Cape Cod Real Estate Blog

Attention anyone and everyone looking to buy Cape Cod real estate:  I wrote a post about a year ago about Buyer Representation and how valuable it is when looking to purchase real estate here on Cape Cod.  I had a few potential Buyers share their initial impressions about how they “viewed” looking for an Agent or Agency when looking to purchase.  Much to my surprise, they initially felt they should work with an Agency that has the highest number of listings.  That is totally false and shows consumers need a better education on Agency Representation.

I was delighted to explain Buyer representation and how it provides significant value to the Buyer- regardless of the number of listings I have or my company has listed.  As an Accredited Buyer Representative (ABR), I have a duty to look after my Buyers best interest above my own interest.  I am able to show Buyers any listings for sale in the State of Massachusetts, regardless of who the property is listed with.  Thus, it does not matter how many listings I have under my name, since I can show and sell all listings.  I can share all of the positive and negative attributes about a property.  I can give my opinion about the price- whether it is over priced or a terrific value.

If a Buyer works with an Agent that has the listing, the Agent might be working as a Dual Agent where as the Agent works for both parties.  Or depending on the model which the Agency has set up, the Agent could be working for the Seller.

If I were a Buyer, I would would want someone working for me, exclusively.  I would not want to wonder whether an Agent is looking out for their own interest above my own.

Think about this long and hard prior to working with an Agent.  Be sure to know the facts and not the myths!

Please feel free to call me anytime at 508-237-4632 or e-mail me at Rick.Tourgee@Century21.com should you wish to discuss in more detail!

Many Brokers and Agents have said over and over again:  “A home needs to be priced correctly or slightly below market in order to sucessfull sell the property.”  Many have blogged about this time and time again.

Here in Provincetown, there is clear evidence of this fact.  I had a Buyer looking for a single family home in a certain location and a certain price range.  Many of the homes currently for sale were over-priced in my opinion as well the opinion of my Buyers.  There was one home for sale that came to market about $150,000 over priced.  Thus, we didn’t go see it.  30 days later, it was reduced by $100,000 (still $50,000 over priced).  Then, 30 days later it was lowered $80,000 more!  Now was the time for my Buyers to get in quickly and make a serious reasonable offer.  I am delighted to say that my Buyers are buying one of the lowest priced homes in this location of Provincetown for even less than the last list price!!  This makes a win-win situation all the way around!

Another short example:  a condo came on the market listed at about $100,000 under market value…..it lasted about 30 minutes on the market.

The point here:  Buyers ARE out there!  Buyers will buy!  There is no shortage of Buyers!  The shortage we have in the marketplace are realistic Sellers!  The above examples prove my point 100%

Sellers:  Please, please, please, listen to your reputable respected Real Estate Broker or Agent!!  If you need an opinion here on Cape Cod, we are only a phone call away!

When looking to buy or sell real estate, please call us at Century 21 Shoreland at 508-771-2008 in Hyannis or for the Provincetown area call 508-487-6002.

Century 21 Shoreland, with offices in Provincetown and Hyannis, volunteered their services to the Cape Cod and Islands Association of Realtors benefiting Habitat for Humanity of Cape Cod.  Sales agent, Stuart Lewis from the Provincetown office, spent the day with a group of Realtors contributing to the third project Habitat for Humanity has undertaken on Cape Cod benefiting special needs families. This is the first time that the volunteers have been provided through Cape Cod and Islands Realtors , and Century 21 Shoreland was proud to be part of the local team.   In addition to providing a day of work, the Provincetown office collected contributions from local banks and retailer to help make the project successful, and of benefit to such an meaningful cause.Once complete, the project will consist of four single family homes for the benefit of various groups of local people.  The awarding of the homes was conducted through a lottery system with three homes benefiting local families, and the fourth home for the sole purpose of assisting teenage girls.  The overall concept of the project was to empower women to become involved with not only running the homes, but in the actual building of them.  Between local teens, religious organizations, local volunteers throughout the community including the contribution of local Realtors throughout Cape Cod, the project will be 75% complete and occupied within the next two months. Coming away with such a sense of accomplishment helping the woman project coordinators, Century 21 Shoreland hopes to participate in future events to benefit Habitat for Humanity at a local level on Cape Cod.

There are many reasons why people visit Cape Cod in Massachusetts.  But, this past week was a real treat for anyone visiting Herring Cove Beach and Race Point Beach in Provincetown at the very tip of Cape Cod. For hours each day in the waters just offshore, dozens of right whales gathered to feed, the saltwater-slicked wedge shapes of their heads lolling above the waves while flocks of gannets dive-bombed the surface around them and an occasional humpback or finback spouted in the distance.

Every morning before coming to the office and in the afternoon between appointments, I would go to one of the beaches with my binoculars to watch the whales.  The site of these whales playing in the water was unbelieveable!!  There was not just one, two or three of them- one reported said planes above counted 60 of the beautiful whales!!

