Life Changes

Change is in the air. With the next administration, our nation is facing a new era of leadership. With shifts in the economy, individuals may face job changes. And as a result of the need to change jobs, many face lifestyle changes. Although there is a lot of uncertainty in the air, there is also a lot of hope and excitement. For those who find one door closing, there may be another door opening in Provincetown. 

Consider that this may be the perfect time to explore your dream of moving here and having your own business. Many people dream of someday owning a Bed & Breakfast and there is no time like the present to make that shift. By investing in a B&B property, you take care of home and job with one purchase. You will meet people from all over the world, you will become part of a supportive business community, and you stand to make a strong return on your investment. Depending upon your down payment, you could be realizing a much greater return on your cash by investing it in an income producing property in a resort town, than by investing it the financial markets or even a typical CD.

Or, why wait to open that restaurant you have always dreamed of owning? Or that retail store? There are many opportunities available. Commercial rates are low and local banks are eager to invest in our local economy. The recent actions taken by the Fed have offered new hope for the country to work its way out of the recession in the coming year.

With just days left to complete your list of New Year’s resolutions, why not place your personal happiness and life dreams at the top of your list for 2009?

For a complete list of all of the commercial and B&B properties currently on the market, please email us.

Mortgage Rates

This is truly an interesting time.

Never before have there been so many opportunities in the real estate market. The economic climate has kept the real estate market progressing at a slow pace. This has led to numerous price reductions and aggressive selling.

Values on the Outer Cape have adjusted on an average of 15-20% in the buyer’s favor.

Right now, mortgage interest rates can be as low as 5.1% for a 30 year fixed mortgage. These rates are incredibly low.

The combination of significantly adjusted prices with the low interest rates, make it an ideal time to buy. We are reporting this to you as it is a fact and not just a sales pitch. If you are qualified to make a purchase, it is indisputable that now is the time.

Don't Miss Holly Folly This Weekend

If you don’t yet have plans for this weekend, your problem is solved! Come to Provincetown for Holly Folly, our annual holiday festival. In addition to great deals in all the shops and great exhibits at the Fine Arts Work Center and the Provincetown Art Association Museum, these are some events not to miss:

Friday December 5

• 5-9PM, Holiday Open House Party at the unique and historic Land’s End Inn (click here). If you have never seen this exquisite property, you are in for a treat. The décor is a beautiful homage to the art nouveau period of our history and the views are unparalleled. There will be lots of cheer and tree trimming and complimentary cocktails and hors d’oeuvres will be served.
  
• 7:30 “Thom Paine” Counter Productions presents Tim Babcock in Will Eno’s play, Provincetown Theatre, 238 Bradford Street
  
• 10PM –1AM The Snow Ball The Atlantic House, 4 – 6 Masonic Place

Saturday December 6

• 11AM-1PM, Mr & Mrs. Santa Photo-Op Have your photo taken with Santa, Mrs. Santa or both. Professional photography by Brad Fowler, Song of Myself Photography, 349 Commercial Street.
  
• 2PM-4PM, Holly Folly Holiday Stroll, Various Inns and Businesses around Provincetown Visit Holly Folly headquarters or a Welcome Center to get a list of participating businesses. This is a great way to get a look at all the lovely inns for a future stay.
  
• 7PM & 9PM, Boston Gay Men’s Chorus performs “Stars: A Holiday Concert,” Unitarian Universalist Meeting House, 236 Commercial Street. This is usually the highlight event of the weekend. If you have never seen the Chorus, get ready to have a great time! Be sure to get your tickets early for this as they usually sell out! Tickets are available online or in person at the Holly Folly Headquarters. $20 in advance, $25 at door.

Sunday December 7

• 2pm, “The Santaland Diaries,” Art House, 214 Commercial Street
  This hilarious one-person play by David Sedaris performed by Scott Hayes. For mature elves only. ($20)

These are only a few of the many events planned for this weekend. For a full look at the schedule, click here.

Our beautifully decorated town awaits you!

Grand Union Is Empty

Happy Thanksgiving! We hope you have an enjoyable holiday this week with friends and family.

Please note that if you plan to come to the Cape for Thanksgiving, you may want to shop before you get here. Due to The Grand Union being sold to Stop and Shop, the store is pretty much empty. There seems to be no plans to re-stock, so if you need turkey and trimmings plan ahead. 

Change More Than Just the Clocks

A few weeks ago we turned the clocks back one hour. Besides the extra hour of sleep that you hopefully were able to take advantage of, it is also a good time to change the batteries in your smoke and carbon monoxide detectors. Wherever you live, whether you own or rent, inspecting your smoke and carbon monoxide detectors and changing the batteries twice a year is strongly encouraged. Please note that you do need both smoke and carbon monoxide detectors in your house.

Even if your detectors are hardwired, which means they are attached to a separate electrical source, you may want to ensure that they are working and that the battery backup has a fresh battery.

Landlords, this is a good time to check both your smoke and carbon monoxide detectors in your rental units. Whether you have seasonal, vacation or year round renters, its wise to take the preventive step and make sure the detectors are functioning properly.

Renters, if you rent year round, making sure your detectors work is very important. If you do not have a smoke detector call your landlord immediately. If you do have one, you may want to check it yourself or call your landlord to inspect it.
And finally, it may seem like a hassle to always be changing the batteries, or worse some people gripe about the cost of a battery. These are life saving devices. Think about what could happen if a smoke or carbon monoxide detector has no battery and there is a fire.

It is always better to be safe than sorry especially when it comes to detectors.

Preparing Your Home for Winter

Having experienced such a beautiful fall on the outer cape, it is hard to face the reality that winter’s chill will soon be arriving. A challenging economy and fuel costs have given rise to our paying extra attention to keeping properties protected in the off season.

For those who continue to use their second homes, it is time to think about setting the thermostat at a temperature warm enough to keep the pipes from freezing. Usually, 50 to 55 degrees is adequate, but a higher temperature may be necessary if the outside temperature drops below 15 - 20 degrees for an extended period of time and is accompanied by strong winds. 

Check all sinks and toilets to be certain that there is no dripping or running water as this can result in very high water bills. Also, keep vanity doors under sinks open for maximum warm air flow.

Many property owners have decided to close their homes for the winter by shutting down their heating systems and draining all pipes in the house. Be sure to consult your heating professionals and/or plumbers about how this should be accomplished. Done properly, owners can experience considerable fuel savings.

Free energy audits are available from many providers. The Cape Light Compact for example, will provide audits for their customers (Click here).

Having a friend or property manager check in on your property while you are away during the winter or for an extended period of time, is also a good recommendation. (See our Q&A from October 30, 2008 about hiring a winter watch company - Click here).

Three Great Reasons to Come to Provincetown Before the End of the Year

If you’ve never been to Provincetown in the ‘quiet’ season, you might be surprised to find out that it is not always so quiet. There are several fun events that occur between the summer and New Year’s each year, and there are still three big weekends on this year’s calendar.

November 6 – November 9: Meet Your Man 2008, a weekend of fun and friendship for single men in an unforgettable location. Highlights include speed dating, wine tastings, gallery strolls, concerts, dance parties, sing-alongs and an inn stroll. For a complete schedule of events, www.ptown.org/Meetyourman.asp.

December 5 - December 7: Holly Folly, Provincetown’s Annual Holiday Festival, a great time to experience the unique beauty of winter in New England. Highlights include a performance by the Boston Gay Men’s Chorus, lots of shopping specials and an inn stroll of the bed and breakfasts decorated for the holidays. For more information, www.ptown.org/HollyFolly.asp.

December 29 – January 4, 2009 : New Year’s Week, a great way to ring in the New Year. Stay in a romantic inn with a fireplace in your room and enjoy a special New Year’s Eve meal at your favorite restaurant. Many shops and restaurants will be open.

Mischief Night

Halloween can leave you with it a variety of tricks that make you cry Boo Hoo.

