Q: "How does renting with an option to buy work and does it make sense in this market?"
A: Renting with an option to buy can often be a beneficial arrangement for both buyer and seller. As a buyer, for example, you may not have the resources today to make the purchase but you know that you will have the cash to move forward in six months. By making an offer with this option, you won’t lose out on the property that you have identified as perfect for you. For a seller, you may be in a position where you can wait to sell your property, and this way you can lock in a sale price and you will be collecting rent.
In a typical arrangement, the buyer/renter will pay a non-refundable deposit to the seller for the option. Depending upon the agreement, a portion of your rent may also be applied to the eventual purchase price. The buyer also gains an advantage in many cases by having a right of first refusal, in the event that another buyer comes along and makes an offer.
Does this type of arrangement make sense in this market? Yes, in fact, sellers are more open to accepting this type of offer in a softer market. In a rising market, a seller will not likely opt to tie up the property with a rental when his/her goal is to sell the property. But in a softer market, it is an opportunity for the seller to benefit from income while the market adjusts. For a buyer in this market, it gives you a chance, before you make the purchase, to allow your portfolio to rebound following the recent financial crash, while allowing you to enjoy use of the property immediately.
Thursday, January 8, 2009
Thursday, December 18, 2008
Selling in Today's Market
Q: "We need to sell our house in Truro and we are wondering when is the best time to put it on the market. Should we wait until spring and how can we position it to move quickly?"
A: It is no secret that the real estate market is still adjusting. Those who don’t have to sell right now may be better off waiting until the market stabilizes. For those who ‘need’ to sell, don’t fret. Property is still selling and there are steps that you can take to maximize your chances of standing out amongst the competition in your price range.
1. TIMING: Should you list now or wait until spring? The answer is simple. List it now. Spring may be the ideal time to list a property in a primary home market, but in a second home market, buyers start looking in the winter so they can ensure that they will occupy the property before season begins. Another reason to list sooner than later is to get your property out there before all the others who think they have to wait until spring!
2. STAGING: Give your house the best odds to impress by making it as attractive as it can be. Clean it thoroughly, clear away unnecessary clutter, and light the rooms well. You would be surprised how many buyers are instantly turned off by an untidy or dark house and they dismiss a property like that within the first five seconds. Give your buyers a reason to look through the whole house. Prepare the house as if it going on a first date! It’s all about first impressions.
3. PRICING: We’ve saved the most important for last! It is critical that you price your property appropriately. Over priced homes are not selling in this market. Look at the comparable properties that have sold within the past few months and work with your Realtor® to price your property to sell. Resist the urge to listen to the opinions of your family and friends. Remember, your Realtor® is in tune with the market and knows the value of your house. If you want results, price the house competitively. Keep in mind that, for every month the house doesn't sell, you will pay carrying costs, and ultimately you must deduct those from any higher price that you may have achieved by waiting an extra year to get your price. Furthermore, with the current market conditions, there’s the risk that every month that passes may equate to a decrease in your home’s value. Can you afford to wait?
If you would like to sell, please contact us for a complimentary market analysis of your property.
A: It is no secret that the real estate market is still adjusting. Those who don’t have to sell right now may be better off waiting until the market stabilizes. For those who ‘need’ to sell, don’t fret. Property is still selling and there are steps that you can take to maximize your chances of standing out amongst the competition in your price range.
1. TIMING: Should you list now or wait until spring? The answer is simple. List it now. Spring may be the ideal time to list a property in a primary home market, but in a second home market, buyers start looking in the winter so they can ensure that they will occupy the property before season begins. Another reason to list sooner than later is to get your property out there before all the others who think they have to wait until spring!
2. STAGING: Give your house the best odds to impress by making it as attractive as it can be. Clean it thoroughly, clear away unnecessary clutter, and light the rooms well. You would be surprised how many buyers are instantly turned off by an untidy or dark house and they dismiss a property like that within the first five seconds. Give your buyers a reason to look through the whole house. Prepare the house as if it going on a first date! It’s all about first impressions.
3. PRICING: We’ve saved the most important for last! It is critical that you price your property appropriately. Over priced homes are not selling in this market. Look at the comparable properties that have sold within the past few months and work with your Realtor® to price your property to sell. Resist the urge to listen to the opinions of your family and friends. Remember, your Realtor® is in tune with the market and knows the value of your house. If you want results, price the house competitively. Keep in mind that, for every month the house doesn't sell, you will pay carrying costs, and ultimately you must deduct those from any higher price that you may have achieved by waiting an extra year to get your price. Furthermore, with the current market conditions, there’s the risk that every month that passes may equate to a decrease in your home’s value. Can you afford to wait?
If you would like to sell, please contact us for a complimentary market analysis of your property.
Thursday, December 11, 2008
What is smudging? Will this help sell my house?
Q: "What is smudging? Will this help sell my house?"
