Chris von Trapp Real Estate

Spotting the right (or wrong!) home can be tricky...

2011-04-12T08:02:00.000-07:00

So let a trusted local realtor with the right resources help. Watch Coldwell Banker's take on the homebuying process .... it's funny because it's true!

http://youtu.be/8F-TneYO6zE

The von Trapp Team takes the Madness out of March Madness!!

2011-03-07T07:07:00.000-08:00

What: March Madness! It’s not just basketball. Navigate the spring selling season with the von Trapp team!

When: Wednesday, 6:30 - 9 PM

Where: 156 Bistro at 156 St. Paul St.

Why: Because it's March and we're that much closer to spring .... right ???

Zillow and the Magical Housing Math

2011-03-03T07:07:00.000-08:00

Few industries have been transformed as drastically by the Internet and the information-sharing websites that followed as the Real Estate market. The incredible gains in productivity, increased marketing exposure for any given listing, and the access to prospective buyers and sellers by means of the Internet is truly “mind blowing” for realtors. Buyers are reveling in these same efficiencies, conveniently browsing properties thousands of miles away, in their jammies, at all hours of the night (I know this because I have the time stamped e-mails to prove it). The available listings include up to 24 photos, pertinent documents, virtual tours and good old-fashioned written descriptions of every house on the market, provided by the listing agent and uploaded through the local Real Estate Multiple Listing database.

Enter Zillow. This “Real Estate” website was a late entry into the internet marketplace and had to differentiate itself from the pack. Like most Real Estate websites, it pulls home listings and their visual and written descriptions from the listing databases. But Zillow added a twist. The site attempts to provide prospective buyers with a reasonable idea of a property’s true market value, dubbed their “Zestimate” for any given listing.

It is important to understand how Real Estate professionals arrive at a listing price by performing a Market Analysis prior to listing the property. It is a value driven by comparable sales in a general area and the current market conditions; it is a combination of an appraisal process driven by raw data and market knowledge derived from experience. It is part science and part savvy. Sellers avail themselves of this process when listing. Buyers have access to the same science and savvy when hiring a buyer’s agent.

A Zestimate is a value driven by data fed into a mathematical algorithm. This is well and good if you accept the following premise: all homes are created equal, differentiated only by square-footage and amenities. Location in the community, school system, views, proximity to workplace, charm, character, siteing on and quality of lot, local weather, location with respect to personal lifestyle, et cetera, are not factors in the equation. Zillow cannot, and thus does not, attribute a number to any of these qualities.

Granted, Zillow’s mathematical algorithms, may have their place in some Real Estate markets, but are not particularly applicable to Vermont. The algorithms may be more accurate when applied to an area with a homogenous housing stock, such as DC suburbs where condominium compounds multiplied like dandelions. In Vermont, however, the rate of growth is much slower, spans a longer period of time and includes a wide variety of housing within the same area. It is not unusual to have a modest double-wide home a mile down the road from a million dollar property. The lakeshore areas present an even greater challenge, as some homes are year-round, some seasonal cottages, and many on leased land. It is difficult to numerate the vastly different qualities to make them fit into a mathematical equation.

And most importantly, people react differently to the three-dimensional space that they call home. Each buyer attributes their own intrinsic value to a home, depending on how that space meets their personal and family needs. Zillow, let’s face it. If you take the humanity out of buying a home, what have you left?? Certainly not anything I want to help search for and buy.

But here is the bigger shame, or sham, if you will. Buyers accept these valuations as gospel, because—you guessed it—they read it on the internet. Prospective buyers embrace Zestimates as accurate, and avoid potentially attractive homes because Zillow believes that they are over-priced, only to find out later, in total disbelief, that the property sold for 95% of the asking price and appraised with a lender. Don’t be that buyer. Use Zillow as a resource to search and identify available properties; but ask a local realtor to complete a market analysis on your behalf to cross-check the Zestimate. A local established realtor with good testimonials knows more about your area and will steer you in the right direction.

Join us at 156 Bistro !

2011-02-08T08:22:00.000-08:00

156 Bistro on Wednesday, February 9th
6:30 p.m. to 8:00 p.m.

Come in from the cold for a cocktail or local draft. Chat with me, Bobby and Elissa about weathering the winter and preparing for the spring buying and selling season!

Real Estate Resolutions Week #3

2011-01-21T08:29:00.000-08:00

Three weeks into the new year, keep up the good work!

Buyers’ Resolution #3: Get building inspector recommendations before you purchase your new home.
Once your house is under contract for purchase, you will need to hire a building inspector. Never buy a home or condominium without an adequate inspection. Ask for recommendations from your realtor, friends and family. Once again, this is on of the largest investments you will make in your life. Let’s be sure that you know what you are buying, from the inside out, before you own it. Better to walk away from a poorly constructed home sooner rather than later.

Sellers’ Resolution #3: Ask for Realtor recommendations from friends and family.
Should you decide against navigating the wonderful world of Real Estate sales on your own, take some time to interview local agents for the job. The role of the listing agent in today’s Real Estate market is demanding and competitive. You are entrusting your biggest asset with this individual and are asking them to assist you in pricing it, preparing it for the market, and promoting it, so that you may achieve your sales goals. All agents are not equally prepared to provide you with the level of service or experience necessary to get the job done. Choose wisely and do your homework; the wrong choice could cost you thousands in lost sales value.

Real Estate Resolutions Week 2

2011-01-13T07:22:00.000-08:00

How are you doing on your New Year’s Resolutions? If you are on a roll, consider the second installment a congratulations for and continuum of good behavior. If you have not been quite as successful with the “new you,” the below will give you a second chance! As always, questions and comments are welcome.

Buyers’ Resolution #2: Choose your own title attorney; do not let your lender do it for you.

When you buy real estate, you will need to have the title searched. Most closings in Vermont are administered in the buyers’ attorney’s office. When the lender selects the attorney, you are in effect paying the legal fees through a part of your closing costs, while the attorney represents the bank. Most banks will allow you to hire the attorney; the legal fees are still paid from the closing costs, but the attorney’s responsibility is to represent you. If the bank insists on having their own attorney, you may want to hire an attorney on your behalf, as well. I can not emphasize enough, a home purchase is a big investment, big risk, and you want to avoid big problems.

As always, do your research and ask for recommendations from friends, family and (of course)your trusted realtor.

Sellers’ Resolution #2: Order a dumpster before packing that “heirloom” from Grandma.

As you prepare your home for sale, take this opportunity to evaluate your “stuff.” Are you holding onto things that were valuable to a family member, but not to you? Are you about to move a box you packed from your last move ten years ago, but never opened?? Do yourself a favor and clean house now: if you are about to pack and move unopened boxes, open and asses their contents. If you are saving something that you intend to pass down to the next generation, pass it on now; and, if an item has neither use nor sentimental value, consider donating it to a charitable organization with a resale shop or to Goodwill or the Salvation Army. Instead of paying a mover, you can take a tax deduction for the donation and be done with it. Items that have no value for re-sale, consider throwing them in the dumpster or better yet, recycle them, but do not move that un-wanted and accumulated “stuff.”

Find a Good Will has locations in Chittenden County to donate clothing and household items at
http://locator.goodwill.org/

ReSource (formerly Recycle North) also accepts donated household items and offers pick-up services: http://www.resourcevt.org/donate-goods-to-resource

Myers Containers "The Red Can Family"is a Waste and Recycle Management company that provides trash services, weekly pick-up and roll offs for residential and commerical properities. Contact President Jeff Myers at jeff@theredcanfamily.com

The entire von Trapp team would like to invite you to our first monthly get together for 2011!

2011-01-11T09:40:00.000-08:00

156 Bistro on Wednesday, Jan 12th
6:30 p.m. - 8:00 p.m.

We are all very excited about the prospects for the new year and we would like to share our reflections on this past season as well as try to help you look into the future and plan your next sale or purchase.

If you are planning to buy or sell in 2011, you will not want to miss this get together. Our goal is to have all of our clients and fans well positioned in the market this year before it happens.

To show our appreciation, the first Beer of 2011 is on us so come on down, share some great Trapp Dunkel Lager and get the inside Real Estate Scoop for 2011.

Real Estate Resolutions for the New Year

2011-01-07T09:30:00.000-08:00

Now that you have had a full week to exercise your New Year’s Resolutions (or not), allow me to offer some resolutions for both home sellers and buyers. I know, I know, the last thing you need is another laundry-list of resolutions, so rather than piling them on at the start of the month, I will come at you weekly with a single resolution for each buyer and seller. Even if you choose to implement only one, I think it will make your buying or selling experience less stressful. Please feel free to comment, as that is what blogging is all about (or so I’m told).

Buyers’ Resolution:

If you are going to be a serious buyer in 2011 please consider the following.

Get pre-approved with a real live person who originates loans from your geographic location.

The dot com craze has given rise to on-line loan origination. You can do it on your own schedule, from the comfort of your own home, and best of all, you don’t have to speak with anyone. The problem, however, is that you do not speak to anyone. This will be much more important now that the banks actually screen their loan applicants to verify their ability to pay back the mortgage. There is also a huge variety of loan products that may or may not fit your individual situation. In Vermont, for example, mortgages are available through a few state sponsored programs, as well as grants from some housing trust organizations. Someone with experience can quickly evaluate your personal situation and guide you to the right product or loan underwriter. You will pay a loan origination fee for any loan you get; why not take advantage of a real “live” person who is knowledgeable and can find the loan that is best suited for you?

Sellers’ Resolution

If you are going to be selling your home in 2011, please consider the following.

Prepare, prepare, prepare!!

