The Vermont Home-Buying Process: Your Step-by-Step Checklist

Ask your agent to pull recent sales data for similar homes in the same area — ideally within the last three to six months. Compare square footage, condition, lot size, and location. Vermont markets vary widely: Burlington suburbs move fast, while rural properties can sit longer. Use the data to decide whether to offer at, above, or below the asking price.

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Your agent will prepare the offer using the Vermont Association of Realtors standard purchase and sale contract. The form covers purchase price, earnest money amount, proposed closing date, personal property included in the sale, and contingencies. Review every blank carefully before signing. The contract is a legally binding document once the seller accepts.

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Vermont's standard purchase contract includes a financing contingency that lets you back out if your mortgage falls through, and an inspection contingency that gives you the right to conduct a general home inspection. You can also add a contingency for well and septic testing, which is especially important for rural Vermont properties on private systems. Never waive an inspection contingency in Vermont without understanding the full risk of buying a home with unknown defects.

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Earnest money is a good-faith deposit you pay when the seller accepts your offer. In Vermont, this money must be deposited into the listing broker's trust account within three banking days of receipt. The amount is negotiable — commonly one to two percent of the purchase price — and it applies toward your down payment or closing costs at closing. If you back out for a reason not covered by a contingency, you may forfeit the deposit.

Cost: 1-2% of purchase price typical

Since the NAR settlement removed cooperative compensation offers from MLS listings, the seller's willingness to pay your agent is now negotiated in the purchase contract or as a seller concession. Many Vermont sellers will still agree to cover buyer agent fees, but it must be spelled out in writing. Talk to your agent about how to structure this so the cost is clear to all parties.

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Vermont sellers typically complete a Property Information Report (PIR), a comprehensive self-disclosure covering the home's systems, known defects, environmental conditions, and legal encumbrances. While Vermont does not have a statute mandating this form, it is so standard in practice that its absence is a red flag. Read every section carefully and ask your agent to clarify anything that is unclear or concerning.

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Vermont's Act 250, codified at 10 VSA Chapter 151, is a state land use permit requirement with no equivalent in most other states. If the property was developed under an Act 250 permit, that permit has conditions that run with the land permanently — such as density limits, stormwater requirements, or restrictions on future additions. Ask your agent and attorney to confirm whether an Act 250 permit exists and what conditions it imposes on the property.

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If you are buying a condo or home in a planned community, Vermont's Common Interest Ownership Act (27A VSA) requires the seller to deliver a resale certificate containing the association's current assessments, budget, reserve fund status, declaration, bylaws, rules, and any pending litigation. Review these documents with your attorney to understand monthly fees, special assessments you may inherit, and any restrictions on how you can use the property.

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Your Vermont real estate attorney will examine the chain of title to confirm the seller has clear ownership and there are no liens, easements, or other encumbrances that could affect your rights as the new owner. Title searches in Vermont can take one to two weeks for properties with complex histories. Promptly provide any documents your attorney requests so this process stays on schedule.

Cost: Included in attorney fee

Going under contract triggers the clock on your financing contingency. Submit your complete mortgage application to your lender right away. The lender will order an appraisal and begin underwriting. Gather all required financial documents so you can respond quickly to any requests. Delays in submitting your application can put your financing contingency deadline at risk.

Cost: $0-500 application fee

A professional home inspector examines the structure, roof, foundation, electrical, plumbing, and heating systems, then provides a written report. Vermont homes often have older systems — oil boilers, knob-and-tube wiring, wood-framed additions — that benefit from expert evaluation. Attend the inspection in person if you can so the inspector can show you issues directly. Plan for three to four hours for a typical Vermont single-family home.

Cost: $400-600 typical

A large percentage of Vermont homes outside Burlington and other municipalities rely on private wells rather than municipal water. Have the well water tested by a state-certified laboratory for bacteria, nitrates, and any other contaminants relevant to the property's area (such as arsenic in certain Vermont geological regions). Your agent or attorney can recommend certified labs. Water test results are not included in a standard home inspection.

Cost: $100-300 typical

Vermont does not require sellers to certify their septic system before sale, but the Property Information Report asks sellers to disclose known information about the system. Hire a licensed site engineer or septic inspector to evaluate the system independently. A failing septic system in Vermont can cost $15,000 to $30,000 or more to replace. If the system has not been pumped recently, budget for that as part of the evaluation.

Cost: $300-600 typical

For homes built before 1978, federal law requires the seller to disclose known lead-based paint and hazards and to provide you the EPA pamphlet 'Protect Your Family from Lead in Your Home.' Vermont also has its own lead paint law under 18 VSA §1759. You have a 10-day period to conduct lead paint testing before you are obligated to proceed. If you have or plan to have children under six, take this disclosure and inspection window seriously.

Cost: $200-400 for lead inspection if desired

Vermont does not have a standalone flood zone disclosure law, but flood zone status is a material fact that your agent must disclose if known. Look up the property on the FEMA Map Service Center at https://msc.fema.gov to see whether it falls in a Special Flood Hazard Area. Properties in Zone A or AE require federally mandated flood insurance if you have a federally backed mortgage — premiums can add hundreds of dollars per year to your housing costs.

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After receiving all inspection reports, review the findings with your agent. You can ask the seller to make repairs, provide a credit toward your closing costs, or reduce the purchase price to account for problems found. Vermont sellers are not legally required to agree to any repairs, but significant defects give you negotiating leverage. Your agent will help you decide which issues are worth negotiating and which to accept as-is.

