More Interest Rate Cuts – What Does It All mean?

When the Fed lowers interest rates, as it continued to do this week, everyone gets excited and there is a lot of buzz about the real estate market. But – when it comes to you and me – what do these lower interest rates really mean? Here are some examples:

Homeowners: If you already have an adjustable-rate mortgage (ARM) on a home, you could save hundreds of dollars a month if your loan is pegged to Treasury rates, which have fallen considerably thanks to the Fed's recent cuts. The catch is that many buyers in more expensive areas resort to “jumbo loans,” which are typically pegged to slower-moving indexes that remain elevated. If you have a fixed-rate mortgage (not a jumbo loan), you could consider the cost of re-financing (think origination fees, appraisal fees, closing costs) against the savings of a lower interest rate for your monthly payment.

Borrowers: Several banks lowered their prime rate, which forms the foundation for car loans, home equity lines and other loans. But you must carry a whopping $5,000 credit card balance to save just $12.50 annually from a quarter-point rate cut.

Consumers: Lower rates threaten to boost inflation and the price of imports. So far, inflation has been held in check, and foreign companies generally are holding the line on prices.

Savers: Falling interest rates normally would whack rates on CDs and other savings. But the cash crunch has spurred many banks to prop up such rates.

Travelers: International vacations and business trips cost more because the dollar has sagged in the wake of the Fed's cuts. But it could be buoyed if other central banks trim rates.

In short, unless you are about to purchase a new home and can take advantage of the new lower interest rates by locking in a fixed-rate mortgage now, you may not end up seeing a whole lot of benefit to the interest rate cuts.

To learn more about Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. You may also begin searching the MLS here!

Okemo Mountain VT Vacation and Investment Home Taxes

Continuing with last week’s discussion about preparing for tax season, I wanted to spend some time this week covering issues related to paying taxes on vacation homes. Many homeowners in the Okemo Mountain area use their property as a vacation home – but can these homes truly be claimed as vacation properties?

This article from RealEstateJournal.com answers this and other important questions, such as:
When and under what circumstances do I have to pay taxes on rental income?
What sort of deductions can owners of rental properties take?
If my vacation home is considered a secondary home (not a rental home), what deductions can I take?

Once you have determined which category your property qualifies as, there is a helpful chart in the article that will give you an idea of what to expect as far as property taxes this year.

Other helpful links on this topic:
IRS Publication 527: Residential Rental Property
IRS Tax Topic 415: Renting Residential and Vacation Property
IRS Publication 925: Passive Activity and At-Risk Rules

To learn more about owning an Okemo Mountain vacation home or Ludlow VT real estate, please call me at 802-3531983 or visit ISellVermontRealEstate.com. You may also begin searching the MLS here!

Getting Ready for 2008 Tax Season

It’s official – tax time is upon us. If you are like many Americans, just the thought of getting organized enough to start the paperwork can be overwhelming.

This article from BankRate.com details 7 steps to help get you ready to file your 2007 taxes. I’ve listed the steps below, but please check out the article for more helpful hints!

- Prepare for the arrival of your records (designate an envelope or folder to store all of the records you’ll receive in the mail)
- Track down social security numbers (make sure you have the correct SSN’s for everyone in your family)
- Find your forms (if you are not filing electronically, download the necessary forms or pick them up at a post office)
- Decide how you want to do your taxes (Do-it-yourself or hire a pro? Paper and pen or computer software?)
- Consider electronic filing (find out if you qualify for Free File!)
- Use direct deposit (it may not be as exciting as receiving that refund check in the mail, but it’ll save you a trip to the bank!)
- Don’t panic!

I’d like to add my own advice: if you bought or sold a home in 2007, pull out those closing documents and start making copies! You will need to provide proof of your purchase or sale (usually a closing statement will suffice), along with any loans that were taken out or paid off in 2007. If you have lost any of these important documents, contact your Realtor who can help you track them down.

If 2008 is going to be the year for you to invest in a home of your own, please visit ISellVermontRealEstate.com and begin searching Ludlow VT real estate here. You may also call me at 802-353-1983.

Get The Latest Okemo Mountain Ski Conditions!

Ski season is in full swing here in the Ludlow VT area. Whether you live here or are visiting Okemo Mountain, chances are you want to know the latest details about the snow conditions on the slopes. This snow report is updated regularly and – best of all – you can even sign up to have the report sent directly to your cell phone or email! You’ll be the first to know when the powder’s fresh or when the slopes are closed.

