By Ray Mikus
Here are the numbers for August:
|Active||New in Aug||Under Contract||Closed in Aug||Closed last 12 months|
And comparing to last year:
|New 8/12||New 8/11||Closed 8/12||Closed 8/11||Closed 8/11-8-12||Closed 8/10-8/11|
Discussion: Even if it's been awhile since your last math class, and even if you've never had an economics class, this is going to make sense: Compared to last year, there were fewer new listings, and more sales in the Central Vermont market. That adds up to a reduction in inventory and a very clear sign that the market is shifting toward normalization. And, perhaps even toward a sellers' market. There, I said it.
On the rolling twelve month cycle, four of the five distinct markets saw an uptick in the number of sale. U32 was the only market that experienced a slight dip.
Looking at August's sales, it's interesting to note that the average sale price in Montpelier was very close to the average sale price in Barre Town. And, taking away the $742,500 sale in Northfield (a bit of an outlier), Barre Town and Montpelier were the markets with the highest sale prices.
VA and RD Loans: These loans can be very attractive to lots of buyers. VA (Veterans' Administration) loans are available only to those who have served in the military. RD (Rural Development) loans are available to everyone, and allow for up to 100% financing backed by the USDA. Check with your favorite lender, or contact Heney Realtors with questions.
But there's a big catch. Both of these loan programs require the property to meet certain standards. The loan products tend to work better on newer homes and those in better condition. Things like cracked or peeling paint, ungrounded electrical outlets, and lack of handrails can prevent a property from qualifying.
Which means that if you're using RD or VA, you need to be very careful about the details of the houses you're looking at. If you're a seller, and an offer comes in with a buyer using one of these loans, know that there may be some additional repairs or improvements needed to bring transaction to closing. Who has to pay for them? That's all negotiable.
Lease-Purchase Options: I get a lot of questions about these (also known as "rent to own"). They can work in some circumstances, but they need to be structured correctly. They also depend on unique circumstances for both the buyer and seller. The seller needs to be comfortable as a landlord. Also, the seller must not need the money from the sale to move on to the next house (because the money won't be there until the sale, sometime in the future).
The buyer needs to be very confident that a purchase will be in the foreseeable future (6-12 months, generally, but it's all negotiable). Buyer must have a substantial non-refundable deposit for the "option". 5-10% of the purchase price wouldn't be uncommon. And the buyer must be able to remedy the reason they can't buy right now. For example, if it's a question of credit needing to be improved, the buyer better be reasonably sure that credit can be improved in the lease-purchase timeframe.
Oh, and for the love of all that's holy, get an attorney to draw up the documents.
Quote of the month: "It had all that great original character, and then no one screwed it up." That was Jane after previewing a meticulously cared for 1920s Montpelier craftsman house. I think she meant that there was nothing to undo.
Getting Smarter: Did you know that you can become even more of a real estate expert than you already are? Like Heney Realtors on Facebook, and learn about hot new listings, get interesting "market slices", and win karma points with our contests. I realize that karma can only be apportioned by the forces of the cosmos, but I can pretend, right?
Looking for Something New? Heney Realtors is actively looking for Realtors, licensed assistants (or those willing to become licensed), and administrative assistants. Business is good now, and looking to expand in the near future. Honestly, we need more good people to allow us to serve the growing number of buyers and sellers we're seeing. Experiences are helpful, but not necessary. We can train the right people. Call or email for more information.
August's Home Sales
|Town||Address||Original Price||Final Price||Closing Price||Days on Mkt|
|Barre City||190 Fairview||$99,900||$99,900||$96,900||10|
|Barre City||29 Warren||$119,000||$119,000||$120,000||11|
|Barre City||4 Daniel Drive||$225,000||$199,000||$187,900||123|
|Barre City||43 Circle||$109,000||$105,000||$94,000||236|
|Barre City||122 Batchelder #7||$127,800||$127,800||$122,000||338|
|Barre City||11 Westwood Pkwy||$140,000||$135,000||$125,000||356|
|Barre City||34 Fecteau #25||$195,000||$175,000||$173,500||539|
|Barre City Average||$145,100||$137,243||$131,329||230|
|Barre Town||13 Lisa Drive||$375,000||$375,000||$365,000||6|
|Barre Town||22 Orchard Terrace||$140,000||$140,000||$140,500||34|
|Barre Town||5 West Skylark||$169,900||$159,900||$145,900||36|
|Barre Town||104 Sugarwoods||$297,000||$297,000||$285,000||38|
|Barre Town||80 Cassie||$153,000||$153,000||$153,000||67|
|Barre Town||58 LePage||$189,000||$179,000||$150,000||225|
|Barre Town||20 Countryside||$300,000||$265,000||$250,000||318|
|Barre Town||479 Cutler Corner||$399,000||$344,900||$315,000||500|
|Barre Town||24 Granview||$175,000||$149,000||$148,410||838|
|Barre Town Average||$244,211||$229,200||$216,979||229|
|Calais||104 Justa Rd||$246,000||$199,000||$196,000||31|
|Calais||6067 Route 14||$189,000||$175,000||$165,000||774|
|East Montpelier||405 Haggett||$209,000||$209,000||$199,500||100|
|Worcester||104 Worcester Village Rd||$259,500||$248,500||$248,500||136|
|Montpelier||20 Deerfield Dr||$254,900||$254,900||$235,000||82|
|Montpelier||212 Cityside #53||$208,900||$208,900||$188,000||235|
|Montpelier||95 East State||$228,000||$224,900||$210,000||274|
|Montpelier||179 North St||$278,000||$278,000||$238,500||358|
|Montpelier||10 Hubbard Park Dr||$320,000||$305,000||$305,000||446|
|Roxbury||1025 Thurston Hill||$203,000||$189,000||$168,000||67|