You get one chance at a good first impression. Before presenting your home to the market, be sure that you have taken the time to prepare it for sale. Market competition is high right now and active buyers are scarce. Your home should be free of clutter, clean as a whistle, with all finishes as refreshed as possible. Prospective buyers should be able to envision their own families and lives in the home, not yours. The purchasing process is one of elimination; you do not want to be removed in the early rounds due to lack of preparation. I am not imploring you to buy new furniture set and brand new accessories, but do ask someone objective, like your realtor, to help re-arrange, depersonalize and de-clutter your home to make it the best it can be.

An Interest in Interest Rates

2010-12-29T09:28:00.000-08:00

As I sit by the Christmas tree, now bare of the annual gift giving, I ponder what the coming year of 2011 will bring. More importantly, what advice can I impart to the buyers who will be active in this market? If you are still on the fence about making your purchase in 2011, I have one word for you: interest rates. Ok, that is two words. But the rates will continue to creep up, as they already have. If you have a favorite house in mind and are sitting back, waiting for the price to drop, you may want to act before the rates rise significantly more. A ½-point increase in your interest rate could make the house much more expensive over the term of the loan than the potentially small price drop. In addition, a rise in the interest rates might not allow you to qualify for the home purchase at all. Be mindful of the interest rates and discuss how the change in the rate might impact your buying power with your lender.

I found this article on the KCW blog spot and, at the risk of plagiarizing, I find that this article explains the pitfalls in plain English. Do yourself a favor and read the entire article; it might save you a lot of money over the next 30 years.

How Do Rising Interest Rates Affect Affordability?
by The KCM Crew on April 8, 2010 • ( excerpts only)

“Let’s say we have a couple making $10,000 a month. Let’s also say, they are comfortable paying (and qualify for) a mortgage payment of $3,500. From that $3,500 payment, we would deduct an estimated $750/mo. for real estate taxes, $100/mo. for homeowners’ insurance, and approximately $200/mo. for mortgage insurance (assuming an FHA loan). That would leave approximately $2450/mo. for Principal & Interest.

At 5% mortgage rates, our hypothetical borrowers would qualify for (and be comfortable paying) a $446,000 base loan amount. At 6%, the same total mortgage payment of $3,500 can only give our borrowers a base loan amount of $399,000!!! A 1% increase in rates, can reduce buying power 10%!!!

What are the implications and possible outcomes of this mathematical certainty?

Buyers may wind up with a higher mortgage payment than they are comfortable with and their lifestyles will suffer (in our example, the payment would escalate $280/mo.)…..or worse, they may no longer qualify for their loan and deals could collapse.
Buyers will have to “lower their sights” on lesser homes in lesser neighborhoods because their monthly carrying costs are the true determinant to buying a home.
Buyers may choose to “wait it out”, hoping that rates will come back down (much in the same way sellers held on to the belief that prices would rebound). There is no logic behind that hope, but that won’t stop buyers from getting on the sidelines.

Forget about looking backwards. To do what’s best for your family, know this;
For Buyers, TODAY may be the lowest interest rate you will be able to get for the REST OF YOUR LIFETIME.

Remember, Buyers and Lenders want the same thing….an affordable payment. The price of the home is secondary to the monthly cost of the home. ACT QUICKLY, if you are looking to buy to get the home you want, in the neighborhood you want, for a payment you want... TIME IS NOT ON YOUR SIDE.”

'Tis the Season to Sell!

2010-12-22T07:12:00.000-08:00

The Real Estate market enters an awkward period between Thanksgiving and New Years, and it affects Sellers and Buyers in different ways.

Prospective buyers who have not yet made their anticipated move for the year fall into one of two categories. One set of buyers must sell their current home before buying the next. This group tends to get caught up in the holiday cheer and/or chaos, and will postpone their search until the New Year. After all, they still have a place to rest their heads.

The other group of buyers is renting either an apartment or an extended-stay suite in a local motel. This group has the flexibility to move with 30 days notice and, although they too are caught up in the holiday revelry, will often still sneak in some house viewing, especially if something new comes on the market.

Consequently, the sellers are caught in this sales process. As Thanksgiving approaches each year, I hear the same question from my current listing clients: “Should I take my house off the market during the holidays???” When asked why, the response I most often get is that they will be very busy and do not want to take on the additional hassle. This question always sets me back a bit because, not a month before, these same sellers tallied the number of showings at their home and anxiously awaited feedback. Funny thing is, if a home is not under deposit by Thanksgiving, any subsequent offers will not schedule to close until after the New Year. With the contract-to-closing timeframe of 45 to 60 days (mostly due to financing) if your home has not sold by Thanksgiving, you will not be moving until the next calendar year. So would I recommend taking your house off of the market?? The only thing I can guarantee if you take your house off the market is that it definitely will NOT sell!!

Conversely, when do most homes in Vermont look and show their best?? When they are decorated for the holidays, a fresh blanket of pure white snow coats the landscape and everything is clean and crisp. And by the way, all the wonderful, warm, holiday smells from the kitchen eliminate the need to create those great aromas artificially. Chestnuts roasting on an open fire? Perfect.

And the last reason you should not take your home off the market during the holiday season is the aforementioned buyers. There is no one more motivated than a relocating buyer who is facing the prospect of spending Christmas morning in a cramped motel room by the interstate, convincing their kids that Santa’s sleighbells sound strangely like a Mack truck this year. This group of buyers remains relatively active in the market, anything to get their minds off the not-so-sweet suite. And the sooner they are settled, the better. What better gift to give your relocating spouse but a new home??

So to the sellers: string the lights, turn up the Christmas Carols and bake the sugar cookies you were going to make anyway. It is all good and you may be surprised what Santa leaves under your tree. Nothing like a freshly written offer from a Comfy Suite Christmas Client!

‘Tis the season of giving and with all this discussion about folks between homes, please consider the following. One of my favorite organizations in the Burlington area that I choose to support every year is the Committee for Temporary Shelter (COTS). COTS has a number of locations in the Burlington area that provide shelter and services to singles and families 24 hours a day 365 days a year.

MISSION STATEMENT AND CORE VALUES

The Committee on Temporary Shelter provides emergency shelter, services, and housing for people who are homeless or marginally housed in Vermont. COTS advocates for long-term solutions to end homelessness.

We believe:

in the value and dignity of every human life.
that housing is a fundamental human right.
that emergency shelter is not the solution to homelessness

If you are looking for a worthy charity and have just a little more to give during the holidays, consider making a donation of your time or resources. You never know whose head you will be providing a safe place to lay for the night. Visit http://www.cotsonline.org/ for more information.

Happy Holidays!

Vermont's Not-So Buyers Market and How a Realtor Can Help

2010-12-13T09:47:00.000-08:00

As we approach the end of the 2010 sales year, I would like to share some interesting observations from the past year. The Burlington Vt Real Estate market continues to exhibit many differences as compared to the supposed “National Real Estate Market” (which, by the way, is a media myth). I have noticed that while the market conditions in general are those of a buyer’s market, homes in the lower, more affordable price range, as well as those in a desirable location, are receiving multiple offers from more than one buyer. Not exactly a buyer’s market.

One of the reasons for this is that there is limited inventory offered at any one time in the Burlington Area. Most towns in Chittenden County will have 40-60 homes available to choose from across all price ranges. I find that when working with an active buyer, once they plug in all of their criteria in a local Burlington area search, the number of homes that fit their specific criteria is rarely more than 10-12. This handful of homes can be easily seen over the course of two days and, once viewed, most buyers wonder where the plethora of homes that they read about in the news has gone. The fact is that Vermont has never had an over-abundance of housing inventory; the existing permitting and land development regulations that are in place do not allow for the rapid development that occurs in other parts of the country, like Las Vegas, Florida or southern California. That fact alone also means that there will not be an over-abundance of homes in the future, either. With a shortage of existing inventory and the inability of the local building community to quickly create new homes, a slight increase in buyer activity in 2011 will use up the existing homes on the market and result in a shortage. This shortage will drive prices up from current levels, depending upon the strength of the sales. You heard it here first so stay tuned in 2011.

Another point of interest is the trend in buyer activity and behavior. It is no secret that 90% of active buyers in the real estate market begin their search on the internet. So, real estate professionals who list property will put all the info and pictures of their listed home on the various real estate websites to satisfy the buyers’ need to have all of the listing information at their finger tips. It is a great sales tool for listing agents and their selling clients. The funny thing is, buyers have totally changed how they interact with the real estate world. Back before the internet (I am talking 1995, not the stone age), buyers began their search with print ads and glossy real estate magazines from the supermarket, and would call a listed realtor. The agent would set up showings of as many properties that would meet the buyers’ need, as the buyers themselves had no reasonable access to the homes available in the area they were interested in. They relied on “their” real estate agent to “find” them a house. In essence, the buyers engaged real estate agents because we and we alone held all of the information. Now that the information is readily available to the buying public, buyers have forgotten how a knowledgeable and experienced agent, who has been hired to represent them in their purchase, can add valuable market information and experience to the buying process. While identifying the home the buyer wants to purchase is often seen as the main function of a realtor, it is the negotiation and management through the due diligence process to the final closing where a lot of the heavy lifting is done; having someone experienced can sure help smooth out the speed bumps. Remember, buying a home is not an “Easter Egg Hunt”. The job is not finished once a house is identified or “found.” The job is just the beginning. So if you are a buyer, consider engaging the services of realtor. Interview a few that are recommended by your friends and family and pick one with experience, who can add value to the process.

