NuzzRE » Buying in NH

Low property taxes means more in my pocket…right?

Michelle — Thu, 03 Sep 2009 19:01:16 +0000

Let`s talk property taxes in New Hampshire. Or, more specifically, property taxes in Carroll and Belknap Counties. There are twenty-nine towns in those counties, with property tax rates ranging from $6.65 per $1,000 in Hart`s Location to a whopping $21.03 in the lovely town of Tamworth. I mean it when I say `the lovely town,` by the way, as I live there. Worth every penny, I tell ya!

No offense at all to Hart`s Location-ites, but besides the opportunity to be on TV every time the presidential election comes around, there is not to much going on up there other than lots and lots of privacy. Beautiful spot, just not a lot of job opportunities, you know? There are quite a few other towns that have both low rates and grocery stores… such as Moultonborough ($7.66), Tuftonboro ($7.95), Bartlett ($8.11) and Wakefield ($9.81).

Now…question of the day.

Does a low tax rate really mean lower monthly house payment? One would assume so, when the owner of a $200,000 house in Tuftonboro pays a measly $132.50 per month in taxes, while the owner of a $200,000 house in Gilmanton pays a comparatively-whopping $349.66 per month. However… that $200,000 house in Tuftonboro is a 1,300 square foot ranch on an acre and a half, a few miles from the main road. That $200,000 house in Gilmanton is a 2,000 square foot colonial on over 7 acres with an attached two car garage (both actual recent sales of about $209K). Hmmmm.

The moral of the story is….

Do not assume that you are going to get the most `bang for your buck` in a town with a low tax rate. The inverse is also true… do not assume that the best `deals` are had in the lower priced towns! Be sure to take the property taxes into consideration.

And…for your viewing pleasure… Carroll County and Belknap County Property Tax Rates:

**rates are 2008 rates. Always, always, always have your agent check for any rate changes!

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That needle in a haystack

Michelle — Tue, 28 Jul 2009 15:42:12 +0000

Sometimes it feels like finding the right buyer for a property is like finding a needle in a haystack…

I have had one particular lot of land on the market for almost a year now. Land usually takes longer to sell than a residential home anyway, but I have had so much activity on this lot… at least a few calls or emails a week (which is quite a bit!), but nobody serious enough to make an offer. Usually if a property is shown a number of times and there are no offers, we have to assume that there is a pricing problem. In this case, though, the price is not the issue.

This lot is a very unique lot. A total of about 13 acres, smack dab in the middle of a few hundred acres of conservation land. The lot includes a logging road almost a mile long, 50 feet of frontage on Ossipee Lake, and hundreds of feet of frontage on both sides of the Bearcamp River. And…did I mention the conservation land? It is surrounded the `Bearcamp Woodlands`, a conservation area maintained by the New England Forestry Fund. It is a fabulous property.

What you can not do, though, is build on this lot. Maybe in the future you will be able to when they develop a super clean and tiny and effective septic system and they relax the NH Shoreline Protection Act. But for now (unless you know someone very important and really enjoy jumping though hoops)… you can not.

So, as I was saying, I have been getting a lot of activity on this lot. Mostly buyers – unrepresented buyers – who assumed they could build on the lot. If the buyer was represented by an agent, the agent would have been able to see that the lot would not support a septic and would be able to explain to them the Shoreline Protection Act and all of the red tape involved with building on or even remotely near the water these days. Do you think, really, that a 13 acre waterfront lot priced at $79K is not going to have some sort of issue?

I have always known that this lot will make an incredible camping spot, vacation spot, get-away-from-reality spot for one lucky family. River frontage where the river is wide, crystal clear, and deep, perfect for swimming. Lake frontage with views into a Loon Sanctuary. And, of course, amazing privacy. LUCKILY, though, I do think I have found the perfect buyers…(or more accurately…they found me!).

You do not know how happy it makes me that these folks are realistic about the lot. They know they will never subdivide. They know they will never built a mansion. They know they may never be able to build at all. They know that locals have been walking down this logging road for generations, and are probably still going to no matter what . They are exciting about finding that perfect camping spot for family weekends and campfires and (hopefully) lot of s`mores! They are realistic and excited about what they are getting – and that could not make me happier.

13 Acres, frontage on both Ossipee Lake and the Bearcamp River!

Buying Land, New Hampshire Style

Michelle — Fri, 24 Apr 2009 10:20:18 +0000

You’ve finally found it! The perfect piece of land in New Hampshire; quiet neighborhood, gigantic old hardwoods, bounded by stonewalls and a babbling brook. You’ve walked it, you’ve imagined yourself relaxing on the front porch, admiring the fiery sunset behind your mountain view. Is it time to make an offer? Not quite; there are a few things you need to consider before doing so.

ZONING: The listing agent should have this information available to you. If you are planning on using the land for anything out of the ordinary such as run a home business, or if you plan to build a mobile home, speak directly to the zoning officer of the town. They are there to answer your questions, and are the ultimate authority on the issue…so use them!

DEED RESTRICTIONS: Deed restrictions can encompass just about anything. Common restrictions are ‘no livestock,’ ‘no temporary structures,’ or a minimum square footage or style of home. Your NH buyer agent will help you read through the deed and will discuss the restrictions with you. If there are any questions or grey areas, be sure to consult a lawyer.

