What does “current use” mean?

What does “current use” mean? From John in Boston, MA

Peabody & Smith Sales Associate Michele Penner responds:
“Current Use in New Hampshire is a special form of taxation used to allow and encourage land owners to keep their parcels of 10 acres or more of undeveloped land, undeveloped.  The program’s intention is to preserve open space and thus preserve the state’s rural character.  Land in current use is taxed at a significantly lower rate making it easier, less costly, for the homeowner or landowner to hang onto. 

If you are purchasing raw land that is classified in current use, please keep in mind that if you develop a portion of that 10+ acreage, you will have to take that portion of developed land out of current use.  There will be a 10% penalty assessed by the town to take that land which you developed out of current use.  If in this process you leave less than 10 acres undeveloped, the whole parcel will be subjected to the 10% taxation.  The portion developed, after the 10% fee, will also be taxed at standard yearly rates.” 

For more information on current use, feel free to give us a call at 603-823-5700 or 603-444-1294 or visit us online at www.peabodysmith.com.

 

 

Michele Penner, Sales Associate, fell in love with northern New Hampshire and the Bretton Woods area over ten years ago, pursuing her hobbies of skiing, kayaking, gardening and hiking. She now has the opportunity, having sold the wholesale business she ran with her husband, Terry,  to promote the area through Real  Estate Sales. She is fulfilling her dream – relocate to northern New Hampshire and live and work in the community she loves. Michele can be reached in the Littleton office, or by email at: michele@peabodysmith.com

Auction Properties and Foreclosured Property Are Not for Beginners

By Andrew Smith, CCIM

Our phone calls and emails are full of inquiries from Buyers looking for properties that have been foreclosed on, or are ready to go to auction. We are happy to help, and many seasoned Buyers are making great buys on bank owned property. However, this is not an area we recommend for first time homebuyers, or those with limited resources. Buying these properties can be very lucrative, but can also be very risky.

When you bid on a property at a foreclosure auction, you must be prepared to purchase that home with out any contingencies. If you are the winning bidder, you will need to put up approximately 10% of the purchase price in non-refundable funds, without financing or inspection contingencies. You need to be able to close in 30 days, and you are buying the property from a Seller that knows nothing about it. You don’t know if the heat and plumbing work, or if the roof leaks when it rains. You need to be in a position to handle these surprises without putting your family in a difficult financial situation.

Bank owned property can also be a great opportunity, but you do need to be ready to take more risk. Many of the OREO (bank owned) property available in this area is owned by finance companies or out of state banks. They also do not know anything about the property, and will make very limited representations about what they will and won’t do in the sales process. For instance, if the water has been shut off, they may not make any representations as to the condition of the heating and plumbing, and will put the responsibility on the Buyer to bear the expense of getting it turned on for inspections, or take the risk that it may or may not work after they buy the property. This makes it a very difficult and risky purchase for a first time home Buyer with limited cash. If you are a seasoned investor, and can take some risk, you may consider seeing what’s available. The full time professionals at Peabody & Smith would be happy to discuss the pro and cons of this type of investment with you. 

Slow, Steady and A Great Time to Buy Real Estate

By Andrew Smith, CCIM

The real estate market in Northern NE continues to prove that it has not caught the cold that has been plaguing many parts of the country for the last year. Although there are pockets of concern, the market continues to chug along, with astute Buyers stepping up and getting both attractive prices, and great financing terms. The chart below shows both activity and prices are down in some towns, and up in others.Activity in Vermont has been affected the most, with an overall decline in sales of -37%, while New Hampshire posts a strong 29% increase. Proper pricing seems to be the key. With more homes on the market, those Sellers that are realistic in their asking prices are getting their homes sold. This is reflected in the days on market, which after going up for the last few quarters appears to have stabilized, and actually saw a 2% decline to an average of 160 days. 

Many Buyers are coming in, and although they recognize the values, are still hesitant to take the plunge. Why is this a great time? Well, we feel that even if the market is not “right at the bottom” (the only way you will know is after it starts back up again!) the very favorable interest rates more than make up the difference. Interest rates are at historical lows, and coupled with more than ample choices, it’s the best of both worlds for Buyers. As the feds struggle to keep the economy on track, and keep inflation in check, we doubt these low rates will be sustainable. Look for higher mortgage rates starting in the 3^rd quarter of this year.

Still uncertain? Please come in and see one of our full time professionals,
and ask them to show you the real numbers and benefits associated
with buying real estate in today’s market, at today’s low rates.