1% Could Make the Difference

2010-06-29T07:06:00.000-07:00

I asked Heather Myott a Mortgage Advisor with Coldwell Banker Mortgage, what would be the impact of waiting before purchasing a home. Waiting for what? Let’s say for home prices to come down. She gave me a great example to demonstrate that waiting could mean a decrease in purchasing power. Let’s take a look:

Example:
Purchase of $200,000 with 3.5% down payment at mortgage interest rate of 5.200% for a 30 year fixed rate loan = $1,078.33

Same scenario as above with an increase to the rate of 1% for a total mortgage interest rate of 6.200% = $1,202.75

Total increase in monthly payment of $124.42 or more than $40,000 over a 30 year loan.

To purchase at the same monthly payment as what you could with today’s rates in an economy with higher rates, you would be buying a home for around $179,000. That is a decrease in purchasing power of $21,000 or over 10% less of a home!

For more information contact:
Heather D. Myott,
Mortgage Advisor
Tel (802) 238-1704
Fax (856) 917-2188
Heather.Myott@mortgagefamily.com
Licensed in Vermont #6038

Extra Credit- Article from Seven Days

2010-03-12T07:31:00.000-08:00

Here is an article from Seven Days where Chris talks about the First Time Homebuyer $8000 Tax Credit.

Josh Slocum looked for his first house for more than six months before he found the one. The 140-year-old Cape Cod in Winooski wasn’t huge — about 1000 square feet — but it was just what he wanted. Slocum, 35, organized his financing and put an offer on the house last January. Because it was a short sale — a sale whose proceeds are less than the balance owed on the property’s loan — the seller’s bank got involved, and it took a while for Slocum’s offer to be approved.

When he finally closed on the property in August, Slocum, the executive director of the South Burlington-based nonprofit Funeral Consumers Alliance, realized the closing costs and the costs of initial repairs were a little more than he could handle. But his status as a first-time homebuyer qualified him for the $8000 federal credit. Knowing that he’d have that money coming his way, Slocum felt comfortable borrowing from friends to cover the closing costs and those basic repairs.

Three months after he filed for his credit, Slocum received an $8000 check in the mail, signed by Uncle Sam. “It felt like the Publishers Clearinghouse,” he recalls. “But it wasn’t like it was play money.” That cash went straight to the friends who helped him out. What was left over went into a kitty for future home repairs.

Slocum says the credit was a huge incentive. It’s a common refrain among many first-time homebuyers who have taken advantage of the government’s effort to help spur the sluggish housing market. It’s difficult to measure the precise impact of the program, but local real estate agents and market watchers say it’s definitely having an effect.

When compared to the cost of a new, entry-level home in this market — somewhere in the neighborhood of $250,000 — eight grand doesn’t seem like very much. But when a new buyer has drained his or her savings for the down payment and is living lean after paying for inspections, repairs and the closing, the extra cash is a nice little boost. Slocum doubts that he could have bought his home without it.

In 2008, the Housing and Economic Recovery Act authorized a credit of $7500 for first-time homebuyers. A year later, the American Recovery and Reinvestment Act expanded that credit by $500. The credit does not apply to single people with incomes of $125,000 or more, or couples with a combined income of more than $225,000. In November, Congress extended the credit, but despite the expansion and extension, few in the industry expect the credit to be extended after it expires in July.

That means first-time homebuyers must have a house under contract by May 1, 2010, and must have closed on the property by July 1, 2010, in order to be eligible. Existing homeowners who are looking to move up are also eligible for a $6500 credit if they have owned their current property for five years or more.

Apparently, say Vermont real estate professionals, the money is working to bring people into the market. Statistically, says realtor Chris von Trapp of Coldwell Banker Hickok & Boardman Realty, the credit has “done its job.” New home sales are lagging, but existing homes in the low to middle price range are moving. Two years ago, 30 percent of von Trapp’s buyers indicated they were first-timers; this year, that figure has climbed to 53 percent. “It doesn’t get any better than this with low interest rates and the stimulus,” von Trapp says.

In October and November 2009, just before the credit was extended, area real estate agents saw a huge rush in the number of first-time homebuyers seriously looking to purchase property. People wanted to get the $8000 to which they were entitled. Bob Hill, vice president of the Vermont Association of Realtors, is seeing the same crazed house hunting now, as first-timers realize they have just 60 days to get a house under contract.

After a drop-off in sales in December and January — historically slow months for real estate — interest in the market from new homebuyers rose to fever pitch, Hill claims. “The point of the credit was to get people off the sidelines and get them to make a decision,” Hill says. “It’s definitely working. Houses under $250,000 are moving.”

While the Vermont Real Estate Information Network doesn’t have exact numbers of first-time homebuyer sales in the state, Kathy Sweeten, the organization’s executive vice president, confirms that sales activity in Vermont has shot up in the last couple of months. In 2008, 789 single-family homes were sold in Chittenden County. Last year, that number jumped to 889. She attributes the increase not only to the tax credit but to the fact that home prices have stabilized in the region and the housing inventory is good. “We definitely have a healthy market here,” Sweeten says.

Emma Mulvaney-Stanak knows that to be true. When she began looking to buy her first home last summer, entry-level housing was being snatched up as soon as it was put on the market. As the tax credit window began closing, it became harder to find an affordable property. When she finally landed on a house she could afford, she pounced on it. “I offered the asking price,” she says. “I just had to throw open the checkbook because I was worried it would get snatched up.”

The opportunity was so good she gave up her seat on the city council to take advantage of it; she had lived in Burlington’s Ward 2, but the new place was in Ward 3. When she moved, she was required to step down. Last Tuesday, her new neighbors voted her back on the council, representing Ward 3.

The 29-year-old closed on her two-bedroom house in Burlington’s Old North End right before Thanksgiving and says she is looking forward to getting her $8000 check. The credit, she says, will “accelerate the exciting part of home ownership.” She plans on using part of the money to redo her bathroom, which, she reasons, will help the local economy. “I’m putting money back into the community and someone else will benefit from the credit,” she says.

Meredith Haff, a first-timer from Stowe who works as the marketing director at Concept2, plans on using her credit to “replenish the reserve,” which was drained shortly after she purchased her condo. She spent the first six months painting her place and making it her own. The credit, which she hopes to get in a couple months, will go toward reimbursing herself.

Like Slocum and Mulvaney-Stanak, Haff, 31, was pushed to take the plunge in part because of the credit. It was the incentive she needed to make a move now rather than wait around. “Knowing some of that money might come back to me made it seem less of a scary deal,” Haff says. Not only does she have $8000 coming her way, but she also has the satisfaction of knowing she did her part to stimulate the economy. Like all home purchases, Haff’s had a modest trickle-down effect on the economy. But cumulative housing sales help keep realtors, real estate attorneys and mortgage brokers in business and inspire confidence in the market.

Increased activity due to the credit, and to historically low interest rates, has a downside, though — first-time homebuyers in the region may find it hard to locate a property in the low to middle price range. The average length of time a two-bedroom home sits on the market is just 60 days, von Trapp says, making it a true seller’s market.

Most houses under $300,000 are getting multiple offers, and many of them are selling for the asking price. That means first-timers have to get aggressive if they’re going to land in their dream house. Average buyers in that price range lose the first two properties they think about putting a bid on.

“If you walk into the one and it’s the one,” von Trapp advises, “you have to buy it today.”

Addison County Market Update

2010-02-18T08:40:00.000-08:00

2009 proved to be a year of ups and downs. The Vermont real estate market struggled during the 1st half of the year, posting declines in sales of nearly 30%. With the passage in Congress of the Economic Stimulus Package in February 2009, qualifying first time buyers were provided an incentive to purchase and receive up to an $8000 tax credit, activity picked up and our local market began to turn around. Sales increased during the 2nd half of the year -
with first time buyers comprising nearly 50% of all real estate sales up from 35% in previous years. In spite of the surge in sales between August and November, total sales
in Addison County were down over 11% for the year by units sales with the average sale price dropping 12.5% across the board. In addition sluggishness in the market was reflected in an increase in days on the market of over 34%.

In November, Congress voted to extend and expand the tax credit in an effort to sustain the recovery of the housing market and therefore the economy. As a result of this extension, we expect an early and strong Spring Real Estate Market. Properties must be under contract by April 30th and meet a June 30th closing deadline. Now is the time for buyers to look for homes and for sellers to put their homes on the market. After April 30th - there may be fewer buyers motivated to purchase. In addition, economists are predicting a slight increase in mortgage rates for the second half of 2010. Those two conditions may exclude some buyers from the market as it will, at a minimum, reduce their buying power. The expansion of the tax credit to existing homeowners is an opportunity that many should take advantage of. If you have owned your primary residence for 5 consecutive years of the last 8 years - and you purchase a new primary residence by April 30th (with a closing date on or before June 30th) - you may qualify for up to a $6500 credit on your 2009 or 2010 tax return; individuals with incomes as high as $145,000 or couples with income as high as $245,000 may qualify.

Understanding the market and choosing a Real Estate Company and Agent with proven results in a difficult market is crucial. Coldwell Banker Hickok & Boardman Realty worked with more sellers and buyers in 2009 than any other real estate office in the entire state of Vermont, according to the Vermont Real Estate Information Network (VREIN). If you have any questions about this data or the tax credits - or would like to talk about your specific neighborhood - please don't hesitate to contact me - Chris

2009 Real Estate Market Summary

2010-02-08T06:33:00.000-08:00

In November, Congress voted to extend and expand the tax credit in an effort to sustain the recovery of the housing market and therefore the economy. As a result of this extension, we expect an early and strong Spring Real Estate Market. Properties must be under contract by April 30th and meet a June 30th closing deadline. Now is the time for buyers to look for homes and for sellers to put their homes on the market. After April 30th - there may be fewer buyers motivated to purchase. In addition, economists are predicting a slight increase in mortgage rates for the second half of 2010. Those two conditions may exclude some buyers from the market as it will, at a minimum, reduce their buying power.

