Real Estate Information Archive

If you’re in the market to buy a house in Burlington, there’s a lot of due diligence that you and your MHG Agent will have to do. Here’s a list of 10 important questions to ask before making an offer:

1. Have there been any water issues in the basement? With wild weather swings, some years haven’t been kind to home owners. Given some of the basement flooding that has happened, most Sellers should know if they have a wet basement. Find out if there have been any issues and what (if anything) the Sellers did to waterproof the house.

​​2. Is there any knob and tube wiring in the house? Much of Burlington's housing stock is older, (vintage? classic?)  and many houses still have knob and tube wiring. Knob and tube wiring is often hard to find and given a house may have changed several times in the last few years, the Sellers themselves may not know they have knob and tube – but it’s an important question to ask. 

3. Can I get copies of the water and gas bills? It’s important to know how much your utility bills are going to be, and there’s no better way than asking the Seller for their bills. Unusually high or low bills are a good indicator of the energy efficiency of the home.

4. Have there been issues with any of the neighbors? Here’s where you have to hope for some honesty (smart Sellers would disclose any ongoing issues). 

5. Were the renovations completed with permits? Are copies of those permits available? If you’re buying a home that’s been renovated, this is an important questions – a lot of renovations require permits (and thus get inspected), but it doesn’t always mean that the home owners got the permits. We often run into renovations that should have had permits and didn’t, so each house has to be evaluated separately.

6. Is anything in the house rented? In Burlington, it’s pretty common for hot water tanks to be rented and it’s important to know all the costs you’ll be taking over.

7. Is there any history of pests? Always a good question to ask. It’s safe to assume that most houses may have issues with squirrels, raccoons, mice, or other pests.

8. Are the pipes lead? Has the supply line from the city been changed? Understanding not only your water cost, but also any potential water issues can be important. City water will have available public information about water quality. If it is a private well, has it been tested? 

9. Is there anything else about the house we should know? Sellers have a duty to disclose anything that could materially affect the buyer’s enjoyment of the house. This is always an important question to ask.

10. Disclosure, disclosure disclosure! Have the sellers filled out a Property Information Report? Ask to see it before any offer!

There are more, but we will be there, helping with due diligence, every step of the way. 

Expect More.

What do buyers agents do? Why not just handle it yourself?

As a Buyer Agent’s, our job is to get you from Point A (Would-be Buyer) to Point B (Happy Home Owner) in a safe, simple, and professional manner. More specifically, it’s our job to:

1. Educate You About the Neighborhood

Choosing a new neighborhood is part of the fun! We will play a critical role in educating you about the pros and cons of various neighborhoods. You could  go knocking on doors and speaking to neighbors, but it is not necessary. We can help you understand the neighborhood schools, crime rate, transportation options, demographics, nearby restaurants/shops/services and the trends that are happening in that neighborhood.

[See our related: Burlington Neighborhood Guide]

2. Perform Due Diligence on the Property

Another critical role is helping you do your due diligence on the property. That involves:

• Being there to fully  investigate the property. This means going into the scary basement, looking for signs of knob and tube wiring, failing windows, or strange plumbing/ heating issues. We also can refer you to outside professionals as necessary.

• We ask the important questions: Have there been any water issues in the basement? Were the renovations completed with permits? Are there any issues with the neighbors?

• We investigate and report back  the ongoing costs of the property (hydro, heat, water, etc.)

One of the Buyer Agent’s most important jobs is to make sure you don’t buy the WRONG house.

3. Negotiate Price and Contract Terms

The Buyer’s agent works for the Buyer, so their job is to negotiate the lowest possible price with the best possible terms for the Buyer. We investigate the price history of the homes you’re interested in, the prices of comparable homes recently sold in the neighborhood and what’s happening right now in the market. Helping you understand how the differences between properties affect value (for example, lot size, the number of bathrooms, finishes or view) is crucial when making big decisions. Buyer’s agents also protect you by making your offer conditional on, for example, obtaining suitable financing or performing a home inspection.

