Q: "What is winter watch and do I need it for my vacation home on Cape Cod?"
A: Winter Watch, simply put, is when you hire an individual or company to routinely inspect your home or condominium throughout the winter months.
If you visit your cape home practically every weekend during the winter you may not need this service. If you live here year round, you don’t need it. However, if you close your house for the winter, it is strongly recommended that you hire a manager for winter watch.
New England winters wreak havoc on your home. Pipes freeze and burst, windows blow out, animals seek shelter, heaters stop working and the list goes on. If no one is there to monitor your home and catch these potential issues as they occur, a disaster is what you’ll find come spring.
Here is a true story about homeowners who opted not to use a winter watch service: One of their friends used the home for a late fall weekend. He turned the heat completely off when he left in order to save the owners money. Needless to say, when spring came and no one had checked their home, they were met with a soggy mush where walls had been and the furniture ruined. Because the heat was off, a pipe froze and burst causing much damage and thousands of dollars in repair.
Most of the time, when it comes to winter watch, it is better to be safe then sorry.
Thursday, October 30, 2008
Thursday, October 23, 2008
Need to Sell Before You Can Buy?
Q: "I have found a condo in Provincetown that I would like to buy, but I will need the money from the sale of my condo in Ogunquit. Can I make an offer subject to the sale of my other property?"
A: In general, offers that require the sale of another property tend to be viewed as weak by the seller. At the height of the market a few years back, it was unheard of for a buyer to include this kind of clause. We are seeing more of these today since the market has softened, but they are still viewed cautiously by sellers.
The obvious downside for the seller is that the property will be out of circulation while waiting for you to sell your other property. Oftentimes, the seller will only accept this type of offer with a kick-out clause, which allows the property to continue to be shown. If another offer is received, you will have a short period of time (usually 24-48 hours) to figure out a way to drop the contingency and move forward with the purchase, otherwise, the seller can accept another offer. Even an arrangement such as this is viewed as a negative by sellers, because it may deter other buyers from becoming interested in the property, as some buyers do not wish to engage in any competitive bidding situations. The other wild card in this equation is the uncertainty of how long it will take for a property to sell in another market.
The best advice we can give is to wait until you sell your other property so that you can move with confidence toward a purchase in Provincetown. But, in this market, we have seen many untraditional deals come together, so, if you are determined to buy this particular condo, it may not hurt to try.
A: In general, offers that require the sale of another property tend to be viewed as weak by the seller. At the height of the market a few years back, it was unheard of for a buyer to include this kind of clause. We are seeing more of these today since the market has softened, but they are still viewed cautiously by sellers.
The obvious downside for the seller is that the property will be out of circulation while waiting for you to sell your other property. Oftentimes, the seller will only accept this type of offer with a kick-out clause, which allows the property to continue to be shown. If another offer is received, you will have a short period of time (usually 24-48 hours) to figure out a way to drop the contingency and move forward with the purchase, otherwise, the seller can accept another offer. Even an arrangement such as this is viewed as a negative by sellers, because it may deter other buyers from becoming interested in the property, as some buyers do not wish to engage in any competitive bidding situations. The other wild card in this equation is the uncertainty of how long it will take for a property to sell in another market.
The best advice we can give is to wait until you sell your other property so that you can move with confidence toward a purchase in Provincetown. But, in this market, we have seen many untraditional deals come together, so, if you are determined to buy this particular condo, it may not hurt to try.
Thursday, October 16, 2008
Properties Sold: Quarterly Check-up
Q: "I’d be curious to see a quarterly comparison of property that sold in the third quarter 2008 versus third quarter 2007 on the Outer Cape. Is that easy to do?"
A: We’ve compiled four tables for you to compare the sold activity in Provincetown, Truro, Wellfleet and Eastham. This is based on actual sold property for the third calendar quarter 2007 and 2008. There were no land sales recorded according the Multiple Listing Service in all four towns. Provincetown recorded the only multi family and hotel sales.
2008
Single Family = 7
Condominium = 1
2007
Single Family = 21
Condominium = 1
A: We’ve compiled four tables for you to compare the sold activity in Provincetown, Truro, Wellfleet and Eastham. This is based on actual sold property for the third calendar quarter 2007 and 2008. There were no land sales recorded according the Multiple Listing Service in all four towns. Provincetown recorded the only multi family and hotel sales.
PROVINCETOWN
Quarter 3
2008
Single Family = 8
Multi Family = 3
Hotel = 1
Condominium = 29
2007
Single Family = 8
Multi Family = 1
Hotel = 0
Condominium = 27
Total Sales 3rd Quarter
2008: 41
2007: 36
TRURO
Quarter 3
2008
Single Family = 13
Condominium = 8
2007
Single Family = 11
Condominium = 8
Total Sales 3rd Quarter
2008: 21
2007: 19
WELLFLEET
Quarter 32008
Single Family = 7
Condominium = 1
2007
Single Family = 21
Condominium = 1
Total Sales 3rd Quarter
2008: 8
2007: 28
EASTHAM
2008
Single Family = 30
Condominium = 0
2007
Single Family = 29
Condominium = 6
Total Sales 3rd Quarter
2008: 30
2007: 35
Thursday, October 9, 2008
Pets: Exclude or Accept?