Mischief night, October 30th, is notorious for the evening that trees get toilet papered, houses get egged and cars get covered with shaving cream.

Although there is no preventing hooligans from targeting your property, and usually it is random and not personal, there are measures to take to lesson the chances your home will get smattered, creamed or papered.

The only real preventive measure you can take is to turn on every exterior light you have and leave them on all night. The bright lights may deter tricksters and have them move on.

You may want to leave some interior lights on in living room as well and bedrooms. This will make it appear as if someone is home and awake.

However, the thrill of getting caught is what really drives these youngsters and having their handy work seen by many is what motivates them to run amuck. The more visible your property is, the stronger the chances you’ll be hit.

If after illuminating your property, the eggs still fly and your home and car is covered, wash the egg off your house as soon as you can. It could stain. Also, remove toilet paper from trees before it rains. That is a mess. And remember, most of the time this isn’t personal as hard as it is to take, its only kids playing pranks. 

Hopefully none of us will be the recipient of such annoyances, but tis the season for candy and fun and tricks galore!

Know Your Credit Report

Knowledge is power when it comes to knowing your credit scores. If you are contemplating a purchase, it’s a great idea to know your full credit picture before you apply for a mortgage. By planning ahead, you can be proactive about positioning yourself to get the best interest rates.

Borrowers with the highest FICO scores (760-850) can expect to be offered lower interest rates and more loan choices. On the other end of the spectrum, a FICO score of 500-520 is usually the minimum required to even apply for a mortgage.

Several months prior to applying for a mortgage, we recommend obtaining a copy of your FICO score through www.myfico.com. Also, in accordance with the Fair and Accurate Credit Transactions Act (FACT Act), you are entitled to one free copy per year of your report from each of the three credit bureaus (Equifax, Experian and TransUnion). Find out more by going to www.annualcreditreport.com.

There may be errors on your credit report pertaining a missed payment or pertaining to your history that could take a few months to clear up. You can also work to improve your credit score by paying off outstanding balances. One bit of advice: don’t close out any of those credit card accounts once you have paid them off. In some cases, this can hurt your credit score. 

By taking the initiative to improve and maximize your credit profile well ahead of time, you can move forward with confidence once you find your dream home. AND, you stand to save a significant amount of money over the term of your loan by qualifying for the lower interest rate.

How Low Will It Go?

A few weeks back, we speculated about how much farther the real estate market will adjust before hitting bottom. At the time, we felt the market was more or less bouncing along the bottom due to the upheaval in the mortgage industry and numerous price reductions of active listings.

More evidence that we are potentially close to the bottom continues to make itself known. New properties that are listed for sale are in line with what the market is bearing. We are seeing fewer if any, overpriced listings go on the market. Properties priced right, are indeed selling.

Many sellers are now taking their homes off the market and not making further price reductions. Other sellers are putting year round renters in their properties to hold the investment until this cycle ends.

It will be interesting to see what will happen in the coming months. The stock market activity will have an impact on all of us in one form or another. We'll have to see how this plays out.

Preparing your Lawn for Winter

Many properties on Cape Cod are planted with low maintenance, indigenous plants and grasses. But, if you have a more manicured landscape, which includes a traditional lawn, now is the time to plan and execute fall fertilization.

In early to mid-October, mow your lawn one final time. Rake up any clippings and apply a weed killer and grass fertilizer (NOTE: there are organic options available). This will help prepare your lawn for winter, while it lay dormant, and it will assist in spring growth. Most of our soil on the Outer Cape is sandy, so plan on using a fertilizer that has slow release nitrogen. You may want to ask your garden center professional to help you pick out the proper fertilizer for your area.

It is important to follow instructions when applying fertilizer. Never overdo, and base your application on your lawn’s square footage. It is best to use a rotary spreader for an even application. Once you finish one direction, repeat in the opposite for thorough coverage.
Make sure your grass is dry when applying the fertilizer, then, water lightly immediately afterwards. This helps the fertilizer to adhere to the blades of grass and also to mix into the soil. It is important to use the proper product for grass and a different fertilizer for shrubs, plants and flowers. Using an incorrect product can impact evergreen growth and decrease fruit and flower count in the spring.

With these helpful tips, your lawn should be preserved through the cold winter months and ready for regular yard maintenance once spring arrives.

Market Analysis: Buyers & Sellers - Real Estate's Players

This week, let us take time to discuss the consumers in this crazy real estate market we’re in. As the economy collapses and the government works diligently on an economic bail out plan, let’s discuss the players in the real estate market.

Buyers: The market is riddled with opportunity. Are there some over-priced listings out there? Of course and in this market they are easy to identify. There are more properties priced to sell, however. Don’t let analysis paralysis stop you from moving forward on a property you like. This term describes buyers who are paralyzed in moving forward by using price per square foot, comparable sales and waiting for the next statistic to be added. These tools are ideal and should be used to make an educated offer on your dream Cape Cod property, not to remain on the sidelines and lose out. The media also adds to this phenomenon. A buyer may be ready to make a well thought offer and then the media reports that prices are falling even more. Thus, the buyer suspends the process. This is common place these days. If you find a property you like, have your realtor provide the statistical data for you to make an effective offer. If the seller does not respond in kind, then move on. There are plenty of properties out there.

Sellers: Every offer in this market is a good offer and should be treated as such. If a buyer presents an offer and is pre-qualified, work the transaction until it is abundantly clear, there is no hope. You have nothing to lose by countering to a low offer, not in this market. Buyers today are looking at comparable sales, percentage of list to sell price and price per square foot. This is real data they are using to make their offers. Seller responses of “try again” or “a smaller unit may be better for you” or “I’m not bidding against myself” should be left for the scrapbooks of 2004 when another buyer was waiting in line to make an offer. Keep this in mind: buyers in this market are looking for opportunity. If they are taking the time, are pre-approved by a bank, which is no small feat these days, do you really want to send them to another seller to see if he/she will engage in negotiations? If so, you may want to remove your unit from the market and lessen the amount of inventory. Tossing an active buyer aside in this market, before negotiating to see where they will go, is most likely not in your best interest.

Examining Your Portfolio

Record losses, depreciation and short sales. Sound like the real estate market? Well, it actually describes last week's activity in the stock market. Chicken Little went running and yes, the sky did fall.

Many of us were impacted the week of September 15th by the extreme volatility in the stock market. Reported losses didn't have anyone jumping out of windows as they did in 1929, but many people are examining their investment portfolios. Now money market accounts, traditionally viewed as safe investment tools, are in question. Money managers are mixed in their opinions about where to invest.

In our opinion (and Donald Trump’s if you saw him on Larry King Live this week), now is the time to invest in real estate. Yes, we've seen losses in the current market and no one knows when it will turn around. However, the current conditions present many opportunities for buyers. Prices are lower than they have been in years.

If you remember the most important aspect to real estate investment...location, location, location, you'll be a winner. If you find a property you deem to be a good investment, buy it and expect to hold it for a few years. We all know that real estate values are cyclical. By having a tangible investment, especially in resort towns like Provincetown, Truro and Wellfleet, you can expect some appreciation in the coming years. Also, there is the potential to generate extra income through rentals.

Considering how the mortgage industry has become stricter in qualifying buyers, if a lender is willing to finance a purchase in this market, then you know the property is worth it. If you are a cash buyer....you are king and queen once again.