The expansion of the tax credit to existing homeowners is an opportunity that many should take advantage of. If you have owned your primary residence for 5 consecutive years of the last 8 years - and you purchase a new primary residence by April 30th (with a closing date on or before June 30th) - you may qualify for up to a $6500 credit on your 2009 or 2010 tax return; individuals with incomes as high as $145,000 or couples with income as high as $245,000 may qualify.

Whether downsizing, purchasing a larger home, or a new home in a different location - don't miss out! For those existing homeowners considering selling their home this spring, while the average price of homes sold has declined slightly in the past two years, if you've owned your home since at least 2003 - you may realize an increase in value because of early, substantial appreciation.

Understanding the market and choosing a Real Estate Company and Agent with proven results in a difficult market is crucial. Coldwell Banker Hickok & Boardman Realty worked with more sellers and buyers in 2009 than any other real estate office in Chittenden County and the entire state of Vermont. If you have any questions about this data or the tax credits - or would like to talk about your specific neighborhood - please don't hesitate to contact me.

Vermont Public Radio recently interviewed Leslee MacKenzie, President/ Owner of Coldwell Banker Hickok & Boardman Realty, regarding the state of the Vermont real estate market. To listen to that interview visit: www.HickokandBoardman.com.

A FREE Home Buying Seminar

2010-01-29T08:57:00.000-08:00

Find out everything you need to know before buying a home — from loan pre-approval to closing.
*PLUS get information about the First Time Home Buyer Tax Credit — up to $8000 in your pocket!
Wednesday, February 3, 6-8 p.m.
ECHO Lake Aquarium & Science Center
5:30 Check-in, light dinner provided
RSVP required
special guests include:
Andrew D. Mikell, Esq., State Manager, Vermont Attorneys Title Corporation
Chris Von Trapp, Realtor, Coldwell Banker Hickok & Boardman
Kelly Deforge, Loan Officer, Universal Mortgage

To RSVP click here

A Great Deal in Real Estate is Now Better

2010-01-28T06:39:00.000-08:00

The federal income tax credit for homebuyers has been extended and expanded to now include homeowners who wish to "move on" after 5 years of living in their current property, as well as first-time homebuyers.

First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit
Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit
There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010)
Income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.

According to The National Association of Realtors News Release, dated 11/5/09, an estimated $22 billion has already been added to the general economy resulting from the bill and approximately 2 million people will utilize the tax credit in 2009.

The following chart provides more information:

Feature	For First-Time Homebuyers	For Current Qualifying Homeowners
Amount of Credit	$8,000 ($4,000) married filing separate)	$6,500 ($3,250 married filing separate)
Eligibility	May not have had an interest in a principal residence for 3 years prior to purchase	Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Termination of Credit	Purchases after April 30, 2010	Purchases after April 30, 2010
Binding Contract Rule	So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close	So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close
Income Limits	$125,000 - Single $225,000 - Married Additional $20,000 Phase Out	$125,000 - Single $225,000 - Married Additional $20,000 Phase Out
Limitation on Cost of Home Purchased	$800,000	$800,000
Purchase Made by a Dependent	Ineligible	Ineligible
Additional Requirements	Purchaser must attach documentation of purchase to tax return	Purchaser must attach documentation of purchase to tax return

Courtsey of Coldwell Banker.com

Addison County Market Update

2009-11-19T06:33:00.000-08:00

I do not consider myself much of a bean counter but I do keep my eye on sales statistics as a tool to measure market activity as well as to help my selling clients understand what to expect with regards to the current buying activity. So, let’s take a look at market activity in Addison County. Addison County sales year to date (11/2/09), compared to last year sales are off about 16%, the average sale price has dropped 12% and the average days on the market is up 27%. While the market is not as stagnant as it feels at times, you do have to be reminded that all of the sales figures were off when comparing last year to the year before. The two year sales comparison shows that the total drop in sales for the two year period was 22%. The statistic that I find most interesting is that we actually had about 2% fewer listings this year than last. If you asked most people on the street, they would tell you that there were many more homes on the market than in prior years. Perception is not always reality.

If you look at the Land Sales data, you’ll see much more of a dramatic drop— with total number of lots sold down 50%, average sale price down 35%, and average days on the market up 37%. Clearly, these numbers reveal the sobering fact that the slowdown in the building industry is directly effecting the marketability of building lots. Once again, in spite of the sluggish sales, there are actually 6% fewer lots currently on the market than there were during the same time last year.

In spite of the grim statistics, I do have to report an increase in both phone call volume as well as e-mail inquiries in all sectors with a marked increase in what I call discretionary real estate purchases such as lakeshore, second homes and, yes, building lots. This increase in activity has been in the last 30-45 days and it is not necessarily tied to the first time home buyer’s credit. It seems that the buyers in this category have determined that the sky is in fact not falling and they are beginning to plan for the future and getting on with whatever plans they had put on hold last August. So stay tuned. I will be doing a year end re-cap after the first of the year which might be helpful for you to plan your next real estate move.

Wishing you all a very Happy Thanksgiving. - Chris

* Graph- As Reported by VREIN for Addison County, YTD 1/1/09— 11/2/09 vs. 1/108—11/2/08.

GREAT NEWS FOR FIRST TIME BUYERS & THOSE LOOKING TO MOVE UP!

2009-11-17T11:18:00.000-08:00

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence by April 30, 2010. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers who have owned their primary residence for 5 of the last 8 consecutive years.

Click here for more details!

$8000 Credit May Be Extended !!

2009-10-26T11:54:00.000-07:00

I had this article sent to me by my favorite mortagage originator . Check it out!!

Nelson Says Senate to Extend, Reduce Homebuyer Credit (Update1)
By Ryan J. Donmoyer and Dawn Kopecki \

Oct. 26 (Bloomberg) -- Senate leaders are negotiating to extend and gradually reduce an $8,000 tax credit for first-time homebuyers through 2010, Senator Bill Nelson of Florida said.
“We should be able to extend that later this week,” Nelson, a Democrat, told reporters traveling today with President Barack Obama on Air Force One to a speech in Jacksonville, Florida.
Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus of Montana, both Democrats, may seek to add the homebuyers extension to legislation extending unemployment benefits that may be debated as early as this week, according to Regan Lachapelle, an aide to Reid.
Lawmakers are under pressure from real estate agents, mortgage brokers, and homebuilders to extend the $8,000 credit before it expires Nov. 30.
Baucus and Reid made a proposal last week to Senate Republicans that would extend the homebuyer credit through 2010, Lachapelle said. First-time homebuyers who close before April 1 would get the full $8,000, and the credit’s value would be reduced by $2,000 in each successive quarter until expiring at the end of the year.
The proposal was intended to counter one by Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, and Senator Johnny Isakson, a Georgia Republican and former realtor, to extend the full $8,000 credit through next June, and to expand it to all couples earning $300,000 or less. The Baucus- Reid proposal would continue limiting the benefit to first-time homebuyers, Lachapelle said.
Business Tax Break
Baucus and Reid also proposed an extension of a business tax break that allows companies with losses in 2008 and 2009 to amend tax returns for any of the previous four years to get a refund of taxes paid. Without the benefit, companies would have to wait years to apply those losses against future profits.
A version of the benefit was included in last February’s economic stimulus bill, though it was limited to companies with receipts under $15 million. A lobbying effort by business groups, including the Washington-based National Association of Manufacturers, to extend the benefit to all companies failed at the time; the Obama administration has since proposed a broader benefit in its budget.
The terms for extending the homebuyer tax credit are still being negotiated, Lachapelle said.
To contact the reporters on this story: Ryan J. Donmoyer in Washington at rdonmoyer@bloomberg.net Dawn Kopecki in Washington at dkopecki@bloomberg.com Last Updated: October 26, 2009 13:33 EDT

Take advantage of the tax credit. Time is running out!

2009-10-06T07:35:00.000-07:00

Rose are Red, Violets are Blue....

2009-10-04T15:35:00.001-07:00

I just got done trying to convince my daughter, who is a senior in college and an creative writing and poetry major , of the power of the internet. I have encouraged her to start her own blog and to share all of her great essays, poems and short stories. When you consider the age and cultural difference between a 54 year old and 21 year old you might expect these roles to be reversed.

In any event, I have decided to post some of my own poetry as an illustration of the power of the internet and how she could be using it to her advantage. So here goes a short and quick poem for you all to enjoy. Comments would be welcome and appreciated.

Gone is the day
the sun says it's last goodbyes
wisps of orange pink clouds hang
like gosimer wings
Tomorrow brings a new sun
another day

Are you hoping to take advantage of the First Time Homebuyer Tax Credit?

2009-09-23T08:14:00.001-07:00

In order to be eligible for the Tax Credit you must close by November 30,2009. In order to close by November 30, 2009, you will need to have you home under contract by October 15, 2009.

Call me today to help you being your home search!

If you have any questions about the tax credit or the real estate market, please give me a call.

Chris

2009-09-03T07:20:00.000-07:00

Huge Lake Champlain and Adirondack Views from this fully permitted 3.2 Acre Lot!!!

In my practice of selling real estate , I happen to list and sell a number of building lots; Many more than , most agents in my market. I am always asked by buyers to contact them when and if I ever come across a permitted building lot with views of Lake Champlain and the Adirondack Mountains. Well, it just so happens that right before the big " downturn" in the real estate market, I was fortunate enough to be asked by the current owner to help him sell this great, once in a lifetime lot. It is located on the south west side of Charlotte, VT and has some of the best lake and mountain views I have ever seen. In addition, it is easily accessed off of a town road, has power, cable and telephone lines within 50 ft of the best building site and has a three bedroom state approved septic design.