4. Help You Find the Home

Long ago, a Buyer’s Agent’s primary role was to introduce properties to buyers. There was a magical book that contained all the homes for sale and if you wanted to buy a house, you hired an agent to find out what was for sale. Enter the internet. Today’s Buyers are often identifying the homes they are interested in themselves…but that doesn’t mean that Buyer Agents don’t play an important role in locating homes. Sometimes that means introducing the perfect home that was overlooked because it didn’t fit the initial criteria or neighborhood or finding an opportunity to buy a house that seemed out of budget (but really won’t be after negotiations). Fact: what you think you want when you begin your home search is often not what you decide to buy in the end.

5. But Wait! There’s More!

A Buyer’s Agent will also:

• Help you determine your needs, wants, and priority criteria

• Reduce financial surprises by helping you determine the full cost of buying a property and the ongoing costs of owning it [Related: Closing Costs]

• See ‘potential’ in a home and educate you on value in the property.

• Connect you with the best lawyers, lenders and home inspectors (Vendor Lists)

• Be an ongoing resource for connecting you with home professionals to help once you own the home

But Does Who I Hire Matter?

Not all agents are created equal! Who you hire to represent you on the purchase of a home MATTERS. Who you choose to work with will impact the choice of the home you buy, the neighborhood you buy it in, and final cost. It can mean the difference between:

• Overpaying for a home vs. paying market value

• Buying a condo in a building filled with college students vs. buying a condo housing professional couples like you

• Unknowingly buying a house that will cost you $50K in surprise repairs vs. knowing before you buy

• Losing money on your real estate investment vs. being cash-positive

As always, you can choose any agent. But wouldn’t it be nice to go with a time tested, experienced group of agents? Shouldn't you Expect More?

When is it reasonable to Expect More? Do you believe that you can create a brand new kitchen for under $10,000? Even though I can put in 80+ hour weeks focused on my clients, I still hit the couch and indulge in a "House Hunters" or "Flip or Flop." I laugh away my cares! Fantasy can be fun, can't it?

Let us get to the bottom of the Pinterest and HGTV Phenomenon.  

For example, in real life it is common to look at more than three homes for a client to pick one. The one they do pick comes with several contingencies (home inspection, appraisal, securing financing, etc.) It costs more than $8,000 for a kitchen renovation; and there isn’t always a fat profit on a flipped property. That designer turn key home is not the standard for every home, regardless of your budget.  Watch these programs with no education and an illness sets in. HGTV Syndrome.

    Afflicted with HGTV Syndrome image via Shutterstock.

Symptoms of HGTV Syndrome can vary from person to person; however, some common attributes are listed below:

• Do you consider black and white appliances old? Even if they are brand new?

• Does the word "Formica" make your stomach turn?

• Does that flake of chipped paint on the door trim make your roll your eyes?

• Is your budget for a full kitchen renovation (demolition, new cabinets, travertine flooring, appliances, backsplash, lighting and accessories) around $9500?

• Do you think flipping a house for profit is easy as long as you demand long hours of your contractors and spend time at the designer home center picking out the cheapest recycled Lava Stone countertops?

If you have answered yes to any one of these questions, you need to seek immediate help.

Are you at risk for HGTV Syndrome?

YES! All of you!

Does this really happen? Will a buyer offer $40,000 less than the asking price and justify it with upgrades like the need for a brand new kitchen appliances because they are not stainless steel? They will HAVE to redo all the bathrooms because that tile color is SO 2015. How will they live without the recycled decking and local marble pizza oven with recycled rainforest fair trade pergola and hand carved mahogany dining set? Don't get me started on the three car garage concession! (Not Kidding!)

WARNING! Your agent might have it too!

Is there a cure? The cure can set you free!

No! Not that Cure!