To learn more about Okemo Mountain or Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. You may also click here to receive one of my complimentary eBooks on buying or selling your home.

2008 Ludlow VT Real Estate Predictions

Happy New Year, Ludlow! I hope that everybody enjoyed a very happy holiday season and that 2008 is off to a great start for you and your family.

The National Association of Realtors has published its predictions for the 2008 housing market, and the data looks positive so far. Most noteworthy is the trend toward improving existing home sales.

Lawrence Yun, senior NAR economist, said “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.”

Existing home sales are expected to rise to $5.7 million in 2008 – making it the fifth highest year on record. Existing home prices, which declined 1.9% to a median of $217,600 in 2007, are expected to go back up about .3% in 2008. As Yun noted late in 2007 “even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the US are showing price increases … the apparent disparity results from fewer sales in high-cost areas, so a change in the mix is dragging down the national median home price.”

To find out the latest trends in Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. To begin searching for Okemo Mountain VT homes, please use my complimentary MLS search.

Real Estate Resolutions for 2008

I hope that everyone has enjoyed a happy and safe holiday season thus far. With the new year upon us, however, it is time to face the inevitable: the New Years Resolution. In 2008, why not make a few real estate resolutions? Here are some ideas to get you started:

Know your credit! Make a resolution to stay on top of your credit in 2008. Begin by getting a detailed credit report so that you know where you stand as the year begins. Check again at the end of the year to see how much your credit has improved!
Keep a budget. This can be a difficult one to stick to. Many people start the year with an idealistic budget, but soon let it go out the window – oftentimes, along with any hopes of saving for real estate investment! Begin with a goal of either setting aside a certain amount for a down payment on a real estate investment or putting away enough to make one extra mortgage payment in 2008.
Research real estate web sites. Be a snoop in 2008! Use web sites like mine to keep tabs on what homes in your neighborhood are selling for, where the foreclosures near you are, and what the general market is like in your area. When you are ready to make a real estate investment, you will already have a good feel for the local market.
Out with the old! Even if you are not planning to move in 2008, it never hurts to clean out your closets, garage, or attic and donate to charity. You’ll make your home more appealing to prospective buyers if you are selling, and you’ll feel more organized if you are staying put.

Best wishes for a very happy new year – see you in 2008!

For more information about Ludlow VT real estate, please visit ISellVermontRealEstate.com or call me at 802-353-1983. To begin searching for Ludlow VT homes, please use my complimentary MLS search!

Ludlow VT Real Estate Update

Attention, home sellers! Even in an uncertain real estate market, there may be good news for you – depending on where you live. The National Association of REALTORS® has published the results of its quarterly sales survey and found that the median home price continues to rise in most metropolitan areas. The median is a typical market price – meaning half of all homes sold for more, and half of all homes sold for less.

Lawrence Yun, NAR chief economist, said the data underscores the fact that all real estate is local. “Some metro areas are hot, while others are experiencing localized problems,” he said.

Moving into 2008, we will keep a close eye on the Okemo Mountain area market trends to see how prices affect sales volume. Since the market changes month to month and neighborhood to area, please contact me at 802-353-1983 or visit ISellVermontRealEstate.com to get the latest information on Ludlow VT real estate. To receive a complimentary home value analysis, please click here.

~Best wishes for a safe and happy holiday season!~

The Basics of 1031 Exchange

Many homeowners have heard of a “1031 Exchange,” but few understand the basics of what an exchange actually entails. Today I want to cover just a few of the basics of the process, as it can be an invaluable method of homeownership for investment homeowners.

What is a 1031 Exchange?
Put simply, it is the sale of one property in exchange for the purchase another property of similar value without the required payment of capital gains tax, all performed within a specific time frame. An example of when you might use a 1031 Exchange, as opposed to selling a home and purchasing a new one outright: you want to sell your current vacation home and purchase a new, similar one that has a few better features. You have not yet owned your current vacation home for two years, so you are subject to substantial capital gains taxes when you sell it. If you were to use a 1031 Exchange, you could “exchange” your current home for a new one and be relieved of the capital gains requirement. It is this difference between "exchanging" and not simply buying and selling which, in the end, allows you, the taxpayer, to qualify for a deferred gain treatment. In a nutshell: sales are taxable with the IRS and 1031 exchanges are not. US CODE: Title 26, §1031. Exchange of Property Held for Productive Use or Investment

Important Rules of 1031 Exchange
1. The total purchase price of the replacement "like kind" property must be equal to, or greater than the total net sales price of the relinquished, real estate, property.
2. All the equity received from the sale, of the relinquished real estate property, must be used to acquire the replacement, "like kind" property.

