10 Steps to House Hunting with a Well-Trained Eye

Monday, March 22nd, 2010

Burlington VT

It sounds like a great listing – in your price range – in a good neighborhood – with features you’re looking for. First impressions mean a lot – but you find the bushes are overgrown, the front hallway is covered with tacky foil wallpaper, the kitchen cabinets are painted dark brown, the living room rug smells musty, and the hardwood floors have black water marks on them.

Should you head back out the door? Maybe. But to fully determine whether you should cross this house off of your list you’ll need to gather more information, and perhaps look past the blemishes to get a full picture of this house’s potential. How do you do that? Follow these 10 steps.

Keep them straight

Looking at a bunch of houses? With digital photography making it easy and inexpensive to record images, be sure to take a digital camera along, first taking a picture of the listing sheet so you can remember which pictures go with which home, and then key elements of each home.

Also, make a checklist before you visit the first house so that you can keep each of them straight. Here is a list of items you’ll want to include (rank each as either excellent, good, fair, needs repair soon, needs repair now).

• Kitchen
• Bathroom(s)
• Roof
• Windows
• Furnace
• Air conditioning
• Floors (rate by each level of home)
• Closet/storage space
• Plumbing
• Electrical (does it have 60, 100 or 200 amp service?)
• Basement
• Master bedroom
• Siding
• Garage

Then customize the list with your own “must haves,” for example, fireplace, master bath, walk-in closet, two (or three) car garage, dining room, open floor plan, eat-in kitchen, screened-in porch, large (or small) yard.

When narrowing down your home search, consider the following:

1. Start with emotion, but end with facts. Buying a home is an emotional process. You often find yourself trying to determine if this is where you want to spend the next 10, 20, or 30 years of your life (and perhaps raise a family). It’s OK if your initial impression is an emotional one. But because the purchase can be the largest you’ll ever make, it is essential that you gather all of the facts necessary to make an educated decision.
2. Look for good bones. Don’t get hooked on the decorating. The town or towns you are targeting for your home search likely have a handful of builders who have built a majority of the homes. Get to know the reputation of these builders. Then, before going to look at a home, find out who the builder was. You’ll want to be careful when looking at homes built by those with less than stellar reputations. Then, you need to learn to look past the furniture, wall colors, window treatments, and other decorating, and just look at the home layout and flow. New cherry cabinets and granite counters matter little if they are in the galley kitchen and you have a family of five. At the same time a family room with black walls featuring a mural of the moon on one side also matters little if it is big enough for your needs. Aesthetics are relatively inexpensive to fix – major construction is another matter.
3. When looking at room layout, corners are key. Rooms with doorways in the middle of walls flow better than rooms that open in a corner. Remember that when looking for your dream home.
4. Make sure the most expensive stuff works. The two most expensive rooms in a home to renovate are kitchens and bathrooms. If you’re stretching to be able to afford a home and still eat, make sure these two rooms don’t need renovating anytime soon.
5. Take an inventory of what needs fixing. Good news: With more houses on the market than in the past several years, you’ll likely be able to look at more houses before making a decision to put in a bid. Bad news: That means it can get quite confusing to remember the details of each. Develop a list of things you like in the house as you walk through each, and also make a list of things that might need fixing (see “Keep Them Straight”, right).
6. Is there room for expansion? You might not be concerned with adding onto the home you’re viewing today, but what about tomorrow? Don’t necessarily exclude those that don’t have the room and a logical place to expand, but do understand that you will be limited in your options down the road.
7. Does the basement leak? If you’ve been lucky enough to live in a house with a dry basement (or perhaps without a basement) it’s hard to imagine the havoc a wet basement can bring to your life. If you’ve ever lived in a house with a leaky basement or hate the thought of a foot of water surrounding your furnace, you’ll likely be sure to check that the basement doesn’t leak, or has a system that automatically removes water from it.
8. What’s the condition of the home’s exterior? Does it need painting, or is it sided? Does it have painted brick that’s peeling? Is the aluminum siding chalking? Improving the exterior can be costly. Check the exterior walls carefully before putting in a bid.
9. Landscaping: Does it look like a park or a landfill? Landscaping not only includes the grass, bushes and any gardens, but also the hardscape – the sidewalk, deck and/or patio. People are spending more time than ever outdoors and you’re likely no different. Landscaping improvements can be costly, but is one area in which homeowners often tackle projects themselves. If you have the time, energy, and expertise you can save money by doing some landscaping improvements. But costs can add up here – be sure to factor that into your decision and/or bid.
10. Check the zoning, nobody likes surprises. Too often homeowners are horrified to learn that their tranquil neighborhood is being invaded by multi-family housing, a big commercial business, or a 24-hour convenience store. Before you put a bid on a house, go to the town hall, city hall, or county register of records and find out the zoning of all contiguous properties.

