Real Estate Information Archive

As we enter Cyber Monday, I started thinking about buyers entering the Burlington real estate market.

It is easy to get information about anything online. A dozen sites, like the MHG or RE/MAX.com can provide the home, or homes, of your dreams. If you have been considering a move, or that dream home purchase, you have probably spent hours pouring over kitchen and family room pictures, scrutinizing that bathroom tile choice, or deciding if a lake or mountain view is most important. Pinterest has been known to push and pull buyers in all kinds of directions. Before you dive in head first, consider these thoughts. What do you and your family WANT? What do you NEED?

Do you really need that subway tile in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave (or Mom cave) of your dreams be a future renovation project? Or, must that be an immediate feature?

The first thing that I recommend in the  home buying process is to get a mortgage pre-approval.. This allows you to know your budget and narrow (or expand) your focus. I can then provide options based on your wants and needs list. the easy way is to follow this simple plan.

List all the features of a home that you would like, and qualify them as follows:

• ‘Must Haves’ – if a property does not have these features, then it shouldn’t even be considered. (ex: distance from work or family, number of bedrooms/bathrooms)
• ‘Should Haves’ – if the property checks off the haves and some of the should haves, it stays in contention, but does not need to have all of these features.
• ‘Absolute Wish List’ – if we find a property in our budget that has all of the ‘must haves,’ most of the ‘should haves,’ and ANY of these, it’s goes to the top of the list!

The Bottom Line

Creating this list at the beginning will save you time, money, and frustration. It helps me determine what features are most important and provides a clear focus for desired areas and home specifications. What is important to you is important to me. 

Expect More. 

What is a 1031 Exchange?

This blog post was going to be be about the best ways to show up your neighbor's Christmas light display, but  I chose instead to focus on 1031 exchanges! These can be exciting, if planned for and executed correctly. When real estate owners sell their investment, rental, business, or vacation real estate and reinvest the net proceeds in other property, this is called a 1031 tax deferred property exchange. When a property is held for this purpose, it is called a like-kind, or 1031, property. An owner must meet the requirements of Internal Revenue Code 1031 exchange in order to sell like-kind property and defer taxes on the profit of this sale.

The 1031 exchange is often referred to as a "tax free" ex­change. This not a truly tax free exchange. For qualifying properties, the 1031 exchange allows a way to defer taxes due as a re­sult of gain on the sale of commercial or investment properties. The amount of taxes deferred depends on the value of properties exchanged. If a higher value property is ex­changed for one of lesser value, so cash (or personal property) is included to compen­sate for this difference in value, capital gains tax would be due at closing for that portion that was not real property.

Section 1031 transactions don't have to involve identical types of investment properties. You can swap an apartment building for a shopping center, or a piece of undeveloped, raw land for an office or building. You can even swap a second home that you rent out for a parking lot.

There's also no limit as to how many times you can use a Section 1031 exchange. It's entirely possible to roll over the gain from your investment swaps for many years and avoid paying capital gains tax until a property is finally sold. Keep in mind, however, that gain is deferred, but not forgiven, in a like-kind exchange and you must calculate and keep track of your basis in the new property you acquired in the exchange.

Section 1031 is not for personal use. For example, you can't use it for stocks, bonds, and other securities, or personal property (with limited exceptions such as artwork).

 

Other Considerations for 1031 Exchanges

There are considerations that must be taken into account. For example, properties of unequal value, current mortgage debt, and personal residences and vacation homes all require advance planning if utilizing a 1031 exchange. 

Other Notable 1031 Considerations:

• A 1031 Is Only For Investment/Business Property 
• Some Personal Property Qualifies 
• “Like-Kind” Is Broad Term 
• A “Delayed” Exchange Is An Option
• You Must Identify Your Replacement Property Within 45 Days 
• You May Designate Multiple Replacement Properties
• You Must Close Within 6 Months 
• Cash Left Over Is Taxed
• You Need To Consider Differences In Mortgages And Debt  

If you are selling your home this fall, it is important to keep its exterior well-maintained and create a welcoming, cozy atmosphere indoors. Here are a few ways to ensure your home appeals to as many prospective buyers as possible.

Landscaping
Mow your lawn and remove leaves and debris. Weed, get rid of dead flowers and trim back all branches and foliage so that everything looks neat, clipped and in keeping with the season. Give your flower beds a splash of color by adding some plants that flower in the fall, such as chrysanthemums, coneflowers, and salvias.

A Perfect Porch
Place seasonal flowers in large pots on both sides of your front door. Give your front door a fresh coat of paint and hang up a wreath made from seasonal flowers and foliage. This will provide the perfect finishing touch for your entrance area.

Simple Exteriors 
Is your home exterior clean and free from paint chips or does it need to be pressure-washed and re-painted? Make sure the windows are clean. Do not forget to remove leaves, foliage and other wind-blown material from your gutters on a regular basis.

Inviting Interior
Remove clutter from all surfaces each day and keep as many personal items as possible out of sight. This can be a challenge now that the children have gone back to school, so ensure that they put away their school work, backpacks, and other school-related items each evening.

