How to Buy a House in Vermont
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$406,730
Closing Costs
$18,662
4.59% of price
Property Tax Rate
1.42%
$4,915/yr median
Days on Market
40
Median
FHA Loan Limit
$472,030
Attorney Required
Yes
Foreclosure Type
Judicial
Transfer Tax
1.25%
1.25% (buyer, if not primary)
Vermont's housing market is defined by its rural character, with no city exceeding 50,000 residents and a landscape dominated by small towns, farmland, and forested mountains. The state's appeal lies in its quality of life — locally sourced food culture, outdoor recreation, covered bridges, and a strong sense of community — which has attracted a steady stream of relocators seeking an alternative to urban and suburban living. The pandemic accelerated this trend dramatically, creating an inventory crisis in a state that was already supply-constrained. Vermont's land use regulations (Act 250) limit large-scale development, preserving the landscape but constraining housing supply. The state requires an attorney at closing and follows a judicial foreclosure process.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Key Facts About Buying in Vermont
- ✓Attorney required at closing
- ✓High property taxes at 1.90%
- ✓Transfer tax waived for primary residence purchases
- ✓Judicial foreclosure state
The Home Buying Process in Vermont
Buying a home in Vermont follows a 10-step process. As an attorney state, you'll need legal representation at closing.
Check Your Credit Score & Finances
Get Pre-Approved for a Mortgage
Find a Real Estate Agent
Search for Homes & Make an Offer
Get a Home Inspection
Secure Your Financing
First-Time Buyer Programs in Vermont
VHFA ASSIST Second Mortgage
Down payment assistance for first-time buyers
Cost of Buying a Home in Vermont
| Down Payment (3.5% FHA) | $14,236 |
| Down Payment (20% Conventional) | $81,346 |
| Average Closing Costs | $18,662 |
| Transfer Tax | $5,084 |
| Annual Property Tax (est.) | $5,776/yr |
Legal & Regulatory Details in Vermont
Homestead Exemption
Available
Up to $125,000
Licensing Authority
Vermont Real Estate Commission
Vermont Real Estate Law Overview
| Conveyance Document | Warranty, quitclaim and fiduciary deeds (with licence to sell) |
| Security Instrument | Mortgage deed |
| Foreclosure Process | Judicial |
| Attorney Required at Closing | Yes |
| Deficiency Judgment | Yes |
| Redemption After Sale | Yes |
| Reinstatement Available | Yes |
| Seller Disclosures | Sellers must disclose known defects in writing and provide any defects identified in a pre-sale inspection that were not fixed. They must comply with lead-paint rules and provide a smoke-detector certificate. Hauntings or crimes need not be disclosed unless asked. |