If you are considering buying a home or condominium in or near Burlington Vermont or the towns comprising Chittenden County (i.e. Burlington VT, Bolton VT, Charlotte VT, Colchester VT, Essex Town VT,  Essex Junction VT, Hinesburg VT, Huntington VT, Jericho VT, Milton VT, Richmond VT, St. George VT, Shelburne VT, Underhill VT, Westford VT, Williston VT), please give me a call on my cell at 802.238.5256 or email me to discuss our real estate market and your options.

As always, post any thoughts and comments here on Hurd’s The Word by clicking on the “Comments Button” below.

Wednesday, March 17th, 2010 

Burlington Vermont

Why get prequalified and then preapproved for a mortgage before you begin your search for a home? Because there are people who will benefit from your preapproval: You, your Agent, and the seller from whom you eventually buy a home!

You: The most important beneficiary, of course, is you. One of the most common questions we get from users of this site goes something along the lines of “Please let us know how much house we can afford.” We’re stumped! Why? There are simply too many variables–credit history, income, debt, special mortgage programs and variations in qualifying guidelines between different mortgage types–to answer that question. The only sure way of getting the question answered is through prequalification. The mortgage prequalification step is a relatively simple one, but it is an important one. It begins the process of formally applying for a mortgage, and it gives everyone involved–especially you–a clear sense of the direction they should be headed.

Your Agent: By knowing what your financial parameters are, your Agent can spend more time looking for houses that “fit” and less time pursuing dead ends. No matter how much you might want a 4000 square foot home for $275,000, if your qualifications say $125,000, your qualifications say $125,000. When it comes to mortgages, “yes, but” doesn’t carry much weight!

The Seller: Want to strengthen your bargaining position? Get prequalified. Want your offer to stand out in a case of multiple offers for the same house? Get prequalified. Look at it from the seller’s perspective. If you had 2 offers on the table for your house, one from a fully prequalified buyer and the other from an “I’ll get around to that soon” buyer–to which offer would you devote the most attention? Even if the prequalified buyer’s offer was $1000 less, would you take the chance on the buyer that perhaps may not be qualified? When it comes to a seller evaluating offers, “a bird in the hand…” definitely applies.It is important to remember that the amount of mortgage you will qualify for is the maximum. It is the amount that the lender feels you can afford, but it is not necessarily the amount that you want to pay. It sometimes is advantageous to be conservative here. For example, if you qualify for a $100,000 mortgage and you have $15,000 available in cash for downpayment and closing costs, you are qualified to buy homes with a maximum selling price of $115,000. So as to not push yourself to the limit, you may want to look at homes that sell in the $100,000 to $110,000 range. Too many buyers simply rush off to the $115,000 level and some find themselves strapped when it comes time to purchase necessary items (such as draperies, additional furniture and lawn and garden tools, for example) or when they forget to factor in increases in monthly expenses (for example utilities and maintenance and repair costs).

If you need a referral to a professional local lender who can prequalify you in preparation for purchasing a home, please call or email me. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

If you are considering buying a home or condominium in or near Burlington Vermont or Chittenden County, please give me a call on my cell at 802.238.5256 or email me to discuss our real estate market and your options.

As always, post any thoughts and comments here on Hurd’s The Word by clicking on the “Comments Button” below.

Tuesday, March 16th, 2010

Burlington Vermont

Tha age old factors of condition, price and location are influencing our market more so now than in recent memory.