The West End Racing Club

You may have strolled past the West End Racing Club during a recent visit to Provincetown and wondered what goes on there and how one becomes a member. Well for starters, you have to be a kid. You see, this gathering place, located on the beach at 87 Commercial Street, is one of Provincetown’s best kept secrets. The non-profit club was founded in 1950 by Flyer Santos with the mission to: Give kids in Provincetown an opportunity to learn how to sail and enrich their lives with nautical knowledge and experience. The local and summer kids, ages 8-16, pay $50 for the summer. Every day, they congregate at the club and, under the supervision of an adult instructor, the older kids teach the younger kids how to sail and swim. The kids are taught a sense of responsibility for each other and the club. Each year, they sell raffle tickets to support the club so that it can purchase new equipment (they can also reclaim their $50 registration fee if they hit a certain ticket goal). The kids are taught the very valuable lesson of ‘giving back’ to each other and the community. These refreshing, old fashioned values are alive and well and continue to thrive year after year. Feel free to stop by next summer to check out this unique place that is kept alive by tradition.

Fannie, Freddie and Foreclosures

It appears the Federal Government will be taking over Fannie Mae and Freddie Mac. What’s happening to these two pillars of the mortgage industry is indicative of the real estate market as a whole. Too many consumers who could not afford homes, bought them in the early 2000’s which created this situation.

Although Fannie Mae and Freddie Mac did not purchase high risk adjustable rate mortgage products, the overall impact of the sour real estate market is now taking its effect on them.
Foreclosure rates are still on the rise as well, meaning that more consumers will lose their homes and loans will go unpaid.

We’ll keep our eyes on the Federal bail out plan, which now, will include running Fannie Mae and Freddie Mac.

The only potential upside to a Federally operated Fannie Mae and Freddie Mac, is the potential for lower interest rates.

If interest rates drop below 6%, buying activity could be generated. However, sellers will have to keep their homes priced according to market conditions.

No one has a crystal ball and can predict when this slow cycle we are in will turn around.

Some say another year and perhaps all of 2009. Signs of a reversal will be more transactions, less inventory, price increases for active listings and less foreclosures.

One thing is for sure, the breaking of Freddie Mac and Fannie Mae is a clear sign that things need to change, and will. We’ll see how this impacts the industry in the coming weeks.

Season's End

It's Labor Day week and with it comes an end to the fast paced energy that our short season brings us here on the outer cape.

The resort town lifestyle resembles the real estate market performance, in a way. Amuse me if you will and let me explain.

The mad rush of buying, selling, refinancing and exponential appreciation from 2001-early 2005 fueled what can only be described as a frenzied real estate market, not unlike our summer from Memorial Day through Labor Day.

With the summer season officially over, we now enter fall, a quieter time, yet still a little busy with tourists. However, after New Years… we all know, its like hitting a brick wall of silence and isolation. Dinner parties and the occasional holiday weekend may pop up… but let’s face it, its pretty dead. That’s where we are right now in the real estate market. It’s the winter. We have seen pockets of activity and some large commercial transactions, but overall, we are not immune to the national trend.

Some experts are saying the market is starting to turn around. Others say it will still be another 9 months to one year.

With prices low, interest rates hovering in the mid 6’s, new federal and state laws created to stimulate the housing market, hopefully, we’ll see a new season begin shortly for real estate.

Even though we are most likely skidding along the bottom, until homebuyers truly believe this is where we are and start buying, activity will remain sluggish.

How far away is Memorial Day for real estate? No one really knows. Stay tuned.

Build New or Buy Turn Key?

To build or not to build and buy turn key. That seems to be the question these days. Second home buyers looking for that deal in today’s environment are increasingly inquiring about land to design and build their dream vacation home.

Although the idea seems romantic, you may want to think about the costs involved…not just the financial cost but the stress that may accompany new construction. Take into consideration the following when it comes to new construction:

1. Once you identify a lot of land ask your realtor about setbacks, basically how close to the boundary are you allowed to build and….. facilities…this being electricity, potable water supply and title v capability.
   
2. Hire an attorney who is versed in new construction. They will guide you through homeowners association covenants, growth management by-laws and other issues that will arise.
   
3. Hire a good architect to design the house. Make sure they can work well with town officials for your application with the planning and zoning boards and building department.
   
4. Plan on spending an estimated $200 to $250 per square foot on construction depending on your finishes. This may even be higher in certain areas. Count on delays.
   
5. And finally, it may be more challenging to acquire financing for the purchase of land.

Progress Update: Herring Cove Village

Things are moving along at a swift pace at the West End’s new premier development! Floors, cabinets, tiling and other finishes are under way in the first two units. There are 1, 2 and 3 bedroom units being offered.

The windows in the first unit are all trimmed out, and the attractive chair rail in the bedrooms provides a lovely finish detail. The paint colors are soothing and dynamic, all at once! Light maple flooring is being installed and the custom cabinets are hanging in Unit 1. The beautiful glass tiles are being laid in all the bathrooms and the railings are in on the mahogany decks.

Property Details: click here.

For more information, email (Emily@atlanticbaysir.com) or check out the Herring Cove Village Web site.

Check out the latest photos on our Web Site's Written Blog (entry is dated August 21, 2008).

Stimulating the Market

This week we’ll briefly outline the new federal housing legislation to help stimulate the failed housing market and take a peek at the state’s law to address the foreclosure issue.

The Federal program, which became active in late July, provides the following: 

Tax relief to first time homebuyers in the amount of a $7,500 tax credit. This will be issued providing it is used by July 1 of next year. The credit must be paid back, interest free, at a rate of $500 per year over 15 years.

Homeowners who claim the standard tax deduction can receive a tax relief of $500 for single and $1,000 if married. 

Bonds will be made more attractive to investors potentially lowering the cost to develop affordable housing.

For some owners here on the cape…the capital gains you claim when selling your second or vacation home may be impacted if you used it as a primary residence for a certain period of time leading up to the sale.

Lendors will need to provide revised disclosure statements early in the process and provide mortgage documents no later than seven days prior to closing.

Freddie Mac and Fannie Mae will increase their lending amounts to markets with higher property values.

Homeowners facing foreclosure will now be able to take advantage of federally backed mortgages to get out of aggressive mortgage products.

Senior Citizens will benefit by an increase in the monthly payouts for reverse mortgages.

Veterans are protected from the foreclosure process until nine months after they return from active service

Communities hit by the demise of foreclosed properties will share a redevelopment fund to restore vacant homes.

We’ll see how the federal program works out. It is a massive step in the right direction to help correct the soft real estate market and rescue suffering homeowners trying to save their properties.

The state law which delays property foreclosures seems to be working. The law which became active May 1st, is designed to give homeowners a 90 day grace period before being foreclosed upon.

There were 2308 new foreclosures in June of 2007. This June there were only 350 according to The Warren Group, a Boston based real estate data publishing company. The law may be working. However, the overall number of foreclosures are due to double this year compared to 2007.

Completed foreclosures have dropped 19.5% from May to June. More time is needed in order to determine the results of this law.

Market Trends

Every day, we are asked by Buyers how the market is performing and when would be the best time to buy. We wish we had a crystal ball to answer the latter part of that question. The best we can do is to report on market activity and to update you on any trends that we discover, leaving you to make your own decision about when to jump back into the market. 

It is interesting to note that many buyers who have been in a holding pattern for the past two years have chosen this summer to make their move. Year to date sales volume is up in Provincetown and Truro compared with the same period in 2007. (Unlike those two towns, Wellfleet volume is lagging last year’s performance) Even though volume is up, we continue to see multiple price reductions each week, in all markets. Some feel that the increase in the number of buyers will lead to a slowing of pricing adjustments.

A recent property in Provincetown was introduced to the market at a price that was 5-10% below market value. Four offers were submitted and the property will likely sell for well over asking price. What does this tell us? Properties that are priced competitively are selling. It also illustrates that the buyers in today’s market are savvy and they are waiting for and recognize a good value when one presents itself.

Following find Sales Volume YTD compared with the same period in 2007.