1031 Timelines and Rules
Identification period – the seller has exactly 45 days from the sale of the original property to identify other replacement property(s) that he proposes or wishes to buy.

Exchange period – the period during which the seller of the relinquished property must receive the replacement property. This period ends exactly 180 days after the date on which the person transfers the property relinquished or the due date for the person's tax return for that taxable year in which the transfer of the relinquished property has occurred, whichever situation is earlier.

If you want to learn more about strategies for buying and selling investment properties, or are interested in Okemo Mountain real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. To request more information about 1031 exchange, please click here and select the reports you would like!

Holiday Décor Goes Green

“Going green” has been one of the biggest trends of 2007, with more and more homeowners seeking to make environmentally-friendly choices on everything from cleaning products to flooring. So shy shouldn’t our concern for the environment carry over to our holiday decorations this year? If your home is in need of some holiday cheer, here are some “green” ideas to brighten things up:

· Use LED lights – using LED lights to decorate the inside and outside of your home will bring you many benefits. The lights last a whopping 50,000 hours – that means you could actually pass these lights down to your grandchildren some day! Adding to their cost effectiveness is the fact that you will be using 90% less energy with LED bulbs – resulting in an electricity bill that the Griswald family would envy! LED lights are also safer – they don’t produce as much heat and considerably reduce the risk of fire, always a concern during the holiday season.
· Use solar-powered decorations – the “new kid on the block” when it comes to holiday décor, these lights not only save you money on energy – they don’t use any energy at all! Place the solar panels where they can collect light during the day, and the lights will automatically light up when it gets dark and shine for about 8 hours.
· Use mother nature’s decorations – forget going out to shop for decorations. Some of the best décor can be found right in your own backyard! Use a real Christmas tree rather than a manufactured, non-biodegradable one. Even better, buy a young tree with roots and re-plant it after the holiday season! A basket of pinecones make a beautiful and rustic centerpiece, and fresh pine straw can be made into a lovely and fragrant wreath to display.

Happy tree-trimming!

To learn more about Ludlow VT real estate, please visit ISellVermontRealEstate.com or call me at 802-353-1983. To receive a complimentary home value analysis, please click here.

Make Your Ludlow VT Vacation Home Pay For Itself!

According to this MSN.com article, it could indeed be possible for a vacation home to pay for itself in the long-run.

Investor Christine Hrib Karpinski offers these three basic rules for purchasing and managing a vacation home:

- Vacation homes need to be rented 15 to 17 weeks a year in most areas to break even.
- Internet advertising is essential. Karpinski recommends advertising your home on 3-5 web sites to ensure the maximum amount of exposure.
- Consider cutting out the middle-man and being your own rental agent.

Karpinski also suggests asking yourself these four questions before jumping into vacation home ownership:
· Are you ready to do the research to find the right home in the right area for you?
· Are you willing to give up the use of your property during peak season?
· Are you willing to put in the necessary work, including advertising and maintenance duties?
· Can you hold on if things get tough?

If you are ready to begin your search for a Ludlow VT vacation home, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. Or, click here to sign up to receive automated emails of new listings that match your criteria.

Happy Thanksgiving, Ludlow!

May your Thanksgiving be blessed with the bounty of the season and the love of family and friends!

We’ll be back next week with more of the latest Ludlow VT real estate news and information! In the meantime, please feel free to contact me at 802-353-1983 or visit ISellVermontRealEstate.com.

Okemo Mountain Rated a Top Ski Destination

For those of us lucky enough to call the Okemo Mountain area home, we already know that this is a wonderful destination for all sorts of winter activities. But now Ski Magazine has made it official by naming the Okemo Mountain Resort one of the top 10 resorts in the East, and one of the best in North America for grooming and terrain parks!