Q: "We will be listing our condo as a rental for next summer and we are torn about whether we should accept pets. What are the pros and cons, and if we do, should we charge more?"
A: When considering whether or not to accept pets, be sure to first check your condominium rules and regulations. Many properties allow pets for owners but not for tenants.
On the positive side, you may get more weeks rented than if you did not allow pets. There is definitely a shortage of pet friendly rentals, In addition, you may command an additional fee for accommodating tenants with pets. Some owners charge an add-on to account for extra cleaning.
On the down side, allowing pets can lead to greater wear and tear on your unit. You may find yourself repainting or refinishing your floors more frequently and that can ultimately cost you. Also, pets in unfamiliar surroundings may be noisy and disturbing to other owners in your association, causing future friction for you in your condo dealings.
A: When considering whether or not to accept pets, be sure to first check your condominium rules and regulations. Many properties allow pets for owners but not for tenants.
On the positive side, you may get more weeks rented than if you did not allow pets. There is definitely a shortage of pet friendly rentals, In addition, you may command an additional fee for accommodating tenants with pets. Some owners charge an add-on to account for extra cleaning.
On the down side, allowing pets can lead to greater wear and tear on your unit. You may find yourself repainting or refinishing your floors more frequently and that can ultimately cost you. Also, pets in unfamiliar surroundings may be noisy and disturbing to other owners in your association, causing future friction for you in your condo dealings.
Thursday, October 2, 2008
Fallout from the Bailout?
Q: What does a potential bailout plan mean for the real estate market?
A: We were hoping to be able to write about the economic rescue plan in this week’s blog. However, as of the writing of this, there are only hopes that the Senate and House of Representatives will pass a plan by the weekend. There are expectations that there will be some decision on a plan by late Friday morning.
How this impacts the real estate market really depends on what is passed. The focus has been on the large amount of foreclosed properties nationwide and how to remedy this issue. Keeping homeowners in their homes should be a priority, however, for many lawmakers it is not. There are mixed feelings about consumers who took advantage of the subprime mortgages. The low teaser rates enticed them to buy high and now find themselves facing foreclosure or have been displaced by foreclosure. The plan may have a condition that requires the government to negotiate gentler terms with existing homeowners with the loans that are acquired. This may help some stay out of foreclosure.
It is hard to tell how a bailout plan will help the real estate market as a whole. In order to jump start the volatile real estate market and turn around the current trend, consumers need to start buying property and lower the inventory that is available. A plan may be able to present attractive financing but may not have ultimate control over generating buying activity.
One thing that is certain, and sales aside, real estate will always be a tangible, good long term investment.
Let’s stay tuned on this one. Once the plan is released we can answer more intelligently.
A: We were hoping to be able to write about the economic rescue plan in this week’s blog. However, as of the writing of this, there are only hopes that the Senate and House of Representatives will pass a plan by the weekend. There are expectations that there will be some decision on a plan by late Friday morning.
How this impacts the real estate market really depends on what is passed. The focus has been on the large amount of foreclosed properties nationwide and how to remedy this issue. Keeping homeowners in their homes should be a priority, however, for many lawmakers it is not. There are mixed feelings about consumers who took advantage of the subprime mortgages. The low teaser rates enticed them to buy high and now find themselves facing foreclosure or have been displaced by foreclosure. The plan may have a condition that requires the government to negotiate gentler terms with existing homeowners with the loans that are acquired. This may help some stay out of foreclosure.
It is hard to tell how a bailout plan will help the real estate market as a whole. In order to jump start the volatile real estate market and turn around the current trend, consumers need to start buying property and lower the inventory that is available. A plan may be able to present attractive financing but may not have ultimate control over generating buying activity.
One thing that is certain, and sales aside, real estate will always be a tangible, good long term investment.
Let’s stay tuned on this one. Once the plan is released we can answer more intelligently.
Thursday, September 25, 2008
Bidding Wars
Q: "Recently, I lost out on a house in a multiple bid situation. When I found out there was another offer, I freaked out. What advice can you offer me for the future, in case this happens again?"
A: Multiple bid situations are tricky. Sellers who receive more than one offer have several options: they can accept the best offer, they may counter one offer while putting the others aside, they can ask all parties to submit their ‘highest and best’ offer, or they can negotiate one offer while rejecting the others. They can even disclose the amount of one offer to the other buyers in the hopes of getting the price up (Although this is not a common practice in this market, it is routinely practiced in other markets).