Just a few years ago, Sellers were enjoying multiple offers in all price ranges. Today, the part of the market that is humming along is everything essentially under $300,000. That is the sweet spot in the market for sure.

In Burlington, Charlotte, Colchester, Essex Junction, Essex Town, Milton, Shelburne, South Burlington, and Williston sales for all of 2009 show the average sale to list price ratio being at or above 95%. Of course, much depends on the three factors listed at the outset of this article but on average 95%.

Recent data compiled by Vermont Real Estate Information Network (VREIN), shows the condo market on average across all the towns comprising Chittenden County (i.e. Burlington, Bolton, Charlotte, Colchester, Essex Town, Essex Junction, Hinesburg, Huntington, Jericho, Milton, Richmond, St. George, Shelburne, Underhill, Westford, Williston) have shown prices increasing by 10.8% between the period from February 2009 until last month.

Conversely, single family homes on average across all the towns comprising Chittenden County have fallen 6.6%. The data shows that in February of 2009, the average sale price was $319,024. In February 2010, the average sales price had fallen to $297,874 with sales picking up.

Conventional wisdom suggests that the recent surge in activity has come as a result of pent up demand, low interest rates, and the tax credits made available to first time homebuyers ($8,000) and for repeat homebuyers who have not bought or sold their primary residence in the past 5 years ($6,500).

Against the national and regional averages Vermont continues to hold its own.The Mortgage Bankers Association’s National Delinquent Survey found 4.8% of mortgages in Vermont were seriously delinquent or in foreclosure during the last quarter of 2009. Compare that to the national average at 9.7% or the New England region at 8%.

Vermont ranked 46th out of 50 states with fewest delinquencies and foreclosures initiated during the last quarter of 2009.

Of course, location weighs heavily on the average sale price figures. It is important to compare prices in the town and immediate neighborhood you are considering purchasing to best understand what a given house should sell for. The age old adage “all real estate is local” remains the watch word.

If you are considering listing your home for sale or buying a home or condominium in or near Burlington Vermont or Chittenden County, please give me a call or email me to discuss the market and your options. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

As always, please feel free to post any thoughts and comments here on Hurd’s The Word by clicking on the “Comments Button” below.

Armed with solid numbers, buyers and sellers alike can manage their expectations and the current realities of our local market.

February 15th, 2010

Burlington Vermont

To answer this question, let me begin by asking a question. When you are in a legal proceeding, would you have the lawyer representing the person sitting across the table from you represent you as well? The answer is so simple. Of course not.

Why then when buying a house or property which for many people represents one of the largest financial decisions of their lives would you utilize the Realtor who represents the Seller(s) to safeguard your best interests as the Buyer(s)?

In Vermont, we do not have “dual agency.” Some states do allow this (where one Realtor represents both sides of the transaction while maintaining “neutrality”) but for the life of me I do not understand why. It makes absolutely no sense whatsoever. There are simply too many places for conflicts of interest to rear their head.

In Vermont, Realtors must represent only one side of the transaction - either the Buyer(s) or the Seller(s). Often, Buyers aren’t clear on this point. They see a sign in front of a house for sale or a listing online. Call that Realtor and utilize that Realtor to facilitate the negotiations of price, terms and conditions when that Realtor represents the Seller(s). Do you see where this is completely problematic? Be sure to ask if the Realtor you are speaking to is the Listing Agent. If so, thank the Agent and tell them you want representaion, hang up and find another Realtor who can represent you and your interests. Keep in mind, good listing agents are experts in finding out information from prospective buyers without you even being aware of it. They can ask questions that ultimately compromise your negotiating position. Thank them politely. Hang up and find a Realtor to be your Buyer’s Agent.

When Sellers agree to list their property they agree to a commission which is paid to both the Realtor who lists the Seller’s property and the Realtor who brings the Buyers to the table. A typical Realtor commission these days is either 5 or 6%. Thus, this commission is split in half (i.e. with either 3 or 2.5% going to the buy side Realtor). Buyers should not think because I am represented by a Buyer’s Agent I am incurring an additional expense to pay their commisssion. The commission is already taken into account by the Seller(s) in their Listing Agreement with their Listing Agent. All Sellers are willing to split the commission between the Realtor representing them and the Buyers Agent representing the Buyer(s). Sellers do this to facilitate the transaction and in this market they are happy as can be to have buyers brought to them.

