Teresa Merelman, ABR, CRS, e-PRO, RSPS, GREEN

Attention - First-Time Home Buyers in Vermont - Act Now to Use the $8,000 Tax Credit. You must be able to close by November 30, 2009 to use this credit!

If you are dreaming of owning home, now is a great time to buy!

Hopefully, by this time, you have heard about the recently enacted first-time homebuyer tax credit. Many buyers have used it or will be using it. If you are still not sure what it it all about, here is a synopsis as reported by Ken Trepeta, Director of Real Estate Services for the National Association of REALTORS:

1. It is available to first-time home buyers only, but that means people who have not owned a home in the past three years too. The home must be the principal residence and there is a recapture provisision if one moves out or sells before the end of three years.

2. It is lmited by income and starts to phase out for individuals at $75,000 and couples filing jointly at $150,000. The credit completely phases out at $95,000 and $170,000 respectively.

3. It expires on November 30, 2009. For existing home buyers, you must close by that date. For new construction buyers, you must occupy by thate date.

4. It is not available directly at the closing table,

5. One does not need to wait until 2010 to claim the credit. Once can claim it on their 200 taxes by filing an amended return after they close on their home. Best to contact your accountant on this.

6. There aren't many restrictions on the type of home; however, one cannot purchase a home from a close relative.

Below are links to additional information:

First Time Home Buyer Tax Credit CHART

First Time Buyer Tax Credit IRS Form

You may be wondering where to start. If you have decided to finally purchase a home, start with the banks and mortgage companies. A good place to begin is with Vermont Housing Finance Association. Click on the icon below to go to their site or go to: http://www.vhfa.org

Once you have a good of idea of what you can afford, start looking. Hire a Realtor who is familiar with the tax credit program and can work with the mortgage company. Look for an Accredited Buyer Representative - someone who will represent you as the buyer.

Here is a link to Homes in the Lamoille County Area priced between $100,000 and $400,000.

Here is a link to Homes in the Washington County Area priced between $100,000 and $400,000.

I hope this information has been helpful and that you do not hesitate to become a home owner. Feel free to contact me about purchasing properties in the area!

Sincerely,

Teresa Merelman, Broker
ABR, CRS, e-PRO, RSPS, GREEN
Stowe Realty
(802) 253-8484 - Office
(802) 793-5171 - Cell
Teresa@StoweUSA.com
www.StoweUSA.com

May of 2009 was a busy month in Stowe. Home sales doubled - from a total of 4 for the year to 8! Also on the rise were the number of Active Home Listings in Stowe. This is not unusual for more properties to be listed in the Spring.

The resort areas in Vermont like many other states have certainly felt the affects of the current unstable economy. We normally have a strong second home/vacation home market. But, these days, potential buyers are more cautious and many no longer have the discretionary income they have come to expect. So we have an unusually high inventory - especially among homes above $1,000,000 and fewer sales. We have seen many price reductions from the more motivated sellers.

My advice to Sellers - if your property is being marketed appropriately, it may be time to take another look at the asking price. Talk to your listing agent and ask what he or she thinks the price should be. Make sure you really know what your bottom line is. Many times it is difficult for listing agents to tell a seller where the house should be priced, but price seems to be the most effective weapon to get your home sold.

The good news - great time to buy! Interest rates are still relatively low and there are many properties - even in the Stowe area - that may qualify for the $8,000 tax credit to first time home buyers.

Feel free to contact me for more information about homes, condos, and land in the area current available for sale. Of course, I'd be happy to discuss the numbers with you too!

Teresa Merelman, Broker, ABR, CRS, e-PRO
Stowe Realty
(802) 253-8484
Teresa@StoweUSA.com
www.StoweUSA.com

Stowe Homes for sale 6/5/09

I have been a Realtor® in the Stowe, Vermont area since 1998 and this recession is really starting to get to me. I have certainly felt the change these past few years. As most of you know, our living costs and business expenses certainly have not gone down. And for most of us, our income has not kept up with our family and professional expenses. Many have faced the question - do I really want to stay in this business? Yes, but what can I do to help pay the bills? Then I saw an ad in the paper - CENSUS WORKERS NEEDED - pays relatively well, flexible hours, short term. Perfect! I called and was told all those interested need to take a test. Oh NO - now the pressure is on. Okay, yes I really do want this job. What intrigued me about being a Census Lister is that you get to be outside, verify hundreds of addresses in your own home town, and meet some good locals. Worst case, I get to know some more homes in the area and get paid for it.

