Vermont’s Market?

Helping you decide whether to buy or sell in the near future.

A recent article from realestaterama.com shed some light on exactly how real estate agents are dealing with change, particularly in marketing. The days of putting ads in the Sunday paper and waiting for phone calls are virtually over. Today’s Realtors needs to utilize the art of social networking via the Internet. Whether it be Facebook, Twitter, or Zillow, mastery of these social mediums is quickly becoming a “must.”

Omega now on Facebook and Twitter

We are proud to say that Omega Real Estate is well aware of the changes and keeping right up with the curve. You can find us on Facebook and Twitter and our personal website has thousands of listings in towns like Burlington, Williston, Essex and the rest of Vermont. Our listings are also equipped with easy search engine tools to make finding everything you’re looking for that much easier.

Despite the changes we face in technology, one thing that will always stay the same is our desire and willingness to work face to face with our clients. That’s a form of communication the Internet can never replace in the real estate world. So even though change is inevitable, the quality of work we provide to our clients will always stay the same.

The deadline is here. The federal homebuyer tax credit opportunity will almost surely be gone by the end of the business day tomorrow (June 30^th). Despite pushes by states like Massachusetts and organizations like the National Association of Realtors® (NAR) to once again extend the tax credit, it is unlikely that Congress will make such an amendment.

 According to the NAR, up to 180,000 home buyers will miss out on the tax credit. NAR President Vicki Cox Golder told LoanSafe.org that these buyers will miss the June 30^th deadline through no fault of their own. “These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a workflow jam with lenders or other delays…” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

 The NAR is pushing hard for Congress to quickly pass some legislation to extend the tax credit deadline, but many believe they will not be inclined to do so. The Massachusetts Association of Realtors is asking for a 90-day extension, giving buyers until September 30 to finalize their deals. But the Wall Street Journal is reporting that although Congress did extend the tax credit last fall, they feel it is unlikely to happen this time.

So how is this affecting us locally? Well according to NAR estimates, approximately 400 home sales in the state of Vermont will miss the deadline. That inevitably means that some folks here in the greater Burlington area, Chittenden County, and the rest of Vermont are going to be affected. And although we won’t know for certain until the end of the business day tomorrow, it appears June 30^th will be the final deadline.

North Beach Burlington

Summer is officially upon us here in Vermont, and what a beautiful start we’ve had. Most will remember that the summer of 2009 was one to forget with rainy days most certainly dominating the forecast. And even though I’m at the risk of speaking to soon, so far 2010 has brought record temperatures and plenty of warm and sunny days to the Green Mountain State. Vermont has so much to offer during the summer months, when the weather provides it with the opportunity to do so, and vacationers know that if you’re looking for hiking, boating or dining with a view, Vermont is a great destination.

And if you have ever thought to yourself that it might be time to find a permanent vacation spot in Vermont, you won’t find a better time than NOW! According to the Vermont Property Owners Report, vacation homes and condominiums are experiencing a dramatic decline in price. Despite the uncooperative weather in 2009, vacation home sales in Vermont saw a surprising increase. Vacation home sales processed in July through October were up 61.6% compared to 2008.

So with vacation homes in Vermont showing an 18% price decline in 2010, we can expect a great number of sales this summer as well. Buyers, you’ve been presented with a great opportunity to finally get into that perfect Vermont vacation home you’ve been holding out for. Prices are down, the weather is up, and now is a great time to buy!

In the spirit of jumping the gun on summer, I’d like to introduce a new listing right on the lake in Colchester, Vermont.  It’s actually not a summer house but it would be awfully fun to live here in the summer! Also, it’s not really a new listing. It was on the market last year and now we are putting it back out there.