“It’s a remarkable time. It’s the greatest concentration we’ve seen in all the 23 years of our work … and Provincetown is at the center of it,” said Charles “Stormy” Mayo, senior scientist and director of right whale research at the Provincetown Center for Coastal Studies. He attributed the high density of whales to the “extremely rich food source” that is available to them right now.

On Friday a group of 16 right whales spent the afternoon at the mouth of Provincetown Harbor.

Mayo said the right whales that are in the bay right now equal about a third of the population of North Atlantic right whales left in the world…..can you imagine that?!?!?!  This is one of the rarest mammals on earth!
One person counted two dozen right whales last Thursday, as well as four humpbacks and one or two finbacks kick-feeding in the same area.

Race Point Beach is a great spot for whale-watching because there is deep water close to shore, allowing the whales to come in and flash their flukes and flippers within clear sight of the beach.

Short sales on Cape Cod

We are hearing and more about property owners here on Cape Cod considering a short sale of their real estate.  Many Clients have asked me what a short sale is and the process involved.  A short sale occurs when the seller of the property has an offer that is submitted but it does not cover the expenses to sell the real estate and pay off their current loan(s).  The seller is in a distressed situation and can ask the lender to take less than what was owed known as a “short payoff”.  Keep in mind, Lenders are not required to take the short payoff.

To begin the process you need to take the following steps:

• Contact us here at Century 21 Shoreland, we have the experience in handling short sales.  We are here at Century 21 Shoreland have the experience needed to guide you through this process.  We will need to visit your property and give you a realistic market value of your property and help you stage the property so it will show its’ best!
• Once a realistic market value is determined, list the property for sale for between 10%-20% below the realistic market value in order to attract as many Buyers as possible.  This might create multiple offers and increase the potential sales price!  It must be fully disclosed to all parties that the property is a “short sale” and the approval of any offers are made by the Lender- not the current property owner.
• You must write a hardship letter to the Lender(s).  Examples could be, Unemployment, Divorce, Medical emergency, sudden illness, Bankruptcy, and of course the case of where the value of the property has declined to a level less than what is currently owed.
• Hire a reputable Real Estate Attorney that is familiar with short sales.
• Hire a reputable Accountant to guide you through any tax issues that may arise based on your personal situation.
• You must write a letter giving authorization to your Real Estate Broker and your Attorney to discuss the sale with your lenders.
• Be prepared- the lender will want to see a copy of your tax returns and a financial statement. If the lender discovers you have assets, the lender may not grant the short sale because the lender will feel that you have the ability to pay the shorted difference.  For example, you have copious amounts of cash in the bank, if you own other real estate, stocks, bonds or even IRA accounts, the lender will most likely determine that you have enough assets to continue paying the mortgage or the shorted difference.
• Must be patient- lenders are swamped with short sales, auctions, and foreclosures.  It takes anywhere from a week to a month or more to reach and come to an agreement with the lender.
• Always seek legal counsel before, during and after a short sale.  Please remember, a Real Estate Broker nor a Real Estate Agent cannot and will not give you legal advice.  We are not Lawyers and we are not Accountants.  Be sure to get licensed, professional advice from a reputable source.

Clients always ask whether it is better to go into foreclosure or do a short sale.  I always advise trying to do a short sale first.  Lenders would rather work with a borrower who wants to try to work something out vs someone who will just “throw in the towel”.  A short sale may hurt your credit.  But, a foreclosure can harm your credit even more than a short sale.  For the details on how it might impact your credit, speak with the lender and the Attorney.  This might be something that could be negotiated.

Please call us at 508-771-2008 or e-mail us at Info@C21shoreland.com if you wish to discuss your potential options.  It is vital to work with a professional Real Estate Agency that has the experience with short sales.

Great news for Century 21 Shoreland’s Clients and customers!!  Our sales continues to grow beyond our expectations and forecasts!  In 2008, our sales are breaking records!  We are extremely proud as we have taken the time to understand what it takes in this dynamic marketplace to market property listings and to find homes to meet and exceed a Buyers expectations.  As you will see below, sales in Barnstable County (Cape Cod) have slowed.  Yet, we here at Century 21 Shoreland are celebrating success with our Clients!  To learn more about our marketing strategies under the current market conditions and to work with a Real Estate Adviser to help you meet or exceed your real estate goals, please e-mail us at info@C21shoreland.com or call us directly at 508-771-2008.

Below are the sales stats of actual sold/closed properties on Cape Cod according to the Cape Cod & Islands MLS system from January 1, 2008- February 29, 2008.  There were 429 sales sold/closed at or above above $100,000.  Last YTD, there were 512 sales.  Thus, we are seeing a slow down in sales in 2008.

Below is a sampler from the findings of the 2006 Workforce Housing Summit Executive Meeting:

CNA/Nurse Assistant- has an average salary of $25,597.  This would afford this person to rent an apartment for $640 per month.  The maximum affordable home ownership would be $73,664.

