Archive for the 'Vermont Real Estate News' Category

According to the National Association of Realtors, the typical first-time homebuyer has only 4% of the purchase price saved for a down payment. Access to $8000 would really help a lot of on-the-fence buyers make the decision to go ahead and purchase a home if they could have access to it immediately rather than waiting for tax time. The US Department of Housing and Urban Development is now looking to help the housing market by changing the tax credit so buyers can borrow against the credit at the time of closing and use that money towards a down-payment (through Federal Housing Authority-approved lenders only). Buyers could then pay the loan back with their tax refund.

Several states have already implemented this change to help their housing markets and the federal change would most likely be modeled after one of these “bridge loan” programs. To read more, check out my source here, or check out some helpful links from our previous post on the stimulus package.

Whether you are selling an inn or a home, staging each room can greatly increase the saleability of the property. Staging a home or inn allows for the best possible first impression, which most often occurs before buyers ever step foot on the property. These days, most initial contact with a property occurs online so the pictures of your property should be enticing enough to get buyers interested.

There are many resources online about how to do staging yourself, as well as professionals who can do a consultation and provide recommendations or who can take care of the staging for you. Statistics from the Real Estate Staging Association say that in 2008, the average vacant house was on the market for 190 days, while a staged home was on for 28 days. Part of the reason for this is that a staged home demonstrates a more desirable lifestyle than a completely vacant or obviously lived in home does.

According to the RESA, a staged property

• Looks better than others on the market
• Sells faster
• Typically sells for more money
• Looks better in print and internet ads
• Receives more foot traffic
• Ends up on a buyer’s “must see” list
• Is viewed by buyers as “well maintained
• Is viewed as “well maintained” by Appraisers
• Is often appraised at a higher values
• Is “move in ready”

Check out some wonderful examples of easy room makeovers you can do yourself, mostly involving rearraging furniture and painting, that will greatly increase interest in your property, as well as the selling price.

Each year, the Vermont Housing and Finance Association (VHFA) publishes a report “Between a Rock and a Hard Place: Housing and Wages in Vermont,” as part of an annual series that tracks housing costs in relation to Vermonters’ incomes. For the last several years, Vermont’s tight housing markets have helped keep prices up while wages, particularly in Vermont’s biggest job categories, have not kept pace. Now, as the recession piles up lost jobs and incomes, the situation has grown more complex and more difficult to
solve.

“We are all going to be called upon to work harder and more creatively, and probably with fewer resources,” said Sarah Carpenter, Executive Director of Vermont Housing Finance Agency. “Vermonters need housing they can afford as much as ever, and we need the kind of economic stimulus housing development can provide.” Carpenter noted that both private and public resources for housing investment are becoming
harder to obtain, and, despite low interest rates, tighter credit and higher financial requirements are making it more difficult for many consumers to qualify for a mortgage.

Among the report’s findings:
• The median purchase price of a home in Vermont has remained stable in the last year, at $200,000.
• A Vermont household would need an annual income of $63,000, as well as $14,000 for a downpayment and closing costs, to afford that home.
• The median household income in Vermont is just under $52,000, enough to afford a $163,000 home.
• The Fair Market Rent for a modest two-bedroom home is more than $900 a month, and more than half of Vermont’s workforce earns less than the $36,550 needed to afford that rent.
• Vermont’s rental housing market is the tightest in the nation, and its homeownership market is the fourth-tightest.

All this leaves many Vermonters scrambling to keep a roof over their heads.

Erhard Mahnke, coordinator of the Vermont Affordable Housing Coalition, said there is a glimmer of hope coming from Washington, D.C., in terms of more funding for housing, homelessness prevention, community development, rental assistance, and other programs. “After years of neglect, there are signs change is on the way,” Mahnke said. “New federal spending will bring more than $40 million in additional housing and community development dollars to Vermont over the next two years. Last year saw passage of significant new housing legislation, including creation of the National Housing Trust Fund, the first new housing
development program since the early 1990’s. This will allow us to play some measure of catchup, but to make real headway, we need to maintain funding for homegrown solutions like the Vermont Housing and Conservation Board.”

Copies of the new report are available online at the VHFA website, www.vhfa.org; the
Affordable Housing Coalition website, www.vtaffordablehousing.org; the Vermont Housing
Awareness Campaign website, www.housingawareness.org; and the Vermont Housing and
Conservation Board site, www.vhcb.org
.

Original Source: VHFA News Release, 4/28/09

The Churchill House Inn, located in Brandon, VT, was honored by the State of Vermont’s Agency of Natural Resources for it’s “demonstrated commitment to preserving Vermont’s environment” and bestowed upon it the title of Brandon’s first green hotel. This property, which is for sale, can be purchased alone or with the Premier Vermont Touring Company as well.

With a plethora of year-round attractions just miles from this property, there will never be a shortage of activities, not to mention hiking, skiing and biking, for guests to experience. The property has been updated by it’s current owners who have installed modern heat and purchased new beds for the eight guest rooms, as well as replaced the roof, water heaters and windows.

There is an organic garden on the property where many of the vegetables and herbs used for the inn’s meals are grown. I also hear they also have a stellar pancake recipe (available here) which was featured in Gourmet Magazine!

This is a truly wonderful business and property. If you have any questions, please contact Christine and John. They would be happy to hear from you!