Provincetown
2008 YTD Sales Volume $55,672,301
2007 1/1/07-8/6/07 $50,724,000

Truro
2008 YTD Sales Volume $26,588,500
2007 1/1/07-8/6/07 $21,080,433

Wellfleet
2008 YTD Sales Volume $13,687,190
2007 1/1/07-8/6/07 $29,180,925

New Luxury Development: Herring Cove Village

We are proud to be listing a new luxury development in Provincetown’s West End. With beautiful views of the Moors and Wood End Light House, Herring Cove Village is presently under construction and will be available for fall occupancy. The developers have partnered with Boston and Cape Cod’s finest architects, engineers, builders, and landscape architects to create a property that will offer the ultimate in Provincetown living. The village will be beautifully landscaped, and the units themselves will offer luxury finishes and high-end amenities. The builders, Cape Associates, are renowned in the region for their high quality construction.

First to the market will be two free standing 3 BR, 3.5BA homes which boast wonderful views and spacious living with five exclusive use outside areas, including a roof deck which offers sweeping 360 degree views. The two bedroom and one bedroom units will share the same wonderful designs and finishes.

Herring Cove Village is conveniently located near Herring Cove Beach, Herring Cove Tennis Club and near Provincetown’s popular West End restaurants at the Red Inn and Victor’s.

The developers understand that buyers of this type of property may wish to customize their finishes, and they are completely open to working with you in these early stages to help you achieve your dream house.

To follow the project’s progress, visit the Website for Herring Cove Village.

To see a video tour of the construction site, visist our Video Blog.

Are you interested in receiving email updates about the progress of this project? If so, email Emily@atlanticbaysir.com.

Marketing Shift

Virtual tours, polished video tours and print advertising are taking their places in the history books of real estate marketing. Generation X and Y’s are a completely different breed of real estate consumer and their needs and methods of doing business are completely different than the needs of baby boomers. Text messaging, email and reality type video tours are what home shoppers look at when perusing the internet for a potential real estate purchase.

Today’s real estate agents have become consultants, guiding clients through the process and providing information every step of the way. In some cases, the realtor may meet a client once and the rest is done via email and texting. You will be hard pressed to hear a Gen y’r on the telephone with his/her realtor. You will however, see them texting messages, demanding answers to questions regarding specific properties they found on the internet. The requirement is that the realtor be available for constant communication via text or email. Instant gratification is a must in commerce today and answering a client’s question in a timely manner is key.

The changing face of real estate sales is evolving more so today than ever before. Agent websites and blogging are the new medium for advertising and promoting properties. Properties that are advertised in print media are all but invisible to the next generation of home buyer. With advances in technology constantly changing, it will be interesting to see what methods realtors use to sell listings in just a few short years.

The History of Days Cottages in North Truro

Recently we listed for sale the iconic Days Cottages on the beach in North Truro. Ask any visitor to the Outer Cape if he or she is familiar with Days Cottages, and the answer will be a resounding YES. Each with the name of a different flower, these green and white cottages are a symbol of the region.

While many recognize them, few know the history behind them. In the mid 1910’s. an enterprising young man named Joseph A Days bought the waterfront strip with the idea of moving his home from Provincetown to sit on this new location. In the 1930’s, after the depression, and after dismantling his house, Joe changed his mind and decided it wasn’t worth it to move his house, and he burned the sections in a massive bonfire! Instead, he envisioned a colony of cottages. Since he ran a construction company, and there was no work for his people due to the Depression, he put them to work building his vision. In 1931, Days was open for business with 9 cottages! And what a success it was. By 1933, there were 22 cottages built and being rented out and finally a 23rd cottage was built across the street next to the market. At that time, it was Joe’s wife Amelia who brainstormed the names of 23 flowers to give each cottage its own identity. The cottages weathered a few hurricanes in the 30’s and 40’s and in mid 1940’s, a sea wall was built to protect them from erosion. Throughout the years, they have been lovingly maintained by the Days family.

The cottages have been a popular tourist destination for decades, with the same visitors returning year after year. Now, for the first time, private ownership of individual cottages in this colony is being offered. New owners can use the cottage themselves, or continue to rent the property through the on-site management.

For more history on the Days Cottages, visit here.

For more information about purchasing a cottage, visit here.

For a VIDEO TOUR, click here.

The Summer Rental

It's Saturday evening in Provincetown and your summer renter is just getting back from the beach to shower for dinner. Your west end condo is a beautiful. It’s a two bedroom, two full bathroom free standing cottage with granite countertops, stainless appliances, recessed lighting….and views of the bay. Truly breathtaking. But what also makes the renter gasp is the fact that there is no hot water as he steps into the shower. Who does he call? What does he do?

This is a common problem in resort communities where second homeowners often rent their homes to generate income. It’s important to have contact information set in a prominent location (usually on the fridge) for renters to use in case of an emergency.

In resort towns such as Provincetown, there are management companies that address these issues. Usually you can contract with these companies as your need requires. They are on call to handle any emergency issues that may arise. Ultimately, a skilled and reliable property management company will save you money, maintain your rental retention and potentially get you new business through word of mouth.

The Half-Way Mark

The end of the second quarter and first half of 2008 is a good time to review the performance of the real estate market. We compiled the following table for a year to date review with three year comparison for the towns of Provincetown, Truro and Wellfeet.

Provincetown

2008 to date
Properties Sold: 89
Dollar Value: $48,409,301.00

2007
Properties Sold: 165
Dollar Value: $85,902,800.00

2006
Properties Sold: 158
Dollar Value: $82,653,453.00

2005
Properties Sold: 228
Dollar Value: $139,366,255.00

Truro

2008 to date
Properties Sold: 31
Dollar Value: $19,619,500.00

2007
Properties Sold: 61
Dollar Value: $36,974,833.00

2006
Properties Sold: 56
Dollar Value: $37,325,075.00

2005
Properties Sold: 91
Dollar Value: $55,464,466.00

Wellfleet

2008 to date
Properties Sold: 26
Dollar Value: $13,137,190.00

2007
Properties Sold: 93
Dollar Value: $55,814,425.00

2006
Properties Sold: 74
Dollar Value: $42,099,750.00

2005
Properties Sold: 105
Dollar Value: $57,164,800.00

Seller Incentives

If you are selling a property, you have no doubt seen other sellers offering incentives to make their properties stand out, and you are wondering if you should jump on the bandwagon. In a market with increased inventory, the challenge for sellers and their agents is to figure out what will capture the attention of the buyers. Incentives are more common in traditional markets, but we are beginning to see them crop up on the outer Cape. Some sellers are offering to: pay condo-fees or property taxes for a year, pre-pay for a year of parking, pay a bonus to the selling agent, hold a part of the mortgage, or pick up the closing costs for their would-be buyer. One seller even offered a new motor scooter with the purchase of his property!

Do these incentives work? In some cases, they may initially help to draw attention to the property. But do they increase the likelihood of a sale? In our experience, the answer is NO. With so much competition, there are two fairly simple ways to make your property stand out. 1 – Clean, repair and stage your property. Get rid of clutter, make obvious repairs, and consult a staging expert. A property that appears well maintained and presents in a clean and stylish manner will rise to the top of the buyer’s list. It’s all about making an impression. 2 – Price you property appropriately. This is the single most important factor. Instead of offering to pay expenses for the buyer, use that money to bring the price down to where it belongs in the marketplace. Get an appraisal of your property, and price the property accordingly. In the end, it’s the property that will win the buyer over, not the perks.

Aim for an 'A' on Title V

There has been a lot of talk about Title V lately. Title V refers to the state regulation of the type of septic system your house or condo association has in order to dispose of waste. Many homes on the outer cape have cesspools or a version of a septic system. However, these systems do not pass as title v systems.

When selling your home or condo, you must be sure that the health department for the town where your property is located, has a passing Title V report. This means that your system has been tested by a licensed inspector and filed with the town. Your system should be tested every two years to keep the report current. If you are not selling your property there is no need to test, but proper maintenance by pumping should be done occasionally. If you are not aware of the type of system you have and you are planning to sell your home, make sure your realtor gets a copy of the title V report prior to listing your home for sale. You should know what type of system you have and whether or not it passes. 

