Blog :: 09-2019

September Market Report

September Market Report

photo by Ted Dawson

 

The numbers are in for the Central Vermont real estate market (numbers through the end of August).

 

Active Listings

Under Contract

Avg Sale Price Past 12 Months

# Sales Past 12 Months

Average Days on Market

Barre City

48

13

$144,804

98

73

Barre Town

36

15

$206,679

88

62

Montpelier

23

11

$268,793

74

59

U32 Towns

52

22

$262,218

79

98

Northfield / Williamstown

39

16

$191,485

70

66

Totals

198

81

 

409

 

 

Sales and sale prices continue to be strong in the Central Vermont real estate market, with Barre City approaching 100 sales over the past 12 months.

 

 

New Listings August 2019

Sales / 12 (sales per month, average)

Absorption Rate (Months of Inventory)

Barre City

13

8.16 sales/month

5.88 months

Barre Town

17

7.33 sales/month

4.91 months

Montpelier

8

6.17 sales/month

3.73 months

U32 Towns

12

6.58 sales/month

7.90 months

Northfield / Williamstown

7

5.83 sales/month

6.69 months

 

We’ve been saying this for years now, but it sure would be helpful to have more houses for sale, especially in Barre Town and Montpelier where the inventory is the lowest. Industry experts tell us that an inventory of six months suggests something of an equilibrium between a buyers’ market and a sellers’ market. Nearly all of the local markets are at or near equilibrium, signaling a healthy local real estate market.

 

Real Estate Investing

Investment Properties--Green Light Real Estate offers a full suite of services for investors. For buy and hold investors, we offer valuation, value add opportunities, financial and location analysis and more. 

For fix and flip investors, we help with identifying good candidates, challenging assumptions about resale and scope of renovation, and more. Sometimes the best advice we give our investor clients is to not buy a particular property.  Check out the blog post “Property Investment With Green Light Real Estate” for more.

 

Win a Bidding War

In a tight market, and with desirable and well-priced houses in the Montpelier/Barre area, we’re seeing more and more multiple bid situations. Read our latest blog post for strategies to win a bidding war (whether you’re a buyer or a seller). These are just some of the tactics. Call (802-225-6425) or email Green Light Real Estate to talk with a buyer specialist for more information.

 

Recent Reviews

For Lauren Gould:

"Lauren was a GODSEND! This our first ever house purchase and she went above and beyond in every way. We would send her houses and she would check them out ahead of time to see if they qualified for our loan and get information from other Realtors if there were issues before we even saw the houses.  She saved us a lot of time by doing this. It took us almost a year and MANY disappointments (not from Lauren) to finally find the perfect house! Lauren made an already stressful process seem like a breeze and we appreciate her so much for her patience with our pickiness, enthusiasm for pep talks when we would lose motivation after another rejected offer, and knowledge of the whole process that she shared with us. 10 out of 10 would recommend her." -- Cameo, Barre

 

For Hannah Dawson:

"Hannah was a pleasure to work with. She's a very knowledgeable and trustworthy professional. Being first time homebuyers we were unfamiliar with the process but Hannah helped with every step and was always available." -- Jess, Northfield

 

 

Call 802-224-6425 or email us to find out what your house is worth in today’s market. Even if you’re a year or more away from selling, let’s start making the plan for a successful sale. 

 

 

Multiple Bids

Multiple Bid Situations

 

In this competitive Montpelier, Barre, and Northfield real estate market, it’s pretty common to see bidding wars (or, to be less dramatic, “multiple bid situations”). And it doesn’t matter whether you’re the buyer or the seller, it’s stressful.

At Green Light Real Estate in Montpelier, we have years of experience, and have navigated countless multiple bid situations with our clients.  We’re good at helping our clients get the results that they want. Our team approach also means that all of our agents work together to help all of our buyer and seller clients develop successful strategies.

