When Buying A Ludlow VT Home Makes Sense
When Buying A Ludlow VT Home Makes Sense
The housing market has never been better for many potential Ludlow VT home buyers. In fact, more often than not, it is less expensive to own your own home rather than rent.
The National Low Income Housing Coalition reports that in 57 out of the 100 most populated metro areas, renting a three-bedroom home is more expensive than monthly costs on a six percent mortgage for a typical low-priced house in the same area.
With all the news these days concerning the economic crunch and these tumultuous economic times, you might think I’m crazy saying it is a good time to buy a Ludlow VT home. Of course, buyers with strong credit are best positioned to take advantage of today’s opportunities. A high credit score will yield a lower interest rate and increase the likelihood that a loan application will be approved.
For example, a buyer with a 6 percent mortgage will pay a third less per month than a buyer who has a loan at 8 percent. This difference can be hundreds of dollars per month.
FHA loans, VA loans and government backed first-time buyer loans are all available to qualified buyers. With the current low interest rates and affordable housing prices, it is a great time to buy your Ludlow VT home.
It is also a time to keep in mind that buying a home is a long term investment…and an investment you and your family can enjoy for many years!
Ludlow VT Home Buying Mistakes; How To Avoid Them.
No matter what the condition of the housing market, purchasing a Ludlow VT home is a major commitment and a vital financial decision. A home is much more than a financial investment; it is an investment in a new lifestyle and a new way of looking at property. Those who are unprepared to make the leap from renting to home ownership can make some costly mistakes, and learning to avoid those blunders is vital.
Think With Your Head Not Your Heart
One of the most common mistakes made by first time home buyers is allowing emotion to rule the day. Although buying a home can be an emotional process, there are some things home buyers can do to prevent emotional ties from getting in the way of sound financial discipline.
While it is all too easy to picture your family relaxing in the backyard of a new home, take a step back and look at the home with the eyes of an investor. Pretend for a moment that you are not going to live in the house but are buying it as a pure investment. Is it still just as attractive, or has it lost some of its appeal? Emotional attachment is fine, but it should not overrule your good judgment.
Consider All the Costs of Home Ownership
Buying more house than they can afford is a classic blunder for many first time homeowners. One of the chief culprits behind this error is factoring in only the cost of the mortgage versus the cost of continuing to rent. While it is certainly appealing to go from collecting rent receipts to building up home equity, keep in mind that the costs of owning a home do not end with the monthly mortgage check.
Don’t Try to Time the Market
Market timing doesn’t work in the stock market, and it doesn’t work in the home market either. Although it can be tempting to try to wait for the market to hit rock bottom, you may be left out in the cold when the market starts to turn around. Many professionals, including home builders, lenders and real estate investors, have a great deal of difficulty timing the market, even with all their specialized knowledge and experience.
While some Ludlow VT home buyers will be lucky enough to sell their existing homes at the top of the market and buy their next one when the market craters, most of us will not be so lucky. There are bargains to be found in every real estate market; the key is to arm yourself with as much information as possible and shop smart.
Learn more about the Ludlow VT housing market by visiting ISellVermontRealEstate.com or giving us a call 800-659-1819 #103.
Reasons To Own Your Own Ludlow VT Home
You’ve probably seen lots of financial arguments about why you should invest in Luldow VT real estate and own your own home rather than rent. This includes budgeting (no rent increases) and the tax savings you’ll most likely have. Now we’re going to give you some reasons you probably haven’t heard.
1. Freedom to pursue other goals in life once the major goal of home ownership is achieved.
Strange as it sounds, many of our first-time buyers have told us that once they bought the house, other things in their life started to fall into place. It’s as if not owning took so much of their mental energy that other goals were not worked on until that big goal was reached. So buy a home and get on with your life!
2. A greater sense of belonging to the Ludlow VT community.
Once you own a home, you feel more attached to the city in which you live. You’re more interested in what happens in Ludlow, to the roads, schools, and shopping areas. Some people even become involved in local politics.
3. A commitment to something, a sense of stability.
Home ownership is an anchor, something that cannot be pulled out from under you. You’ll never get a notice that you have to move. You’re kids will never have to change schools. It gives you freedom to plan years ahead.
4. You can change things, a feeling of being in control.
It’s your home. You can add to it, remodel it, change the landscaping, do whatever projects you want. You have a feeling of being in control of something in your life. At work we don’t always have control of what happens, but your home is your castle and you have dominion over it. You can see what you’re building take shape before your eyes.
