Selling On Cape Cod

November Market Update

October Review: 

Median Sales prices continue to climb in both the single family and condominium markets and, as a result, we saw a considerable drop in the affordability index for Barnstable County in October.  The inventory of homes dropped less than 2% since September and the current months of inventory, 6.6, is considered a healthy amount in a residential market.  Additionally average days on market increased and percent of original sales price decreased, indicating a better market for buyers.  The strong economic metrics and assurance the Fed will raise rates coupled with booming jobs reports and increasing wages could mean some changes in the real estate market here in Barnstable County.

 

Recent Market Summary

  Aug Sept Oct
Closed Sales 358 370 378
Inventory 2,182 2,291 2,252
Median Sales Price $420K $437K $480K
Avg Days on Market 90 89 98
Avg % of Original Price 95% 95% 94%

 

Featured Search - Condos with 2 beds or more!

Get ready for your photography appointment

with these helpful tips

Making your home photo ready

Photos! Photos! Photos!  Are crucial to attracting buyers to your home and getting them in the door.  Since all of our listings are syndicated to numerous websites it is essential that your first showing (your online photos) are done right the first time.  Here are some tips for sellers to prepare your home for an excellent photography appointment.  

~ Stay out of the shots, and Fido too ~

Family photos on the fridge, stairwell and mantlepiece are necessary to making your house feel like home - YOUR home.  However, potential buyers need to be able to picture themselves in the space, so consider removing some or all of these personal items.  And while photos are being enjoy a nice relaxing walk with the dog (or cat) so the photographer can do their work uninterrupted.

 

~ Arrange furniture for guests ~

We mean a couple of different things here but the main idea is that simplicity is the heart of elegance.  Remove excess furniture and decoration so that rooms feel more open, just like you would for a party.  Set out your patio furniture, create separate sitting areas that feel inviting and intimate (but not cramped).  Here is a nice example of the warmth that a patio set can bring.  47 Asack Drive in South Dennis has a beautiful deck that is even more appealing because your imagination inserts corn on the cob and iced tea.

 

~ Declutter ~

And don't take this the wrong way, we all live busy lives and have that pile of unread magazines on the coffee table.  But it doesn't look any nicer if you just straighten up the edges,  why not get rid of it completely?  Reduction is the most important point here; counter tops, coat racks, end tables, and refrigerators should all be clean and empty.  For a nice touch consider a modest centerpiece as an accent though.  Here is a great example of decluttering at a water view listing, 13 Beachwood Road in Yarmouth.  The shelves are clean and filled with only one accent piece, coat rack is empty and the beds are made without a pile of stuffed animals.

 

 

Check out some of our other blogs on selling your home here and, as always, give the Chatelains a call for all of your buying and selling needs.

September 2018 Market Update

August Review:  The big news here is that inventory continues to grow.  We currently have 6.4 months of single family home inventory in Barnstable County as well as increasing number of homes for sale (labeled as inventory in the table below).  Generally a market with around 5 and 6 months of inventory is considered healthy so we are relieved to see these numbers up again.  We also tend to see a spike in listings this time of year simply because people are done using their summer homes, but we'll have to wait and see if the trend continues.

 

Featured Search: Close to the beach!

What's New in Barnstable County?  Find out here

Recent Market Summary

  June July August
Closed Sales 413 330 358
Inventory 1,992 2,071 2,182
Median Sales Price $438K $440K $420K
Avg Days on Market 95 83 90
Avg % of Original Price 95% 96% 95%

 

Open Houses 7/28-7/29

We have four excellent open houses this weekend.  If you are interested in any of these homes or to learn more about any other open houses on the Cape, contact us today.

 

Saturday 10-12 | 9 River Road, West Dennis

Bring your beach balls...This Cape Cod year-round getaway with proven rental history is turnkey ready for fun with plenty of room for outdoor games. It is being sold furnished along with the booked rentals. It is nestled on a cul-de-sac and features wood floors, three bedrooms, living room with cozy fireplace, nice sized eat-in kitchen, enclosed porch, wonderful deck for barbecues, and large storage shed. The location offers easy access to warm Nantucket Sound beaches, shopping, kayaking on the Swan River, and bicycling on the Cape Cod rail trail. It is well kept, has a newer furnace, a whole house fan, passing Title V septic system, and washer and dryer. This is a true gem.