How can you be sure you don’t come down with a case of HGTV Syndrome? Take a preventative, healthy dose of reality by speaking with a us first! Armed with the knowledge and perspective, you to can ward off any hint of home fantasy. We can provide a detailed assessment on what to expect in a certain town, neighborhood, and community. For some properties may be normal to have granite countertops — thus, if the home you are considering does not, then your expectation is justified. In other areas, it may be that popcorn ceilings and older appliances are the norm, and to expect a seller to drop their price so you can upgrade to your own personal taste is not considered reasonable.

See? Piece of cake!

As we enter Cyber Monday, I started thinking about buyers entering the Burlington real estate market.

It is easy to get information about anything online. A dozen sites, like the MHG or RE/MAX.com can provide the home, or homes, of your dreams. If you have been considering a move, or that dream home purchase, you have probably spent hours pouring over kitchen and family room pictures, scrutinizing that bathroom tile choice, or deciding if a lake or mountain view is most important. Pinterest has been known to push and pull buyers in all kinds of directions. Before you dive in head first, consider these thoughts. What do you and your family WANT? What do you NEED?

Do you really need that subway tile in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave (or Mom cave) of your dreams be a future renovation project? Or, must that be an immediate feature?

The first thing that I recommend in the  home buying process is to get a mortgage pre-approval.. This allows you to know your budget and narrow (or expand) your focus. I can then provide options based on your wants and needs list. the easy way is to follow this simple plan.

List all the features of a home that you would like, and qualify them as follows:

• ‘Must Haves’ – if a property does not have these features, then it shouldn’t even be considered. (ex: distance from work or family, number of bedrooms/bathrooms)
• ‘Should Haves’ – if the property checks off the haves and some of the should haves, it stays in contention, but does not need to have all of these features.
• ‘Absolute Wish List’ – if we find a property in our budget that has all of the ‘must haves,’ most of the ‘should haves,’ and ANY of these, it’s goes to the top of the list!

The Bottom Line

Creating this list at the beginning will save you time, money, and frustration. It helps me determine what features are most important and provides a clear focus for desired areas and home specifications. What is important to you is important to me. 

Expect More. 

What is a 1031 Exchange?

This blog post was going to be be about the best ways to show up your neighbor's Christmas light display, but  I chose instead to focus on 1031 exchanges! These can be exciting, if planned for and executed correctly. When real estate owners sell their investment, rental, business, or vacation real estate and reinvest the net proceeds in other property, this is called a 1031 tax deferred property exchange. When a property is held for this purpose, it is called a like-kind, or 1031, property. An owner must meet the requirements of Internal Revenue Code 1031 exchange in order to sell like-kind property and defer taxes on the profit of this sale.

The 1031 exchange is often referred to as a "tax free" ex­change. This not a truly tax free exchange. For qualifying properties, the 1031 exchange allows a way to defer taxes due as a re­sult of gain on the sale of commercial or investment properties. The amount of taxes deferred depends on the value of properties exchanged. If a higher value property is ex­changed for one of lesser value, so cash (or personal property) is included to compen­sate for this difference in value, capital gains tax would be due at closing for that portion that was not real property.

Section 1031 transactions don't have to involve identical types of investment properties. You can swap an apartment building for a shopping center, or a piece of undeveloped, raw land for an office or building. You can even swap a second home that you rent out for a parking lot.

There's also no limit as to how many times you can use a Section 1031 exchange. It's entirely possible to roll over the gain from your investment swaps for many years and avoid paying capital gains tax until a property is finally sold. Keep in mind, however, that gain is deferred, but not forgiven, in a like-kind exchange and you must calculate and keep track of your basis in the new property you acquired in the exchange.

Section 1031 is not for personal use. For example, you can't use it for stocks, bonds, and other securities, or personal property (with limited exceptions such as artwork).

 

Other Considerations for 1031 Exchanges

There are considerations that must be taken into account. For example, properties of unequal value, current mortgage debt, and personal residences and vacation homes all require advance planning if utilizing a 1031 exchange. 