5. More control over the children than in an apartment complex
In a neighborhood, kids usually play in the yards or go to friend’s houses a few doors away. Our clients have told us that in an apartment complex they never knew where the kids were. They could be in any of hundreds of apartments, doing who knows what. In a home you get to know the neighbors and watch out for each other’s kids.
6. Children do better in school and feel more secure.
This one surprised us, but buyers have reported to us that their kids calmed down in school after they bought a house. We don’t know why, but it seems to work that way. We remember a single mom watching her son play in the yard, making steps in the slope and building things. She didn’t have to tell him to leave everything alone, like she did at the apartment complex. I guess kids feel the same need for control we adults do.
7. Time and money saved by not going to the Laundromat.
A small point, but if you have kids, you know the value of this one. You gain a whole evening a week when you buy a house! The wash gets done in between other things, or while you’re at work. What would you do with the extra evening you’ll have? How about going out for dessert with your spouse with all those quarters?
We’ve been in a home of our own for so long; we take these benefits for granted. We forgot what it’s like to be renters! If you have anything you can add to the list, please let us know via email. We would love to hear from you!
Ludlow VT Real Estate Short Sale Tips
In the current Ludlow VT real estate market, there has been a lot of buzz around “short sales.” What is a short sale, exactly? A short sale is when a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of a property by a financially distressed owner – in essence, the lender forgives the outstanding balance of the loan.
There are pro’s and con’s to short sales on both sides of the deal. For the seller, credit history is seriously damaged, but not as badly as it would be by foreclosure. Sellers also walk away with no profit, which makes it difficult to purchase another home. For the buyer, the property comes at a reduced price, but it also generally comes with its fair share of problems, and there is a considerable amount of “red tape” to get through to complete the purchase.
The short sale buying process can be a confusing one, especially for a first-time short sale buyer. Check out this helpful article from BankRate.com and see 10 Steps for Short Sale Buying below:
- Identify potential short sales
- View the property
- Do your research
- Find all liens and mortgages
- Figure out the financing
- Contact the lender
- Complete the lender’s short sale application
- Assemble the proposal
- Negotiate
- Close the deal
To learn more about investing in Ludlow VT real estate, please visit ISellVermontRealEstate.com. For more personalized service, please call me today at 800-659-1819 #103.
Search all Ludlow VT real estate and homes for sale!
How Does Housing Recovery Act Help Okemo Mountain Home Buyers
As of July 14, 2008, upfront MIP premiums became risk-based on credit scores and the annual premium increased across the board. Instead of the original plan of making FHA loans more affordable for potential Okemo Mountain home buyers; the new legislation is doing the exact opposite and makes it more expensive.
Details of the Housing and Economic Recovery Act:
Here are some key provisions of the Housing and Economic Recovery Act that most affect Okemo Mountain home buyers:
- GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
View 2009 FHA and GSE loan limit estimates (PDF)
- FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The down payment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
View 2009 FHA and GSE loan limit estimates (PDF)
FHA Reform Chart (PDF)
- Homebuyer Tax Credit – a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
First-time homebuyer tax credit chart
Frequently asked questions about the first-time homebuyer tax credit
- FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
FHA Foreclosure Rescue Chart
- Seller-funded down payment assistance programs – codifies existing FHA proposal to prohibit the use of down payment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
More about the seller-funded down payment assistance provision
Tips to finding down payment assistance programs (PDF)
- VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
- GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
- CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
- Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
It remains to be seen the overall effect the Recovery Act will have on both the individual home buyer and the housing industry as a whole.
From the Experts:
“We’re going through a major financial crisis…let’s be clear: Fannie and Freddie can’t be allowed to fail. With the collapse of subprime lending, they’re now more central than ever to the housing market, and the economy as a whole.”
– Paul Krugman, Professor of Economics at Princeton and New York Times columnist, 7/14/2008
Ludlow VT Real Estate: Wall To Wall Or Buy It All?
One of the most fundamental questions when considering purchasing Ludlow VT real estate is whether to purchase a single family home or a condo. Although there are many factors to consider, the answer really lies in the buyer’s preference and lifestyle.
condo
A condo might be a good fit for those in search of a more urban, low-maintenance lifestyle. Condos typically resemble apartments with several units in the same building or complex sharing amenities (although they can also be duplexes, free-standing buildings, etc.). Although there are monthly maintenance fees involved with condo ownership, that also means, owners are not responsible for any maintenance outside their own four walls. Because condos are a shared community, ownership is often limited to a specific space.