 

Saturday 10-12 | 42 Pitcher's Way, Hyannis

Quintessential cape escape or year round home that is loaded with nooks and crannies and is centrally located minutes to village center and Nantucket Sound beaches. This solidly built home is charmingly appointed with flexible layout that allows for first floor bedroom. It boasts a front to back living room with fireplace, dining room, kitchen with stainless appliances, den that opens up to the patio, three spacious bedrooms, two full baths and a half bath, full basement, garage and green house for all your plantings. There is room for the whole gang and is offered furnished.

 

Sunday 1-3 | 438 Main St, Osterville

Set yourself apart from the ordinary. This unique & refined home is to be enjoyed in summer and year long. Just minutes to Fancy's Market, library, post office, galleries, coffee & brunch; or to Dowses Beach for sunny walk or cooling dip; or launch a kayak down East Bay to Centerville River. This home is tastefully renovated with versatile floor plan ideal for entertaining. The heart of the home features a family room/kitchen combination that spills onto the large gracious sun room, deck & patio. The living room with lovely bay window is set apart allowing for intimate chats. 2 of the bedrooms each have private baths. There is additional large sleeping areas with half bath for visitors. The home is air conditioned throughout. Plenty of parking for guests. This is what life is all about.

Sunday 1-3 | 1685 Hyannis Road, Barnstable Village 

Been a while since you've been swept off your feet? The wait is over when you see this magical estate on 1.67 acres including a renovated main house with a guest cottage to boot. Gardeners can delight at the darling greenhouse and extant gardens, while industrious agrarian hearts have plenty of room for expansion. And when rain or cold drive you inside from your verdant paradise relish the opportunity to enjoy the indoors. Be greeted by the modern kitchen, the perfect compliment to its vaulted ceiling and wide floor boards of the main house. With a floor plan that balances open and private like no other you will settle into this Barnstable Village paradise like reclining in your favorite chair.  Your imagination will delight when you encounter the outdoor fire pit, travertine patio, gardens, green house and fruit trees. All of these are just a minute to coffee shops, restaurants, post office, galleries, and village market. Recent renovations include new kitchen, baths, windows, furnace, hot water heaters, roof, painted interior and exterior, to name a few. The landscaping is beautiful and allows for simplicity or formality. This is a one of a kind property to be proud of and love. Note: living area includes cottage.

Ask Agnes: Selling and Buying on Cape Cod - Part 3

In this series we examine the process of selling on Cape Cod - and don't worry, we'll get to the buying soon.  This installment includes getting from negotiation to closing.

"Hey Agnes, I finally have a good offer?  What now?"

"Congratulations!  You have been putting up with the inconveniences of showings and open houses and it has finally paid off (for an idea of the process up to this point, check out part 1 and part 2).  Now is when we work with both parties to agree on a contract for the sale.  The truth is that price is only part of what can be negotiated when selling a home.  Other items that we frequently see involved in negotiations are deferred repairs (like aging roofs, windows etc...), septics, and personal property."

"Wait, a buyer can ask me to repair my roof before they buy my house?"

Well they can certainly ask - but the outcome is negotiable.  Let me use an example: your house is on the market for $350,000 and has an aging roof.  A buyer offers $350,000 if a new roof is installed.  After some back and forth both parties agree to $340,000 without a new roof.  In this case the cost of the roof is the negotiating point and the seller will not need to install a new roof before the sale.  We can imagine that this negotiation may have started with a buyer offer of $335,000 (from a quote of $15,000 for a new roof) but the savvy seller found another quote for only $5,000.  The two parties decided to split the difference.  A main point to keep in mind as the seller is how your pricing strategy reflects the 'listing price'.  If your home has a lot of wear and tear, an aging roof, and old windows, but it was priced accordingly, then items like the roof may not be negotiated at all.  You may have seen this in homes listed in 'As Is' condition, meaning the seller isn't willing to negotiate on items related to the condition of the home.  Employing a qualified real estate agent is a great way to worry less about the details of the negotiation (that's our job).  If you are interested in a home that doesn't need anything except to put your feet up and enjoy the water view, check out this property at 13 Beachwood Rd, South Yarmouth."

