Good Morning - Well, we are among the fortunate - we have electricity, water and food.  Our roads are open and I'm in the office working.  Thankful!  We even have internet service!  And business is happening!

In the last seven days 11 properties came on the market for sale.  Average price? $1,290,000.  Median price (which is more important) is $885,000.

My pick of the week?  This condo in Katama.  $635,000 and steps to South Beach (closer than ever since Sandy).

A great vacation complex!

A number of properties are still moderating, price-wise.  12 price changes (all down) came through this week.  Average price = $1,293,408 with a Median price of $1,088,500.  Average Days on the Market - 246.

Sales continue at a faster pace than we've seen in years.  Last week 5 properties sold on the Island.  Average price = $800,600 with a Median price of $445,000.  Average Days on Market were 148.

For in-depth information on the area of your choice, please contact us at 508-627-0506.

Home Inspections And Deals That You Didn’t Think Would Fail.

So, the negotiations are done, you and the seller/buyer have agreed on a price and contingencies.  Now you can look forward to the closing and the next chapter of your life.  Or can you?

The home inspection has been done and all of a sudden you find yourself in a perilous situation.  There are problems that the buyer would like addressed.  The seller asserts that these “problems” are accounted for in the price that’s been negotiated.  All of a sudden you are renegotiating the deal you thought was done.  What to do?

Is it a new house?  If so, there will be allowances for a “punch list” of items that the builder must finish.  These could fall outside of the requirements that the building inspector may have for issuing an occupancy permit.  Your contract should spell out an estimated completion date for punch list items and an agreed upon “hold back” of funds should they not be completed prior to the closing.

If the house is not new – what’s reasonable?  It’s not a new house so there are bound to be items that need some attention.  How do the buyer and seller come to agreement on these items?  Some repairs will be necessary to secure financing, such a septic systems or smoke detectors, etc.  Others will need to be addressed between the parties. 

Here’s how to begin.  Identify the items that are of utmost importance – rank the issues.  Then place an estimated cost and aggravation price to these items.  Next decide if these items, if not taken care of by the seller, are deal breakers for the buyer.  Is it worth walking away from this property that you’ve searched so long for?  (Most buyers start their search in earnest 12-18 months prior to even visiting a property). 

From the seller’s perspective, do you just want to be done with it?  Do you have the resources to correct these “problems”?  Is it worth losing this sale over $1000 or whatever the dollar value is?

In the end, it all comes down to the motivation of the parties to see the sale through.  Cool heads and an intermediary, such as a real estate professional, should help resolve these issues.  Everyone needs to keep in mind the ultimate goal, selling/buying a home.

Real Estate Activity for week ending August 10th, 2012

This past week on the Island has seen the following activity in our real estate market.

9 New listings with an average price of $1,292,611 and a median price of $489,900.

12 properties had a Price Reduction with an average days on market of 242

1 property Sold for $390,000 (from an asking price of $450,000) and was on the market for 704 days!

6 Offers were accepted this week with an average price of $619,667, median price of $459,000 and 96 days on market on average.

5 properties went to purchase and sale (we have a two step purchase process in Massachusetts), with an average price of $434,200 and a median price of $429,000 and an average of 325 days on the market.

My choice this week is a home on Lagoon Ave in Vineyard Haven.  A short sale at $339,500 with 5 bedrooms.  The short sale process is now getting more streamlined, though you still have to work with the timeline and the system.  For more information, call me at 508-939-0206 or email Susan@HomesonMVY.com.