If not for the market slump and drop in construction starts, this lot would have sold a year ago. Don't let it get away!! Call me today or e-mail me for more information.

P.S. I hope you enjoy my attempt at a video tour of this lot.

New Program with a Little Assurance

2009-06-24T06:18:00.000-07:00

While it's true that our local real estate market has not experienced the declines other markets across the country have experienced - there is one common theme across the country: buyers are cautious. The reality is this is a great time to buy. Mortgage rates are low; inventory is good; and some buyers are eligible for an $8,000 federal tax credit. But still, buyers remain somewhat cautious.
Coldwell Banker Hickok & Boardman Realty has designed a program to give home buyers peace of mind and protection during the first year of home ownership called The Buyer Assurance Plan. Coldwell Banker Hickok & Boardman Realty is the only company in our market offering this Plan!
This plan combines a Home Mortgage Protection plan in the event of a job loss and/or a Home Warranty on many major appliances and systems in the home for one year.
As a Seller, you may choose to provide this coverage for a Buyer, distinguishing your home from others on the market. The Plan will provide a cash payment to the Buyer for up to 4 months and as much as $1500 per month in the event the Buyer loses their job. The Buyer Assurance Plan may also include Home Protection, covering the repair or replacement of many of the most frequently occurring breakdowns of home systems and appliances. There is no sign up fee for you to add this marketing program to your home and premiums are paid at time of closing. Like any insurance plan, some restrictions would apply - so we encourage you to read the FAQ's provided by the two carriers. http://hickokandboardman.com/bap_faq
As a Seller, here are a few benefits of this program to you: 1. Peace of Mind Protection - addresses the fear of job loss by paying a cash benefit directly to the home buyer if their income stops due to job loss 2. Marketing this plan differentiates your home from others on the market 3. Encourages buyers to make a positive purchase decision 4. No sign up fee's 5. No premium payment is due until your home closes! Coldwell Banker Hickok & Boardman Realty has bundled these two separate insurance plans together. However, the plans may also be purchased separately. The combined cost of the Plan is $754 for a single family home or $714 for a condominium (due at closing). I believe this program is worth considering. Please contact me with questions or to receive additional information. If you are interested there is a simple opt-in agreement I would be happy to send you.

2009-06-08T07:55:00.000-07:00

Spring has definitely arrived! The grass is growing, daffodils blooming, the swallows have returned to Capistrano and yes, even the buyers seem to be slowly wading back into
the waters and looking at homes to purchase. The new Stimulus Package is the cause of some of this activity as the buyers realize they have a once in a lifetime advantage to get an $8000 tax credit, get a low mortgage rate and buy a new home at a fair price. As the first time homes are purchased, those sellers will hopefully become buyers of larger more expensive homes and the “ trickle up” theory will kick in, with more homes being sold as a result.
If you hoped to sell your home in 2009 and you were waiting until Spring to arrive, it is here and the time to act is now. In considering things you need to do to get your home
ready for this very competitive market, staging your home’s interior has become a must as you will often only get one chance to make a good first impression.
With spring upon us, you need to also apply the same concept to the exterior of your home. You want to be sure the lawn is mowed; the flower beds are properly edged and weeded. Perhaps this is the year to splurge on some extra special annual flowers to add color and interest to your existing foundation planting. But be careful, don’t go overboard. Too much garden space can be overwhelming to the nongardening buyer. So keep it simple, colorful, and be sure to pick plants that will give you flowers through the entire season. If you need help in deciding exactly what you should be doing inside and out, give me a call and I would be glad to give you some pointers. Our “Home Services” tab at www.HickokandBoardman.com has a group of service providers who have aligned with us to help you get your home ready for sale and get you the highest price in the shortest amount of time. Give me a call and I would be happy to do a full Comparative Market Analysis which will give you up to date statistics on the market and how our home
would compare.

The Stimulus Package & Buying Up in a Down Market

2009-04-06T08:08:00.000-07:00

So here you are, living in a home that no longer meets your needs and you want to know if it makes any sense to make a move “in this market.” If you have a home or condominium that is now too small for you and your family you should keep reading. Let’s set up the following scenario. Two years ago, when you did not want to sell, you might have gotten $250,000 for your home. Now, two years later, your house is not getting any bigger, and your home is worth $225,000. If you do sell, you are planning to stay in the area, or moving to an area that has had housing prices that have fallen far more dramatically than here in VT. In either case , you will be buying a bigger, more expensive home. Two years ago that home would have cost you $375,000 but now you see that homes of that size are now selling for $325,000. As an added bonus, the interest rate has dropped from 6% to 5% or less. Under these circumstances, assuming your employment situation has not changed, you have a better opportunity than ever to buy up for less total purchase price and at a lower interest rate.
The difference in your monthly mortgage payment will be far less than it would have been 2 years ago. In addition, that larger house that you just bought at a bargain price is now going to appreciate in value at a higher rate and out perform the appreciation of the home your currently in during the next up swing in the market. Although there is more inventory available in the 0-$250,000 price range, the rate of sales year to date actually results in a shorter market time for the house you will be selling than price range you will be buying into. With longer market times at the higher price ranges, you will have time to sell your home in order to buy the next one and the sellers may be more flexible on price. And this is where the stimulus package starts to work for you. As the deadline of December 1, 2009 approaches, more and more first time home buyers will recognize the opportunity and make their first home purchase driving the market for your home and others like it. As a result, we should actually see the market time for the first time home shorten as demand increases which will further improve your chances of you achieving your goal. In short, if you are looking to step up into a larger home, now may be the time to make the move.

Homebuyers Fair

2009-03-23T07:49:00.000-07:00

Home Buying Made Easy! A Free Semiar Hosted by Seven Days!

Presented by Chris von Trapp, Coldwell Banker Hickok & Boardman and Jay Vallieres, Mark Chaffee Group of Mortgage Financial

Find out everything you need to know before buying a home — from loan pre-approval to closing.
*PLUS get information about the 2009 First Time Home Buyer Tax Credit — up to $8000 in your pocket!
Thursday, March 26, 6-8 p.m.
ECHO Lake Aquarium & Science Center
5:30 Check-in, light dinner provided
RSVP required http://www.sevendaysvt.com/

Do you qualify for the First Time Home Buyer Tax Credit included in the Stimulus Package?

2009-03-04T11:59:00.000-08:00

Now that the Stimulus Package has been signed into law, buyers are asking a lot of questions and want to know if they qualify and what it may mean to them for there first home purchase. Here are some resources that may help.

Enjoy,

Chris

WCAX-TV helps explain how the First Time Home Buyer Tax Credit can benefit you when purchasing your first Vermont home
The National Association of Home Builders has provided a list of frequently asked questions related to the $8000 First Time Home Buyer Tax Credit
Use this chart to understand the difference between the previous $7500 tax credit and the current $8000 tax credit passed by Congress
Related Links
Open HouseVisit an Open House this Sunday from 1 - 3Know Your TermsReal Estate Glossary Free Credit Consultation
Vermont Real Estate Tools
Mortgage Calculator Affordability Calculator Coldwell Banker Video LibraryLearn more about

Sleeping Burlington Vt Market Stirred by Stimulus

2009-02-23T04:37:00.000-08:00

Here is a bit of good news for buyers and sellers alike. The Stimulus Package was just signed into law last week and seems to be having an immediate effect here in the Burlington VT area. This impression is not based on any sound scientific study or empirical data, so take it for what it is worth. It is based on a "boots on the ground" observation I made over this past weekend. Here is the story.
I am helping a family relocate here from out of state and they had a schedule that required us to be out seeing all we could see yesterday, Sunday. I had attempted to make an appointment at one particular property, along with several others, and we were asked if we could come by during the Open House from 1-2pm rather than disturb the occupants in the morning of the same day. With a little bit of re-schedule we were easily able to accommodate the request and agreed amongst ourselves to see it at 1:30pm.
I arrived a little early and thought I would pop in and get a quick preview as I had only seen the home on the Internet. As I approached the house I observed cars lining the street and one in the driveway that was not the Realtor's car who was holding the Open House. Car count was four at 1:30pm. I parked on the street and went in too take a look. As I was entering , two parties left. I dropped my shoes at the door and began to look around. In the next 15 minutes four more parties showed up and then the family I am working with. Counting my clients, there were eight showings of this one home in the first hour of the Open House.
This home was built in the late 1960's but has been well maintained with new paint and carpet and other improvements. It is not a foreclosure nor is it owned by a relocation company or being offered in a short sale. All of these issues might be the cause of a high traffic count but this was not the case in this situation. This house has been on the market since last August so it was also not new to the market. The REALTOR holding the Open House was overwhelmed since she had been holding Open Houses since the beginning of the year in similar homes and always brought other work to do as she as she sat there with no viewings.
Maybe this is an isolated case or the Denny's at the foot of the street was offering free Grand Slam Breakfasts for all attendees. What ever the case, the renewed interest in buying real estate by those viewing this house felt invigorated and fresh. So if you are selling your current home , take heart as there appears to be the beginning of a Spring real estate market taking shape.
If you are a buyer and you have been sitting on the sidelines waiting for all the stars to line up, this could be it. The pricing has adjusted, sellers are motivated and want to get on with their lives. The interest rates are hovering just below 6% and I have heard of some 5% quotes to buyers from some lenders, depending on credit scores. The inventory in and around Burlington that is affordable priced is low and once these looking buyers act, it will not last long. The good news is if the sellers who have been sitting on the sidelines, sense that they may get a fair price on their home this Spring , you will see more inventory enter the market and replace the homes that are purchased.
What this market needs is some active and motivated buyers who are well positioned to get off the fence and get this market moving again.

