What are the benefits of owning property in a vaction spot like Cape Cod?

One of the major reasons for owning property on Cape Cod is that it a transient area — people come and go all the time.  That means there is a steady flow of new people who want to stay and live here for a while. Demand can be variable, but there will always be buyers in the market for property on Cape Cod. And that means you should be able to sell your home when you’re ready.

Property values on the Cape can be extremely variable depending on their location. And the closer you get to the water, the more difficult it can be to arrive at a market figure. That means in the same neighborhood, you could see major differences in market value for the properties that are on the water.

If you’re considering buying property on the Cape, I suggest you work with a real estate broker who has extensive experience in the Cape Cod area.

Does it make sense to do a short sale?

In this economy, short sales have become much more common. They can also be very confusing to buyers and sellers as well as real estate agents.  A good explanation of a short sale is a property that sells at market value, which is the best value available at the time of sale.  If the value is lower than what is owed, it is up to the real estate agent to contact the bank or banks that have mortgages, liens, or attachments on the property and coordinate mortgages or liens to equal the value of the home.

This is accomplished by educating the banks holding liens that:

1.  Sellers have no other way of coming up with the difference between the sale price and what is owed.  They have no savings to pay the difference.
2.  The property is only valued at a certain price, and it will take years to get back to the price needed to pay of the liens and mortgages.

The bank may have a seller sign an unsecured loan for the difference.  This protects the bank and its stockholders. The real estate agent needs to keep in touch with all parties as much as possible.  Short sales take two to five months to consummate, and buyers and sellers become weary quickly. This process takes time.

Short sales are great for buyers who have no problems with financing, that can wait for a special opportunity.  Right now you can get some remarkable deals on Cape Cod if you go the short sale route. 

A short sale is also the best way to rid yourself of a property causing a financial burden.  It will prevent a foreclosure on your credit.

How can you profit from record foreclosures on Cape Cod?

As an expert on foreclosures on Cape Cod, I know the most important thing to know is that just because a property is in foreclosure does not mean you can get a good buy at auction.  This is because most properties that go into foreclosure are underwater (the owners owe more than the property can be sold for).

The banks, by law, have to buy back the properties at foreclosure because they have to meet government standards of paying 70 per cent of what is owed or 70 per cent of the appraised value.  The best way to buy a foreclosed property is to watch that home and purchase it when it is bank owned.  At that time it is usually much less expensive and the bank has had to correct most of the problems before it is offered for sale to the general public.

This process is best handled by a local realtor who can tell you when it’s available, for what price, and whether or not it’s a good deal. Questions? E-mail me at jbarrettre@gmail.com.

When will real estate values on Cape Cod begin to appreciate again?

Vacation areas like Cape Cod aren’t immune to real estate recessions, but they don’t last like in other areas.  The clientele is more diverse and because of this there is always someone in the market to buy or sell real estate on Cape Cod.

Cape Cod attracts first-time home buyers, second home clients, investors, and contractors who purchase downtrodden properties to fix up and resell.

A real estate recession has to run itself out and usually gets worse before it gets better.  Right now on Cape Cod, the real estate market is very active for properties under $300,000, because it includes all of the above clients.  We might get a call on an ad for $200,000, but once the customer learns more about the current market, they will usually spend more.  There are tremendous values available now.  This means the real estate market is currently on the move, and prices will creep up slowly and it will quickly become a seller’s market as prices have leveled off after hitting bottom this summer.

This fall is a great time to invest in Cape Cod real estate.  There is a limited supply, every property is close to the water, and that is always valuable in any type of market.