Effective February 1, 2005, all homes and condo associations in Provincetown and most other communities in the state, must have a passing Title V when selling property. Sellers who offer town approved engineering plans are on the right track, however, it is difficult for a buyer to obtain financing with competitive interest rates when a property does not have a passing Title V. Seller beware, considering the current market conditions, this could make your property a challenge to sell. 

Introducing the CLIENTS’ CORNER

It has occurred to us that many of our clients have exciting businesses or interesting information to share, and we would like to provide a networking forum for you. Do you have a show in Provincetown you would like to promote? Have you just opened a shop in Greenwich Village? Will you be performing at a Boston café? Did you just win an award? Are you hosting a fundraiser for a special charity? Do you want to publicize your website address?

Our Blog announcement goes out to over 500 people each week, and we’d be happy to post your information. Just send us an email with the information you’d like to share and look for our new CLIENTS’ CORNER feature to appear on our Blog home page within the next couple of weeks.

Send information to: info@provincetownrealestatenow.com.

Mortgage Rates Garner Interest

Mortgage interest rates have been the topic of many dinner conversations lately. Right now, with low rates and low prices it’s a good time to buy. This is indisputable. Refinancing can be a little tougher as property values continue to decrease, impacting appraisals and creating an impossible loan to value ratio for banks. Many homeowners, who took advantage of adjustable rate mortgages a few years ago, find themselves stuck in unfriendly products and unable to refinance to take advantage of lower rates.

The upcoming presidential election has generated some interesting predictions for mortgage interest rates. Some say that if a Democrat is elected, the mortgage interest rates will increase. Others say that there will be no impact whatsoever.

Historically, starting with the Reagan administration, rates were high, up to 15%. The rates started to decrease as the first Bush administration neared its end, hovering around 9-10%. They continued a slow decline under the Clinton administration and increased slightly right after George II was sworn in. During the current Bush administration rates hit all time lows, around 5%.

Where the rates will go is hard to tell. The mortgage industry is still suffering from its recent meltdown. Inflation, price of oil and whether or not we enter a recession will be major factors. 

With instability in the mortgage industry and the upcoming election a possible factor in impacting the rates, a good time to act on that special property is now. Never before has there been a genuine sense of opportunity to invest if you are qualified to do so.

Year-To-Date Sales Data

The real estate market on the Outer Cape is holding its own. In comparing sales from January through May of 2007 with activity from these same months in 2008, the sales volume in Provincetown is up slightly this year, Truro is about even and Wellfleet is down by 30%.

Following find a breakdown of the Sales this year by town:

PROVINCETOWN (2008 YTD Sales Volume: $40,460,801 vs 1/1/07-5/29/07: $35,875,000)

Single Family 13 have sold with an average price of $938,000.
Multi Family 2 have sold with an average price of $1,175,000
Lots and Land 0 have sold
Commercial 1 sale with a price of $1,650,000
Condominium 52 have sold with an average price of $349,362
Hotel/Motel 1 sale with a price of $6,1000,000



TRURO (2008 YTD Sales Volume: $15,122,000 vs 1/1/07-5/29/07: $16,020,100)

Single Family 13 have sold with an average price of $697,792
Multi Family 0 have sold
Lots and Land 4 have sold with an average price of $812,500
Commercial 0 have sold
Condominium 8 have sold with an average price of $350,088
Hotel/Motel 0 have sold



WELLFLEET (2008 YTD Sales Volume: $11,645,190 vs 1/1/07-5/29/07: $16,746,175)

Single Family 14 have sold with an average price of $639,928
Multi Family 0 have sold
Lots and Land 2 have sold with an average price of $212,100
Commercial 3 have sold with an average price of $182,667
Condominium 4 have sold with an average price of $428,500
Hotel/Motel 0 have sold

Quite the Scenic 'Scene'

In conversations we’ve had throughout the years with various individuals who decide to move here, the natural beauty of Cape Cod always comes up as one of the reasons.

A few week’s ago, as recorded on our video blog, we were treated to a spectacular show of Right Whales feeding off Race Point and Herring Cove Beach. Viewing a breaching whale from the beach is rare.

With that being said, the wonders experienced on the Outer Cape are breathtaking. From our sunsets and world’s most beautiful beaches to the manic culture of summer and isolation of winter, there is nowhere like the outer cape.

Why do I bring this up? Well, it seems that folks are buying on the Outer Cape now for the absolute love of the area, not for a quick buck to be made on a flip. This is good news for us year round residents as it means more concern and care from homeowners who vacation here.

Since 2005 the median real estate price for a single family home in Provincetown dropped 12.6% to $594,500. In Truro, a drop of 8.7% to $582,500 and Wellfleet a 10.7% drop to $500,000. This means opportunity for buyers who are ready to make the investment in a Cape Cod home.

If you are a second homebuyer who missed out on opportunities before the radical appreciation of the early 2000’s, come back, and make that dream of owning a vacation home on Cape Cod a realty.

The Pitfalls of Overpricing

The best indicator of what your property is worth is an examination of recent comparable sales. Your Seller’s Agent can provide you with a CMA, a comparative market analysis, which outlines these sales and estimates the value of your property. Try to remain unemotional when you review this information. You may be thinking of how nicely you re-tiled the bathroom or how much better the kitchen looks since you re-modeled, and because of your efforts, you feel your property is “better” than the comps, and therefore worth more. It can be very difficult to depersonalize the process of pricing, but it is the key to success.

The “sweet spot” for marketing a property is the first 30 days. The greatest number of showings typically occur during this period. This is when the property first appears in advertisements and on real estate websites. Buyers closely monitoring the market will become aware of your property and take immediate notice of the new offering. Excitement is generated by the new listing. Buyer’s Agents will be previewing the property for their clients. BUT, only if it’s priced right.

When a property is not priced properly, you essentially forego the benefits of the first 30 days. Buyer’s Agents will overlook the listing as being unrealistic and will not bother to alert their clients about the property. Realtors know their market, and why waste time with a property that is overpriced? Buyers conducting their own searches will compare the house to others like it, and will dismiss it. With the current market conditions, it is very risky to price your property higher than it’s worth. With increased inventories, there are too many other choices.

You may be thinking, “I am not desperate, so I will just wait for that one person who loves this house as much as I do and is willing to pay for it.” In most cases, this strategy does not bear out. Remember, most Buyers will be getting an appraisal to satisfy their lenders, and the appraisers use the same comps that your Agent used in the CMA. If the property doesn’t appraise for the asking price, you may find yourself re-negotiating the purchase price.

If you do not need to sell and you require a price higher than the market will support, it is best to wait until the market appreciates. Why relegate your property to becoming stale? When the market finally catches up, buyers will ask “what’s wrong with that property? It’s been on the market for so long.”

If you want results, price the house competitively. Remember, 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.

How Low Can It Go?

Price reductions and new listings priced according to current market values continue to generate activity in this slow real estate market. Buyers are now acting to take advantage of opportunity. Some buyers, however, are waiting to see just how low, the sellers will go.

From the buyer’s perspective this strategy could create anxiety. Here’s the risk. If you find a property you like and decide to play the waiting game you could lose out. With interest rates still low and price reductions bringing many properties into reach for more buyers, you may lose that property you had wanted. We’ve seen this lately on the outer cape. A buyer passes on a property in order to play the waiting game. Suddenly, the property sells and the buyer feels dejected having not expected the property to sell. 

Sellers on the other hand are not only reducing their prices, but are offering a buffet of enticements…some are paying condo fees for up to a year, large buyer bonuses and more. But the only thing that really matters is the listing price.

If you are in the market to buy and have identified your dream home on the outer cape, talk to your realtor about making an offer. If you are willing to make a realistic offer, it might surprise you as to what sellers are willing to do to sell their property.