Let me further clarify. If there is no Buyer’s Realtor involved, the Listing Agent consumes the entire commission of 6 or 5% with no split whatsoever. Now do you see why listing agents so love it when buyers call them directly? On a house that costs say $300,000 with a 6% commission, the Listing Agent would receive an $18,000 commission. If there is a Realtor representing the buyer(s), the listing agent would have to split their commissions.

There are many other reasons why you would want to utilize a Buyer’s Agent when buying real estate in Vermont. Here they are:

• Full Access To Our Regional MLS - Until you have made it clear to your Realtor you want to be represented by a Buyer’s Agent and entered into that Agreement in writing the realtor you are communicating with is ALWAYS representing the Seller(s). They cannot give you information that otherwise comprimises the Sellers ability to get the most money for the sale of their home or property. This could include the number of days on the market as a great example. These days this is a critical number to know. Further, listing agents have this game they play when the “re-list” thier listings it sets the odometer back to zero for “days on the market” accuracy. Only a Buyer’s Agent representing your interest will research the history of the property you are interested in buying to let you know exactly how many days that property has been on the market and with whom.
• Negotiating Power - As your Buyer’s Agent, I will run a Comparative Market Analysis (CMA) to determine a prospective home’s Fair Market Value (FMV). In simpler terms, as your Realtor I will look at similar homes in the same neighborhood that have sold recently. This way, you will know whether or not the seller has their home priced fairly. If the home is priced over Fair Market Value, your Buyer’s Agent can present your “under asking price” offer with plenty of firepower – and a greater chance that the offer will be accepted. In addition, the terms and conditions of your offer are important as well.
• Representation - As your Buyer’s Agent, I am there to make sure YOUR best interests are accounted for. With your Buyer’s Agent in your corner, you can rest assured that you’re on, at least, even ground with the home seller. Similarly, Listing Agents enter into a legally binding agreement that require them to ALWAYS act in the best interest of their seller(s). They are the seller’s “coach” and will make sure that their clients’ best interests are looked after.
• Industry Contacts - It takes a lot of people to close a real estate transaction – Buyer’s Agent, Listing Agent, Loan Officer, Home Inspector, Property Appraiser, Insurance Agent, General and Sub-Contractors, and sometimes more! A good agent will come with a strong, professional closing team that has performed in the past, and will continue to perform. A transaction is only as strong as its weakest link – with your Buyer’s Agent & their closing team, you can rest assured that you will have plenty of support to make the buying process as smooth as possible.
• Maximize Your Time - While driving neighborhoods is an excellent idea to help you decide which locations you prefer, it’s not a very efficient way to find your new home. Gas is expensive, and your time is valuable. Your Buyer’s Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes and communities that ALL match your wants & needs. Your Buyer’s Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process – saving you valuable time.

If you are considering buying a home or condominium in or near Burlington Vermont, please give me a call or email me to discuss representing you, our current market conditions and your needs/wants in a new home and community. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

As always, please feel free to post any thoughts and comments about downsizing right here on Hurd’s The Word by clicking on the “Comments Button” below.

February 4th, 2010

Burlington Vermont

Vermont continues to have the lowest foreclosures of any state in the entire United States. Recent information reported by Bloomberg BusinessWeek indicate that Vermont has suffered the least with ONLY 143 foreclosures in the entire state for all of 2009!

RealtyTrac, in its monthly report from December 2009, reported that only 6 homes in all of Chittenden County (includes 17 towns around and including Burlington VT) went into foreclosure or 1 in every 10,479 housing units. 

Put another way, The Vermont Housing Finance Agency (VHFA.org) reported from the Bloomberg.com website that as of January 29th, 2010, Vermont had the lowest foreclosure rate in the country at 0.04% of all homes in the state. The Bloomberg article went on to report that Vermonters are avoiding the foreclosure mess in part owing to traditions of ”thrift, modesty and self-reliance - bolstered by laws that protect buyers and land”.

