Some Market Data for Addison County, Vermont

In Addison County, Vermont 131 homes were sold from May 1 of this year through November 18 and spent an average of 197 days on market. The average list price was $258,919 with an average closing price of $241,689. This is a 93% list to sell ratio.*

Does this mean that if you set your home price you will likely return 93% of that in a sale? Not necessarily if you didn't set the price correctly to start with. Some homes may go through multiple price reductions before an offer is made and it is the price that is finally triggered the sale that is used in this data. Setting your home price correctly on day one is essential to ensuring that your home sells with far less than 197 days on market. A good market analysis will tell you how to price your house to sell quickly as your home needs to be the shiny penny in the price group you are in. In this market there is no such thing as a buyer who happens along and will fall so in love with your house that they will pay a higher than market price. Buyers are looking primarily for good value and being the best house in your price category will ensure you are seen as the best value. And it will ensure that your home will be appraised for the selling price, keeping your closing moving along!

*Data from the Northern New England Real Estate Network

Join us at the HOPE fashion show - a charity event

All of us gals from IPJ Real Estate in Middlebury, Vermont will be participating in the HOPE Model Citizen Fashion Show on November 20th at the Town Hall Theater. The doors open at 7pm and the runway show will begin at 8pm. This evening brings together local retailers and community members to model fashions all in support of our neighbors in need in Addison County. The cost of tickets is $25 and will go to support this charity.

Guests can enjoy cocktails and light hors d'oeuvres prior to the show and a DJ dance party after the show. For more information on how to see us flummox our way down the runway please go to http://www.townhalltheater.org/THTcalendar.html for tickets or call 802-382-9222. We HOPE to see you there!

Preparing for Home Ownership

10 Ways to Prepare for Homeownership

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a me to help guide you through the process.

Mortgage Rates drop for Vermont Home Buyers

The Vermont Housing Finance Agency is offering a new low mortgage rate at 4.125 for a 30-year fixed rate home loan, this is the lowest EVER offered by VHFA. This may allow the dream of homeownership to be within reach of more people. And VHFA borrowers cab save up to $625 at closing. This is because VHFA mortgages are exempt from the Vermont Property Transfer Tax for the first $110,000 of purchase price. The VHFA was established in 1974 to finance low and moderate income Vermonters and since then has helped approximately 27,000 families own their dream home.

http://www.vhfa.org/

How will rising energy prices affect you and your real estate?

Rising energy prices will soon be the norm as demand is growing faster than supply.  What does this mean for real estate?

People with lower incomes will be more affected as the amount spent on fuel will be a larger portion of their income.  Also those who commute longer distances to work will be more affected.  And if you are a business that depends on fuel use and where it represents a higher percentage of your overall expenses than other companies you may have a difficult time maintaining profitability.

So how do you avoid this and look toward ways to minimize this risk in the future?

If your business is close to a populated downtown the better your long term viability will be as your raw and finished products will either have less distance to travel or you may have access to valuable transportation distribution hubs.  Also, you will have a greater employee base to draw from.  These employees will have to spend less on fuel to travel to work or may have mass transit choices which could reduce the compensation they need to stay in the right economic bracket.  And while people still seem to prefer living in the country or suburbs in many parts of the country, as gas prices rise they will start to migrate closer to towns and cities and the abundances of services.

With an increased demand by people to live closer to the city and larger towns there will be more demand for in-town residential units such as apartments, condos and cooperatives.

Manufacturing and warehousing businesses will need to locate where they can minimize their energy costs and rail-served buildings will command a premium.

Will the new norm be mixed use communitues? Living, working, eating and shopping all in the same location, even the same building? Something to think about.

Existing Home Sales Show Strong Gain

Watch this video featuring Chief Economist of the National Association of Realtors, Lawrence Yun to learn more about the state of existing home sales. He suggests we are in the early stages of recovery but it will be a gradual rising trend.

Regionally, existing-home sales in the Northeast increased 10.1 percent to an annual pace of 760,000 in September but are 20.8 percent below September 2009. The median price in the Northeast was $239,200, which is 1.4 percent below a year ago.