The Co$t of Heating

The cost of heating oil has skyrocketed to unseen heights in the past few weeks.
Homeowners who didn’t lock not discounted pre-season rates or prepaid at a lower per gallon cost are now facing huge oil bills for heating this homes this winter.

In September and through October, local fuel companies invited their customers to pre pay for their heating oil or to buy into packages for a discounted rate per gallon. Consumer who took advantage of these offer paid around $2.79 per gallon if purchased in bulk or $2.89 per gallon if purchased on a plan.
Now, heating oil has escalated to up to $3.59 per gallon in most places on the outer cape.

This is astronomically obscene and we’ll most likely see it climb higher. We could see the days of wearing winter coats and hats in the house come back
Please conserve this winter by keeping doors closed, make sure storm windows are down if you have them. Close the damper to your fireplace when not in use. Get fabric snakes ot put under doors to stop breezes and you may wna to think about heavy drapes around sliders.

If you are in need of assistance with heating oil this winter, please contaqct the following:

• South Shore Community Action Council: Federal funds are available to assist families during the winter. For an application or eligibility information, call 508-778-0870.
  
• Citizens Energy Oil Heat Program: This private nonprofit program assists families in need of heating oil. Call 877-563-4645.
  
• Utility discounts: All Massachusetts electric companies and most gas companies have low-income discount programs. You automatically qualify for the discounts if you receive Food Stamp benefits, MassHealth, Supplemental Security Income or fuel assistance. These discounts can save you 25 to 35 percent on each bill. To apply for discounts, call your gas and electric companies and ask for an application.
  
• Cape and Islands Self Reliance Corp.: This consumer cooperative provides members with inexpensive home heating oil. Call 888-808-0120.

Lets all hope the prices have stopped increasing or better yet for a warm winter.

A Short Sale

Q: "Mike, I just heard the closing table regarding opportunities to buy in the current real estate market and if I heard right, you mentioned a short sale but didn’t elaborate. I’m not familiar with a short sale. What is it?" - Dorothy Ann, Wellfleet

A short sale, quite simply put, is when a seller sells his or her property for less than the mortgage.

Where it gets tricky, is when there are two mortgages or a home equity line of credit that has a balance.

Typically. The first mortgagee is in the position to make the agreement of short sale. However, in other cases, the second mortgagee needs to also give approval and may take as little as a token payment in order to approve the short sale.

However, the balance leftover after a short sale happens can either be written off by the bank, charged to the seller, or reported to a credit bureau as a default.

As we pioneer our way through this new way to sell property, mortgage brokers, realtors, sellers, buyers and bankers are all learning new ways to make short sales a possibility and make sure no one gets the short end of the stick.

Assessing an Upgrade

Q: "Mike, I am struggling over the fact that it is a great time to buy but I don’t have any liquid cash to do so. I don’t mean to exploit someone’s financial distress, however, I’ve identified a home in a location I’ve wanted for years that seems to have a selling price created out of urgency. In Provincetown dollars of course it is still pretty high, but manageable for me if I can sell my house and apply the equity. Is it realistic to think that I can sell my property in this market and upgrade to this house in what I perceive as a better location? Should I wait for the house to foreclose?" - Matthew, Provincetown

Thanks Matthew and this is a very good question. Let me start by strongly advising not to wait for a foreclosure. In Provincetown, the foreclosures we’ve seen have not been Earth shattering deals. If you identify a property you like and the seller has disclosed extreme motivation, you are in the driver’s seat for a great deal. Maybe even a short sale. Once the bank takes over, they attempt to hold to their bottom line and recapture some of the expense of the actual foreclosure.

The real estate market remains soft. We are definitely seeing activity but 2007 is in line to be a slower year than 2006. However, with that said, what is selling is property priced according to the market conditions. I’ve said this before and I’ll say it again. Property priced right in any market sells. Priced right does not mean pricing high and it does not mean under-pricing either. 

If you have sizeable equity in your home and you can afford to price it competitively. Then I recommend you go for it. The perceived loss on what you’d want to sell your existing property for in a stronger market will be re-couped in the appreciation of the home in the better location, not to mention the happiness you’ll feel achieving the goal of living in a location you really want to be in.

Consult your realtor and you’ll see that there are many incredible opportunities out there. Go for it and next year you’ll be thankful this week, that you made the move. Remember, in the current market, it is taking 9 months to one year to sell properly priced real estate. Key word…properly priced.

Turning Back the Clocks

On Saturday, November 4, we turned our clocks back one hour giving us an extra hour of sleep.

It is also that time of year when we should change the batteries in our smoke detectors. Bi annual changing of the batteries will ensure that they work when needed and can save a life. Please be sure to check the detector once you change the battery. Especially in today’s environment, you want to be sure you are protected at night when asleep.

It may be wise to also create a fire escape route in case of an emergency. Your household may want to meet and discuss safety precautions such as fire extinguishers, rope ladders in each bedroom that is on an upper level and making sure that windows open and are not painted shut. You never want to think about these things when it is too late.

Also, plan to hold an actual fire drill for you and your loved ones, or roommates. Being overly cautious does not seem too crazy these days.

This is also a time to check your timers for exterior and interior lights. Make sure you adjust the time so your lights go on once it gets dark. You do not want your property sitting in the dark for too long.

We all read the headlines these days and know what’s happening. An ounce of prevention is worth a life in this case. Please be wise and exercise fire safety. Be sure to tell your neighbors and friends. And report any suspicious behavior to the police immediately.

Q&A: Who's Responsible?

"Mike, I rent a house in Wellfeet. My grass is growing really high and my landlord has not trimmed it yet. Isn't this his responsibility?"

Thanks for you letter and firstly, I would check the lease. If it is not clearly defined in the lease you may need to have a discussion with your landlord. Typically, if you rent a house, you, the renter or lessee is responsible for mowing the lawn and trimming the shrubs. And you usually need to have your own mower. When you rent in a multi unit setting, the landlord is responsible for the upkeep of the property. Renting a single family home is much different. Please talk to your landlord as each tenancy is set up differently yet the rules around landscaping are pretty much the same.