The readers of SKI recognized the resort’s commitment to providing an excellent snow surface by rating Okemo second in the East for grooming, and number three in all of North America – surpassed only by Deer Valley and sister resort Mount Sunapee, in N.H. In the snow category, Okemo placed fourth in the East.

A complete “Top 50 Resort Guide” appears in the October issue of SKI Magazine or can be seen at www.skinet.com Nearly 7,000 SKI Magazine subscribers responded to the “Top 50 Resort Guide” survey, which was conducted by an independent research firm.

If you would like to call Ludlow VT “home” or even “home away from home,” please visit ISellVermontRealEstate.com, or call me at 802-353-1983. To begin searching Okemo Mountain real estate, please use my complimentary MLS search.

How to Add Light to Your Ludlow VT Home

We’ve all rolled our clocks back an hour and are beginning to adjust to the earlier onset of evening. In the winter months our homes can seem darker than usual, but there are ways to use the natural light that is available in your home to brighten things up. Money Magazine has published a list of “Do’s” and “Don’ts” for adding light to any home – among the topics covered are:

- Skylights (pick ones that open and choose carefully where to put them)
- Big windows (install them to showcase your best views, but don’t forget to add small windows above or below them that open)
- Window height (put windows high on the wall, but not tight to the ceiling)
- Window grouping (group several windows together, but don’t separate them with fat supports)
- Window shades (install shades in windows that face east, west, and south; avoid using UV-inhibiting coating)

Following these tips for adding light to your home will help to increase your home’s value. To receive a complimentary comparative home value analysis, click here. For more information about Ludlow VT real estate, please visit ISellVermontRealEstate.com or call me at 802-353-1983.

The Lowdown on Ludlow VT Vacation Home Taxes

If you are considering purchasing an Okemo Mountain VT vacation home in time for ski season, you may be curious about how you will be taxed on the prospective property.

This article from Smart Money magazine explains how you can purchase a vacation home and afford to pay the taxes on it. In addition to covering timeshares and multiple residences, vacation homeownership is broken down into three main groups for tax-related purposes:

· Use a lot, rent a lot (home is considered a personal residence but income must be accounted for)
· Rent a lot, use a little (home is considered a rental property)
· Use a lot, rent a little (home is considered a personal residence and income does not have to be declared)

If you are thinking of purchasing a Ludlow VT vacation home, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. Or click here to see my current listings!

Home Fire Safety in Ludlow VT

With this week’s news coverage of the devastating fires in California, home fire safety is a most timely topic. Although we may not be at great risk for wildfires here in Vermont, we do tend to enjoy cozying up by the fireplace on a winter’s night – an activity that can be a big fire hazard. An important part of responsible homeownership is being prepared to both prevent a fire in your home and to rescue yourself and your family should there be a fire in your home.

This printable Fire Safety Checklist, provided by FireSafety.gov, is a great resource for determining what fire hazards may lurk in your home, how to reduce those hazards, and what to do if there is a fire. The Today Show also provided some useful tips to ensure homeowners would be prepared to evacuate their homes with little or no notice in the event of an emergency such as fire. These tips include:

Make copies of your documents. Either put them in a waterproof and fire-proof safe, or give the copies to a trusted friend or relative. Make electronic copies, as well. Remember that valuables left in a safe deposit box at a bank could also be destroyed in the case of a widespread natural disaster.
Get your insurance information in order. If disaster strikes, make your claim right away, and be sure to take pictures of the damage.
Prepare an emergency kit. Don’t wait until it’s too late. Gather essential items such as a battery operated radio, bottled water, food, medication, blanket, first-aid kit, etc.
Come up with a family plan. Again, do it now! Make sure everyone knows where the important documents are, and agree on a meeting place in case you become separated.

Many of these items are tips we hear over and over again, but they never really seem useful until a disaster strikes close to home. By the time that happens, of course, it is generally too late to put the tips to use. Preparedness now can save time and, possibly, lives later.

If you are thinking of becoming a homeowner in Ludlow VT, please call me today at 802-353-1983 or visit ISellVermontRealEstate.com. You may also begin searching Ludlow VT real estate here!

Improvement In Mortgage Market Bodes Well For 2008 Housing

Conditions in the mortgage market are improving for consumers, which should help to release some pent-up demand in early 2008, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR senior economist, notes that widening credit availability will help turn around home sales. “Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages,” he said.