In addition, the article went on to say “state and local laws discourage the kind of speculation that spurred development in some states, said Robert Hill, executive vice president of the Vermont Association of Realtors in Montpelier. “If a site for home construction is found to be on prime agricultural soil, the project is halted. The house must be built elsewhere, other land must be purchased and put in a trust as an offset, or the builder must go to court to seek clearance,” he said.

Hill continued saying, “The permitting process is extremely difficult to maneuver in Vermont.” “Any developer or builder has to make a significant investment of time and effort. You just can’t come in here and throw stuff up overnight.”

Whatever the reasons, tiny Vermont (pop. 621,270) leads the nation in a category we can be extremely grateful for. With stringent environmental and zoning laws on the books for decades supply has been kept low. This enraged developers looking to make a fast buck during the go-go years. Hill added, as a result, “demand has outstripped the supply of housing. With no surplus of homes, prices didn’t collapse (like in many other states) when buyers decreased,” Hill said.

If you are considering listing your home for sale or buying a home or condominium in or near Burlington Vermont, please give me a call or email me to discuss the market and your options. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

Armed with solid numbers, buyers and sellers alike can manage their expectations and the current realities of our local market.

As always, please feel free to post any thoughts and comments about downsizing right here on Hurd’s The Word by clicking on the “Comments Button” below.

January 27th, 2010

Shelburne VT 

Based upon information provided by the Northwestern Vermont Board of Realtors (NVBR) as of today for all of 2009, there were 85 single family residential and condominium 
units sold within Shelburne
Vermont with a total sold volume of $34,810,350.

These numbers represent a 16.44% INCREASE in the number of units sold from the same time period one year earlier (1/1/09-12/31/09). Divide this number by the units sold (85) and you get an average sale price of $409,534. These numbers represent a 2.20% increase in the average sales price from the same time period one year earlier (1/1/09-12/31/09). 

Average days on the market for all these 85 properties was 127 compared to 96 one year earlier or 32.29% longer on the market.

If you are considering listing your home for sale or buying a home or condominium in or near Shelburne Vermont, please give me a call or email me to discuss the market and your options. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

As always, please feel free to post any thoughts and comments about downsizing right here on Hurd’s The Word by clicking on the “Comments Button” below.

Armed with solid numbers, buyers and sellers alike can manage their expectations and the current realities of our local market.

Call me at 802.238.5256, email me at Chris@ChrisHurdVT.com or post your comments here at Hurd’s The Word.

(These figures include sold numbers for single family residential and condominium only in all the towns which comprise Chittenden County, Vermont only. All information deemed reliable but not guaranteed by Vermont Real Estate Information Network which supplies these figures.)

January 27th, 2009

Charlotte VT 

Based upon information provided by the Northwestern Vermont Board of Realtors (NVBR) as of today for all of 2009, there were 29 single family residential and condominium units
sold within Charlotte Vermont 
with a total sold volume of $19,493,197.

These numbers represent a 61.61% increase in the number of units sold from the same time period one year earlier (1/1/09-12/31/09). Divide this number by the units sold (29) and you get an average sale price of $672,179. These numbers represent a 10.84% decrease in the average sales price from the same time period one year earlier (1/1/09-12/31/09). 

Average days on the market for these 29 properties was 137 compared to 106 one year earlier or 29.25% longer on the market.

If you are considering listing your home for sale or buying a home or condominium in or near Charlotte Vermont, please give me a call or email me to discuss the market and your options. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

As always, please feel free to post any thoughts and comments about downsizing right here on Hurd’s The Word by clicking on the “Comments Button” below.

Armed with solid numbers, buyers and sellers alike can manage their expectations and the current realities of our local market.

Call me at 802.238.5256, email me at Chris@ChrisHurdVT.com or post your comments here at Hurd’s The Word.

(These figures include sold numbers for single family residential and condominium only in all the towns which comprise Chittenden County, Vermont only. All information deemed reliable but not guaranteed by Vermont Real Estate Information Network which supplies these figures.)