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Your lender will hire a licensed appraiser to visit the property and estimate its market value. The appraiser compares the home to recent sales of similar properties in the area. You generally do not attend, but make sure the seller is aware the appraisal is coming so they can provide access. The appraisal protects the lender — if the home appraises below the purchase price, you will need to renegotiate or cover the gap yourself.

Cost: $500-700 typical

The lender's underwriter reviews your entire file — income, assets, employment, and the property — before issuing loan approval. Underwriters frequently request additional documents: a letter explaining a large bank deposit, proof of continuous employment, or updated pay stubs. Respond within 24 to 48 hours of any request. Slow responses are the most common reason closings get delayed.

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Within three business days of submitting your application, your lender must provide a Loan Estimate showing the interest rate, monthly payment, and estimated closing costs. Review it carefully and compare it to what you were quoted. At least three business days before closing, your lender must send the Closing Disclosure with final numbers. Read both documents side by side to spot any unexpected changes.

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Vermont imposes a Property Transfer Tax on the buyer at closing under 32 VSA Chapter 231. For a principal residence, the tax rate is 0.5% on the first $100,000 of purchase price and 1.25% on any amount above $100,000. For investment properties, second homes, or land, the rate is 1.45% on the entire purchase price. Vermont also charges a Clean Water Surcharge on top of the base transfer tax. Ask your attorney to calculate the exact amount so you can budget for it at closing.

Cost: varies — based on purchase price and property type

Your lender will require a lender's title insurance policy to protect the bank's interest in the property. This does not protect you. An owner's title insurance policy is a separate, one-time premium that protects you against title claims — such as undiscovered liens or errors in past deeds — that surface after you own the home. Vermont real estate attorneys handle title insurance as part of the closing process. Ask your attorney whether an owner's policy makes sense for your situation.

Cost: $500-1,500 typical for owner's policy

Your lender must send the Closing Disclosure at least three business days before closing. It lists every cost associated with the transaction — loan origination fees, title fees, prepaid taxes and insurance, and the Vermont Property Transfer Tax. Compare it line by line to your earlier Loan Estimate. Flag any fees that have changed significantly and get an explanation from your lender or attorney before closing day.

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Your closing attorney will provide exact wire transfer instructions or confirm that a cashier's check is acceptable. Never wire funds based on instructions received by email alone — Vermont real estate transactions have been targeted by wire fraud. Call your attorney's office directly at a number you look up independently to verify the wiring details. Confirm the amount and delivery method at least two days before closing.

Cost: Down payment + closing costs

Schedule a final walk-through — usually within 24 to 48 hours before closing — to confirm the home is in the same condition as when you made your offer, that any agreed-upon repairs were completed, and that the seller has removed all personal property they were not leaving behind. Check the heating system, appliances, windows, and fixtures. If you find problems, notify your agent and attorney immediately so they can be resolved before you sit down at the closing table.

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Your lender will require proof of homeowner's insurance before closing — typically a declarations page showing the policy starts on or before the closing date. Vermont winters mean a heating fuel source and properly winterized systems are essential, so make sure the heat is on in your name from day one. Contact the electric, gas, internet, and water (if municipal) providers to schedule transfers effective the day of closing.

Cost: varies by coverage

Vermont closings are conducted by your real estate attorney. Confirm the exact time and location of the closing appointment — it may be at the attorney's office or at a title company office. Bring a government-issued photo ID. Your attorney will coordinate with the lender, the listing agent, and the seller's side to make sure all documents are ready. Ask your attorney what originals you should bring so there are no last-minute surprises.

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At the closing table, you will sign the mortgage note, deed of trust or mortgage, and a stack of lender and title documents. Your attorney will walk you through each form. Do not rush — take time to read each document or ask your attorney to explain anything you do not understand. The mortgage note is the document that makes you legally responsible for repaying the loan, so understand its terms before you sign.

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Vermont's Property Transfer Tax is paid by the buyer at closing and is handled by your attorney. For a principal residence, the rate is 0.5% on the first $100,000 of the price and 1.25% above that threshold. A Clean Water Surcharge also applies. Your attorney files the Vermont Property Transfer Tax Return with the Vermont Department of Taxes as part of the closing process. This is in addition to your regular closing costs and down payment.

Cost: varies — based on purchase price

Vermont records real estate deeds at the town clerk's office in the town where the property is located — not at the county level as in most states. Your attorney will take the signed deed to the town clerk for recording after closing. Recording officially puts the world on notice that you are the new owner and protects you against future claims. Ask your attorney to confirm the recording date and provide you a copy of the recorded deed.

Cost: $15-30 recording fee typical

Once all documents are signed, funds are disbursed, and the deed is handed off for recording, the seller gives you the keys. Confirm with your agent what time possession transfers — in Vermont, this is usually upon closing, but the purchase contract should specify the exact time if it matters. Change the locks on closing day as a basic security measure, since you do not know who has copies of the existing keys.

Cost: $50-200 for new locks

After closing, you should have copies of the signed deed, the Closing Disclosure, the title insurance policy (if you purchased one), the home inspection reports, and any warranty documents for appliances or systems. Store originals in a fireproof box or a secure digital location. You will need the deed if you ever refinance or sell, and the Closing Disclosure shows your cost basis for tax purposes when you sell.

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