Stimulates the First Time Homebuyer but You Have to Buy to Win!!!

2009-02-17T05:12:00.000-08:00

I was sent this this morning from our in house mortgage loan originator. I thought it might add some clarity for the first time home buyer.
Enjoy!!

Chris

By Les Christie, CNNMoney.com staff writerFebruary 16, 2009: 5:38 PM ETNEW YORK (CNNMoney.com) --
There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"
Not exactly. Billings won't get $8,000 on top of his current refund, but he would turn that small refund into a much larger one. If his total tax liability came to $6,000, but he had $7,000 withheld from his payroll, he would normally receive a $1,000 refund. With this credit, his refund would total $8,000. If the credit were non-refundable, as was originally proposed in the Senate version of the stimulus package, he would have only received $6,000, or the total amount he paid in.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.
"[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."
Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.
The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.
Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.
Instead, many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.

2009-02-02T13:40:00.000-08:00

Historic Colonial with Studio/Workshop

This stately home was purchased nine years ago and lovingly painted, repaired and rejuvenated form top to bottom all the while retaining the original charm. Most of the woodwork has been brought back to it's original condition or replaced with perfectly matched new wood. The exterior porches have all been re-built and the slate roof has been repaired as needed. All of the interior surfaces have been painted in period colors and the exterior is a classic yellow, with cream trim and dark green windows and mutton's.

In short, all the work has been done and it is now ready for you to enjoy. If you an old home lover , this home will really catch your attention, as it has all the positive qualities of a center hall colonial of that era, large center hall with stairway, large four square floor plan, large windows, wide pine floors and understated, but classic, window and door trim details. Speaking of doors, the interior six panel doors in on the two front rooms are a full 36" wide, something I have never seen in any other home of it's kind.

Some people have questioned my classification of the house as a center hall colonial due to the Italianate Exterior roof trim and the hip roof design. The answer for that is that around the turn of the century , this house was on a different part of this two acre lot, and for some reason , it was moved one winter over the hard frozen ground by a team of oxen and placed on it's current foundation. I believe at that time, the roof was replaced with the current hip roof and the Italianate features added along with the porches and most likely the attached portico and studio.

Speaking of the portico, this is my absolute favorite aspect of this truly wonderful home. This covered patio connects from the north kitchen door and the west porch to the studio/workshop. In the summer it functions as a large open and airy patio that is protected from foul weather and the hot summer sun by a post and beam supported slate and metal roof. Fully opened sides on the east and the west allow for the cool breezes to flow through and make this area a truly magical one all summer long.

Directly across from the kitchen door and at the end of the breezeway is the studio or workshop. This space was originally an unfinished barn but the current owners have transformed it into a radiant heated fully insulated cabinet shop. With it's large windows and open story and a half interior, this would make a terrific studio for any artist, or a fantastically private in home office . I could see this space lined with bookshelves from floor to ceiling and into the half loft that runs along the east wall. With the double french doors to access from the drive, this is space could easily be transformed to accommodate any hobby or work interest.

2008 Real Estate Market Summary

2009-01-22T08:54:00.000-08:00

Office Market Share- 2008 Chittenden County-Sides sold*

2008 proved to be a year of market adjustments; not only in the real estate market but for the nation's financial markets as well. As REALTORS® serving Chittenden County and the surrounding areas, the question we are often asked is "How is the real estate market - really?" There is no such thing as a national real estate market. It is critical to know that market conditions vary, not only from county to county, but also town by town.
Despite a slowing in appreciation of the average sales price of a home over the past 2-3 years, there has been a substantial increase since 2003. Unlike the financial markets, we have not see substantial drops in value. This drives home the point that real estate remains an excellent investment for the long term.
In 2008, the number of property sales declined as compared to 2007 and in most cases declined from the 6 year average number of home sales. However, in reviewing the 6 year snapshot, it mightbe concluded that 2008 was an exception to the relatively stable number of property sales throughout the years.
Increased inventories and decreased transactions add up to a strong buyer's market. Coupled with historically low mortgage interest rates, some buyers will be scrambling to purchase their first home or "move up" to a larger home in 2009. Sellers who have their homes well maintained and priced competitively can close in less than 90 days on average.
If you have any questions or would like to talk about your specific neighborhood -please don't hesitate to give me call.
(802) 846-9525
Chris@ChrisvonTrapp.com

*Soure: Vermont Real Estate Information Network (VREIN)

Chittenden County Lakeshore on Lake Champlain VT

2009-01-19T14:44:00.001-08:00

Working your way north towards Chittenden County, the first lakeshore town that you come to is Charlotte, VT. This town is the home of one of my personal favorite summer lakeshore community: Thompsons’ Point. The land that is Thompson’s Point is still owned by the Town of Charlotte and leased for 20 year terms to the individual "camp" owners. There are no year round homes allowed by the terms of the leases and community water system is turned off by Thanksgiving and back on in May to insure that the rules are adhered to. The south side of the point has original homes that were built back in the 1800’s when Thompson’s Point Rd ended at the town steamer dock were the old post office and tavern turned camps still stand today. The North shore was developed during the 1920’s to the 1950’s and tends to have more modest structures with more abrupt and hard to access shorelines. Roughly a half dozen camps are made available for sale on either the North or South Shore areas and the prices range from $500,000 to over $1,000,000 depending on size and shoreline quality. While that may be a lot of money for only seasonal use, those who have experienced the magical environment of this summer community from another time, do not question the value.
I have rented various camps by the week from their owners in past summers and still hold fond family memories from those treasured but all too brief stays. My favorite is the Annual Forth of July Parade complete with hand pulled red wagons, participants of all ages banging pots and carrying on as they march to the old steamer dock for an appropriate speech delivered by one of the "Old Timers" followed by rousing version of the National Anthem. Good clean fun!!

Addison County Lakeshore Homes on Lake Champlain

2009-01-19T14:42:00.000-08:00

So now that you are ready, let me give you some key towns to explore and what you can expect to find there. The Lake to the south has one major landmark that is often used as a point of reference, the Crown Point Bridge. Located in Addison Town, Addison County Vermont, it links the central part of that county to New York State, Ticonderoga and provides the quickest access south by virtue of NY Rt #87 or the Northway. Lake Champlain to the south of the bridge, while still very wide by most standards, starts to behave more like a river with a defined channel for navigation and broad expanses of shallower bays and natural marshland. North of "the Bridge" the Lake is totally navigable from bank to bank and one of the most unused parts as far north as Basin Harbor on the Vt shore and Westport on the New York side. The homes you will find both south and north of the bridge will be either seasonal and very rustic in nature, with some old style summer cottage communities , to full fledged year round homes but mostly modest in size and price. The towns you want to include in any search of this area would be Shoreham, Bridport, Addison, Panton and Ferrisburgh.
Located in Ferrisburgh, you will find Basin Harbor Club, named after the small protected harbor by the same name. It is the center of summer activity and a real attraction for year round and seasonal homeowners alike. Though it’s name makes the place sound exclusive and closed to the public, it is actually a very open resort offering reasonable family social memberships for complete us of their water front , pool, and tennis courts. For an additional fee you can also play their 18 hole golf course complete with cart. For the few members of the flying public there is a well maintained and often used grass air strip for quick day trips in and out or extended stays. Boaters can also reserve dock space by the day, week or season and North Harbor has a mooring field for transients and seasonal users alike. As you might imagine, all residences within a few miles of this great resort carry a higher value when offered for sale and the extra premium for this location is well worth it for the added summer fun and activities. Many families purchase multiple properties along this part of the lake to create an informal family compound kind of situation for all generations to enjoy. Assisting buyers in this quest during the summer is truly one of my favorite things.
As you leave the Basin Harbor area, the natural and expansive marshland formed by the confluence of Otter Creek as it empties into Lake Champlain forces you inland and through the City of Vergennes. One of the most historic cities in Addison County, it was instrumental in the US victory during the War of 1812 and the birthplace of the small armada of ships built by Admiral McDonough to take on the British. Once through Vergennes, the next significant lakeshore communities you come to is Long Point. Originally settled as a seasonal lakeshore community for the local Vermonters at the turn of the century, this area is populated by over 70 camps and cottages from rustic to completely updated all nestled in a mostly wooded enclave. While 12 of these homes are permitted for year round use, the majority are strictly for summer use only and offer a quiet lazy summertime spot at an affordable price.

Buying Lakefront Homes

2009-01-19T14:38:00.000-08:00

When Buyer’s think of owning a year round or seasonal waterfront residence, Vermont is not often the first state they look. But those who do, soon discover what a natural wonder and under utilized resource Lake Champlain is. From the long winding channels and locks that serve as your approach from the Hudson River to the multiple "gunk hole" anchorages throughout the Lake Champlain Islands, sailing, kayaking, fishing and boating this wonderful waterway is as varied and diverse as the homes that you will find scattered along its shores. Many of these "homes" started as seasonal cottages or "camps" as they are called by the locals. The origin of the term camp most probably originated from the fact that the original use of the lakeshore lots that these structures now occupy was nothing more than a camp site with a tent platform to provide a dry level spot for your trusty war surplus canvas tent. While you won’t find any tent platforms for sale these days, the homes that are offered will run the spectrum from seasonal, un-insulated cabins with little or no luxuries to large year round luxury homes complete with all the amenities you could imagine.
Just as the structures and homes will vary - so will the quality of the lakeshore itself. Some homes, while located on lots that go right to the waters edge, will have such steep banks that there is literally no way to get from the house site to the water without negotiating the bank on your hands and knees or installing an actual staircase to the water. The depth and quality of the lake water off the shore line can also be different from one bay or beach to another. True sand beaches, as you would normally picture them, are rare and hard to find. More likely the "beach" being offered in any advertisement will be horizontal slabs of ledge or "skipping stone" quality rocks mixed with large to sand size particles. Once you have re-adjusted your definition of beach, this wildly diverse lake offers everything from shallow slow flowing marshland teaming with waterfowl to extremely well protected deep water mooring spots. All of these things are possible; you just have to know where to look.