For many home-buyers, single-family homes offer more privacy and control. When purchasing a single-family home, the buyer owns the entire building as well as the land on which it sits. Likewise, this means the maintenance of the structure and the land is the owner’s sole responsibility.
If you would like to learn more about owning Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. Request a complimentary relocation package!
Ludlow VT Real Estate: How to Tell When A Price Is Too Good To Be True
If you are currently looking to buy Ludlow VT real estate, you probably have a good idea of the general range you can expect to spend on a home. So you might be surprised when a great-looking home shows up on the MLS with what seems like a shockingly low price tag attached. The extra-low price seems too good to be true and – most of the time – it is.
In many cases, the price you are seeing does not represent the actual asking price of the property. Rather, it is likely a property that is in “pre-foreclosure” and the amount listed actually represents the balance of the defaulted loan, or the amount the current owner is in arrears. Below is an excerpt from an article I found at Inman News that does a great job explaining how these properties end up on MLS search engines, and what you can do to spot them:
Ludlow VT Real Estate: American Dream Alive And Well
The so-called “American Dream” has, in the past, been an ideal goal for people which almost always included owning real estate. Due to the recent slowing of the real estate market, however, home ownership is often seen as more of a nightmare than a dream. But it doesn’t have to be that way! Even in a slower economy, purchasing Ludlow VT real estate can still be a step toward achieving your own “American Dream!”
Inman News reminds us some of the benefits and advantages that being a home owner will always offer:
- • The opportunity to build equity and create wealth over time.
• Protection from rent increases or eviction at the whim of a landlord.
• The pleasures of a relatively larger home, suitable for a family, and with a backyard, garage or other auxiliary space.
• The freedom — design review boards notwithstanding — to improve, remodel or redecorate to suit one’s own style and budget.
• A variety of lucrative income-tax breaks.
• Pride of ownership and a greater sense of security and stability.
If you are considering purchasing Ludlow VT real estate, now is the time! Don’t let the negative media attention on the market get you down – home ownership is still a realistic and attainable goal for most Americans.
If you are ready to begin looking at Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. You may also request automated emails of new listings!
Homes That Save Vermont Home Buyers Money
More Vermont and Okemo Mountain buyers are taking the environment into account when searching for a home—they’re looking for earth-friendly features that translate into lower energy bills and less pollution.
I found this article by Linda Legner discussing how Vermont home sellers can make their home stand out from the rest and attract earth-friendly buyers….
This growing trend gives you the opportunity to make your listing stand out from the rest by calling attention to all of its energy-efficient amenities, from properly-sealed windows to Energy Star appliances.
Whether your listing is a brand new condo or an old Victorian, just a bit of investigating can uncover many “green” features that will grab buyers’ attention. Use this list to identify areas of the home where energy efficiencies may be lurking:
- Appliances and lighting. From the laundry machine to the dining room chandelier, energy-efficient products are proven to save money and consume less energy. To confirm that various products outperform average standards, look for the blue-and-white Energy Star label. The U.S. Environmental Protection Agency issues this designation only to products that are among the most efficient on the market. The Energy Star Web site provides a comprehensive list of all Energy Star Qualified Products.
- Insulation. Air leaking through exterior surfaces—such as walls, windows, the roof, and the floor—can waste 25 percent to 40 percent of the energy used to heat or cool a home, according to Energy Star. Local building codes and the U.S. Department of Energy specify acceptable insulation, measured in R-values. The higher the R-value, the more effective the insulation. If your listing has insulation that surpasses local standards, that’s an advantage you can tout to potential buyers. Be sure to mention insulation installed in attics and crawlspaces. Also, don’t forget to point out wraps, sealants, foams, and tape installed to reduce air moving through the gaps around framing, piping, electrical wiring, and outlets.
- Windows. Depending on the climate and total glass area, windows account for 25 percent to 50 percent of a home’s heating and cooling needs. But technological advances in window materials mean much better energy efficiency. U-Factors rate insulating ability for windows; the lower the U-Factor, the better the insulation of the window. Typical U-Factor values range from 0.25 to 1.25. If your listing has insulated window frames or frames made of low-conductance materials (wood, vinyl, or fiberglass), you should call out these features to potential buyers.
- Heating and cooling systems. Efficient heating, ventilation, and air conditioning equipment consumes less fuel, emits less pollution, and generally requires less maintenance. A furnace’s heating efficiency is measured by the annual fuel utilization efficiency rating, or AFUE. The U.S. Department of Energy requires all furnaces sold in the United States to have a minimum AFUE rating of 78 percent, which means that the furnace converts 78 percent of the fuel to heat. Only ratings of higher than 90 percent earn the Energy Star label. Similarly, air conditioners should have at least a 10 seasonal energy efficiency ratio, or SEER. Energy Star requires a SEER rating of 12 or higher.