Buyers

As a buyer, you’ve got to think very hard about what really is your best and final offer. Often it comes down to price. Actually, most of the time it comes down to price. But NOT always. We start by talking with the seller’s Realtor and trying to find out what would mean the most to the seller. You’d be surprised at some of the responses we get. 

 

Contact Green Light Real Estate to learn more.

 

For example, one time we had a seller tell us that what mattered most was being able to close after a certain date. Turned out that, yes, in fact, the buyers could wait until that date. We won the contract, and the buyers bought the house.

 

Another strategy that we use employ when trying to win a bidding war for Montpelier or Barre real estate is limiting the scope of the appraisal contingency. For example, if we’re going to end up paying above asking price, (in a multiple bid situation, that’s very often the result), then we could cap the appraisal contingency to the asking price.  It’s dirty pool to offer $325,000 on a house listed at $285,000. The reality is that the house isn’t likely to appraise for $325,000. So, what, as a buyer, are you then going to lean on your appraisal contingency? Instead, what if you capped the limit on the appraisal contingency to $285,000? That gives the seller much more confidence in your offer, and makes it much more likely that you’ll get the house.

We can also arrange the inspection contingency such that it excludes certain items, or has a minimum dollar limit on repairs. One time we worked with a buyer who was buying a house that had a tree literally laying across the roof. So, instead of playing games with the seller, we simply acknowledged that the roof was not part of the property inspection contingency. Was that a risk taken by the buyer?  Not really, since they knew they were going to replace the roof right away anyway. 

 

Learn More, email us!

 

Larger deposits and larger down payments also sweeten your offer. We’ve used staggered deposits as well as a schedule for making deposits non-refundable. That sounds a little scary, doesn’t it! But if you’re solid on your financing, why not make some of the deposit non-refundable after the inspection resolution? If you’re not so sure about your financing, then you probably don’t want to do that. Which means the other offers might be stronger than yours. A move like this shows confidence and certainty that you’re going to buy the house.

 

One more idea is to use an escalation clause. With an escalation clause, you agree to pay a certain amount more than any other offer, up to a cap. If you’re bidding on a house for sale in Barre that’s listed at $229,000, you might offer $229,000 and agree to pay $2500 more than any other bidder, up to a maximum purchase price of $240,000. And then, how about pairing that with an appraisal cap of $229,000? Yummy! Your seller is going to LOVE that offer, and you’re really likely to get the house.

 

Anything that we can do on the buyer side to increase the “probability of closing” makes our offer more attractive to the seller. These aren’t all the techniques we use to win a bidding war. And we wouldn’t several or all of these at once. Each negotiation is different, and we have to be creative and thoughtful. When you buy a house with Green Light Real Estate, you know you’re going to get intelligent, experienced, and creative advice. 

 

Get started working with a Green Light Real Estate buyer specialist. Shoot us an email!

 

photo by Ted Dawson

Sellers

Basically, you can take all of the ideas above and look at them through a seller’s lens. Wouldn’t it be great to have a limited appraisal contingency, a limited inspection contingency, timelines that you want, a larger down payment, a non-refundable deposit, and more? You bet it would!

It’s a little different on the seller side. If you’re a seller and you get a multiple bid situation, you have to look very carefully about how you can reduce risk. And of course, get a higher price.

The same techniques that buyers use to make their offers more attractive are exactly what you’re looking for. We actually talk about three points that make the best offer. Highest price, best terms, and highest probability of closing. 

 

Contact a Green Light Real Estate listing specialist at info@greenlight-realestate.com

 

Sellers look for higher down payments as well. Borrowing 100% for a VA or RD loan comes with some appraisal strings that a loan of 90% doesn’t have. So, all else equal, sellers will go with an offer that has a larger down payment.

 

If you’re selling a house in Montpelier and Barre, get the best advice you can. That advice comes from the experts at Green Light Real Estate. Contact us today info@greenlight-realestate.com