Provincetown's Historic Floaters

Have you ever wondered about the meaning of the blue plaque that is found on many Provincetown houses? Throughout Provincetown, but mostly in the West End, you will find antique homes that bear a blue and white ceramic tile that depicts a house on a boat.

These homes are known as Floaters. They were built beginning in 1818 on the peninsula that we know as Long Point. Many of today’s visitors are not aware that at one time, a settlement existed on Long Point. There was a thriving community, with a Salt Works being the primary industry. The Light House was built in 1826 and there were windmills, a store, a school, boat landings, and a total of 200 people that lived in 38 houses.

When a large salt deposit was found in Syracuse NY, it essentially put the Long Point Salt Works out of business and eventually in the 1850’s, the settlement was abandoned and the families moved to the mainland. Wood was a precious resource at the time, and rather than just leave their homes, the settlers brought their houses with them by floating them over on rafts. They were placed on foundations, and many still stand today.

A Time To Buy

The stars are aligned and conditions are prime to buy real estate. It is beyond textbook perfect...almost. 

Listed prices for condominiums and single family homes are the lowest they have been in years. This is most likely due to sellers now pricing their homes realistically per market performance. Low listed prices combined with the fact that interest rates for 30 year fixed mortgages are now around 5.5%, makes it very clear that something magical is occurring for those who want to buy real estate.

Rarely, have both the listing prices and mortgage rates been simultaneously low.
Historically, even in the early nineties this phenomenon did not occur. The market was only sluggish for roughly four years before the extreme escalation in values started.

If the market starts to rebound one year from now, it could take another three years to see the same levels of appreciation as we did before the recent correction.
Consumers would serve themselves well to pay attention to the signs. Low mortgage rates, low listing prices, multiple foreclosures and short sales. This is indeed the time to make that leap.

But there is a double edged sword. Obtaining a mortgage in today's market is not as easy as it once was and can be downright impossible. The recent mortgage meltdown has put stricter qualifications on potential homebuyers. Although there is tremendous opportunity reflected in low listing prices and foreclosures, not everyone can take advantage. Lenders are no longer giving away money. If you plan on buying a foreclosed property keep in mind that you have to be pre qualified and bring a deposit of up to $5,000 the day of the auction.

So although it is a good time to buy, you have to have clean credit, strong income and a good eye for opportunity.

Financial Benefits of Owning a Second Home

Owning a second home may afford you many of the benefits of primary homeownership, whether it is for your own vacation use or it’s a property that you lease out for income purposes.

If you intend to use the property as your personal getaway, you can deduct your mortgage interest and property taxes. In addition to those savings each year, you will possibly enjoy increased appreciation, and your increased equity in the property will eventually put more money in your pocket. You may also opt to occasionally rent the property out to offset some of your costs.

Although you are not allowed to deduct mortgage interest from a property that is used strictly as a rental property, you can deduct operating expenses up to and exceeding your rental income. You can also deduct any losses when you sell the property.

Before you invest in a second home or income property, speak with your accountant or tax advisor. There are strict rules about personal usage and length of ownership that apply to investment property if you hope to enjoy the maximum tax benefits. Either way, owning a second home can prove to be a smart move in your financial future.

Multi-Part Series on Our Favorite Walking Trails - Part 2: CLAPPS POND

The largest pond in Provincetown is called Clapps Pond and there is a beautiful walking trail that encircles it. The pond and its environs are located off of Route 6 near Shank Painter Road on approximately 47 acres. The area surrounding the pond is a scrub pine forest and because it is more protected, the pines will be taller and you will also see oak and birch trees. Always keep to your left on this trail. As you walk up a slight incline, Clapps Pond will come into view on your left. Keep your eyes open for other kettle ponds on your right. You can leave the world behind as you encounter few others. This is a wonderful place to walk with your dog. You may see exciting wildlife during your walk, including wild turkeys, coyotes, foxes and deer, in addition to abundant bird life.

To return, retrace your steps back to your car. Don’t forget to bring water, especially if you take your dog. During late spring and early summer, pack insect repellent. Don’t forget sunscreen and check for ticks when you return.

If you walk this trail or Hatches Harbor, which we described last week, let us know your impressions. Enjoy.

Directions: You access this trail off Route 6. From town, drive down Shank Painter Road (the Grand Union is on this road) toward Route 6. Take a left on Route 6 toward Herring Cove. Almost immediately you will see the entrance to a fire road on your right. You can park on Route 6 here but take care not to block the fire road entrance.

Multi-Part Series on Our Favorite Walking Trails - Part 1: HATCHES HARBOR

As spring approaches, thoughts turn to the outdoors here on the Outer Cape. Provincetown, Truro, Wellfleet and the National Seashore offer many beautiful walking trails near the ocean and deep into the woods past sparkling kettle ponds. Thanks to President John F. Kennedy, much of our wildlife and natural environment was protected when he signed a law in 1961 authorizing the creation of the Cape Cod National Seashore, which encompasses 43,500 acres and 40 miles of seashore along the Atlantic Ocean.

One of our favorites in the Seashore is the Trail to Hatches Harbor. You access this trail off of Provincelands Road. (Directions Below) The first section is on a level, packed sand trail which takes you through a scrub pine forest. You will notice the trees seem stunted. This is due to the harsh environment of salt spray and high winds especially in the winter. After approximately one half mile the trail opens up to Hatches Harbor tidal marsh. You will now be walking on an earthen dike which splits the marsh in half. Race Point Light and the keeper’s house are in the distance and the dunes of the Provincelands are straight ahead. This area has abundant birdlife and spectacular views. Keep your eyes open for the Great Blue Heron. Walk as far as you like, even out to the Light House. (about 45 minutes each way). If you choose to walk out to the Light House, be mindful of the tides – it is best to go during low tide. Just beyond the Light House, the ocean awaits you for a refreshing swim on a hot day.

(Little known fact: The residence located at Race Point Light, which was built in 1840 and was originally occupied by the light house keeper, is available for overnight stays. It is maintained by a non-profit organization and more information can be found by clicking here)

Directions to Hatches Harbor: From Route 6 near the Conwell stop light, turn right onto Race Point Road. When you see the Seashore Visitor Center on the right, take the next left toward Herring Cove Beach. At the bottom of the hill (less than a mile) you will see a parking lot on your right near the bike trail tunnel. Park in the lot and walk toward the fire road. The trail is well marked.

Next week, we will take you on a walk around one of our favorite Kettle Ponds.

Assessing an Upgrade

Q: "Mike, I am struggling over the fact that it is a great time to buy but I don’t have any liquid cash to do so. I don’t mean to exploit someone’s financial distress, however, I’ve identified a home in a location I’ve wanted for years that seems to have a selling price created out of urgency. In Provincetown dollars of course it is still pretty high, but manageable for me if I can sell my house and apply the equity. Is it realistic to think that I can sell my property in this market and upgrade to this house in what I perceive as a better location? Should I wait for the house to foreclose?" - Matthew, Provincetown

A: Thanks Matthew and this is a very good question. Let me start by strongly advising not to wait for a foreclosure. In Provincetown, the foreclosures we’ve seen have not been Earth shattering deals. If you identify a property you like and the seller has disclosed extreme motivation, you are in the driver’s seat for a great deal. Maybe even a short sale. Once the bank takes over, they attempt to hold to their bottom line and recapture some of the expense of the actual foreclosure.

The real estate market remains soft. We are definitely seeing activity but 2007 is in line to be a slower year than 2006. However, with that said, what is selling is property priced according to the market conditions. I’ve said this before and I’ll say it again. Property priced right in any market sells. Priced right does not mean pricing high and it does not mean under-pricing either. 

If you have sizeable equity in your home and you can afford to price it competitively. Then I recommend you go for it. The perceived loss on what you’d want to sell your existing property for in a stronger market will be re-couped in the appreciation of the home in the better location, not to mention the happiness you’ll feel achieving the goal of living in a location you really want to be in.

