You may be aware that you can avoid capital gains taxes on the sale of your home if it was your primary residence for at least two of the five years prior to its sale. Individuals may qualify for a $250K tax exemption, and married couples up to $500K.But life is funny, and sometimes throws you a curve ball you weren’t expecting. What if you’ve moved into your Bennington VT “forever home,” and suddenly get laid off from your job, or need to move for unforeseen family or health reasons? Do you lose your big exemption from profits just because you couldn’t remain in your home for two years? (more…)

Thirty year fixed-rate mortgages declined this week to an average of 6.22 percent, down from 6.30 percent last week and 6.26 percent a year earlier, Freddie Mac reports.

“Mortgage rates eased a little more this week, as market participants were concerned over how much drag the slowing housing market may have on economic growth,” says Frank Nothaft, Freddie Mac vice president and chief economist. “Last week’s release of housing starts for January showed the weakest reading since August 1997 due to the abundance of homes on the market.”

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Fewer buyers are making down payments on their purchase of a new home, and even fewer are forking over the 20-percent sum that was once the norm, according to a new study by the California Association of REALTORS®.

Nationwide, nearly 30 percent of buyers and 45 percent of first-time buyers nationwide no longer make down payments, the study said.

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Today’s real estate market in the Bennington VT area provides an excellent opportunity for renters to turn their monthly payments into equity. While rising slightly, interest rates now are still much lower than in the past ten to twenty years, and home prices in many areas are adjusting back down to reflect reasonable levels of appreciation.It’s critical to begin taking those first steps towards home ownership, and here are some reasons why.

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Existing-home sales in most states were down from year-ago levels in the fourth quarter, marking the likely bottom for the current housing cycle, while prices in many areas corrected as a result of sellers’ willingness to negotiate, according to the latest quarterly surveys by the National Association of Realtors®.

Total existing-home sales including single-family and condo, were at a seasonally adjusted annual rate (1) of 6.24 million units in the fourth quarter, down 10.1 percent from a 6.94 million-unit level in the fourth quarter of 2005. Even with the general decline, six states showed increases in the sales pace from a year ago and one was unchanged. Complete data for three states were not available. (more…)

Sellers are competing for buyers these days. Actually, sellers are always competing against each other, trying to offer the best value in hopes of securing a full-price offer. Such offers usually come to sellers whose homes are in model condition and priced at, or below, fair market value.

While it’s critical to get your home in tip-top shape before your listing, care needs to be taken when you’re considering the impact of remodeling and renovating. Homeowners who over-improve run the risk of not being able to recoup their investment, particularly if they find they need to sell very soon after completing such work.

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Sellers who refuse to make minor repairs are likely to pay dearly for their stubbornness, says Sid Davis, author of the new book Home Makeovers That Sell.

Here are some of Davis’ suggestions for sellers who want to get the most out of the deal.

• Start with the kitchen; it’s the most important room in the house for most buyers. Refacing the cabinets or sanding them and painting them white is often a worthwhile undertaking. If the flooring is in poor condition, replace that too.

• Update the bath. While paint and flooring help here too, sellers may find spending $200 to replace the mirror and vanity set will net them the greatest payoff.

• Clean the laundry room. Hire a carpenter to install built-in shelving, repaint and replace worn flooring. Upgrade the light fixtures.

• Scrub, scrub, scrub. Squeaky clean wows buyers, Davis says. “If people think [a home] is super neat, they’ll give [the seller] the benefit of the doubt. If it’s dirty, they’ll assume it’s ridden with hidden defects,” he says.

Source: The Miami Herald, Ellen James Martin (02/11/2007)

Bennington VT, Selling

Realtors® Seek to Protect Home Buyers From Predatory Lending and Educate Them on Mortgage Products

WASHINGTON, February 07, 2007 -The National Association of Realtors® today told a Senate panel that NAR supports stronger anti-predatory lending legislation and more consumer education on nontraditional mortgage products.

In testimony on “Preserving the American Dream: Predatory Lending Practices and Home Foreclosures” presented to the U.S. Senate Committee on Banking, Housing and Urban Affairs, NAR said that abusive and predatory lending practices are putting our nation’s communities at risk. These practices can cause more families to lose their homes and savings through higher foreclosure rates. The vacancies that result can deflate the value of surrounding homes, as well. (more…)

WASHINGTON, February 07, 2007 -Consumers are beginning to respond to more favorable housing market conditions, but new home construction will be dampened until inventories decline further, according to the latest forecast by the National Association of Realtors®.

David Lereah, NAR’s chief economist, is looking for a steady rise in existing-home sales. “After reaching what appears to be the bottom in the fourth quarter of 2006, we expect existing-home sales to gradually rise all this year and well into 2008,” he said. “New-home sales should continue to slide, but we look for that sector to turn around later in the year. When you put it all together, home sales may appear weak in comparison with the record surge in 2005, but they will be sustained at historically high levels that are in line with long-term demand.” (more…)

Are you among the college graduates who have moved back home this year?  Don’t sweat it, because you’re not alone.  About 48% of the class of 2006 is estimated to have returned home, and with good reasons.

It’s safe, it’s secure, and it’s convenient, especially when there are car payments and job searching to worry about.  Quite frankly, all those years living in a dorm room may not have prepared you for the big step of setting up house on your own.

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