Other Notable 1031 Considerations:

• A 1031 Is Only For Investment/Business Property 
• Some Personal Property Qualifies 
• “Like-Kind” Is Broad Term 
• A “Delayed” Exchange Is An Option
• You Must Identify Your Replacement Property Within 45 Days 
• You May Designate Multiple Replacement Properties
• You Must Close Within 6 Months 
• Cash Left Over Is Taxed
• You Need To Consider Differences In Mortgages And Debt  

With the kids back in school, and with the holidays right around the corner, you might not think that now is the best time to sell your house. But with demand still strong, you could be missing out on a great opportunity for your family.

Here are five reasons why you should consider selling your house this fall: 

1. Demand Is Strong

The latest Realtors’ Confidence Index from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country.There are buyers in the market right now that are ready, willing, and able to purchase a new house.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

According to NAR’s latest Existing Home Sales Report, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market at 4.7-months.

This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. This means many of these home may come to the market this Fall.. Being ahead of the curve may provide an advantage in the market.

As builders regain confidence in the market, new construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017. Last month’s new home sales numbers show that many buyers who have not been able to find their dream home within the existing inventory have turned to new construction to fulfill their needs. You may be living in exactly what a prospective buyer is searching for in the market!

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you decide to sell.

3. The Process Will Be Quicker

Fannie Mae announced that they anticipate an acceleration in home sales that will surpass 2007's pace. As the market heats up, banks will be floodedwith loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker & simpler. 

4. The Best Time to Move Up

If you are moving up to a larger, more expensive home, now is the best time to consider a move. Prices are projected to appreciate by 5.3% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more (both in down payment and mortgage payment) if you wait.

According to Freddie Mac’s latest report, you can also lock-in your 30-year housing expense with an interest rate around 3.46% right now. Interest rates are projected to increase moderately over the next 12 months. Even a small increase in rate will have a big impact on your housing cost.

5. It’s a Perfect Time to Downsize and Simplify

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Are your surrounded with a house that is too big now that the kids have moved out? Tired of the upkeep necessary for that over sized house?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire. 

What is truly important for you and your family? 

Lead and the Buying/ Selling Process. Protecting You and Your Family.

There are a number of Vermont homes that were built or remodeled prior to 1978. Why 1978? In 1978, the federal government banned consumer uses of lead-containing paint, but some states banned it even earlier. Lead from paint, including lead-contaminated dust, is one of the most common causes of lead poisoning.

The exposure pathways for lead that is most concerning are ingestion and inhalation. Lead can effect anyone in a family, but children are at the greatest risk, due to developing nervous systems and smaller body mass. Small children also tend put everything in their mouths, which could include paint chips or chewing on windowsills. Lead actually has a sweet taste, which can encourage little ones to seek out places to chew when teething. 

Physical Effects: Lead can cause damage to the brain and nervous system, behavior problems, slowed growth, headaches, difficulties during pregnancy, high blood pressure, digestive problems and muscle and joint pain.

Lead can exist in many forms, but home buyers and sellers are most concerned with paint. Flaking or deteriorating paint means that there is a possibility of lead in the air, in the home's dust, and in places accessible by children. 

Source - US. EPA

     As a Buyer/ Seller, what are your responsibilities? 

• Sellers must disclose in writing any information about known lead paint in the home. If sellers have performed lead tests, they must share the test results.
• Sales contracts must give buyers up to 10 days to check for lead hazards. Home buyers aren't required to test for lead--but they must be given the opportunity to do so. You might see this information on a special addendum attached to a purchase contract. 

  Your realtor will provide your with federal and state information about protecting yourself and your family from lead exposure. 

• As a buyer, if you are buying a home that has deteriorating lead paint, you may negotiate with the seller to hire an EPA licensed contractor to safely remediate the deteriorating spots. There are numerous do-it-yourself options, but we always recommend consulting an expert.