The Birdseye Building Company, based in Richmond, Vermont, is entering it’s 25th year as one of Vermont’s finest creators of luxury properties. With a staff able to complete a project from it’s conceptual design stage to the finishing touches of interior design and landscaping, Birdseye continually provides an outstanding level of service to it’s clients. In their own words,

“Our design philosophy is to create buildings that are beautiful to behold, healthy to live in and efficient to own. The artful integration of the built and the natural landscape provide the Architectural cornerstones for buildings that celebrate texture, color, light, proportion and scale.Our designs strive to provide an atmosphere that is elegant and joyful and helps to sustain and nurture the human spirit in daily life.

Each Birdseye home represents the finest in Architectural design and building innovation. Our passion is reflected in the creative energy we devote to each project, combining the varied elements of lifestyle, environmental considerations and financial constraints. Our commitment to our client’s needs and the awareness of our increasingly fragile environment inspires the creation of buildings that embrace beauty, practicality and sustainability.”

Birdseye Building Company’s dedication to sustainable and green building earned it the cover story in the Spring 2009 issue of Green Business Quarterly. You can learn more about some of their renewable energy projects from their blog. As members of the US Green Building Council, they are experienced in geothermal heating and cooling systems, solar thermal hot water systems, wind power, and construction waste control.

I invite you to browse through their project gallery, as well as their woodworking, metal, glass and landshaping galleries. The beauty of their projects, along with their environmentally conscientious approach to building and design truly makes Birdseye Building a valuable resource. For more information, visit their website.

According to Kenneth Harney, writing for Reality Times, “doom and gloom economists” are finally acknowledging a turnaround in the housing market. In early February, chief economist for Moody’s Economy.com Mark Zandi announced that “the bottom of the housing downturn is in sight for the nation” and the Wall Street Journal used the headline “For some, it’s finally time to dive into the housing market”.

While they aren’t ignoring the huge problems with the economy still affecting the housing market, such as unemployment rates, low household consumption rates, and banks continuing to borrow money from the government, they are hopeful for some reasons we’ve covered before. The encouragingly low mortgage rates, decreasing prices and attractive tax incentives are opening the market for more people with decent credit to become home owners.

Read Kenneth’s full article here.

As you may have heard, the Recovery and Reinvestment Act of 2009 (otherwise knows as ’780 billion dollars’) was signed by the President on Feb. 17th, 2009. Approximately 35% of this bill is intended for tax credits, which is especially good news if you are a new homeowner or are looking to buy in 2009.

The knowledgeable staff writers of Fred Peet’s Real Estate Update have created an easy-to-understand summary of the plan’s provisions relevant to home owners or potential buyers. In the article titled Details of the Recovery and Reinvestment Act of 2009, they cover the following topics:

• Home Buyer Tax Credit
• FHA, Fannie Mae and Freddie Mac Loan Limits
• Neighborhood Stabilization
• Low Income Housing Grants
• Tax-Exempt Housing Bonds
• Energy Efficient Housing Tax Credits and Grants
• Transportation Investments
• Broadband Deployment

You can read the full bill here or you can visit the more reader-friendly site www.recovery.gov. If you are considering purchasing a home in the near future, these are important provisions to become familiar with. The article in Real Estate Update is a succinct and helpful introduction; use it to your advantage!

If you’ve found out there are other offers on a property you are interested in, do not let that deter you from making an offer anyway. Dian Hymer, writing for Inman News, says that these days multiple offers on a property are not only okay, but are welcomed by sellers. And the good news for you is that the highest offer is not always the winning offer.

There are many factors a seller will look at beyond the monetary offer. For example, they may prefer to accept an offer from someone with solid financial backing even if it is not the highest bid, or they may accept a lower bid by someone making a cash offer who can close quickly.

Ultimately, if you are interested enough to make an offer on a property, you should. To read the Dian’s full article, click here. To read more columns by Dian, click here.

Richard Bove, a financial analyst for Ladenburg Thalmann, provides some positive signs that the real estate market is improving in 2009. With strong intervention by the government regarding interest rates, especially in the home mortgage sector, so far, and the pending stimulus package the new administration is putting together, he expects housing prices to stabilize within the year. Already there are signs that gradual, positive trends are starting:

• housing prices are up 2/10% in New England
• mortgage applications are increasing, not only due to refinancing, but also from buyers purchasing at very low prices
• mortgage rates are at 50 year lows still for 30-year mortgages, with the percentages dropping for shorter term mortgages
• consumers are still paying lower prices for gas and at retail stores
• Americans are saving more – the national savings rate rose almost 3% recently

While none of these changes seem to be singularly significant, they are collectively signs of a stabilizing market. Ultimately, Bove says, savy market participants will take advantage of the low-cost money, low prices and stablilzing local markets for 2009.

Source: Real Estate Outlook: What’s in Store for 2009 by Kenneth R. Harney, published in February 2009 edition of Real Estate Update, distributed by the Law Offices of Fred Peet

The National Association of Realtors (NAR) reports that pending home sales (sales with contracts signed but not yet closed) experienced a significant and unexpected rise in December of 2008. The percentage jumpd from 6.3 to 87.7, the first increase since August. You can view the 2008 NAR Pending Home Sales Index report here. According to Reuters, this increase is due to buyers taking advantage of lowering market prices and low mortgage rates. Read their full article here for more positive news on the housing market. To check out mortgage rates in Vermont, click here.