Vermont's Not-So Buyers Market and How a Realtor Can Help

As we approach the end of the 2010 sales year, I would like to share some interesting observations from the past year. The Burlington Vt Real Estate market continues to exhibit many differences as compared to the supposed “National Real Estate Market” (which, by the way, is a media myth). I have noticed that while the market conditions in general are those of a buyer’s market, homes in the lower, more affordable price range, as well as those in a desirable location, are receiving multiple offers from more than one buyer. Not exactly a buyer’s market.

One of the reasons for this is that there is limited inventory offered at any one time in the Burlington Area. Most towns in Chittenden County will have 40-60 homes available to choose from across all price ranges. I find that when working with an active buyer, once they plug in all of their criteria in a local Burlington area search, the number of homes that fit their specific criteria is rarely more than 10-12. This handful of homes can be easily seen over the course of two days and, once viewed, most buyers wonder where the plethora of homes that they read about in the news has gone. The fact is that Vermont has never had an over-abundance of housing inventory; the existing permitting and land development regulations that are in place do not allow for the rapid development that occurs in other parts of the country, like Las Vegas, Florida or southern California. That fact alone also means that there will not be an over-abundance of homes in the future, either. With a shortage of existing inventory and the inability of the local building community to quickly create new homes, a slight increase in buyer activity in 2011 will use up the existing homes on the market and result in a shortage. This shortage will drive prices up from current levels, depending upon the strength of the sales. You heard it here first so stay tuned in 2011.

Another point of interest is the trend in buyer activity and behavior. It is no secret that 90% of active buyers in the real estate market begin their search on the internet. So, real estate professionals who list property will put all the info and pictures of their listed home on the various real estate websites to satisfy the buyers’ need to have all of the listing information at their finger tips. It is a great sales tool for listing agents and their selling clients. The funny thing is, buyers have totally changed how they interact with the real estate world. Back before the internet (I am talking 1995, not the stone age), buyers began their search with print ads and glossy real estate magazines from the supermarket, and would call a listed realtor. The agent would set up showings of as many properties that would meet the buyers’ need, as the buyers themselves had no reasonable access to the homes available in the area they were interested in. They relied on “their” real estate agent to “find” them a house. In essence, the buyers engaged real estate agents because we and we alone held all of the information. Now that the information is readily available to the buying public, buyers have forgotten how a knowledgeable and experienced agent, who has been hired to represent them in their purchase, can add valuable market information and experience to the buying process. While identifying the home the buyer wants to purchase is often seen as the main function of a realtor, it is the negotiation and management through the due diligence process to the final closing where a lot of the heavy lifting is done; having someone experienced can sure help smooth out the speed bumps. Remember, buying a home is not an “Easter Egg Hunt”. The job is not finished once a house is identified or “found.” The job is just the beginning. So if you are a buyer, consider engaging the services of realtor. Interview a few that are recommended by your friends and family and pick one with experience, who can add value to the process.