We hope that this clears up some of the confusion about the hazards of lead, and why it will be part of the buying and selling process. As always, we are here to help.     

    The Matt Hurlburt Group. Expect More. 

One of the great mysteries of home buying, at least to those who have never been through the process, is closing costs. While nearly everyone has heard of them, few who haven’t had to pay them really understand them. Some people who have paid them aren’t sure what they spent all that money on. Knowing what these terms mean and what fees they consist of can help you be more prepared for them when the time comes.

Closing costs are the various fees that a home buyer must pay before the mortgage lender will finalize the mortgage. More generally speaking, these costs are about 3 to 6 percent of the amount borrowed. That is in addition to your down payment. This purpose of this blog entry is to identify and explain some of the components of your total closing costs.

The lender will charge an application fee to cover the costs of completing your mortgage application. This may or may not include the fee for your credit report. They will also charge a loan origination fee, also known as points. This covers the administrative costs of processing your mortgage. One point is equal to 1% of the total amount loaned.

Many lenders offer the option to purchase without points, but keep in mind that this will result in a higher interest rate. There are also lenders who will let you pay additional points to lower the interest rate on your loan.

Title insurance will be required by your lender. This protects you and the mortgage company in case the seller does not have the legal right to sell it. There could be unknown co-owners of the property, or it could have an unpaid lien (debt) against it that would prevent the seller from legally selling it.

An appraisal is also required by lenders. This is to ensure that the home is worth the amount loaned to you to purchase it. A home inspection is not usually required, but we recommend that you have one. The cost of the inspection could also be considered part of closing costs.

Homeowners insurance is a standard requirement of mortgage lenders. They will require proof of it and may require you to pay the first year’s premium before closing. Private mortgage insurance may also be required depending on the amount of your down payment, typically if your down payment is less than 20% of the loan amount, and part of the fee will be included in your closing costs.

Taxes associated with the transfer are usually the buyer’s responsibility, unless other arrangements are agreed upon. You may also have to pay for a survey of the property. You will likely be required to pay the interest accrued between the time your mortgage was originated and the due date of your first payment. Attorney and notary fees may also be a part of your closing costs.

Hopefully this begins to clear up some of the mysteries surrounding closing costs. Still confused? Contact us at the Matt Hurlburt Group to get your questions answered.

What to Expect When Inspecting

Once an offer is accepted and the transaction is in the “contingency” phase – one of the buyer’s objectives is to ensure their understanding of the condition of the property they are about to acquire.  Inspections are a critical activity in this “due diligence” period.

While many different inspections can be performed for a residential home, the most common inspections are:

• Structural Inspection

• Water Test (if private well)

• Radon test

• Chimney

The following is some general information regarding common issues that may arise during these inspections.  Note that you are free to hire any inspection company with whom you feel comfortable.   We can refer inspection companies who have served us and our clients for years, if you desire.  In any case, we highly recommended that you attend the inspections in person.  This is a great opportunity to you to learn about the house through the eyes of the inspector, and to ask questions about any of the findings and recommendations.

STRUCTURAL/BUILDING INSPECTIONS

Structural/Building Inspections are a general inspection covering the various systems of the home.  They will typically inspect the structural components of the home (foundation, crawl space, attic, exterior, doors and windows, and interior walls and surfaces), roof, electrical, plumbing, appliances, heating & air conditioning, smoke detectors, garage door, drainage, and water heater.  They will look for conditions that are not up to code, or are not in compliance with current health and safety standards and codes.  They will typically comment on maintenance and other repairs that you may expect over time.

Home inspections include an overview of the roof and chimney, and may raise concerns that would warrant a roofing or chimney expert to advise and provide estimates, if necessary.  They also do not check for building permits.

