Brandy Speno\’s Blog

Lead Laws Tighten- Southern Vermont, Mount Snow, Brattleboro Real Estate

If you are a home owner, contractor/builder, buyer or seller and you are dealing with a property that was built before 1978 then you need to know the following. The EPA is imposing a new lead rules that will be effective April 22, 2010. The new regulations are specific to any property or child care facility that is having any kind of renovation done on it. According to the EPA, any renovation in which someone receives compensation for work, will be subject to the new requirements. Home owners who are doing their own renovations are exempt. Renovations are classified as any work that could disturb more than six square feet of painted surfaces inside a home and 20 square feet outside of the home. If a renovation is going to disturb more that the minimum sqr ft. of paint than a contractor who is working on the property must be certified and trained to specifically deal with lead hazards. They will also be required to submit additional documentation and permitting for their work. What does this mean to the consumer? In general it means that any renovation on a pre 1978 building is going to cost more and take longer. Contractors will not only have to spend time and money to get certified to do the work, they will have to pay and go through special processes to actually complete the work. In addition there will be increased removal fees since most states considered lead paint a hazardous material. Understandably, the government is trying to put a stop to the increasing lead poisoning rates in children and adults nationwide. With sweeping regulation changes many lead free advocates are hopefully. Unfortunately, it will take many more years and much public campaigning to actually make this law effective. Many contractors currently working in pre 1978 properties are not aware of the current or impeding regulation changes or make the choice to ignore them so the costs can be lower for the consumer.

Flooded Basements      

Last weeks torrential rains caused a lot of New England homes to become flooded. Here in Vermont we escaped the major rains, but this week™s article serves as a reminded for what you should do if your home becomes flooded. First thing you need to do is turn off the electricity so the risk of shock is eliminated. An alternative source of electricity or generator can be used to run a sump pump. If you have a preexisting basement drain system make sure its functioning property. Make sure the interior water recedes at the same rate as the exterior water. Keeping the interior and exterior water levels the same will help equalize the pressure on the walls and floors. Once all of the exterior water has receded make sure to drain all interior water well away from the perimeter of your property. Once the water is drained, remove any dirt or silt off the floors so they can continue to dry. Scrub down all walls with household detergent working from the top down. Get a dehumidifier and fans to circulate air flow as soon as possible. Make sure moist air can escape outside. If you basement was previously finished removal of sheetrock, insulation and carpeting will likely be needed. These materials hold excess moisture and can easily grow mold and mildew. Always make sure you wear a mask, gloves and boots to avoid contact with contaminants. If there was sewage or the water remained inside you home for any period of time make sure to use bleach and hot water in the cleaning process. Ventilate well while using bleach. Also remember to take photos before, during and after the flood to document the damage for your insurance company. If you are not confident in a DIY clean up, call a company such as ServPro who specializes in water and fire restoration.

Southern Vermont Real Estate, Mount Snow Real Estate, Brattleboro Real Estate, West Dover, Wilmington, Dover Real Estate

Southern Vermont Brattleboro and Mount Snow Real Estate Blog www.brandyspeno.com

 You™re Fired

Realtors often find themselves getting stereotyped, misunderstood, and treated with disrespect or contempt.   This kind of thing goes on in all walks of life unfortunately, but in our industry we are often forced to œput up with it. Why, you ask? Realtors work off commission. We do not get paid until your home sells or you buy a home. If an agent does not have any client sellers or buyers, then they don™t even have potential to get a paycheck. So even if a client treats an agent dishonestly or disrespectfully, most of the time the agent will try to make the best of it. In a tough Market agents get an even worse rap. Sellers ask- Why haven™t you sold my house, why aren™t we getting showings or offers. Buyers ask- why can™t you get that house for 50% below list price for me? If you have heard yourself utter those words then take heed. Did your agent instruct you to do certain things to make you home more marketable, did they suggest a price that was not agreeable to you? Did they talk to you about market conditions and statistics? Did you not follow those recommendations?

Would you go to the doctor and ignore their medical advice if you just had a major operation? Would you tell them they didn™t know what they were talking about or act like you were the expert? Not likely. So then why would you disregard what a real estate professional is telling you? In my opinion agents should be a little more aggressive and not tolerate this kind of treatment at all. Its sets the bar very low and then makes the cycle continue. In my opinion, if you are not going to heed the advice of a successful professional agent they you don™t deserve to be our client, You’re Fired.

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For new and existing home buyers the options to “green up” homes are plentiful. Green upgrades on homes offer two-fold benefits. They contribute to a healthier environment, both now and in the future, and they can save homeowners big when it comes to energy costs. So how much impact does a green home have on the environment? The government reports that Energy Star qualified homes built in 2009 will save in its lifetime the equivalent of:   Eliminating emissions from 51,645 vehicles, saving 312,399,672 lbs of coals, planting 85,372 acres of trees and saving the environment 612,678,574 pounds of CO2 emission.

