Archive for the 'Vermont Real Estate News' Category

This blog has primarily featured my insights about the joys of living in Addison County Vermont. This week I’d like to highlight a new reason why you should list your property with me. Yes, my depth of local knowledge is great and my client-base is loyal, but I am gaining a much wider audience by learning to say “Welcome to Vermont” in five different languages.

Though I did attend Middlebury College, famous for its language immersion programs, I am referring instead to my membership in FIABCI - Fédération Internationale des Administrateurs de Biens Conseils et Agents Immobiliers (that’s the International Real Estate Federation to you and me). The FIABCI is a federation of 100 national real estate associations and is comprised of real estate professionals from 60 countries. It has five official languages: English French German Japanese and Spanish.

Now, when you list your Vermont property with me, it will be exposed to a global real estate network promoting cooperation since 1945.

FIABCI is a non-political entity whose objective is to help its members add an international dimension to their businesses. FIABCI helps members acquire knowledge, develop networks and optimise business opportunities all over the world.

Welcome to Vermont
Bienvenue vers le Vermont
Willkommen nach Vermont
ヴァーモントへようこそ
Recepción a Vermont

Yes. You’re right. My Japanese really needs some work.

image credit: earthobservatory.nasa.gov

Vermont Real Estate New Year's Resolutions can be easier...

Vermont Realtors are not immune to the challenges of keeping our New Year’s Resolutions. Like you, we resolve year after year to lose weight, get more exercise, spend more time with family, spend less time on the computer, get more organized…But for me, my real estate New Year’s Resolutions are easier to realize because they are all about you, my client.

Helping you realize your dreams of home ownership or inn ownership is incredibly fulfilling for me. It makes me happy in a way that a half a grapefruit for breakfast never could. So making and keeping these resolutions each year is a no-brainer.

Here are my Real Estate Resolutions for 2011:

1. Make more consistent contact with past clients – Sign them up for my biscotti of the month club!

2. List more properties that are priced for the current market. Don’t take listings that are priced too high. This may sound self-serving, but it is always in the best interest of the client to price real estate appropriately.

3. Sell more properties to buyers who realize the great investment opportunities that exist now. Here’s more information about investment opportunities in real estate from the National Association of Realtors. Contact me and we’ll talk over biscotti and coffee about Vermont real estate investment opportunities. There are many, and I think it’s a good time to invest in Vermont.

4. List, sell! List, Sell!

5. Lose the next ten pounds – I’ll walk to all my appointments! Giving more biscotti to friends and clients will help me reach this goal.

Wishing you the very best for 2011!

image credits: www.adweightloss.com and www.cookiemadness.net

Just because Vermont skies are threatening snow, dreidels are spinning and Santa is lurking around the bend does not mean that you should forsake plans to sell your Vermont property during the holidays.

Most Realtors agree that taking your home off the market during Hanukkah and Christmas is a mistake. And they are right. Our society focuses on the home during the holidays. Shouldn’t your home for sale be part of this cultural focus?

Good holiday staging can yield great rewards:

• You’ll get a jump on the January real estate rush
• Many people have taken their homes off the market, so your home will have less competition
• Vermont is a winter wonderland. Second home owners flock here for the white stuff. Don’t deny them their new winter home
• Sprucing up your home for the holidays will boost your own holiday spirits
• You wont have to clean up frantically for that visit from the in-laws

Here is one of our Vergennes listings, staged beautifully for the holidays

Like summer real estate staging, you’ll need to make sure your home still exudes fabulous curb appeal. Maintaining great curb appeal in Vermont in the winter presents certain safety concerns missing from the lazy days of summer. Make sure the path to your door is welcoming and safe: remove ice and snow early and often, hire someone to plow the driveway, clear ice and snow from your gutters, and don’t skimp on outdoor lighting.

Martha Stewart recommends shooting stars, but I prefer more earthy decorations. Each year I spray paint bare branches bright red and arrange them in vases and urns in the yard and on the porch. The color is striking and festive. Make or purchase a wreath, display a more festive menorah, string popcorn in the trees, add the charm that will make your Vermont property their new home of holidays…

1950s Holiday staging image credit

The day-lilies in this New Haven garden have passed their prime, but the perennial gardens at this historic Vermont home are stunning year after year...

August is here and with it, the Vermont garden doldrums. While gardens in May, June and even the better part of July were abundant with vibrant flowers and verdant greens, August gardens, even with the recent rains in the Middlebury area, resemble faded watercolor paintings.

This doesn’t have to be the case. Adding pops of color and bunches of fresh greenery at the end of the growing season will stage your property with new life and visual interest.

It’s also a wonderful time to re-visit local nurseries. Rocky Dale Gardens, in Bristol, features a wide array of stunning plants, even at the end of the season. On July 31st and August 1st they are holding their annual “Front Porch Perennial Sale” where “plants, pots, tools and other items” can be purchased for 50 percent off their original prices.

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Sunrise at Almost Home Market, in Bristol Vermont.

This is your chance to own an iconic Vermont landmark: Bristol’s  Almost Home Market is for Sale!

A gourmet Vermont country store for the 21st century, Almost Home has become the hub of this busy bedroom community.

Fiddlers on the porch at Almost Home: music is the food of love...

In a state known for great country stores, Almost Home stands out as a culinary polestar.

Gourmands come to Bristol, Vermont to find manna from heaven, commuters get their espresso fixes, brides land their wedding caterers, busy moms grab healthy gourmet meals to go.