If the home has zoned systems that allow different areas to be heated and cooled separately, let potential buyers know that these features deliver additional operating savings. Point out programmable thermostats with timers and variable-air controls, as well as ceiling fans. Let buyers know if a fireplace has glass doors and a heat-air exchange mechanism, which returns warmed air to the room instead of letting it escape. And don’t forget to promote radiant flooring, which heats from the ground up and eliminates the draft and dust problems associated with forced air heating systems. - Landscaping. Well-done landscaping can greatly reduce heating and cooling costs, protect the home from winter wind and summer sun, and help control noise and air pollution. Also, some species of trees, bushes, and grasses require less water than others, or are naturally more resistant to pests so they require fewer pesticides. Learn what kind of plants and trees are growing around the house and promote all of their benefits to buyers. For more details on what to look for, visit Landscaping for Energy Efficiency, an online guide from the U.S. Department of Energy.
- The entire house. Some new homes are rated for overall efficiency by the Energy Star program. A new home certified through the Energy Star program performs at least 30 percent more efficiently than houses built to the 1993 Model Energy Code (or 15 percent more efficient than your state energy code if that is more stringent). The Energy Star designation is verified by an accredited home energy rater and displayed on the inside of the circuit breaker.
Even if your listing isn’t a home that buyers would traditionally think of as being green, it is sure to have at least some eco-friendly features that will give it a marketing edge. Let potential buyers know how the home will help their energy bills and the environment, and you may be surprised at how fast you can clinch the sale.
Learn More…
Energy Star Program
The U.S. Environmental Protection Agency introduced Energy Star in 1992 to identify and promote energy-efficient products to reduce greenhouse gas emissions. The label is now on appliances, lighting, home electronics, and other products. It also covers new homes and commercial and industrial buildings.Glossary of Energy-Related Terms
The acronyms alone can be confusing! If you can’t recall what AFUE measures or what SEER stands for, come to this glossary for clarification. You’ll also find definitions for hundreds of energy-related words.
Energy Savers: Tips on Saving Energy & Money at Home
This site, from the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy, offers energy-saving tips for all areas of the home, plus a variety of booklets you can download and print in English or Spanish.
Energy Efficiency and Renewable Energy
This portal site by the U.S. Department of Energy provides links to other Web sites and online information on energy efficiency and renewable energy.
Baby Boomers Setting the Latest Ludlow VT Real Estate Trends
We know that the Baby Boomers account for a large part of the real estate owning population in America; the majority of Ludlow VT vacation home owners are also of the Baby Boom generation. It should come as no surprise, then, that these folks – not the typical “trendy” crowd – may be the latest trend-setters in vacation real estate also.this article in the Wall Street Journal explains, designers and architects are catering more and more toward this fast-growing segment of the population. Not only are more Baby Boomers planning to stay in their homes through retirement (as opposed to moving to “assisted living” or a retirement community), but they are also the ones willing and able to purchase vacation real estate during this economic downturn. This influx of aging vacation-home buyers has triggered home renovations and new construction including halls and doorways wide enough for walkers and wheelchairs, and master suites and laundries on the ground floor so residents can avoid stairs. Now, the technology behind home appliances and fixtures is catching up – making all kinds of appliances and home design elements more senior-friendly. ISellVermontRealEstate.com. You may also contact us to request services here!
Sounds unlikely, but it is very true! As
Some of the innovations in home design and appliance re-design include:
– Stoves that monitor pots to prevent boiling over
– Adjustable typeface on appliance control panels
– Faucets that turn on and off with just a touch anywhere on the spout
– Dishwashers designed to be mounted at a more comfortable height
– Refrigerators with doors and storage designed to reduce bending over
– Adjustable volume/pitch of oven alarms
Last but not least – yes, there is even a toilet on the market with an electric-blue nightlight built in and a motorized heated seat cover that rises with the touch of a button. I don’t think you’d have to be a senior citizen to enjoy that kind of amenity during a late-night bathroom visit!
The impact these trends will have on the real estate market as a whole is uncertain, but with more Baby Boomers purchasing Ludlow VT vacation homes, light-up toilets may be a standard amenity before you know it!
To learn more about trends in Ludlow VT real estate, please call me at 802-353-1983 or visit