Drainage is one area that is often a concern in this area, especially with older homes.  It is not uncommon to get some dampness in the basement or around the home, especially in the spring.  Large accumulation of water in a basement is not a desirable situation.  If you buy an older home, pay particular attention to the drainage, and what improvements you might want to consider over time.  Your building inspector can advise.

Cracking and settlement may be another area of concern.  This is normally a matter of degree, as some cracking in the sheetrock and concrete surfaces is to be expected as the property settles, lumber shrinks, earthquakes occur, and so on.  Extensive cracking, sticking doors and windows, and floors that are out of level can be a symptom of more serious settlement and/or foundation issues, so again care should be taken to understand and address these issues.

You should also determine the age of the major components of the home, such as water heaters, the furnace, and air conditioning units.  Pay close attention to the age, and ask the home inspector what is a reasonable expectation for the remaining life of these components.

ROOF INSPECTIONS

Unless the roof is brand new – a roof inspection by a licensed roofer is higher recommended for most transactions.  They will usually issue a report detailing the condition of the roof, and any repairs that are recommended to keep the roof in good condition.  It is important to ask the inspector how much life is left on the roof.

In general, wood shake roofs can normally be expected to last 20 to 25 years with periodic maintenance.  Composition shingle roofs can be expected to last 20 to 30 years depending on the materials used.  Coated metal roofs, tile roofs, and slate roofs can be expected to last well over 40 or 50 years.  Once the recommended repairs are completed, the roofer will guarantee the roof against leaks for a period of one year.

CHIMNEY INSPECTIONS

If the property has a fireplace,  a chimney inspection by a licensed chimney sweep is recommended, especially on masonry or brick fireplace.  The biggest threat is broken flue tiles, which present a fire hazard and will require a $2000 to $3000 repair.  On newer non-masonry fireplaces, the most common issues are related to separation of the panels or pre-mature aging of the refractory panels.

OTHER INSPECTIONS

Depending on the situation, other inspections may be appropriate.   Usually we start with the property, roof, and chimney inspections.   Depending on the results of these inspections additional investigation or a more detailed inspection by a specialist may be warranted.  Some other inspections might include:

• Mold Inspection

• Furnace inspections by your electric utility provider

• Foundation inspections

• Drainage inspections

• Lead Paint

What makes Risk Free Listing so attractive?

Matt Hurlburt’s exclusive RISK FREE LISTING system offers clients the peace of mind to cancel the listing at any time.  If we do not follow through with our responsibilities? You are not tied to a 12 month contract. A flexible fee structure further enhances the property owner's ability to retain more money through their sale.

Sell your property to a named exception and pay 3% or 5% commission.

The 3% or 5% commission does not apply to a buyer exposed to the property by an agent other than a member of the Matt Hurlburt Group while your property is listed with RE/MAX North Professionals.  At the time of the listing, any named exceptions who might be interested in purchasing are listed in the listing contract, and may purchase within 30 calendar days of the listing date for seller to pay only 3%.

Cancel the listing at any time.

Either you or RE/MAX North Professionals can cancel just by calling and saying: “I want to cancel the listing.”  It’s that simple.  The cancellation becomes effective officially once a mutual release has been signed.  However, please allow two (2) business days to have the sign and lockbox removed, and the listing withdrawn from the MLS.  LISTING CONTRACTS MAY NOT BE BROKEN BY THE SELLER TO AVOID PAYING COMMISSION FOR PROSPECTIVE PURCHASERS THAT HAVE ALREADY VIEWED THE PROPERTY DURING THE TERMS OF THIS AGREEMENT.

No advanced fees of any kind

You only pay if RE/MAX North Professionals procures an offer that is acceptable to you.

“No Pressure” presentation

We will never allow you to be “pressured” by the buyer’s agent.  All offers will be faxed, e-mailed, or delivered to our office, and will be presented to you by phone, so you can make your decisions privately.

Contact The Matt Hurlburt Group to find out more about Risk Free Listings and our Flexible Fee Listing Structure.