Known for its:

• Extraordinary deli
• Fine catering
• Outrageous Espresso Bar
• Select Wines, Beer and Champagne
• Fabulous Gifts and Home Goods

Almost Home brings the local food movement home to an audience of eager, hungry locals.

Almost Home has also become a popular gathering place. In season, the front porch is filled with music, families, and food. In winter, commuters warm up at the espresso bar, and shop for the holidays.

Become a part of this tight-knight, vibrant community and fulfill your dream as a chef. The sale of this well-loved property includes full inventory and equipment. Contact us for more information about this extraordinary property.

Take this opportunity to Express your culinary genius to a captive local audience.	At Almost Home, it’s all about celebrations, daily specials, seasonal favorites, gourmet local.

This is a post by Marc  Roth for BussinessWeek. While some readers found his language and/or content to be a bit offensive, (check out the comments on his original post)  his point is worth thinking about. Interest rates are extraordinarily low for those who qualify, and if you are one of those people, purchasing a home may be a very smart move in the near future. Remember, the $8000 or $6500 tax credit is good on purchases made through April 30, 2010.

If You Don’t Buy a House Now, You’re Stupid or Broke

Well, you may not be stupid or broke. Maybe you already have a house and you don’t want to move. Or maybe you’re a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don’t act soon, you will regret it. Here’s why: historically low interest rates.

As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That, as the graph above—which you can find on Mortgage-X.com—shows, is the lowest the rate has been in nearly 40 years.

In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

And it is exactly that, based on what the graph shows us. Let’s look at the point on the far left.

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.

But they weren’t happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.

Interest Rate Lessons

And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We’ve since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let’s assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let’s put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is “more stable” and it’s safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

Marc Roth is the founder and president of Home Warranty of America, which touches just about every part of the real estate industry since it sells through builders, real estate agents, title companies, mortgage companies, and directly to consumers.

As part of the expansion of the homebuyer tax credit, existing homeowners are eligible for a $6500 tax credit (versus the $8000 credit for new homeowners). Here, Jeff Teplitz, a mortgage consultant with PrimeLending in South Burlington, answers some common questions and helps clarify this new feature of the bill. To see the full listing of changes, click here.

Question: Existing homeowner credit: Must the new house cost more than the old house?

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first time home buyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered,however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phaseout range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he did since 3 years doesn’t impact eligibility.

Question: I am an eligible first time home buyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30
(or July 1, worst case), the purchaser will be eligible for the credit.

Just this week, Congress voted, almost unanimously, to extend and expand the homebuyer tax credit. The exptension changes the cut off date from Nov. 20, 2009 to Apr. 30, 2010. The expansions includes an increase in the income limit as well as a the inclusion of a $6500 credit for existing homeowners. For a complete list of changes , check out this comparison chart issued by the National Association of Realtors (NAR). You can also listen to the president of NAR, Charles McMillan’s podcast about the bill passing.

According to statistics from Smith Travel Research, Yen Lee for Travel Industry Blog believes the leisure travel industry may have bottomed out. Although the numbers are the lowest they’ve been since 2002, 2009 seems to have stabilized somewhat, with projections for continued stability in the US (numbers are on the rise in Europe).

What this means is that travelers are taking the time to research great travel deals – and are expecting great deals. This may be the perfect time to promote local travel – travel close to one’s home for the experience and luxury of travel without high costs of plane tickets and rental cars. People want to travel but don’t want to break the bank or put themselves in a precarious financial position just to do so.

Running a bed and breakfast or inn in Vermont is a perfect way to encourage local travel at a reasonable price. Travelers from Quebec, New Hampshire, Massachusetts, New York, Maine, Connecticut and of course, Vermont have easy access to the treasures the Green Mountain State has to offer with just a short drive. The luxury and peacefulness of staying in a Vermont inn, having a delicious, hearty breakfast, and gorgeous surroundings at a reasonable price is enough to get people out for  a few days, or perhaps if the price is right, a week or longer.

Check out some of our past blogs about starting, owning or improving your Vermont Inn or Bed and Breakfast. Or get in touch with us with any questions – we would love to hear from you!

Image by Getty Images via Daylife

Real estate research site Trulia.com says 24.6 percent of current homes on the market in the United States as of July 1, have had at least one price cut, totaling $27.1 billion in reductions. The average price-reduced home has had a 10.4 percent reduction, down slightly from 10.6 percent as of June 1. Some areas appear to be stabilizing quickly with the overall number and percentage of price reductions declining, including Las Vegas, Los Angeles, Dallas, Washington, D.C., and Baltimore. “All real estate is local and we’re seeing glimmers of hope as price stabilization occurs in major cities across the nation, including some of the earliest hit cities that have experienced huge declines in the past few years,” says Trulia CEO Pete Flint.

The top-10 cities with the most price reductions as of July 1 are:
1. Jacksonville, Fla., 39 percent
2. Boston, 35 percent
3. Minneapolis, 33 percent
4. Milwaukee, 33 percent
5. Honolulu, 33 percent
6. Tucson, Ariz., 31 percent
7. Chicago, 31 percent
8. New York, 31 percent
9. Austin, Texas, 31 percent
10. Raleigh, N.C., 31 percent
Source: Trulia.com (07/10/2009)

According to Trulia.com, the average price for listings in Middlebury, VT has dropped by an average of 3.2%!
Contact us to find out if a recent drop in price makes the home or business you are looking for more affordable!