Archive for the 'Omega Real Estate News' Category

Today (another Bee-u-t-ful day in Vermont), I went to a class called ‘Vermont property tax prebate/rebate’, presented by a local attorney.  Don’t you just

Let the fun begin!

love the topics this time of year…taxes, taxes, taxes!  This tax issue has to do with all the Vermonters who have lived in a ‘homestead’ for all of 2009 and whose net household income is less than $97,000.  I’m sorry I can’t define the ‘net household’ part for you, but that’s why tax season is so much fun.  We all get to do a whole lot of esoteric figuring and then wait to  hear back from the tax department to see what we got wrong.

First of all, let’s get the terminology straight.  The prebate is formally known as a property tax adjustment.  It came from act 60 in the early part of the 2000’s.  What it attempts to do is redistribute education tax money we all send to the state so that children, no matter what town they live in (property rich vs. property poor), have better access to an equal education.  Now, I don’t know the numbers, but based on the $97,000 threshold and the fact that the average household income in Vermont is way less, many Vermonters get some prebate factored into their tax bill (yea!).  It could be as low as almost nothing, up to $8,000!  Most people would not get the higher amount, but the reason I’m telling you all this is the effect this prebate has on the real estate transaction between 4/1 and July 1.  April 1 of each year, as Vermonters know by now, is the date we establish whether a home is a primary residence which is taxed at a lower rate than if a home is not considered a primary residence, and qualifies us for a possible prebate.  Prebates are received as equally divided credits on our tax bills throughout the year.

"Considering the tax shelter"

In Colchester, for instance, property taxes are due in August, November and March (March 15, to be exact).  If a transaction closes between March 15 and April 1, that’s easy because the seller has already received back all the prebate they are due.  The prebate doesn’t affect the transaction.  Any other time during the year, the prebate is a predetermined cost to negotiate between a seller and buyer.  EXCEPT, between 4/1 and 7/1, every year, the prebate can only be estimated by the seller since the state won’t have the exact number available until 7/1.  Many times, this isn’t a huge deal if the seller’s tax situation hasn’t changed much from the year before (a ball park figure can be helpful).  To be more accurate, it’s best if the seller completes a worksheet, available at the VT Dept. of Taxes website.  You’ll need to have your forms HS 122 and HS 144 completed to fill out the worksheet.  Confused yet?

Why does this matter to anyone anyway?  Well, since I’m a Buyers Agent, I definitely want to know if my buyer is going to have shell out some extra coin to factor into the transaction BEFORE closing (like, way before closing).  And, my buyer would rather not wait until halfway through the closing process to find out, either.  Remember, no surprises before or during a closing is a good thing.  I hope you’ve enjoyed this simplified explanation.  It’s time for another cup of joe.

Well, summer is finally in full swing (kind of), and summer in Vermont is Real Estate season. The phones are ringing again and our cars are getting a welcomed workout.  In fact, things got so crazy around here that the Omega Real Estate team has added a new member.

We are proud to welcome Buyer Specialist, John Sortor, to Omega Real Estate Associates’ team.  Having enjoyed a diverse career in financial services (insurance and retirement planning), John has parlayed his experience into a successful real estate career.  Since 2006, he has specialized in the residential market as a buyer’s agent, and enjoys helping first time and experienced homebuyers navigate the ever-changing landscape of buying a home.

John spent his formative years outside of Boston, Massachusetts, graduated from Colby College in Waterville, Maine, and has lived in Vermont since 1993. Outside the marketplace, John enjoys the time with his wife, Denise, and two daughters, staying healthy through a variety of sports and home maintenance!

So enjoy summer while it lasts! Get out there and see some Real Estate. There are some amazing deals out there and we have just the man for the job…

Start your home or commercial property search at http://omegarealtyvt.com

This picture was taken at the beginning of winter for one of our listings in Burlington, Vermont.  The property is right on Lake Champlain, which was frozen at the time. (click on picture to see the same view in the summer)  This picture says so much about the state of the market in Vermont during the winter, especially this winter. 

It’s a beautiful location even when it’s frozen, and the price is great for a lot with lake frontage in Burlington.  Still, I don’t think it was shown once this winter.!!

The Setting sun on the frozen landscape makes me think of what is on its way in the very near future.

The lake is back to liquid (in most places) and the sun hangs high in the sky well past the drive home.  The sun is indeed setting on this frozen, barren real estate market and before we know it, both this property and the rest of the Burlington, VT market will emerge from the mud and will once again be warm, green and buzzing with activity. Are You Ready?