2008-12-17T06:29:00.000-08:00

Foote Farm II : Just minutes from Middlebury College Campus.............................. but miles away .

Foote Farm II is a planned residential community of 22 homesites in the heart of the Champlain Valley of Vermont. Located in historic Cornwall, just three miles west of Middlebury College and mid-way between Burlington and Rutland, Foote Farm is situated on one of the most beautiful tracts of land in the Middebury area. Lake Champlain and the Adirondack Mountains are ten miles to the west; the Green Mountains five miles to the east.

The homesites and common areas of conserved land were part of a farm that had been in the Foote family for over 200 years. Foote Farm homeowners have common use and ownership of 112 acres of open farmland, a large protected wetland and deep hemlock forests, preserved in perpetuity through a partnership with the Middlebury Area Land Trust.

Each site is fully permitted and ready to build in the traditional style of New England. Underground utilities and a state-of-the-art community septic system are in place and stubbed to the entrance to each lot.

Twenty of the original 22 lots were recently acquired by an existing Foote Farm homeowner and are offered for sale at prices up to $50,000 below original listing prices — making this desirable community even more appealing and affordable.

22 secluded building lots in a pastoral setting
Off Route 125 - minutes from Middlebury College
Over 100 acres of common-use conserved land
Each building site unique; covenants in place
Wildlife corridor through dedicated natural areas
Enjoy the cultural, culinary, athletic and social opportunities of a "college town" community.

Questions? Would you like to schedule a visit to Foote Farm?
Contact Chris von Trapp. 802-846-9525 (o), 802-343-4591 (c). www.chrisvontrapp.com

Buying an Old Vermont Home: Truth 5

2008-12-01T12:01:00.000-08:00

Truth#5: Vintage Homes are a great value: While often viewed as a “money pit”, older homes can offer you the most home and square footage for the money and here are some of the reasons why. When a new home is built buy the new home owner, the first part of the process involves finding a suitable lot, at today’s market value. Then you have to contract with an excavator to install the driveway, bring the utilities into the site and to the new home, do the site work, foundation hole, backfill, construct the septic system, all at today’s prices. The home is then built, once again, at market prices for materials and labor costs. At the end of the process, the bills are tallied and the total cost for the home can range for a low of $200/ square foot to $400/sq ft.

When an older existing home is priced for re-sale, it is compared to recently sold homes on the market with the appropriate corrections made for major differences in size and amenities. You never go back and start the valuation of an existing home by determining the current value of the lot in today’s market and then add the cost to reconstruct the existing home. In fact the land value in a comparative market analysis of an existing home is virtually discounted to zero. In the case of older homes with much of the original woodwork, built in’s, solid wood doors and hard or softwood flooring, the price to reproduce the finishes is not only exorbitant but in some case impossible. In the final analysis, a pre-existing older home of restorable quality is most often priced far below the underlying land and construction value of the same home if built new. While the restoration of the structure and updating of the mechanical and electrical systems can be expensive, when completed you will have that special one of a kind family home to enjoy and remember forever.

So take heart and if you have always dreamed of owning a Vermont Vintage home with all of the warmth and charm that only an older home can offer, go for it. By understanding the pro’s and cons and not setting unreasonable expectations, you can find that great older home perfect for you and your family.

Should I Take My Home Off the Market During the Holidays?

2008-12-01T11:26:00.001-08:00

When you look at your November and December calendars you may find the months already overloaded with seasonal obligations -- shopping, entertaining, children's pageants, charity work, decorating the house, and so much more. If you are also trying to sell your home, you are under extra pressure to keep your home in "showtime" condition. And that could be the last thing you need before the holiday spirit is broken. It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded by enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right? But wait! Most top Realtors agree that taking your home off the market during the Christmas season is a mistake. The house sure isn't going to sell off the market! What is the advantage of that? So you're busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things. The holidays are a wonderful selling period. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. Most agents like the holidays because the buyers have more time, and they can look at homes together.

Before you take your home off the market, consider the following points:

Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Agents believe the home market is no more affected at Christmas than during other "busy" periods. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.
Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn't a consideration. Finding the right home at the right price, however, is.
Relocating families often don't have a choice when they can leave for their new destination. Although 68% of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year's Eve, the timing couldn't be more perfect.
At Christmas time, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.
When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.
With reduced inventories and motivated buyers, you will have all the members of the MLS on your team. You may find you have more showings than you would if you marketed your home during a busier time of the year.
If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn't an option, you can put in the closing date of your choice. Most people can close 30 to 60 days after a contract is written, so there is plenty of time. Possession and closings are very negotiable.

Written by Blanche Evans - Realty Times

Safe Havens in Real Estate

2008-11-26T11:48:00.000-08:00

Here is a great article that was passed onto me from a coworkers. It just helps to show that real estate in local and not national. Vermont is a great place to buy.

With foreclosures skyrocketing and home prices plummeting, real estate has had a tough year. But in certain pockets across the country the damage has been minimal -- if nonexistent.We found six cities with slow, steady growth, using data from Fiserv Lending Solutions, a home-price research company. These cities' local economies have kept unemployment and foreclosure rates below average. Plus, their affordability index -- a measure of home prices versus family income -- is low.

Burlington, VT
Population: 145,360
Median home price: $250,000
12-month change in home value: +1%
Affordability index: 4/10
Homes sold this year: 592
Home value vs. national average: +21%
Top employer: IBM
On the shores of Lake Champlain, Vermont's largest city focuses on retaining its high standard of living rather than growing its population. Strict zoning standards make homebuilding difficult and discourage speculators. Burlington's small-town mentality ensures that home lenders maintain personal relationships with their clients and help them stay within their spending means. Technology, health care, and education drive the local market.

By Louis Jones, Kiplinger.com
Nov 21st, 2008

Click on the link to read the entire article: http://realestate.yahoo.com/promo/safe-havens-in-real-estate.html

Buying an Old Vermont Home: Truth 4

2008-11-24T07:40:00.001-08:00

Truth #4: Older homes take full advantage of their site. It occurred to me a number of years ago that one of the art forms that have really been lost over the years is the proper siting of a new home. With the dawn of the planned subdivision and the dreaded cul-de-sac, homes have become nothing more than playing pieces on a Monopoly board. You divide the land, create the lots, (all nice equal rectangles or squares) and you place the homes on them in the center of the lots facing the new streets. Gone are the days of walking the land, observing the sun patterns through the seasons, noting the prevailing fair weather wind and the gales that accompany any storms, observing the natural windbreaks and landscaping all before sighting your new home. The native Vermonters lived on and made their living from the land. The thoughtful sighting of their homes and farmstead was a matter of survival. It affected the heating of their homes, the productivity of the farms and in short the well being of their entire family. It was an extremely important part of the pre-construction preparation and was often done to perfection. This is one of the best reasons to explore older homes and is the one that is most often overlooked.

Buying an Old Vermont Home: Truth 3

2008-11-20T10:06:00.001-08:00

Truth#3: Not All Older homes are worth fixing up. I think there is a major misconception out there in the market place that all old homes are worth restoring. For the most part that is true. However I have found in my travels that there are two kinds of old farmhouses, those built by prosperous farmers with a good work ethic and pride in ownership and the other kind. Sometimes the actual historic period in which it was built will reflect in the original quality of the construction. Don’t assume that just because it was built back in “the day” by an old Vermont Farmer that the Old Vermont Farmer knew what he was doing , or was prosperous enough to be able to afford to do it right. Some of the best and the worst engineered homes that I have seen were old Vermont Farmhouses. You have to remember that “back in the day” you did not need a building permit to build; there was no building code and no building code enforcement. Having said that, there is no doubt that the finest examples of Architectural integrity and solid Vermont engineering can be found in these vintage homes and often times in parts of the house where you least expect it. So, do your research, learn about the construction methods of the day and start your search. With the right mix of persistence and knowledge, the perfect vintage home is out there just waiting for you and your family to enjoy.

Buying an Old Vermont Home: Truth 2

2008-11-18T12:14:00.000-08:00

Truth #2: Older Homes Tend to be close to the road: It is rare to find an old vintage home that is not located within a close proximity to the edge of the road upon which it is located. The reason for this, if you think about it, is that back when many of these homes where built, let’s say 1850 or earlier, the fastest thing that was going to pass by was a horse at a full gallop. Cars, traffic, tractor trailer trucks and road noise had not been invented yet and neither had the snow plow. How convenient would it have been to build your brand new 1800th century farm house a mile and a half from the town road only to have to navigate your way to the road without the assistance of modern conveniences every time you had to leave the farm? There are occasions when you Can find older homes that are now “off the beaten path” due to historic changes in traffic patterns but on the average, if you want an older home be prepared before you pull up for the first visit to deal with it’s proximity the road. Often the perception is worse than the reality, especially in the case of older brick or stone homes. These structures seem to wear the road noise well and except in warm summer months with the windows open, can be remarkably quiet in spite of their location. Whatever you do , do not discount a home due to it’s perceived proximity to what you have decided is a busy road, go see it and spend some time there before passing judgment. Go at different times of the day and weekends as well as week days. It would be a shame to pass up a classic charmer only because of the road, without at least giving it some serious consideration.

