Summer, Start Your Engines

Happy Memorial Day week and thus another tourist season is kicked off here on Cape Cod. Since the summer has unofficially started, lets kick it off with a repeat favorite silly closing table from last year.

The real estate market has continued its correction since last Memorial Day when we explored the value of the Pilgrim Monument. I still wonder, how a potential listing price has been impacted in the past year. 

With the market showing a 28% increase in sales in Provincetown for the first quarter 2008, this excitement could be used to market the monument and get it sold. Use the wow factor of the view and privacy. What an opportunity. However, not to be a gloomy gus, with projections of a flat real estate market through the presidential election, how will this impact the value?

Who knows, perhaps some eager real estate developer will see fit to convert it to condos. That could drive a nice price….Can you imagine Monument Heights Condo Asssociation. Hmm. Weirder things have happened.

What about its marketing qualities...well lets see...it does have an incredible view from its yard, of which green grass of any size is a rarity here. There are also stellar views from the top floor, However, the walk up is a killer, deduct for no elevator. It is made of stone, so the structure is solid. However, it can't be demised into condominiums so deduct more from its value. There is ample parking, however you need to climb more stairs to the door. Imagine carrying groceries and perhaps a baby. And lets not even mention the title V. But, owning Provincetown’s own skyscraper? Priceless. 

Of course I jest, and on this Memorial Day week, lets take time to think about those who have passed on before us, both family and friends, soldiers and civilians in wars past and present and the unknown especially those for whom the Pilgrim monument is dedicated.

To all of us who live here year round...have a great season on Cape Cod.... and I’d like to extend a special closing table welcome to tourists and seasonal residents. Have a good summer and remember to be patient and smile.

Meaning Behind 'Floaters' Rises to the Top

This week’s Closing Table is provided by Emily Flax of Provincetown.

Have you ever wondered about the meaning of the blue plaque that is found on many Provincetown homes? Throughout Provincetown, but mostly in the West End, you will find antique homes with a blue and white ceramic tile affixed that depicts a house on a boat.

These homes are known as Floaters. They were built beginning in 1818 on the peninsula that we know as Long Point. Many of today’s visitors are not aware that at one time, a settlement existed on Long Point. There was a thriving community, with a Salt Works being the primary industry. The Light House was built in 1826 and there were windmills, a store, a school, boat landings, and a total of 200 people that lived in 38 houses.

When a large salt deposit was found in Syracuse NY, it essentially put the Long Point Salt Works out of business and eventually in the 1850’s, the settlement was abandoned and the families moved to the mainland. Wood was a precious resource at the time, and rather than just leave their homes, the settlers floated them over the bay on rafts. They were placed on foundations, and many still stand today.

That’s a little Provincetown history for you on the Closing Table.

The 'Skinny' on the Short Sale

This week, the Boston Globe printed an article about the pitfalls of the short sale.

We’ve discussed short sales quite a bit recently and how they can be used to aggressively liquidate real estate in a declining in market.

A short sale, if you don’t remember, is when a bank approves the sale of a property for less than the mortgage principal in order to avoid a foreclosure.

What isn’t known is that short sales are unpredictable, difficult to manage and downright tedious. The short sale process is frustrating to say the least. Bank employees are shuffled around and in most cases, do not really know the process. In some cases, within the final hours, the bank will rescind its approval having put everyone’s hard work to waste.

This happened in the short sale I was recently involved in as an agent. Getting a bank employee on the phone was impossible. Despite efforts of the seller, listing agent, buyer’s mortgage company and buyer’s attorney, the sale took over four months to process. Once all the t’s were crossed and I’s dotted, days before the closing, the bank informed all parties that the short sale was not approved.

If not for the diligence of both realtors, mortgage broker and both attorneys, who all kept a paper trail via email of the bank’s approval months earlier, the sale would not have happened.

This particular transaction closed shortly after. The benefits of the short sale were clear… the seller got out of the mortgage, the buyer stuck it out and now owns property that has already appreciated in a down market. And the bank...they don’t have to spend money to foreclose. 

The short sale is a good tool to use. Just remember that all parties involved need to have patience and keep a record of all communication with the bank.

Shying Away from the Shiny Metal Box?

Last week we answered a letter from a listener in Provincetown who needed some advice on whether or not an air conditioner would attract weekly renters to her condo in the west end. My response prompted the following email from Heather in Provincetown. 

This is an abbreviated version for the limited time we have.

Hi Mike,
As a WOMR listener, I enjoy your show, but don't agree with your recommendation of window unit air conditioning for summer rentals. Many Condo Associations prohibit the installation of these noisy and unsightly appliances.

The constant hum of neighbors' aging air conditioners is something urbanites who frequent our shores like to leave behind. We have the luxury of being able to have open windows allowing fresh air to circulate. Perhaps listeners who are keen on the idea of air conditioning should consider portable models to keep the peace with their neighbors...just my two cents...thank you…Heather

Thanks for your email. You do indeed bring up a legitimate point. One that I fear may not be as important to homeowners attempting to grab rental income. Just this week while I was showing property, the prospects and their agents expressed the need for air conditioning to attract weekly renters. I told them that sea breezes and fans usually suffice, but if this was important, they purchase a new air conditioner that is quiet and to keep it locked up unless needed in extreme heat. They seemed receptive to the idea but what happens after the closing is anyone’s guess. 

I agree that seeing a shiny metal box sticking out of a window is pretty unsightly. New low profile ac’s are smaller and don’t protrude as far out. Most new construction in Provincetown has central air which eliminates the noisy rattle and grinding noise that older ac’s make, annoying neighbors who keep their windows open wanting to fall asleep to the sound of the town.

If the association you live in or next to does not prohibit the use of the air conditioners, and this is important for you. Address your concerns with the association’s trustees.