Well, this job was a lot of fun! There is nothing quite as beautiful as a sunny, spring day in Vermont. I found gorgeous homes I never knew existed. I met some great home owners in the process - hey - maybe a lead down the road. Speaking of roads, I found a few new roads I never knew were out there. Also, I had the authority to go down or up driveways I never would have otherwise. Some pleasant surprises were out there.

The Census part for 2009 is over for me now. More to come in 2010. My decision to do it turned out to be good. Not only did I make enough for my son's tuition payment at the University of Vermont, I also learned more about my geographic area and met some great people along the way.

Be sure to fill out the survey next year or you may see me coming to your door to ask you to fill it out. You really don't want your tax dollars going towards that now do you? Besides, the 2010 Census is Mandatory! AND it really is important...

Here's a photo I took while out on the back roads listing homes for the Census.

If you know anyone looking to move to the Stowe, Vermont area, let me know. I have a lot more tuition payments to make!

Teresa Merelman, Broker, ABR, CRS, e-PRO
Stowe Realty
(802) 253-8484

STOWE HOMES FOR SALE

SOMETIMES, IT'S TOUGH BEING A LISTING AGENT!

Last week, I had the unpleasant task of discussing price reductions with a few of my sellers. These are sellers that I have long term relationships with - you know, the kind you send family Christmas cards to, the kind who know you have a son at UVM and another who plays basketball at Stowe High School. They listed their homes with me and listened to me about the market and pricing. Their properties are always in top notch condition and are really priced right. But, now, everything has changed and I had to really lay things on the line with them. Their only weapon is price. Some may think they should change listing agents, but I know that no one cares more about them than I do. I also know that I have done everything I can to expose their homes to as many potential buyers and REALTORS possible.

The cost of holding the property vs. reducing the list price equation has come into play. We discussed their current costs - mortgage, utilities, insurance, property taxes, snow plowing, etc. vs. a reduction which will hopefully bring more buyers, but also less room for negotiation. These sellers know what is going on with the economy. They also know that our local market is seeing a decline in buyers and average sale price. Some homes are being sold below true value. Of course, this will affect the appraisers with comps. It's a vicious circle. I've been paying close attention to the economy, politics and our local market for the past few years. The event that really sent the red flag up was the recent announcement by the State of Vermont of employee reductions. Of course, many private companies have gone through RIFs, but when the State of Vermont announced significant employment layoffs, then I knew we had some major problems. Also, Spring is coming. Many sellers let their listings expire or withdrew them from the market during the fall and winter. They will come back on in May along with new inventory.

I felt that as a Listing Agent, I had to let my concerns be known to my clients. I don't think they were too surprised and they knew I did not like telling them that it's time to reduce their prices - again. Most of my seller clients can ride the storm. I know that the real estate market will get better. The question is - when?

I am not normally pessimistic. I actually love my job. I also know that the USA has the will, strength and heart to overcome the current situation.

I hope and pray that our new President, Barack Obama, is able to implement a plan to get the economy moving in the right direction. You could not pay me enough to be in his shoes right now.

I'll try to do a more upbeat post the next time. Thanks for "listening"!

Stowe, Vermontis a very quaint New England Town known for it's quintessential charm best seen in the Village area and for the highest mountain in Vermont, Mt. Mansfield. Stowe has become a well-known 4 season resort. Activities include skiing, snowboarding, craft shows, hot air balloons, antique car shows, Stowe Recreation Path, horseback riding, fishing, etc. Plus, we have may great places to eat and lounge.

Like most areas in the USA, Vermont is feeling the pains of our current economy. Fortunately, most real estate values have held fairly well. Our banks tend to more conservative and Vermont has had a relatively low number of foreclosures.

Stowe has a year round population of about 4,500. Many of our properties are owned by second home owners/vacation owners. As a result of thedecline in the real estate market over that past few years and the more recent economic crisis, sales have slowed down. I track the averages/means, inventories, etc. as reflected in our MLS system. Most of the sales in this area are MLS based vs. private sales.

The chart below shows the number of sales by month for homes in Stowe which closed in 2007. I like to show the averages and means.

Below is the same chart/format for 2008. When comparing the two, it is easy to see that the number of sales are down in 2008 as are the average/median list prices and sales prices. Stowe values traditionally do hold up in the mid to long run due to the nature of the town.

If you are thinking of moving to Stowe or buying an investment/2nd home, I'd be happy to assist. I have been active in Stowe Real Estate since 1998. Feel free to contact me or go to my web site at www.StoweUSA.com.