Holiday Decor
Don't let Holiday decorations overpower your home. Prospective buyers may find it hard to look beyond the decorations and see your home's true features and advantages. 

Keep It Cozy
Create a warm, cozy atmosphere that will encourage people to fall in love with your home. Adjust the temperature on your thermostat before each viewing to ensure that your home is comfortable and welcoming. Have a fireplace? It may set the perfect stage for your cozy interior. 

Add Some Warmth
Another way to create an inviting atmosphere is to add touches of warmth to each room. Place a colorful fleecy throw on the arm of a comfortable chair, pile sumptuous pillows on your bed, and display soft fluffy towels in the bathroom.

Seasonal Decorations
Add some well-chosen seasonal decorations, such as a small basket of pine cones, long twigs in a vase, or a bowl of cinnamon-spiced potpourri.

Smells Like Fall
Do not neglect the scent of your home. You don't have to bake cookies or fresh bread, but air fresheners and scented candles in such fragrances as apple, cinnamon, and vanilla will give your home an appealing atmosphere.

Small touches allow buyers to see your house as their future home. Decorating for the season can allow prospective buyers a chance to see your home as a warm and welcoming place.

GET OUT! This weekends weather looks to be about perfect to get outside and enjoy the late fall landscape. Whether you run, hike, walk, pedal, or paddle, there is something for everyone! (Then the snow flies, creating a winter wonderland of fun. But that is for another post.)

Looking to get out an engage your inner competitor? Hoping for a trail run? Vermont Sports Magazine has a calendar that direct you to fun events, festivals, and opportunities to spend some quality time in the "pain cave." 

If you venture out solo, or with a group of friends, there are numerous hiking opportunities in the greater Burlington area. RootsRated has a very accessible guide to some of the more popular hikes. Realistically, everyone has their favorites. Stop and ask at any outdoor retailer and you will get a number of "the best place to hike is" answers. Want to run, not hike? Load up your hydration system and head out to any of a number of trail running hotspots.

Maybe you want to see the Fall landscape my favorite way- from the seat of a bicycle. There are some world class routes to explore in Burlington and beyond. You can gravel grind by yourself, or with your own personal peloton on dirt roads with landscape that will take your breath away. Here are six routes that depart from the Greater Burlington area. Cruise the 14 miles of the Burlington Bike path/ Island Rail Trail, or challenge yourself to any of the six mountain gap rides. Find grades of 24%, mixtures of dirt road and pavement and get ready to let the legs and lungs burn. The benefit? Some incredible mountain views, and stops at some of the best general stores to refuel. Staff pick- we are partial to the home-crafted baked goods at the Lincoln General Store. 

Rather get muddy? Break out the fat bikes, full suspension, or rigid single speed (you know who you are!) and hit the trails. Again, we always recommend asking a local rider for the most prime riding, but this guide should head you in the right direction. 

Regardless of what you want to do outside, the greater Burlington area offers something for families of all ages. We hope to see you out there!

www.MattHurlburtGroup.com  Expect More.

Here are three tips for a successful sale:

1. Selling your home is going to be stressful.

Although we do as much as we possibly can to lessen the stress and guide you through each step of the sales process, you are still going to feel like that aliens have invaded your life.

Selling your home is simply not a fun process and it will be stressful. Remember that there is a goal to achieve and you are going through the inconvenience of selling so you can achieve your goal. Downsizing? Upsizing? Decide what those goals are first.

Acknowledging your objectives up front will help you make better decisions down the road.

2. Make sure you’re truly ready to sell.

Take the time to ensure you’re emotionally prepared for the sale. Talk to us and listen to our suggestions. Follow our recommendations. They are based on over 20 years of experience as to what works in the sales process and what does not. If we represent you, yet find yourself resisting our recommendations, it’s probably a sign that you’re not ready to sell. If that’s the case, wait until you’re ready. You should be as dedicated to your goals as we are.

Maybe you have no choice but to sell – which can be even more difficult emotionally. Believe me when I tell you we’ve been in your position and understand what you are going through. Whether you need to sell for financial reasons, can’t manage the property on your own, or have seen your last child move out and are faced with a property you no longer need, we have helped others go through the same process.

The more information you give us, the better we can represent your interests, and we have a responsibility to do just that. Let us help you through the process. Trust in the fact that you have hired experienced professionals to properly represent you.

3. Start thinking of your home as a product to be marketed.

When you haven’t separated yourself from your home, it’s difficult to see it as a product. But that’s what it is now – a house that will go on the open market to attract a buyer. Buyers don’t view it as your house. They view it as a potential home for them and what you think about it has little impact on its value or its appeal to the prospective buyer.

I know that is difficult to hear, but it’s the truth.

If you think of selling your home as a business transaction, and are able to emotionally distance yourself from the sales process, it will be less stressful, you will make more rational decisions and you will achieve the best possible price for it.

We are here to help. Expect More.