10 Real Estate Myths Debunked

2008-11-11T11:05:00.000-08:00

I found this on one of my favorite websites and thought it was worth sharing.

Enjoy!!!!

RISMEDIA, Oct. 29, 2008-With mortgage meltdowns, plummeting home prices and soaring foreclosure rates constantly in the news, it’s no wonder people are wary of the housing market these days. But contrary to popular belief, things are not as dismal as they seem, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun debunks 10 commonly held beliefs about the current housing market, and http://www.frontdoor.com/ offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20%. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20%, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you’re selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says. TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6% per year — much less than historical average returns for the stock market. Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6% per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns — and losses. If price growth returns to historic norm, the price growth of 4% can easily turn into 20 to 30% rate of return if the home buyer makes a down payment of 10 or 20%. TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market. TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It’s conceivable that taxpayers may have to cover some losses. It’s also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. TIP: Uncle Sam is “bailing out” homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed’s activities influence mortgage rates but don’t directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range. TIP: Today’s rates don’t look bad compared to the 10% we saw in the early ’90s and 17% in the ’80s.

7. It’s the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation. TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It’s the right time for everyone to buy. No. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one’s interest, Yun adds. TIP: Take a good hard look at your financial status and create a homeowner’s budget to see if you’re ready to buy a home.

9. It’s a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20% in the late 1980s to about 12% today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional. TIP: You don’t have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.

Buying an Old Home in Vermont: Truth #1

2008-11-07T13:46:00.000-08:00

Vintage or Antique Homes are one of my personal weaknesses and one that I succumbed to in 1997 when I purchased my very own 1820 Center hall Colonial Farmhouse on two acres. I think I can blame my parents for this love affair with architecturally significant and historic homes as they bought there first home in 1948, a 1780 Center Hall Colonial, where my mother still lives to this day.

For those of you out there who share this passion, there are some basic truths that you have to embrace in order to purchase one of these homes with confidence. I will be posting these truths over the next couple of weeks and hope that you find them helpful in deciding whether or not you really are an old house buyer.

Truth #1: Lead Paint: Yes there is most likely some lead paint located on the painted surfaces in all old homes that you may encounter. Unless they have been gutted to the studs and all of the original wood work removed, a Cub Scout armed with a camping knife and 15 minutes of un-supervised exploration time will find lead paint. If you would prefer an older home that has been gutted and replaced with all new surfaces then I would suggest buying a reproduction or totally new home of the style that you prefer. In my opinion, most of the charm of an older home is the old woodwork, trim, flooring, ceiling etc and most buyers are willing to put up with the older plumbing, wiring and mechanicals that often accompany the charm, in order to have it. To buy an older home with the old plumbing, wiring and mechanicals and the new interior may not be a wise decision and a new home may be a better choice.

The danger posed by lead paint in the vintage home is most often a factor of the condition of the paint. If the paint is in poor condition and some family member decides to dine on the loose paint chips, or worse, takes to chewing the window sills as a form of entertainment, lead poisoning is the result. Neither of these activities is advisable and will result in elevated levels of lead in the blood stream. Sanding, scrapping or stripping older painted surfaces if done haphazardly can put lead dust into the air to be inhaled with the same result. In short, if buying an older home, know that lead paint is located somewhere in the home. Don’t eat the paint or remodel without taking the proper precautions and you should be relatively safe.

While Buyers Sit on the sidelines, Interest Rates Rise to Keep Them Out of the Market

2008-11-05T07:32:00.000-08:00

Thought I would share this article with you all. Many buyers have been sitting on the sidelines hoping the price of their favorite home will drop before they make an offer. In the mean time, interest rates are volatile and on the rise, pushing many qualified buyers into lower and lower purchase price levels. The reality is, the effect of a 1 point rise in the mortgage rates will more negatively effect your future monthly mortgage payment than will paying a little too much for your dream home. It may actually knock you out of the buying arena completely without you even realizing it.

With sellers' motivation at an all time high and winter right around the corner, the best strategy is to get pre-approved, or better yet pre-qualified, with your favorite lender and start actively looking for the perfect home for you. Once you find it, don't sit on the sidelines. Double check with your lender to be sure of the amount you still qualify to borrow( it could be changing every week or by the day!!) , and make an offer based on a sound evaluation of the market. You will be surprised at the amount a motivated seller will agree to sell for even they have have been reluctant to lower their asking price.

Mortgage Rates on Roller coaster Ride; Rise Again after Coming Down in Late October
Posted By Paige On November 4, 2008 @ 4:31 pm In Finance and Economy Comments Disabled
RISMEDIA, Nov. 5, 2008-Mortgage rates rose last week, with rates for 30-year fixed mortgages increasing to 6.26%, up from 6.00% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate website Zillow.com(R). Rates for 15-year fixed mortgages rose to 6.01%, up from 5.64% and 5-1 adjustable rate mortgages rose to 5.81% from 5.64%.
Rates for 30-year fixed mortgages appeared to be up slightly on Monday evening with the average rate on Zillow Mortgage Marketplace at 6.33%.
At a state level, the 30-year fixed mortgage rate in Michigan saw the biggest increase, rising from 6.03% to 6.48%. Rates on 30-year fixed mortgages were lowest in the states of Oregon (6.12%) and Georgia (6.14%), while Michigan (6.48%) and Massachusetts (6.40%) had the highest rates.
The Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates quoted on Zillow Mortgage Marketplace (http://www.zillow.com/mortgage) by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.
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Restored Stone Farmhouse on 13 acres with Views

2008-11-04T11:21:00.000-08:00

This 181oc. Farmhouse is one of my personal favorites and if I didn't already live in a restored farmhouse.......... well, you know. This property had not been inhabited for almost 20 years when the current owner purchased it from the estate of the last owner and went to work. She began by assembling a crew of local artisan tradesman schooled in every discipline, from masonry and slate work to electricians and plumbers. The crew than began a methodical peeling back of surfaces that could be restored and gutting others to the bare post and beam supports in preparation for a full restoration effort that resulted in this beautiful home. The thing one has to understand about this ," Old House" , is that the structure and all the finishes have been restored while the mechanicals, electrical, plumbing, heating and septic system where all installed new and in such a way as to not compromise the original finishes. In short, this home looks and feels like it is 200 years old but the next owner will not be inheriting any old or antiquated systems in the process.

In any event, this property is situated on 13 acres and is surrounded by hundreds of acres of conserved farmland that will never be developed. The views to the east are of the spine of the northern ridge of the Green Mountains. You can literally see the four highest peaks of Vt from the front yard, Mt. Mansfield, Camel's Hump, Mt. Ellen and Mt. Abe as you scan the horizon from north to south. The home has four levels of finished space within the stone portion of the structure as well as a two story 20'x40'unfinished post and beam Ell. The kitchen has a raised Panton Stone hearth and a 5' high firebox. There is an identical fireplace located in the walkout basemen level " office space" that could be easily transformed into an authentic keeping room style tavern. All of the original doors, floors, woodwork, and hardware are intact and functional throughout the entire house. The second floor has had the most extreme renovations done with the creation of a full sized master bedroom and bath as well as a shared 3/4 bath for the other two bedrooms on that floor. The entire house is a restored work of art and yet still retains the cozy inviting charm of a home you would love to really "live" in.

To top it all off , the property is located just 5 minutes drive from Vergennes which has fast become one of the most desirable and sought after Vermont towns in which to live. The main street business district has been totally revitalized over the past ten years with a number of restaurants, shops and services all within walking distance of the central core of the town. Historical Otter Creek cascades over the falls located above the basin and the creek flows 8 miles through the country side and out to Lake Champlain , passing within walking distance of this very property. Burlington Vt and the International Airport are a 35 minute drive away and offer all the amenities and conveniences you would expect from Vermont's largest city.

So don't let this one pass you by. You can see more pictures and a full virtual tour by clicking the photo above. You can also get all the data at my website, http://www.chrisvontrapp.com/

451 Sunset Ln, Ferrisburg

2008-10-08T11:35:00.001-07:00

This is a really magical Victorian Camp that was actually built as a duplex "back in the day". It is two identical three bedroom , two story units under one Victorian roof. Built around 1902, it is located just north of The Basin Harbor Club on the shores of Lake Champlain. Follow the link to Basin Harbor Club to get more information about it. The neet thing is the Basin Harbor Club is actually open to the public and local folks get a Seasonal Social Membership that costs around $700 a year. It entitles you to the use of the waterfront beach and swim area, tennis courts, swimming pool and general use of the 700 acre resort. For an extra fee, there is an 18 hole Golf Course and motorized water sports. For the aviators out there, the have a nicely maintained grass airstrip.
Getting back to the " cottage", this is a great opportunity to establish a family, extended family or friend and family lake shore compound. This building lends itself perfectly to shared, multi-ownership, or timeshare style ownership. It has two spacious units with third floor expansion possibilities. The front of the building has a full length old fashioned porch big enough for a barn dance. The gently sloping lawn wend at the top of a field stone retainer with built in stone steps down to the real sand beach; Not pea stone, or shale or slab of ledge, but a real sand beach. The concrete dock extends out from the beach into deep water with a swim ladder built into the end. This whole package is situated in a protected cove with great mooring spots and huge views to of the Adirondack Mountains just across the lake. It truly does not get any better than this.

So check this out, call your friends and get together a group of six people or so and give me a call. With two units, six families could each enjoy a month on the lake in one of the signature lake shore properties in Ferrisburg, VT for a little more than $200,000 each.

Check in again soon where I will feature another truly unusual Vermont property.