Buying related questions
Do I need an attorney to purchase a property in Vermont?
- Attorneys handle the closings for real estate in Vermont
- For the buyers, attorneys review the contract and make requests for changes, if necessary; research and ensure the title to the property is clear; issue title insurance, if desired; and help negotiate changes to the contract based on results of building inspections, etc.
- Closings are generally held in the office of the buyers’ attorney
How do I become a client?
To become a client, we must enter into a written brokerage service agreement
How long does it take to close on a purchase?
- Closing dates are dependent upon buyers’ and sellers’ schedules and contingencies affecting the contract as building inspections generally allow for 14 days, condo docs are generally provided within 10 days, inventories are provided within 10 days, etc.
- Generally, cash deals close within 3-4 weeks of a fully signed agreement and financed purchases close within 6-8 weeks of a fully signed agreement
What happens during the purchase process?
- Once you have decided on a property and would like to make an offer, we will need the name(s) and contact information (phone, email, mailing address) for each person making the offer. Additional information required includes amount of the offer, amount of escrow deposit (Killington protocol is generally 10% of the agreed purchase price), proposed closing date, and contingencies (e.g., financing percentage, building inspection, property inventory, condo doc review if applicable, attorney review)
- All the information will be included on a Purchase & Sale Agreement and applicable Addenda which will be sent to all buyers for electronic signature, if possible.
- When the offer is buyer-signed, it is sent to the Sellers for their signature(s), electronically if possible
- When terms are agreed, and signatures are complete, attorneys are selected and sent contract materials for review
- Building inspections are arranged
- Financing process begins in earnest
What should I anticipate for costs associated with the purchase?
- If a building inspection is desired, the buyer is responsible for paying for that
- If a Fire & Safety Inspection is desired, the buyer is responsible for paying for that
- In Vermont, buyers are responsible for the transfer tax which, for 2nd home buyers, is 1.45% of the purchase price
- Lawyer’s fee for closing
- Prorated real estate taxes, homeowners’ association fees (if applicable), propane or oil “in the tank”
What size property generates the best return on investment? One-bedroom? two-bedroom? three-bedroom?
- There seems to be proportional demand for each size property
- You should purchase the property that would work best for YOUR needs
What’s the difference between a buyer broker and a seller broker?
When is the best time of year to buy in Killington?
- The greatest number of sales generally occur in the 4th quarter
- The least number of sales generally occur in the 1st quarter
- A graph illustrating the distribution of sales over the course of the previous year can be found on this website by navigating to the Prestige Real Estate newsletter published in January of each year
You have told us that Prestige Real Estate is a Non-designated Agency. What does that mean for me, the buyer?
- Being a Non-Designated Agency means that for any given transaction, Prestige Real Estate works FOR either the Seller or the Buyer, not both.
- Working FOR the Seller or the Buyer means owing only one side of the transaction confidentiality and fiduciary responsibility.
- We are willing and able to work WITH (not FOR) the other side of the transaction to facilitate the sale. As such, we will disclose all material facts known about the property, treat all parties honestly, account for all money and/or property received, and comply with all state and federal laws.
- You will receive a copy, and be asked to sign a Mandatory Consumer Disclosure explaining the implications of being client versus being a customer
Sales related questions
Can I have my property available for rent while trying to sell?
- If you rent on a short-term basis and use one of the rental agencies in Killington to manage your rental, your property cannot be shown while it is occupied by a renter.
- If you rent your property for the winter season or for over 30 days at a time (considered a long-term rental), you should have a clause in your rental contract to allow the property to be shown with reasonable notice.
- If you sign a long-term rental contract, you may be limiting the attractiveness of your property to prospective buyers as most new property owners are buying the property to use themselves, at least initially.
- In Vermont, leases supersede sales, meaning, if you buy a house that is tenant occupied, the tenant will have the option to stay for the duration of the lease.
For what closing costs am I responsible?
- We recommend you hire an attorney to handle the closing for you. The attorney prepares the deed to transfer the property as well as the tax documents for the state. The attorney’s fees will be commensurate with the effort required and complexity of the sale.
- You will be responsible for the commission to be paid to the listing agency
- In Vermont, if you are an out of state resident, 2.5% of the purchase price is withheld at closing to cover Vermont capital gains resulting from the sale. If you can prove that you will not be realizing a gain from the sale of the property, or the tax on the gain will be less than 2.5% of the sale price, you can file a waiver with the state.
- If you have owned the property for less than six years, you may be responsible for a Land Gains Tax which is based upon the amount of the gain realized on the land portion of the sale, as well as how long you have owned the property.
- There may be some recording fees associated with the sale such as Powers of Attorney, etc.
How do you arrive at a recommended list price?
- We visit your property and ascertain its features and condition.
- We research the local market for properties that are most similar and have sold most recently. Generally, sales more than 12 months old are not pertinent.
- We research the local market for properties that are most similar and are currently listed.
- We recommend a list price based on your motivation to sell
How long will it take to sell my property?
- Currently, the average days on market for a single-family home is 256 days and for condos, 231 days.
- Properties that are priced appropriately sell fastest
Should I update my property for listing and if so, what updates are recommended?
- Should I update my property for listing and if so, what updates are recommended?
- Some buyers prefer to buy properties that are updated, and some buyers prefer to do their own updates. Because we are operating primarily in a second home community, properties that have been updated seem to sell faster than properties that have not been updated.
- The updates that seem to make the biggest positive impact are in order of impact:
- New furnaces and hot water heaters
- New roofs
- New appliances
- New kitchen cabinets and counter tops
- New bathroom fixtures
- New flooring
- New lighting
- Outdoor spaces such as decks and porches
What should I do to prepare my property to be shown?
- You should make the exterior and the interior of the property as neat and orderly as possible. You will have to clean it when you vacate, you should clean it sooner to enhance its appearance for showing.
- A fresh coat of paint is inexpensive and can enhance the appearance of the property.
- Remove as much from the countertops as possible.
- Make sure the beds are made and the dishes, pots & pans, and food items are put away for showing.
What’s the difference between a buyer broker and a seller broker?
When is the best time to sell a property in Killington?
- Most sales occur during the 4th quarter as most buyers want to be able to occupy their property by the winter season.
- We recommend having your property listed on the market by mid-summer when many prospective buyers are looking.
There are two simple reasons to choose Killington:
- Killington has the best snowmaking capabilities in the Northeast
- Killington is the best rental market in Vermont