Teacher- has an average salary of $43,262.  This would afford this person to rent an apartment for $1,082 per month.  The maximum affordable home ownership would be $124,500.

Police Officer- has an average salary of $47,516.  This would afford this person to rent an apartment for $1,188 per month.  The maximum affordable home ownership would be $136,760.

In Truro, the median income on average for a 3-4 person household is only $59,632, which would give the average household borrowing power of $225,000 while the median home price is $669,000.  The difference (gap) is about $444,000!!

Barnstable County as a whole, the median 3 bedroom single family home is $349,900- which is still a huge gap!

Clearly, this is a huge concern for Cape Cod as it is largely a resort/second home community.  Other resort/second home areas are dealing with the same issue!

I was driving home the other night from Provincetown and I noticed the local Pilgrim Monument had a red glow to it!  

Come to find out, it is an effort to raise awareness about women’s risks from cardiovascular disease.  The Pilgrim Monument as well as other landmarks across Cape Cod will be shining red during the evenings of February 1-15.

It is all part of the “Cape Goes Red 2008″ event, which is part of the American Heart Association Go Red for Women.

The American Heart Association is hoping that other Outer Cape non-profits and businesses as well as local residents will join the Pilgrim Monument as a community partner with the American Heart Association in these efforts to light up the Cape in red.

A local Cape Cod Bank, Seamen’s Bank is sponsoring a “Heart Healthy Winter Climb” of the Pilgrim Monument to celebrate “Cape Goes Red 2008″ on Saturday afternoon, Feb. 16 from noon until 4 p.m.

For those of you who do not know our Pilgrim Monument- it commemorates the Mayflower Pilgrims first landing in America, is 252 feet, 7 1/2 inches high (via 60 ramps and 116 stairs), making it the tallest all-granite structure in the U.S.

A local Physical Fitness Trainer from Willy’s gym in Eastham, has volunteered to lead the climb and be on hand to discuss the benefits of heart healthy walking.

Visit the Pilgrim Monument website at www.pilgrim-monument.org or feel free to call (508) 487-1310 for more info.

If you are interested in buying vacant land to build a dream home on, please do some homework prior to making an offer on any land!  First, get information from the utility companies as to the cost to run the utilities to the property- this includes telephone, electric, and cable.  Since everybody wants high speed access, find out if it is available in the area. 

Septic or sewer- if it is septic, has a design plan been completed and approved by the local Board of Health.  If a plan has been approved, are there any installation estimates so you know what it will cost to install the septic system?  If the property is on a sewer line, what is going to be the cost to connect the property to the sewer line?  How about water?  Is it connected to the town water supply, or is a well going to have to be drilled?

The most important aspect to investigate is the cost and feasibility to build.  Have a rough set of plans designed to bring to contractors.  The contractors not only will give you an estimate- but, advise you whether the type of home you want to build can be done on the property you are considering.

Sadly, I heard of someone who made an offer on a piece of land, closed on it, then started contacting contractors.  The Buyers were deeply disappointed in what they learned from the contractors regarding building on the land they already closed on.  Even more sadly, their Real Estate Agent did not advise them to do their due diligence first.

Last, be sure to speak with local building officials to learn of any local restrictions and to get a rough idea of whether permits will be approved for what you are looking to build.

If you are considering buying land here on anywhere here on Cape Cod, please e-mail us at info@C21shoreland.com or visit our website at www.c21shoreland.com to learn about working with a Buyer Representative who looks out for the Buyers interest above their own!

I know someone who put his property on the market for $449,900, he felt good about its chances of selling. After all, it had an updated kitchen, a finished basement, and a great backyard.  Eight months later, the house finally sold for nearly $75,000 less than the initial asking price.  People, including the Seller, asked why it took so long to sell even with all of the positive attributes.  THE PRICE!The Seller listed with another Agency at $379,900. Just nine days later, it sold for $375,000!!

Professional, experienced Real Estate Brokers will tell you; even in this sluggish real estate market, a house will sell if it’s priced right and if the property has extensive internet exposure with many photos and a virtual tour.

There are several other factors in selling a property.  The property should be in a good location. Second, it has to be in great condition and show like a model home. And the most important factor is price. You have to be, in a nutshell, the best property out there in the price range you’re in.

Sellers need to forget about what they want, or about what they could have gotten a year ago, or what your neighbor got a year ago, or how is owed on the mortgage - those factors do NOT determine the proper listing price!

You want to look at recently sold property within the last 90-180 days because those reflect current market conditions for what a willing and able Buyer will pay for the home.  Also, some consideration is given to home that recently went under agreement.

Should you want to discuss a realistic listing price for your home, the professionals at Century 21 Shoreland on Cape Cod would be delighted to speak with you about your goals and objectives for selling- and put a plan of action in place that will lead you to the closing table and getting a check.  Feel free to e-mail the office at info@C21shoreland.com or visit the website for additional Buyer and Seller tips.