A:These days, sellers are turning to non traditional means to use as tools in selling their homes. Forget the gimmicks of bonuses, new cars, vacations and more. The latest is energy cleansers, house blessings and smudging. These unorthodox strategies have increased in popularity over the past few years as sellers eager to move their property will try anything.
We strongly believe that potions and powders will not be as effective as a calculated, realistic listing price.
However, according to a recent report by NBC News, homes that are smudged and cleared of negative energy have actually sold.
One real estate agent reported that the condominium of a couple who was divorced and had bitterly argued in the home, was on the market, reasonably priced for over two years. The property was in a good location, clean and priced right. The desperate listing agent could not understand why the property had not sold after numerous showings. Hesitantly, she hired an energy cleanser to smudge the house and release the negative energy. She reported that immediately after the smudging, the next customer who looked at the property made a full price offer. She was stunned.
There is no scientific proof that this works so beware. If you are going to pursue an energy cleanser, be careful that your wallet isn’t cleansed. But if it’s cheap enough, you may want to try it as it can’t hurt.
A:These days, sellers are turning to non traditional means to use as tools in selling their homes. Forget the gimmicks of bonuses, new cars, vacations and more. The latest is energy cleansers, house blessings and smudging. These unorthodox strategies have increased in popularity over the past few years as sellers eager to move their property will try anything.
We strongly believe that potions and powders will not be as effective as a calculated, realistic listing price.
However, according to a recent report by NBC News, homes that are smudged and cleared of negative energy have actually sold.
One real estate agent reported that the condominium of a couple who was divorced and had bitterly argued in the home, was on the market, reasonably priced for over two years. The property was in a good location, clean and priced right. The desperate listing agent could not understand why the property had not sold after numerous showings. Hesitantly, she hired an energy cleanser to smudge the house and release the negative energy. She reported that immediately after the smudging, the next customer who looked at the property made a full price offer. She was stunned.
There is no scientific proof that this works so beware. If you are going to pursue an energy cleanser, be careful that your wallet isn’t cleansed. But if it’s cheap enough, you may want to try it as it can’t hurt.
Thursday, December 4, 2008
Is It Time Yet?
Q: "My partner and I have been looking to buy in Provincetown for a couple of years. Every time we find a property that we like, my partner says we should wait a little longer, that prices are still dropping. We’ve missed out on a few properties at this point. When will the prices level off?"
A: From our perspective, the leveling off has already begun. There are indicators to suggest that there is no time like the present to make a move. As a result of the crash of the financial markets, we are seeing sellers withdraw their properties from the market. Those without an urgency to sell are deciding to wait out the cycle. The result will be a reduction of inventory, a shrinking of the supply. Demand may begin to rise after this week’s news of the proposals on the table for the Treasury to buy securities backed by 30-year fixed rate mortgages from Fannie Mae and Freddie Mac. If rates drop to 4.5% as proposed, we expect more buyers to enter the market to begin absorbing the current inventory. The result of this equation will be an end to the price reductions and an increase in buyer activity. With more buyers in the market, prices will be poised to level off.
A: From our perspective, the leveling off has already begun. There are indicators to suggest that there is no time like the present to make a move. As a result of the crash of the financial markets, we are seeing sellers withdraw their properties from the market. Those without an urgency to sell are deciding to wait out the cycle. The result will be a reduction of inventory, a shrinking of the supply. Demand may begin to rise after this week’s news of the proposals on the table for the Treasury to buy securities backed by 30-year fixed rate mortgages from Fannie Mae and Freddie Mac. If rates drop to 4.5% as proposed, we expect more buyers to enter the market to begin absorbing the current inventory. The result of this equation will be an end to the price reductions and an increase in buyer activity. With more buyers in the market, prices will be poised to level off.
Thursday, November 20, 2008
Leaving for the Season
Q: Thanks for last week’s written blog about preparing my Cape Cod home for the off season. If I leave Provincetown for the entire winter, are there any additional steps I need to take?
A: The first step should always be to give your property one last thorough cleaning. This eliminates potential mold and mildew that may have grown over the summer and fall months with the high humidity. It also gets rid of food particles that rodents and the like can sniff out.
Take crisp white sheets and cover your furniture and electrical components like your tv and stereo. This prevents dust from getting on the upholstery or inside televisions, video players, computers and clocks. These days you may have an Ipod station. If you leave it, be sure to unplug it.
Once you have identified a date that you’ll be leaving, for some it will be right after New Years, call a plumber and set an appointment to drain your water and shut it off as we briefly discussed last week. This will eliminate the threat of frozen pipes and damage. Be sure to leave your taps open both in the kitchen and bathroom. This lets extra water escape.
If you do leave your interior water on, at least make sure the water source to your exterior spigots is turned off and your spigots left open. As mentioned last week, make sure your temperature is kept at least 55 degrees or preferably 60 degrees. If you are leaving, it is best to completely shut your house down.