Being a buyer in this situation can be frustrating. Keep in mind that the amount of your offer is only one part of the offer package. Oftentimes, other terms like the closing date or financing contingencies, can carry as much weight for the seller as the amount of your offer. If two offers are the same amount, but one is offering cash while the other is dependent on financing, the seller may opt for the cash offer so as to ensure a more expedient closing. Try to keep your terms as simple and ‘clean’ as possible.
It is important that you try to remain as unemotional as possible when you make an offer. Study the comps and decide ahead of time what price you would go to and stick to it. Don’t let the competitive bid scenario cause you to offer an amount outside your comfort zone. By the same token, when you are in a multiple bid situation, don’t waste time getting to that number. We have seen buyers lose out on properties because they did not go right to their ‘highest and best.’
You may feel that the seller has all the power in these negotiations but remember this: you are always in the driver’s seat when it comes to spending your money. Keep in mind that inventory is high these days, and if you miss out on your #1 choice, it is likely that another property will come along that meets your needs.
A: Multiple bid situations are tricky. Sellers who receive more than one offer have several options: they can accept the best offer, they may counter one offer while putting the others aside, they can ask all parties to submit their ‘highest and best’ offer, or they can negotiate one offer while rejecting the others. They can even disclose the amount of one offer to the other buyers in the hopes of getting the price up (Although this is not a common practice in this market, it is routinely practiced in other markets).
Being a buyer in this situation can be frustrating. Keep in mind that the amount of your offer is only one part of the offer package. Oftentimes, other terms like the closing date or financing contingencies, can carry as much weight for the seller as the amount of your offer. If two offers are the same amount, but one is offering cash while the other is dependent on financing, the seller may opt for the cash offer so as to ensure a more expedient closing. Try to keep your terms as simple and ‘clean’ as possible.
It is important that you try to remain as unemotional as possible when you make an offer. Study the comps and decide ahead of time what price you would go to and stick to it. Don’t let the competitive bid scenario cause you to offer an amount outside your comfort zone. By the same token, when you are in a multiple bid situation, don’t waste time getting to that number. We have seen buyers lose out on properties because they did not go right to their ‘highest and best.’
You may feel that the seller has all the power in these negotiations but remember this: you are always in the driver’s seat when it comes to spending your money. Keep in mind that inventory is high these days, and if you miss out on your #1 choice, it is likely that another property will come along that meets your needs.
Thursday, September 18, 2008
Increased Inventory
Q: "Lately, whenever I come to the Cape, it seems like I am seeing more and more For Sale signs. Are there more properties on the market or is it my imagination?"
A: Inventory in the three Outer Cape towns is up 25-35% from just six months ago. This increase mirrors the national trend, but also reflects the uniqueness of the Outer Cape market. Many of the properties on the Outer Cape are second homes, and many sellers are in a position to hold on to their properties if they do not get their price. While sales volume is up in Provincetown YTD (year to date) over last, the total volume for the three towns is down 7% YTD.
What does this mean for buyers and sellers? Well, if you are thinking of buying, the increase in inventory is a positive thing. You have more to choose from. Even though many sellers don’t HAVE to sell, there are many who are motivated and realize they can stand out from their competition by pricing their properties aggressively. If your offer isn’t accepted on your #1 choice, your #2 choice will likely be just as desirable considering the amount of inventory you have to choose from.
As a seller, you need to be aware of how many choices there are for buyers these days. Some of your competition is including bonuses to buyers, like covering closing costs and prepaying a year’s worth of condo fees. If you are serious about selling, price your property competitively. If you don’t need to sell and you are holding out for a high price, you are better off taking your property off the market until conditions improve. You will stand to make more in the long run and you will keep your listing from gathering dust.
A: Inventory in the three Outer Cape towns is up 25-35% from just six months ago. This increase mirrors the national trend, but also reflects the uniqueness of the Outer Cape market. Many of the properties on the Outer Cape are second homes, and many sellers are in a position to hold on to their properties if they do not get their price. While sales volume is up in Provincetown YTD (year to date) over last, the total volume for the three towns is down 7% YTD.
What does this mean for buyers and sellers? Well, if you are thinking of buying, the increase in inventory is a positive thing. You have more to choose from. Even though many sellers don’t HAVE to sell, there are many who are motivated and realize they can stand out from their competition by pricing their properties aggressively. If your offer isn’t accepted on your #1 choice, your #2 choice will likely be just as desirable considering the amount of inventory you have to choose from.
As a seller, you need to be aware of how many choices there are for buyers these days. Some of your competition is including bonuses to buyers, like covering closing costs and prepaying a year’s worth of condo fees. If you are serious about selling, price your property competitively. If you don’t need to sell and you are holding out for a high price, you are better off taking your property off the market until conditions improve. You will stand to make more in the long run and you will keep your listing from gathering dust.
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