Consult your realtor and you’ll see that there are many incredible opportunities out there. Go for it and next year you’ll be thankful this week, that you made the move. Remember, in the current market, it is taking 9 months to one year to sell prop.

The Market is Active!

Market Snapshot
Activity since January 1, 2008

For those of you who are wondering how the market is doing this year, here is a year-to-date account of what’s happening in the three towns on the Outer Cape!

Provincetown:
There are currently 317 properties for sale, including Single Family, Multi Family, Land, Commercial, Condominiums and Hotel/Motels.
33 properties are under agreement, and there have been 29 sales ( 24 condos, 3 single families, 1 hotel, and 1 Multi)

Truro:
There are currently 196 properties for sale, including Single Family, Multi Family, Land, Commercial, Condominiums and Hotel/Motels.
19 properties are under agreement, and there have been 7 sales (3 condos, 3 single families, 1 Piece of Land)

Wellfleet:
There are currently 131 properties for sale, including Single Family, Multi Family, Land, Commercial, and Condominiums.
12 properties are under agreement, and there have been 8 sales (6 single families, 2 Commercial Sales)

The Grass is Always Greener

It's mid-March and soon the sun will shine brighter, days will get longer and spring will arrive.

If you have a lawn, here are some quick tips you may want to follow in order to make sure you have green and lush grass.

1. Rake the lawn to remove all dead leaves that the blustery winds of winter blew onto your lawn. If there are no leaves, rake the lawn thoroughly to remove dead grass. Raking removes thatch, a build up of dead leaves and grass which prevents the proper growth of individual blades of grass.
   
2. If you have mossy type plants growing in your lawn, you may want to apply lime to ensure the soil acidity is proper for grass. Not every lawn needs lime so exercise caution and read instructions.
   
3. Seed the lawn. If you have bare spots that need to be seeded or a part of the lawn is worn after being used as a walkway during the winter, get out the rake again. Pay special attention to these areas with the rake to make sure all thatch is removed. Then, use a garden rake to create grooves for the seed. Spread the grass seed. Ask your garden center expert about which seed is best for your location.
   
4. Once the lawn is raked and seed planted, buy a multi step fertilizer and weed killer. Spread this over the entire lawn. Follow the instructions and make sure you don’t over apply. If you use too much fertilizer, it will burn the grass causing more harm than good. Make sure your fertilizer is a cool season fertilizer depending on where you live.

A typical time to start spring lawn care is now if you have warm weather. You can wait as long as mid April providing the weather is cool. Temperature for sprig lawn care should be at least consistently in the 50’s.

Once you follow these simple steps, you too, can enjoy tall glasses of cool lemonade while standing barefoot in cool green grass.

Put It In Reverse

Reverse mortgages are becoming increasingly common as baby boomers reach retirement age and are seeking ways to supplement their income.

These mortgages can be a welcome gift for those homeowners who have a sizeable chunk of equity they can draw from. The interest rates on reverse mortgages can be quite competitive and can be the answer many retirees need for that extra cash.

However, using a skilled and reputable mortgage company or bank is strongly encouraged. There are sinister organizations popping up that are promising low closing costs and cheap financing. These mortgage vampires are preying on retirees and feeding off their equity.

On Sunday, The Boston Globe reported that a certain company has been providing reverse mortgages with an agenda to unsuspecting consumers. When the reverse mortgage closes, homeowners are finding that they unwillingly commit most of the proceeds of their mortgage to investment schemes created by this particular mortgage company.

We must always act with diligence and use trusted real estate professionals when refinancing, especially with reverse mortgages.

Keeping your home in which you live until the very end, is part of the American dream. The reverse mortgage, when calculated properly and used for its intended purpose can make this a reality.

Treat Before the Heat

The winter winds are blowing and the air is freezing that’s for sure. It’s nice to stay warm indoors this time of year. However, while you are sipping your tea and cozying up to a book, termites, ants and bees may be laying dormant within your walls, just waiting until the warm weather to make their presence known. 

If you own you may want to make it a point to have your home treated prior to springtime in order to stop insect infestation. 

Telltale signs of termites are visible conduits of saw dust that they construct as roads, one might say, on the surface of interior walls. Bees or wasps like to hide behind the wooden shingles that many of our homes have as siding. Be on the lookout for sawdust drippings caught in cobwebs. And ants…well they are a more clever where they reside in the winter, they can’t help but be seen once spring arrives. You’ve seen these guys or should I say gals…they are those big black, black ants.

If you rent, pay attention to any noises you hear within the walls. It may sound crazy but you can actually hear termites chewing wood if you listen carefully. Don’t be afraid to burden your landlord with a call. I’m sure they’d love to know.

In our older homes here on the cape, the seasoned wood is like a bottle of aged wine to any bug. It is mind boggling how quickly a support beam can be consumed.

Although its not a pleasant thought and could cause the creepy crawlies, insect infestation is not uncommon on Cape Cod. Property owners pay thousands of dollars yearly in repairs and treatment related to insects. These are definitely those house guests that will eat you out of house and home. Awareness is key to prevention and in the end will saving you money.

A Mind for Selling

Lately we’ve been discussing methods of selling property in the soft real estate market. We’ve shared advice on topics such as staging your home, lowering your price, gimmicks and interest rates. One area that hasn’t been covered is the Seller’s mental health when it comes to living in a home that won’t sell.

If you live in your listed house and are feeling the anguish of not selling, you may want to make some changes to help you stay sane. Keep in mind that it can take up to one year to sell a house so you should be comfortable and like where you live.

Lets start in the living room: Buy a slip cover for your couch and chairs. Make sure they are matching. Add new cushions. Change out old magazines on your coffee table and buy fresh flowers every week. 

In your kitchen, start by clearing canisters and unnecessary items from your counter top. If you don’t have a backsplash, add either a faux tile or put in a tiled backsplash. It won’t cost too much and will make your kitchen feel drastically different. 

In your dining room or eating area change the light fixture that hangs over your table. A new light will give it a new feel.

In your bedroom, think about adding a slipcover to your headboard to make it feel new. There are quilted covers that make it appear your headboard is padded. If you have a chair in your bedroom or exercise machine, remove them. These only make good clothes catchers and are rarely used for their purpose.

In your bathroom try changing the vanity. Home Depot and Lowes offer low cost vanities and medicine cabinets that can totally change the feel of your bathroom.

These inexpensive and small changes in each room can make a big difference for your mental health. Who knows maybe you’ll get a buyer once you make the changes. However, the main point is to feel better about living in your home until it sells.

Storm Unearths a Sunken Treasure

Happy Valentines Day to you and your loved one. As a special gift to you, we are straying from real estate this week and bringing you some spectacular photos. On January 27, this year, we experienced quite a storm that churned the ocean viciously, ultimately causing the skeleton of a sunken vessel to wash ashore on Newcomb Hollow Beach in Wellfleet.

The 60 foot remains of the ship, believed to be a 19th century schooner, lay upright on the beach as if on display in a museum. Due to the number of shipwrecks off the coast of Cape Cod and without a name, spectators speculated as to the ship’s identity. Theories were abundant in the crowd that gathered around the decomposing hull that the ship was a fishing vessel from Gloucester or a coal carrying barge. No one really knows for sure. 

The National Parks Service has no plans to remove the ship and the remains are expected to be washed out to sea. If you have a chance to visit the Cape, check out the ship as it is truly a remarkable piece of history.

Please enjoy these pics that Atlantic Bay Sotheby’s International Realty Broker Associate Lincoln Sharpless snapped while visiting the wreck.

NOTE: Check out the blog entry on provincetownrealestatenow.com for pictures (click here)

A Saving 'Grace'?

Q: Are there any laws, in the Commonwealth of Massachusetts that allow for a grace period in mortgage payments (say for example, forgive a couple months payment prior to commencing foreclosure activities, provided the homeowner can prove and actually is pursuing remedies to the situation, e.g., selling the property, etc.)?