UTILITIES: Water, sewer, electricity, telephone and cable all need to be considered. More often than not electric, phone and cable lines are at the street, but make sure! Bringing poles and lines into your lot can be very expensive. If you are close to town, you may be on town water and sewer. Find out about the hook-up fees and requirements. If the lot is not on town water and sewer, you’ll need a well and a septic. Talk to well experts in the area. There is no way of knowing exactly how deep you’ll need to go until you actually start drilling, but an area expert will be able to give you his professional opinion. Regarding the sewer, if a perc test has not been done, make sure that a satisfactory one is a condition of your offer. The results of the perc test will tell you if the lot will support a satisfactory septic system.

TOPOGRAPHY: New Hampshire land, in all of its rugged glory, can be difficult to work. Lots of local land is very ‘bony’, riddled with boulders hiding just beneath the surface. Also keep in mind that although the winding 250 foot driveway may be beautiful, it can also add quite a bit to your construction costs!

Being able to see yourself living there is, of course, the most important factor in choosing a piece of land. Just be sure you don’t overlook these very important items. Your buyer’s agent will be able to advise you on these common issues, answer any questions you may have, and point you in the direction of the necessary professionals.

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2009 Home Buyer Tax Credit

Michelle — Fri, 24 Apr 2009 10:19:58 +0000

Ok, so we all know that the House, the Senate, and President Obama actually worked together fairly quickly and have officially approved the` American Recovery and Reinvestment Act of 2009.` Included in this Act is an $8,000 tax credit. What does this mean for potential home buyers?

Here are the answers to some frequently asked questions:

Do I qualify?

Most importantly, you must be a first time homebuyer. You are a first time homebuyer if you have not owned home in THREE YEARS. The home you are purchasing must be in the United States and you must close on the home between January 1, 2009 and December 1, 2009. Construction of your first home qualifies as well, as long as you move in within this time frame.

There are income limitations, as well. Single folks can have up to $75,000 in taxable income, and married folks up to $150,000. Over that, the credit is phased out, completely gone at $95,000 if you are single and $170,000 if you are married.

How is the tax credit calculated?

The tax credit equals 10% of the purchase price for homes up to $80,000, and a flat $8,000 credit for homes purchased for more than $80,000. For example, if you buy a home for $62,000, you will receive a tax credit of $6,200.

What do I get? When do I get it?

You get $8,000 (or, of course, 10% of the purchase price, whichever is less)! You can either claim it on your 2008 tax return, your 2008 amended tax return, or your 2009 taxes. It is a pure credit – if you owed $8,000 in taxes, you now owe $0. If you are owed a $1,000 refund on your taxes, you will now get a $9,000 refund!

How does this differ from the 2008 tax credit?

The biggest difference is the fact that this credit does not have to be repaid. The 2008 tax credit needed to be repaid in $500 increments over 15 years. Not a bad deal, of course, but no repayment is definitely better! The income guidelines have stayed the same.

This sounds too good to be true… are there any hidden loopholes?

A few things to keep in mind… If you sell your home within the first three years, the credit must be repaid. This is to keep investors from taking advantage of this credit to flip properties. The repayment can be avoided if the sale is because of death, divorce, or natural disaster. Also, if you are buying your home from your mom or your sister, you do not get the tax credit. No family transactions allowed!

For more information, check out www.federalhousingtaxcredit.com or contact The Red House Realty Group with any questions!

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RETA – New Hampshire REALTOR Escrow Trust Account

Michelle — Wed, 11 Feb 2009 01:38:49 +0000

In 2007, the New Hampshire Association of REALTORS is re-launched the REALTOR Escrow Trust Account, or RETA. NH Realtor Escrow Trust Account

RETA was established in 1997 to raise money for The New Hampshire Community Loan Fund, a non-profit New Hampshire organization which provides loans and assistance to low-income residents of New Hampshire. Since its inception, it has made over $50 million in loans assisting those who need it the most.NH Loan Fund Home of Your Own

RETA works very simply. As a home buyer, your Earnest Money Deposit, as well as any additional deposit, is deposited into a special RETA Trust Account at a participating bank. Any interest earned on those funds goes directly into the RETA Fund, rather than staying with the bank!

For the re-launch in 2007, all funds are now earmarked for the NH Loan Fund’s Home of Your Own program (HOYO). Home of Your Own assists New Hampshire residents with developmental disabilities and NH residents with a family member with developmental disabilities purchase or build a home.

As New Hampshire REALTORs we are very lucky to be able to offer this unique program to our buyers. It’s not often that one is able to give to others without lifting a finger or writing a check! To date, the REALTOR Escrow Trust Account has raised nearly $125,000 for The Loan Fund!

The NH Association of REALTOR’s 2007 goal is to raise $30,000 for those in need. Only about 4% of NH Real Estate agencies currently offer RETA to their buyers. If RETA was applied to all real estate transaction in NH, it is estimated that $200,000 could be raised to help those in need.

During your next transaction, be sure to ask your NH REALTOR about RETA. If they do not participate, encourage them to do so!

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