? As of the end of April there were 154 houses in varying stages of construction. As of 5/31/98 they intend to build 187 houses in Congressional 1 & 2 subdivisions which by our calculations constitutes $21,947,000 of real estate.

How many have sold? As of 5/28/98 1ST Realty has learned there are 16 pending offers including one contingency offer. The first one of the pendings is closing on June 1,1998.

There are some empty lots, what will happen to those? Right now there are nine unplanned lots scattered within Congressional 2 and there are two such lots amongst the Congressional 1 houses being built. At this time they are "green space" but will probably be sold off at some future date for currently unknown prices as may the lots on the western edge of Congressional 2.

What is the range in sizes of these homes? They range from 902 to 1400 square feet and one home at 5037 West Elm Court for $143,000 that has 1640 square feet. They have 2, 3 or 4 bedrooms with one bath, sometimes two baths in the two story options. (As the List of Standard Components states there is a "Rough-in for bathroom in lowest finishable level".)

Do you have to be a flood affected homeowner in order to buy one of these homes? NO! This project is open to all qualified buyers.

Are there any really good financing programs out there if I don't have access to an SBA loan? YES! Buyers can avail themselves of the North Dakota Housing Finance Agency's First Time Homebuyer Program. You may do this even if you are not a first time home buyer as long as your income is below $48,960 for a family of one or two people, or $57,120 for a family with 3 or more people. There is also a down payment assistance program for low to moderate income families. See our web site at www.1st-realty.com for a summary of 8 different options calculated to finance an average Grand Forks Homes, Inc. house under this program. Of course a 1ST Realty agent can help you explore options to find out what the home of your choice will cost.

Otherwise just about all types of loans are available subject to the restrictions common to that particular loan. Visit with 1ST Realty about the general options available and we can provide you a list of all the local cooperating lenders.

Do these homes qualify for the $15,000 new construction voucher? Yes, but remember you must notify the Office of Urban Development with a written accepted offer on a new home by August 30, 1998. ( You also need to show them proof that you sold your house to the city via your Closing Settlement Statement and provide a copy of the original signed Warranty Deed transferring your ownership to the city.)

Was Congressional 1 & 2 high & dry during the Flood of 1997? Yes! Yes! Yes! For that kind of peace of mind visit a 1ST Realty agent today to reserve the home of your choice!

Were there some existing houses in either of the subdivisions? Yes, prior to Grand Forks Homes, Inc. involvement there were 4 manufactured homes that were moved into Congressional 1. Prior to the construction in Congressional 2 it was a wheat field!

To what building standards are these homes being built? All are being built to meet or exceed the Universal Building Code as adopted by the City of Grand Forks. All the general contractors are licensed and bonded. They are inspected by a general city inspector who is employed on the project full time. The houses are also inspected by the city plumbing & electrical inspectors.

Mortenson Contractors have also been hired to work directly with the contractors to oversee the actual construction project.

How can I find out more about the floor plan opportunities? By our calculations there are at least 49 different floor plans - more if you count the reverse or "flip" options of some of the plans) to choose from in the Grand Forks Homes, Inc. Project! You can check out plan books to look over the options at your leisure by simply calling 1ST Realty, 772-1000. (We'll even deliver!)

How can I actually look at these homes? All showings and sales are exclusively handled by real estate companies. 1ST Realty is one of the contracted real estate companies that has been authorized to "show and sell" the homes in this project. As of May 28, 1998 there are 27 homes in finished condition that 1ST Realty agents can show you; all 27 are in Congressional 1. We have been told the construction zones in Congressional 1 & 2 are otherwise restricted areas that are being policed as such. There are at least 8 other homes "completed" and will soon be ready to show. The neat thing for buyers is that Grand Forks Homes, Inc. has permitted us to represent you the buyer as a client in the sale if you wish to benefit from that service, or remain a customer. Either way the seller is still paying our commission.

When will homes be available to look at in Congressional 2? Congressional 2 was started after Congressional 1 and as you can see from driving down University Avenue it is not as far along. As far as 1ST Realty has been able to learn Congressional 2 will remain off limits in a general sense until streets are in place some time early this summer.

There will probably be houses completed before the streets are done so they intend to fast tract that paving to make the area accessible as soon as possible.

What if I want to look at a home that is under construction but is not currently available to "show"? On a case by case basis 1ST Realty can arrange a visit to pre selected options on which you have seriously focused.

How can I figure out what a certain house in a certain neighbor will look like? We can give you some idea by showing you the available homes mentioned above. Otherwise 1ST Realty has developed color coordinated maps

that pinpoint the locations of the 3 types of houses. We have also added the prices, the color packages & the square footage of the home to each lot on the map. This helps make it visually easier to imagine what your new neighborhood will look like & where the particular floor plan you desire is located. We have the full scale color

coordinated maps at the 1ST Realty office, 3425 S Washington St. Stop on by otherwise we can send you a black & white reduced, 11" x 17", copy by simply calling us at 772-1000.

What if I want to change something in the floor plan? The foundations are set but it is possible, in some cases, to make changes in the actual structure. 1ST Realty urges you to get a hold of us early so you can negotiate your changes before the contractor has built in something else. It is less costly to make the changes before that part of the structure is completed rather than after. As we understand it Grand Forks Homes, Inc. does not intend to make any structural changes once the building is completed. Those you would have to do with your own contractors and at your own expense after you closed on the home of your choice.

What are the color schemes for this project? There are 17 different color packages available. Each package coordinates the siding, shingles, shutters, soffits, carpet, linoleum, countertop and the cabinets. Grand Forks Homes has spread them around to help preserve the uniqueness of each neighborhood. It is possible to make some changes in these components, especially the carpet and linoleum, if you catch the house in the early stages of construction. The exterior will be more difficult to change because some contractors have made purchase commitments on the siding. Also, how your preferred exterior colors blends into and affects the values in neighborhood will probably have some influence as to whether or not Grand Forks Homes goes along with you color change request.

How are the negotiations for changes handled? 1ST Realty will submit them as part of the offer we present in your behalf. If you come to terms with Grand Forks Homes you will be asked, much like what occurs at a bank, to escrow enough money up front to cover the added value of the changes and to protect Grand Forks Homes if they are stuck trying to sell your particular changes if you back out. According to Grand Forks Homes, Inc. the escrowed money for change orders is non-refundable if you back out of the deal for any reason.

Is it true that in all the houses the lowest level is unfinished? Yes. They will be roughed-in for a bathroom.

What if we want to have all or part of the lowest level finished off? It is handled the same way as described above for change orders.

Who is Grand Forks Homes, Inc. and what is their relationship to the Urban Development Office of the city of Grand Forks? Grand Forks Homes, Inc. is a non profit group sponsored by some local churches. It has traditionally been involved in providing low income rental housing for our community. In the post flood recovery they have also become the sponsors of the single family housing project in Congressional 1 & 2. Since Grand Forks Homes, Inc.'s Board of Directors is made up of volunteers they have an arrangement with the Urban Development Office to handle the day to day management of the project for them.

Do you have other questions? Call us at 1ST Realty, 772-1000, and watch our website at www.1st-realty.com