Recent Editorial on “Why a Realtor?”

There Will Always be Realtors
By Jamie Regan, REALTOR, CCIAOR President
President@cciaor.com

On a recent Sunday, the Cape Cod Times ran a syndicated column from the west coast suggesting a diminished role for real estate agents in the Internet Age. While there may be a trend in that direction in California, here in the east – and especially on Cape Cod and the Islands – Realtors remains an invaluable linchpin between home buyers and sellers.

No matter how sophisticated the online listings become, a trained, knowledgeable and experienced agent will always make the difference between a successful purchase and sale, and the risk of a transaction falling apart.

With the daily demands of work and family, the prospective home seller and buyer are short on research time. They will always benefit from the guidance of a Realtor who has “been there, done that” hundreds or even thousands of times. With a personalized touch, Realtors provide property research and disclosures, sales comparisons and data that foster objective decision-making. And they operate under a strict code of ethics.

What’s more, this challenging economy has presented new opportunities to the buyer and seller. Federal lawmakers realize that the way back from recession is through a rejuvenated housing market. Thus they have enacted a new $8,000 tax credit (often with the money up front) to encourage first-time homebuyers to invest now, while home prices are deeply discounted.

Realtors are schooled to understand mortgage financing, and they know where local loan money can be found. Because they live and work here, Realtors know about the quality of schools and tax rates from one town to another. They can assist with obtaining legal forms, inspections and most of all, offers and counter-offers.

Anyone who has been through the purchase and sale process knows the comfort of having an experience professional by your side. Timing is everything in life – and in real estate – and one bad move made on your own could result in calamity and the potential loss of thousands of dollars.

A recent survey by the Massachusetts Association of Realtors showed that a commanding percentage of all home buyers were helped by a Realtor. In fully half the transactions, Realtors served clients by pointing out unnoticed features or faults with properties they wanted to buy.

Here on Cape Cod, there are about 1,000 homes now available for less than $300,000 and a few hundred for around $200,000. These present historic opportunities for first-time buyers and second homeowners to realize their long-held dream of home ownership on Cape Cod. What once was thought to be an impossible dream is, in fact, achievable in 2009.

Why would anyone not seize this moment without skilled professional help? By going online to MLS, prospective buyers can find a local Realtor and see houses that are currently open for inspection. In the Internet Age, online resources and local Realtors have become a priceless team.

What Goes Up, Must Come Around

Ah, well, I’m leaving the last post to show you the vagaries of the real estate market. If you were terribly upset that you missed the $2.7m property in Brewster, you have another chance and MUST call me to broker it for you! The necessity of a competent buyer broker cannot be underestimated. Agreeing on a price is the tip of the iceburg. SO much more professional representation is required to get to a successful closing. This is why a large percentage of “For Sale by Owner” sales fall through. From MAR’s website, an article on unrepresented sellers (FSBOs):
From properly pricing and intelligently marketing your property to getting through the negotiations, paperwork and contingencies, real estate professionals are trained to ensure the process goes smoothly. Today, approximately nine out of every 10 home sellers in Massachusetts hire a real estate agent to help them complete the sale of their home. As your single most valuable asset, the sale of your home deserves to be treated with great care by an industry professional who is trained to sell it on your schedule and for the highest possible price. Why would you settle for less?

How Long Does it Take to Sell a $2.75 million Home?

c. T. French

18 days in a bidding war. This property in Brewster was snapped up. The last sale was in 2006 for $2.2 million. Not a special house, but a special location. Location, condition, price. You need two of the three which are in your control.

So how is the Cape market? Fantastic. In the past 14 days, 301 properties have come on the market at a maximum price of $6.2 million, 125 have sold with a maximum price of $3.35 million, and 216 have gone under contract. Demand is outstripping supply, and we know that that necessarily means increasing prices.

The arts and culture scene is warming with the weather. Don’t miss a satellite live performance of Phedre with Helen Mirren in London at Cape Cinema in Dennis on June 25.

As always, view property at my website and call me at 508.221.2286 with any questions. Happy shopping from your Cape Cod REALTOR!

Making Ends Meet

There is wonderful, optimistic news on the Cape about an uptick in the market. I certainly see it in my business at every price point. The slowest segment, however, is that which congress had hoped to stimulate most: first time home buyers. However, few who live on the Cape, and work here, are able to take advantage of the tax credit. The Housing Assistance Corporation reports:

The yearly income needed to purchase a median-priced home on Cape Cod is
$105,0001 and yet the median yearly income for a four-person household is only
$66,8002 — a deficit of nearly $40,000.

In the last few years, the average home price has increased 97 percent, while wages
have increased only 19.8 percent.

Cape and Island residents overwhelmingly feel (91 percent) that the cost of housing
prevents young families from living in the community in which they grew up.

Approximately 41 percent of Cape and Island residents found that their monthly
housing payment made it difficult for them to make ends meet.

Some employers take advantage of housing programs as part of compensation packages, and this is smart. If you are an employer, and want to know how to participate in this valuable recruitment program, contac HAC.

If you are a renter and want to know just how much house you can get into with prices and interest rates down in combination with incentives, give me a call! You may be surprised that you can own a home this Summer!

Keep On Giving

As promised, I am continuing to give 2% of net commissions to Housing Assistance Corporation. What can you do?