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.