A: Today in the immediate wake and occurrence of the mortgage meltdown the last thing a bank wants to do is foreclose on a house. The typical foreclosure will cost a bank around $50,000 when all is said and done. Many banks are negotiating new terms with their clients rather than foreclose. Call your bank and see if there is a way to renegotiate your mortgage. This is very common in today's market.

I am not aware of any laws that grant leniency to homeowners for unsatisfied or late mortgage payments. Again, the best place to start is your bank. The Bush administration is seeking to help homeowners who use a short sale, not to be taxed on the forgiven debt. A short sale is when the house sells for less than the mortgage. Right now, if your bank grants a short sale, one of two things happen: 1. You owe the bank the difference in a separate loan usually with a monthly payment similar to a car payment. 2. The bank forgives the difference however, you will be exposed to a capital gains tax on the difference. Since the bank granted you this amount it is considered a gain.

I would start by calling your bank and asking them about renegotiating your terms. Tell them you are aggressively marketing your home for sale. Also, inquire about a short sale. This may be the remedy you need to lower the price on your house and produce a buyer. Beware though, some banks record short sale balances on your credit.

Fractional Ownership

Q: Can you address the question of fractional ownership? We are attempting to sell a condominium in the west end of Provincetown and our realtor keeps telling us to adjust the price. We’ve recently heard a real estate guru speak about maintaining home value by selling property fractionally? Tell me what this is.

A: This is a very good question and a topic that I’ve been asked to research by one of my clients. One obstacle we keep hitting is the collateral aspect. Each lendor wants to be in the number one spot if the payments are not made and the property needs to be sold. With short sales now happening, t is easy to see how banks fight for every piece of the pie before a foreclosure occurs. With fractional ownership, the financing is difficult if not impossible to do. Each lendor will be vying for the number one spot for receivership. When conveying an entire house with multiple buyers, the best way is to have the buyers set up a corporation or limited liability partnership. This, so far, has proven difficult when most people who would "buy in" to this type of situation are buying one and two bedroom condominiums that are now reasonably priced. In your case, the best hope is to find two or three friends who buy your condominium together.

2008 is projected to be the bottom of the market and the best way to sell your property right now is to price it right. Real estate sells if it is priced correctly and fractional ownership seems to me like a complicated gimmick created to sell over priced real estate that will ultimately fail leaving your property on the market longer making it a stale listing.

Use your realtor and the tools at his or her disposal.

Here are three basic things to check.

1. Have your realtor show you comparable properties that sold. Look at the closed prices.
   
2. Are there any defects that need to be accounted for that will impact the price
   
3. How many days was the property on the market before it sold.

Use a professional, price it right and toss the idea of fractional ownership in the trash.

Mortgage Meltdown

The mortgage meltdown has claimed its largest victim. Countrywide Financial, after being bailed out last year, is the latest to succumb. It will be assumed by Bank of America, and the buyout will be finalized later this year. 

This week The Closing Table is not about Countrywide or the tighter restrictions placed on potential mortgagors when looking to buy property. I thought I’d talk about optimism. Remember what it was like to get a mortgage ten years ago? Well, we’re pretty much there again. When you get approved it actually means you really are qualified to buy a house. One could say, these are a return to normal times. And with normal times comes optimism for a better future.

This year, we are already seeing excitement creeping back into the real estate market. Activity has been up in Truro and Provincetown. Buyers who have been spectator prospects for the past three years, are now putting themselves in the field and making the decision to buy. 

Although it is harder to get a mortgage and even the most seasoned mortgage brokers are sharpening their pencils, qualified buyers are recognizing that we are most likely at the bottom of the market. 

Even the so-called experts are saying that the first half of 2008 is the absolute bottom of the real estate crash. With mortgage rates recently decreasing, now under 6% for a 30 year fixed, qualified consumers are taking advantage of low listing prices and low interest rates. In 2009, this optimistic and toe testing consumer behavior, will turn into an all out feeding frenzy on low priced property, fueling buyer activity which will make the market come back with a vengeance.

This is an interesting prediction and one that I hope, proves to be true, for my clients’ sake, both buyers and sellers.

Energy-saving Tips

The price of heating oil these days could be worth more than its weight in gold.

With this in mind, there are some energy saving measures you can take to hopefully save money this winter.

If you were able to prepay for your oil, that was the best measure with the per gallon cost at $2.79 according to the local oil companies. However, this is a large amount to pay at once and many of us don't have that kind of change hanging around.

If you locked into a pre-pay rate and could not pay ahead of time, price per gallon could be as much as $2.89. If you had the misfortune of not being able to take advantage of either of these, oil is now over $3.00 per gallon.

In this new oil crisis, here are some simple steps you may want to take:

Turn your thermostats to 65 degrees. Wear sweaters and housecoats along with slippers. The days of wearing shorts around the house in the winter should be over.

If you do not have new windows or storm windows, wrap your windows with a plastic thermal covering that prevents cold drafts and air from entering your home.

Get small rugs or draft stops to put by exterior doors. This will help. Also, for sliding glass doors, you may want to hang draperies.

Limit the amount of fires you have in an open fireplace as that sucks hot air out of a room. Always remember to shut the damper once the fire is completely out the next day.

With these helpful tips, you may be able to tip the scales on your home heating expense this winter.

Until It's A Deal

Overconfidence and complacency are two sister evils that can ruin any real estate transaction.

The old saying that a deal is not a deal until it’s a deal is true today stronger than ever before. Most real estate transactions are only as strong as the ink on the deposit receipt the teller hands the seller at the bank.

In all seriousness, today’s climate is making for stressful real estate transactions. Banks are no longer handing out money like they used to and financing guidelines are making it more difficult to obtain a home mortgage.

If that hurdle is crossed then there is the home inspection. Most buyers today are aware that they are getting a deal, however, some have decided to upgrade to a property a little higher in their budget than what they originally wanted. This is due to the fact prices are low. But, due to this, the buyer’s sense of caution is heightened and the home inspection becomes an all new important measure that is no longer just another step toward closing. Small issues now become major problems. Large items can ruin a deal. A skilled realtor, compromising seller and patient buyer are all need to make a deal happen today.

If all obstacles are overcome and the purchase and sale agreement is signed, there can still be problems that can sideline a transaction. The point here is to be very cautious on both sides and truly listen to what is being communicated. Only then, with diligence and intellect can both parties walk away from the closing table with smiles.

Otherwise, to use a sports analogy, with one minute left in the big game, don’t think you have a deal because you’ve gone undefeated all season. Otherwise you could end up being upset. Buyers and seller should now be keeping their eyes on the ball for the entire game until it’s officially over.

2007: The Year in Real Estate Activity

This is a review of the single family and condominium sold activity in the outer cape towns of Eastham, Wellfleet, Truro and Provincetown for 2007.

In Eastham, 101 Single family homes and 17 condominiums sold in 2007 for a total of about $59 million dollars. In 2006 118 Single family and 13 condominiums sold for a total of about $64 million dollars. This is a difference of about $5 million dollars more being sold in 2006.

In Wellfleet, 64 single family homes and 16 condominiums sold in 2007 for a total of about $52 million dollars. In 2006 52 single family homes and 13 condominiums were sold for a total of about 38 million dollars. This is a difference of about $14 million dollars more real estate sold this year in Wellfleet.

In Truro, 33 single family homes and 20 condominiums sold in 2007 for a total of about $29 million dollars. In 2006, 30 single family homes and 19 condominiums sold for a total of about $31 million dollars. This is a decrease in the dollar volume of real estate sold in truro by $2 million dollars.

In Provincetown, 26 single family homes and 121 condominiums sold in 2007 for a total of $72, million dollars. In 2006 16 single family homes and 123 condominiums sold with a total dollar volume of $64 million dollars. Provincetown saw $8 million dollars more real estate sold this year than last.