Read the full article here, and remember that the Ludlow VT real estate market is always changing from month to month and neighborhood to neighborhood. For the most up-to-date information about Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. Also click here to request relocation information!

Visit a Pumpkin Patch in Ludlow,VT!

The temperature is dropping, the leaves are beginning to change, and autumn is officially in full swing in Vermont. That means Halloween is just around the corner!

A great way to spruce up your home’s curbside appeal during this season is to decorate with a few locally-grown pumpkins – maybe even add some hay and a scarecrow to really get festive! Visiting a local pumpkin patch is also a fantastic way to enjoy the fall weather with your family and get some of those always-cute snapshots of the kids picking out their pumpkins. Why not start a new tradition this year and visit one of these local pumpkin patches?

To learn more about living here and Ludlow VT real estate, please visit my website or call me at 802-353-1983. You can also request complimentary copies of my e-Books here!

Buyers Beware When Investing in Foreclosures in Ludlow VT

We’ve been covering the hot topic of foreclosures a lot lately, because the number of homeowners defaulting on their home loans has been rising at an unprecedented rate across America. Today I want to look at the topic from a different angle.

While there are many homeowners today who are struggling to meet their mortgage payments, there are just as many would-be investors who are eager to capitalize on the situation by investing in foreclosures and – they hope – selling them for a hefty profit.

This may seem easy on the surface, given the rising number of foreclosed properties; however, potential investors should take the time to understand what they are getting into before heading to an auction or purchasing any bank-owned property.

This article from RealEstateJournal.com covers some of the caveats to investing in foreclosures. If you are investing in a property with the hopes of “flipping” it for a quick re-sale, you should consult an experienced Realtor first to get a clear picture of the current real estate market in your area. Homes may not be selling quickly in your area, which means you could end up with a property that continues to sit on the market while you keep making payments on it. Also, most homes purchased at auction cannot be inspected first, so your new property may come with major structural damage, hidden liens, or utility bills that need to be paid. It is up to the potential buyer to weigh out how much you are willing to invest in improvements over and above the actual price of the property.

If you are thinking of investing in Ludlow VT real estate, please email or call me at 802-353-1983. You can also visit ISellVermontRealEstate.com or begin searching the MLS here. I would be happy to help you invest in your future in Ludlow VT.

How to Avoid Foreclosure in Ludlow VT

If you have a mortgage on your Ludlow VT home, you have probably been paying close attention to the latest interest rates and are aware of the ongoing rise in the foreclosure rate across America.

What would you do if you were actually faced with the prospect of foreclosure? Would you have the information needed to make an informed decision on your financial future? Many homeowners think it can or will not happen to them, so they do not take the time to learn what the options are on the best way to move forward in a stressful situation such as foreclosure.

This article from FreddieMac.com outlines the terms associated with foreclosure and gives a good starting point with steps to take if you think you may soon be unable to pay your mortgage. Some of the topics covered in this helpful article:
- What to do if you can not pay your mortgage
- What if you can no longer afford to keep your home
- Beware of scam artists

I would like to add to the list of steps to take when facing foreclosure – contact an experienced Realtor! Along with a reputable lender, an experienced Realtor can help explain your options and guide you through the choice that is best for you.

For more information about Ludlow VT real estate, please call me today at 802-353-1983 or visit ISellVermontRealEstate.com, I would be happy to help you. You may also begin searching the MLS here!

How to Write Off Your Move to Ludlow, VT

Many home buyers are not aware of the fact that most moving expenses for a job-related move are tax deductible. If you want the savings, however, it is extremely important to keep detailed records of all moving expenses, including house-hunting trips, if your move is job-related.

If you are moving more than 35 miles from your current home, you can deduct all kinds of moving expenses, including but not limited to: your family’s travel expenses, including meals and lodging; the cost of transporting furniture, other household goods, and personal belongings; food and hotel bills for up to 30 days in the new city if you have to wait to move into your new home; and the costs associated with selling your old home or leasing your new home.

The IRS’s Publication 521, “Tax Information on Moving Expenses,” provides all of the details on deducting items related to your move, including limits to how much you may deduct. You can download the publication using the link above, or pick it up for free at any IRS office!

Thinking about moving to Ludlow, VT? Start by searching the MLS here, or call me at 802-353-1983 for all of your Ludlow VT real estate needs!