Many homebuyers shy away from green construction or upgrades because of the upfront cost. While some estimates have put the construction cost difference at 17% recent estimates from The World Business Council for Sustainable Development put the cost of green construction only 5 percent higher than traditional. Green building means using recycled, renewable, and native building materials. It also means tapping into the energy sources that nature has to offer, including solar and wind. Here are a few ideas of simple “going green” ideas to get you thinking.
-Appliances are an easy way to make a home more friendly to the environment. One of the fastest ways to explore your options is to visit energystar.gov. At this site you can find out more information on tax credits and rebates.
-Toxin-free Paint, also known as “zero-voc, low-voc, and natural” paint, this is a good option for families that have asthma sufferers. According to the EPA, “Paints, stains, and varnishes release low level toxic emissions into the air for years after application.”
-Renewable Flooring: Looking for a beautiful way to incorporate wood flooring into your home? Consider bamboo flooring. Bamboo grows and renews itself quickly, unlike most woods, making it an ideal and cost effective option for green flooring.
-Passive Solar: this option can cost you nothing, if you choose the right designed home. The goal is to design to take advantage of the sun’s positioning throughout the year. Windows, roof, doors, flooring are all designed with sun position in mind.
-Low Flow Toilets can help keep utility costs down. Low flush toilets use 1.6 gallons per flush versus 3.5 in traditional toilets. That’s a lot of water saved.

Thinking like a BuyerWhen most sellers list their home for sale the first thing they think about is how much money will they get, followed by how soon they will get the money. Listing you house for sale is really just the first baby set though. If a seller can instead put themselves in the position of a buyer they will be able to sell faster for more money. A buyer™s psychology is driven by emotional experiences, timing and money. If a seller can optimize those circumstances for a buyer then it will help walk a buyer through the process of purchasing your home. First impressions matter. Make the buyer feel comfortable right off the bat and it will set the tone for the rest of the showing.   Fix items that are stand out problems. A buyer will start to infer that if the window screens are broken and the carpet is dirty that there are probably other more significant problems lurking unseen. The better cared for a property looks the more secure a buyer will feel. Remember that buyers almost always lean on the side of exaggeration when it comes to estimating the cost of repairs. If the repair cost $1dollar you can estimate a buyer will think its cost $2. Remember to keep the house de-cluttered, depersonalized, and as natural and inviting as possible. Many buyers are not able to envision their life style or furnishing is a neon pink room with white shag carpet. Selling you house is hard work. The better you situate your property to stand out in the crowd the more likely you will be to maximize you profit and decrease your time on the market.

A Realtors Frustration

For homeowners, banks and Realtors a short sale or foreclosure can be disheartening process. I want to take time this week to share a story of frustration from the Realtors prospective. To set the Stage: House A listed at an aggressive price in early fall. House sits for three months with no action. Price reduction is made, open house and extensive advertising monies are spent. A few showings occur with no offers. Another price reduction, now the sellers are at a price where they are upside down on their mortgage.(Owing more than a sale will bring, lender will have to approve this sale). Agent and owners file the proper paperwork with an œanonymous entity at the bank to put the info about the short sale in the pipe line. Still no action, again another price reduction. Market actively is slow in House A™s particular town, with an average of  3years of inventory and only one sale over $200,000 in the past year. Buyer 1 comes along and makes a low offer on the property. Sellers counter and buyers come up, we cross our fingers and hope for the best. Offer gets submitted to the bank. Bank calls Agent X from the other side of the state to go out and complete a BPO (brokers Price Opinion). BPO agent calls from the house and says he can™t get in? Bank has already gone to the property and changed the locks on the house, not notified anyone including the owner. Agent X completes his BPO anyways and sends it back to the back with lighting fast speed. Agent X uses comparable properties from towns not even close to House A which are totally invalid. Agent X now is œgod in the eyes of the bank and the price that he picked from the sky is now referred to as fair market value. Mind you this œfair market value price is $75,000 dollars more than the current list price, at which I can barely even get a little interest on the property. Bank now tells me that the buyers will have to up their offer to at least fair market value or it won™t be considered. Buyers Laugh out loud and walk away. House A in has now entered into the foreclosure process. Bank tells me that I have to relist the property at the Fair Value market Price or higher which again is $75,000 over what it was currently listed at. I laugh- not a chance I can sell it for that in this particular town. It™s a lose lose situation- Sellers lose their home, kill their credit, I lose my time and advertising dollars, buyers lose their dream home, tax payer dollars are wasted, Bank will end up losing much more money on the house after its foreclosed and doesn™t sell. It seems so ludicrous- all because these big banks are unable to trust the Realtors in their area of expertise, have the worst communication practices in the world and are overall incompetent on the corporate level. When are they going to wake up? What will it take?