This home has been recently updated with fresh carpet and paint. It has absolutely stunning views of mallets bay and sits on 130 feet of private sandy beach.  Below are a few pictures of the home. Click on any picture for additional information. Offered at $440,000

First, you won’t be able to do this if you are a repeat buyer and you have a home to sell for obvious reasons, unless you can afford to buy another home without selling yours first. So, you’ll need to run, not walk, to a lender who is very familiar with all the different lending programs; VHFA (for Vermont real estate), FHA, VA, and conventional loans. You’ll need to get a quick pre-approval as well as reasonable assurance that the loan of choice is going to have good odds of closing by June 30.

Time is running out for the $8000 home buyer tax credit

Of course, the bigger problem is getting a deal signed by April 30. That’s where I (and other buyer agents) come in. You’ll need to stack the deck in your favor by joining forces with a buyers agent who is going to spend quality time to help you find and visit the homes you want to see up close.

Once you find THE place, you’ll want help in structuring the offer based on comps, market conditions, and certain conditions (contingencies) that make sense for a particular property. The idea here is to be able to buy at the lower end of the price range without killing the deal with unreasonable offers.

Then, it’s off to the races after reaching an agreement (signed contract). The closing process can be smooth, or not. Again, a buyer agent can oversee this phase of the transaction to avoid any unnecessary delays. My point is there is no time to waste at any point in the buying process.

The question remains, what happens if you miss this boat? Will life go on, just like it did after Y2K? An $8,000 credit is nothing to sneeze at, but like we all know in the business, people buy whenever THEY are ready, not when some program says to. At sunrise, May 1, 2010, there will still be an ample supply of homes to choose from, prices will still be benefiting buyers after 2 years of gradual declines (No, not lake front!), and mortgage rates will still be south of 6%, which is really a very good rate historically. However, years from now, there will be those people who brag at barbecues that they got a great deal on a home, plus $8,000 free and clear from Uncle Sam, and are now living the American dream..right Ryan?

Either way, any seasoned Realtor in Vermont knows to keep a pair of mud boots at the office this time of year; which happens to be one of the busiest times of the year for Vermont Real Estate.

One piece of property we have been getting an exceptional amount of calls on is this new listing in Williston VT.  This beautiful 91.41 acre lot off South Road in Williston is just the type of land you want to be sloshing around in this time of year.  Hilly, great views (without all those pesky leaves), and great spring smells.  This land is not going to sit around for long.  At $229,000 it comes in at just over $2,500/acre. That’s a crazy low price for any type of Williston Vermont Real Estate. Check it out for yourself. Here is a link to some land listings in Williston Vermont for your comparison.

Enjoy the weather while it lasts. It’s April people, it could snow next week!

I will post more information and photos as it develops.

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.

Williston VT Big Box Reuse...I wish

country. Plattsburgh NY for example has entire shopping centers that are boarded up and plastered with Commercial Space For Lease signs. That is something you just don’t see in Vermont, at least not in Chittenden county which is our area of expertise. Part of the reason Vermont has done so well is because of its ardent support of local business. More locally owned and locally supported businesses means less impact from national chains with unrealistic growth projections and failed business models.  Williston is one of the few places in the state where there is such a large concentration of big box stores so the affects are magnified here.

Here is an idea to fill some of the space. Fill it with small farmers market type users looking for a year round marketplace to sell their goods. Better yet lease small spaces out to start-up retailers looking for a cheap alternative to a traditional storefront.

I’ve recently heard of a place that is doing something similar in Mesa Arizona.  I’m not sure how the business is set up but some real estate developer is converting a vacant Mervyns (like Kohls) store into a year round Marketplace. They are modeling the concept on the Pike Place Market in Seattle; a year round market featuring, art, food, flowers, produce, meat and fish. A huge part of the allure to Pike place Market is the proximity to the water, downtown Seattle and the whole ambiance of the place.   I’m not sure how this concept will work in a strip mall setting with a sea of parking in the front but I give them an A for creativity.

This brings up a lot of zoning issues (especially here in Williston VT) but that is another post altogether.

Here a link to the article in the Arizona Republic. Thanks Tony!