Craigs List Rental Scam

This is the second year I've heard of vacation rental scams being perpetuated on Craigs List.  I had one vacationer call me because she saw the house she thought she rented on our website.  Would I check with the owner for her please?  I found out that she had not rented this house, had sent $3000 via certified check to someone and did not have a house for her family vacation.  Here's how to avoid having this happen to you.
1. Use a reputable real estate agent.  We charge the same rate as the owners - that's our agreement with the owners.  Want to know if an agent is reputable?  Look at their website, check to see if they are registered with the state - licensed.  Do they have an office location that can be verified?  Their payment terms may be more stringent than an owner's might be, i.e. you have to send a deposit check immediately, but you will know that you have a rental property for your vacation.
2. Check out who the owner of the house is.  If the person you are talking to says they are the agent of the owner, contact the owner.  The owner of a home is easy to find out - it's public record.  There are several websites accessible to anyone.  So look it up, contact them and confirm who is handling their home for rental.
3. Some scammers are using actual photos and listing info from rental websites.  How to avoid this? Look at other websites for the same house and see if the information matches.  Some scammers also use photos of houses that are for sale - not for rent.  If I post our listings on Craigs List I clearly state that the house is for sale and not for rent.
4.  There are very few DEALS out there when it comes to real estate.  If it sounds to good to be true - it probably is.  Owners and tenants are savvy these days and know what the market is, whether for sale or for rent.  Some owners will make rental concessions, usually for multiple weeks, but not for a one week rental - its not worth it.
5. We require a deposit and if the rental is starting within 30 days, we want the funds wire transferred into our bank account.  This is the only way we can guarantee to our owners that we have a tenant and that they should not rent it to someone else.  If you are not dealing with a real estate professional or the owner directly, you need to be sure that you are sending funds to the appropriate place.

In the end, your best bet is to work with a real estate professional who handles more than one rental property, so that if the property you inquired about is not available, there are other options for you.  Additionally, they are in business in the place you are going and can be reached with questions or problems.  Some agents do not meet their rental clients at the property; they simply leave the keys, directions, etc. for the client at the property.   We real estate professionals do not want these scams out there and will do all we can to prevent them and make sure your vacation is all you want it to be!

This news from MAR (the Massachusetts Association of Realtors).  Remember - real estate is local to your neighborhood.  If you would like the scoop on what's up in your neck of the woods - contact a Realtor.

WALTHAM, Mass. – July 24, 2012 – The Massachusetts Association of REALTORS® (MAR) reported today that June marks the 12th straight month that single-family home sales have gone up compared to the same month the year before.  Condominium sales were also up from June 2011, for the sixth straight month of year-over-year increases. Single-family median prices were flat compared to last year while condominium median prices continued to increase from the year before.

Water and Your Tenant

Owners of residential properties are allowed to install submeters for water and sewer usage in their rental units.  This law was passed in 2005 and many homeowners are still under the misconception that they must provide water and sewer service and therefore bear the costs for such services.  Not true, although there are caveats on how this submetering can be accomplished.  A submeter can be installed (unless there is a separate meter already in place for just the individual dwelling unit) when the dwelling is being occupied for the first time; or the previous tenant vacated the dwelling voluntarily.  You can not change during an existing tenancy.  The owner must also install water conservation devices and must send a certificate of compliance to the local board of health.  This certification must include a statement that the dwelling is eligible for the charging the tenant for water and sewer usage, that all the required devices for water conservation have been installed by a licensed plumber and that the water submeter (if needed) was installed by a licensed plumber.  Further, the submeter or meter must service only the individual dwelling unit.  The lease agreement must clearly state that the tenant will be responsible for paying these costs and state the method for billing and payment.  Be careful - owners who do not follow the law may be liable under Consumer Protection Laws.  So, if you own a rental property in an area where water and sewer use fees are high, you may consider this a worthwhile process to go through.  It also encourages your tenants to be conservative in their water use, something we all benefit from.  (Mass Law - An Act Authorizing Water Submetering In Residential Tenancies).

Your real estate market news.

Recent news on your real estate market.

Lawrence Yun, NAR Chief Economist, states, "The housing market is clearly superior this year compared with the past four years. The latest increase in home contract signings marks 13 consecutive months of year-over-year gains."     - According to NAR, the housing affordability index has rose to a record high 206.1, the highest level since record keeping began in 1970. NAR President, Moe Veissi stated, "This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home."          - According to a recent article in the Cape Cod Times, provided by Bloomberg News, new home construction rose in June to the highest level in almost 4 years, indicating that the residential real estate market is strengthening.