Rotten Eggs

The first time home buyer tax credit and credit for replacement buyers was meant to be a helpful tool to get the housing marketing moving again. It certainly has been helpful in our area and a lot of people have been able to take advantage of it. Of course with the many hard working honest people that have used the credit, there are some rotten eggs who  are trying to using it illegally. People have applied to receive the tax credit even if they have not purchased or home, some are trying to take the credit twice, or place an additional credit in another dependant™s name. The Government is not happy with this and has amped up the regulations for filing for the credit this coming tax season. They have created a new form title 5405 which will need to be submitted with proof of residency, a copy of your driver™s license and a signed mortgage statement. The additional paperwork will lead to added time for government review. It is estimated that buyers could have to wait up to four additional months so receive their credit checks. Though the process has become more complicated and lengthy if you are able to legally take advantage of these programs then the wait will be worth the reward!

Southern Vermont Real Estate ww.brandyspeno.com

Mount Snow & Brattleboro Area Real Estate

State back at work!

The State legislature if back to work and among the many important matters they will be discussing this session are some issues that could influence the real estate world. One such bill that is drawing attention is S.99. this bill proposes to amend the Act 250 criteria that so that any developer planning a scattered development project would need to make a feasible connection from their development to existing or planned walkways in order to promote alternate modes of travel. Another change outlined would ask that prior to permitting approval (act250) that any new development pass a œreview of such that the economic benefits / costs are weighed against the cumulative impacts of the development. This may lead to a more restrictive approval process statewide. Among the other topics being discussed are the riparian buffer zones which if approved would require a 50foot buffer zone adjacent to any navigable water. This could have significant environmental impact as well as economic impact if passed. Lastly the œCurrent Use tax program is being re-examined. If changed, there may be a moratorium on new land use applications and penalties for early withdrawal from a program could be significantly increased.

Southern Vermont Real Estate www.brandyspeno.com Mount Snow & Brattleboro Real Estate

Interest Rates 2010?    

Where will they go, do we really know?   Most economists are saying that the interest rates will be on the raise in 2010. Some skeptics say they will remain flat. Of those who are airing on the side of caution, the general predictions for 2010 are that 30yr fixe rates will come in somewhere between 5.5-6.5% by the end of the year. That is up for a low of around 4.88 in November & December 2009 (no points paid). Certainly 6.5% seems high in comparison to this low. The historical realty though is that bottom of the barrel rates are absolutely not the norm. From the 1960™through 1978™s, rates where rising from 6% towards the 9% mark. In the early 80™s rates shot up close to 15%. Since the 1983 highs, rates have generally been trending down. Though more normalized rates mean less buying power for a home buyer, maybe the timing is more needed than ever. In our society and recent past history of cheap and easy money, shouldn™t we all take a step back. Only serious buyers who are buying within their financial means should be honestly considering a home purchase. With lenders tightening up the guidelines for financing qualifications, down payments are nearly essential for even the most qualified of buyers. The combination of these two may just force a normalization of our markets. More serious, well qualified home buyers purchasing homes in which they plan to live in for a number of years. Building equity over time and again stabilizing inventory levels!

Southern Vermont Real Estate www.brandyspeno.com Mount Snow & Brattleboro Real Estate

Mount Snow Real Estate Brattleboro Real Estate Southern Vermont Real Estate www.brandyspeno.com  

Things to Know for 2010

There have been a few law changes that will go into effect in 2010 some which most likely would never read or hear about:

Lead Laws: As many who have tried to buy or sell a pre 1978 Home in the past year know that piles of paperwork in reference to Lead Law disclosure in VT was exponential. The state has decided to finally return to a more normal practice and has condensed the form requirements in VT.

Effect   Jan 1, 2010 the State will be mandating that   the concentration of lead in “plumbing fixtures”-pipes, fittings and fixtures used to convey or dispense water for human consumption-will be limited to a “weighted average” of 0.25 percent for fixtures and 0.20 percent for solder or flux for plumbing. Non-compliant plumbing fixtures or supplies may not be sold or offered for sale in or into Vermont, or installed in Vermont, after January 1, 2010. For more info on all these details check out the Attorney Generals Web Site.Also effective Jan 1, 2010 is the standardized HUD form for all Banks. Most banks have been trying to get used to this form system for some time now but some unseen delays may occur in the event a good faith estimate changes greatly prior to closing. More info at: http://www.hud.gov

Sellers make sure you are also aware of the current VT capital gains tax laws and they were changed in July 2009. To a flat rate exclusion. http://www.state.vt.us/tax