With this quick checklist complete, you can close the door to your vacation home and on what was hopefully a fun filled and relaxing summer and fall here on Cape Cod.
A: The first step should always be to give your property one last thorough cleaning. This eliminates potential mold and mildew that may have grown over the summer and fall months with the high humidity. It also gets rid of food particles that rodents and the like can sniff out.
Take crisp white sheets and cover your furniture and electrical components like your tv and stereo. This prevents dust from getting on the upholstery or inside televisions, video players, computers and clocks. These days you may have an Ipod station. If you leave it, be sure to unplug it.
Once you have identified a date that you’ll be leaving, for some it will be right after New Years, call a plumber and set an appointment to drain your water and shut it off as we briefly discussed last week. This will eliminate the threat of frozen pipes and damage. Be sure to leave your taps open both in the kitchen and bathroom. This lets extra water escape.
If you do leave your interior water on, at least make sure the water source to your exterior spigots is turned off and your spigots left open. As mentioned last week, make sure your temperature is kept at least 55 degrees or preferably 60 degrees. If you are leaving, it is best to completely shut your house down.
With this quick checklist complete, you can close the door to your vacation home and on what was hopefully a fun filled and relaxing summer and fall here on Cape Cod.
Thursday, November 13, 2008
Commercial Sales
Q: "I own a business (with the real estate) on Commercial Street and I have been thinking of retiring. My concern is about the current economic climate and whether now is a good time to sell."
A: There is no doubt that these are challenging economic times. We have reported extensively on the state of the real estate market and the price corrections that have occurred. Your decision process about whether to sell must consider your own personal life plans and goals, in addition to market trends.
There is some activity in the commercial market. There have been approximately 10 Commercial Sales in Provincetown since January 2007. All but one have sold for less than the assessed value of the property. If you are looking to sell the business as well as the real estate, the income will play a very important role in your value. It is a good idea to have us run a Comparative Market Analysis to give you an idea of the value you can expect.
Our team of brokers specializes in Commercial Sales: we are the top selling MLS real estate company on the Outer Cape, with over 56% of the market share for commercial sales, outperforming our closest competitor by 4 to 1.
Because there is no way to know how long it will take for the market to become robust again, now is as good a time as any to test the waters. Most commercial sales transact during the winter months and it would be most advantageous to list your property immediately to see if there are any interested parties. You may receive a satisfactory offer that will allow you to move on to the next phase of your journey. If you don’t list the property, you may find yourself in limbo for an indefinite period of time.
A: There is no doubt that these are challenging economic times. We have reported extensively on the state of the real estate market and the price corrections that have occurred. Your decision process about whether to sell must consider your own personal life plans and goals, in addition to market trends.
There is some activity in the commercial market. There have been approximately 10 Commercial Sales in Provincetown since January 2007. All but one have sold for less than the assessed value of the property. If you are looking to sell the business as well as the real estate, the income will play a very important role in your value. It is a good idea to have us run a Comparative Market Analysis to give you an idea of the value you can expect.
Our team of brokers specializes in Commercial Sales: we are the top selling MLS real estate company on the Outer Cape, with over 56% of the market share for commercial sales, outperforming our closest competitor by 4 to 1.
Because there is no way to know how long it will take for the market to become robust again, now is as good a time as any to test the waters. Most commercial sales transact during the winter months and it would be most advantageous to list your property immediately to see if there are any interested parties. You may receive a satisfactory offer that will allow you to move on to the next phase of your journey. If you don’t list the property, you may find yourself in limbo for an indefinite period of time.
Thursday, November 6, 2008
Counting The Days
Q: "What are the average market times for properties that have sold on the Outer Cape?"
A: When looking at average Days On Market (DOM), it is helpful to look for trends by looking at a comparison of the last four years. Since market times are generally longer for single family homes as compared with condominiums, we have created a separate table for each.
2005: 151
2006: 222
2007: 200
2008: 289
A: When looking at average Days On Market (DOM), it is helpful to look for trends by looking at a comparison of the last four years. Since market times are generally longer for single family homes as compared with condominiums, we have created a separate table for each.
2005 was the height of the market. Real estate prices and sales began to soften in 2006. Average market times for single family homes in Provincetown appear to be leveling off for the first time since the decline began in 2006, while DOM continue to increase in Truro and Provincetown. In the condo market, we see a leveling off across the board in all three towns.
Average DOM of SOLD SINGLE FAMILY HOMES
Provincetown
2005: 153
2006: 216
2007: 308
2008: 293
Truro
2005: 172
2006: 258
2007: 239
2008: 335
2005: 151
2006: 222
2007: 200
2008: 289
Average DOM of SOLD CONDOMINIUMS
Provincetown
2005: 121
2006: 167
2007: 181
2008: 177
Truro
2005: 155
2006: 182
2007: 203
2008: 176
Wellfleet
2005: 108
2006: 175
2007: 311
2008: 164
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