January 27th, 2010

Burlington VT 

Based upon information provided by the Northwestern Vermont Board of Realtors (NVBR) as of today for all of 2009, there were 276 single family residential and condominium units sold within Burlington Vermont with a total sold volume of $70,919,923.

These numbers represent a 26.03% increase in the number of units sold from the same time period one year earlier (1/1/09-12/31/09). Divide this number by the units sold (276) and you get an average sale price of $256,956. These numbers represent a 11.16% decrease in the average sales price from the same time period one year earlier (1/1/09-12/31/09).

Average days on the market for all these 219 properties was 74 compared to 75 one year earlier or 1.33% longer on the market.

If you are considering listing your home for sale or buying a home or condominium in or near Burlington Vermont, please give me a call or email me to discuss the market and your options. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

As always, please feel free to post any thoughts and comments about downsizing right here on Hurd’s The Word by clicking on the “Comments Button” below.

Armed with solid numbers, buyers and sellers alike can manage their expectations and the current realities of our local market.

(These figures include sold numbers for single family residential and condominium only in all the towns which comprise Chittenden County, Vermont only. All information deemed reliable but not guaranteed by Vermont Real Estate Information Network which supplies these figures.)

January 27th, 2010

Burlington VT 

Based upon information provided by the Northwestern Vermont Board of Realtors (NVBR) as of today for all of 2009, there were 1410 single family residential and condominium units sold within all the towns which comprise Chittenden County in Vermont with a total listed volume of $398,226,858. Compare that number to the actual volume of total sold properties at $383,158,490. The List-to-Sell Variance is $10,687 or last year’s List-to-Sell Percent is 96%. The average sale price for all of Chittenden County was $271,744. These numbers represent a 1.00% increase in the average sales price from the same time period one year earlier (1/1/09-12/31/09). 

Average days on the market for all these 1410 properties was 93 compared to 91 one year earlier or 2.2% longer on the market.

Armed with solid numbers, buyers and sellers alike can manage their expectations and the current realities of our local market.

If you are considering listing your home for sale or buying a home or condominium in or near Burlington Vermont, please give me a call or email me to discuss the market and your options. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

As always, please feel free to post any thoughts and comments about downsizing right here on Hurd’s The Word by clicking on the “Comments Button” below.

(These figures include sold numbers for single family residential and condominium only in all the towns which comprise Chittenden County, Vermont only. All information deemed reliable but not guaranteed by Vermont Real Estate Information Network which supplies these figures.)

January 25th, 2010

Burlington VT

No other neighborhood in Burlington Vermont can boast about the infrastructure and amenities that Appletree Point and its Association provide. Not one.

Price points range from over a million to be right on the lake with a single family home, to the $350,000 to $600,000 range for single family homes not right on the lake, to high $200’s for a townhouse. Appletree Point also has a well run Association with affordable cost effective association fees.

The list of amenities is long for this neighborhood. Sandy private beach on Lake Champlain with a gradual descent into the lake make it ideal for swimming or launching kayaks/canoes. Two swimming pools set at either end of the neighborhood cater to families during the summer months. The City of Burlington has a public park which includes a baseball diamond, several hardcourt tennis courts, a basketball court and toddler playground.

Appletree Point is located off North Avenue about 2.5 miles north of downtown Burlington. The road into this neighborhood is not a “through road.” Coming into Appletree Point is THE destination. Thus, the vast majority of people coming into this area are its residents not people commuting through or just driving around.

The area is within a half mile of the Burlington Bike and Recreation Path which runs along Lake Champlain for cycling, rollerblading, running and walking in the milder months and walking, snow shoeing and cross country skiing in Winter.

If you are considering buying in Burlington be sure to consider this fantastic neighborhood.

If you are considering listing your home for sale or buying a home or condominium in Burlington Vermont, please give me a call or email me to discuss the market and your options. I would be delighted to assist you. I can be reached on my direct line at 802.238.5256 or email me at Chris@ChrisHurdVT.com

As always, please feel free to post any thoughts and comments about downsizing right here on Hurd’s The Word by clicking on the “Comments Button” below.