"That sounds great, but what do you mean 'personal property'"

"Well, often homes are sold empty, but sometimes they are sold furnished or a few items (pianos, pool tables and kids play areas are good examples), can be a part of the negotiation and sale as well.  Negotiations that don't involve furniture or other items of personal property are often smoother.  Believe it or not negotiating several $200 items in a $350,000 sale can literally make a deal fall apart, so it helps to keep the big picture in mind. This is always a sticky situation and we recommend to our clients that the family heirloom french armoire be explicitly excluded from a sale in the listing descriptions."

"OK, we finished negotiating and agreed on terms, what next?"

"Well done.  Negotiating to this point is a challenge, but there is still a lot that needs to happen.  The most important thing to a seller is the home inspection contingency.  In this case the buyer is allowed supervised access to the home where they can have a knowledgeable professional(s) look the house over from joist to rafter.  Sometimes, buyers will pull out of a transaction based on this assessment, or they will attempt to negotiate repairs or a lower price.  Having a real estate agent on your side can help with further negotiation or identify if a contract should be terminated."

"And that's it?"

 "Not yet.  Buyers will often require financing (a mortgage) to buy a home which can take a long time to acquire (45 days or more).  Also appraisals may need to be done, along with inspections, final bills and certificates of compliance from a variety of governmental agencies.  On the seller side most of this time is spent setting up your own move while your agent works to keep everything plugging along smoothly. Finally the house will 'close' when paperwork is signed and the deed is recorded at the registry of deeds."

Thank you Agnes.  As usual we rely on your years of expertise and insight.  Our next installment will involve getting from negotiation to closing.  Feel free to contact us with questions.

Ask Agnes: Selling and Buying on Cape Cod - Part 2

In this series we examine the process of selling on Cape Cod - and don't worry, we'll get to the buying soon.  This installment includes choosing an agent and living with a listed property.

"OK Agnes, I am ready to choose an agent...what should I consider?"

    "Well, a great place to start is with interview questions to ask your agent.  Consider some points in this article on nerdwallet.com and create your questions with the goal of choosing a professional.  We suggest asking, "In which neighborhoods do you primarily work?", "Do you work full-time or part-time?", "Can I hear from your past clients?", and "How many sales did you close last year?".  An agent worth their salt should be able to answer all of those questions satisfactorily. 

    "Keep in mind that many real estate agents are part-timers or hobbyists who participate in very few deals each year.  Of the 2,712 registered agents and approximately 5,325 residential sales in 2017 you can see that 91% of agents on Cape Cod participated in fewer than one deal per month.  While we don't snub our noses at anyone working hard to make a living in a competitive industry, we strongly recommend you consider agents who have the experience and expertise that comes from doing dozens of deals each year, rather than just a handful, or none.  It may feel good to give a close friend from your book club a chance to sell your house but when it comes to six and seven figure transactions we recommend hiring professionals.  Think of it like this: chances are that the other party will be represented by one of the agents in the top 1% anyway, so set yourself up for success and make sure that your agent is not outmatched even before you start negotiating.  We'd also like to point out that the Cape Cod Chatelains are in that top 1% category (we are actually in the top 0.3%)."

"Really Agnes?  It's just a stats game?"

    "No and stop interrupting.  You have to be sure you connect with, like, and trust whomever you choose to work with.  Agents are so plentiful that you have a lot of choices - be sure you will want to work with this person, or these people for a while.  The process of selling your home can take months, and sometimes years depending on the client's needs and expectations.  Keep in mind also that we aren't just talking about how long your home spends on the market.  A good agent is going to work with you from start to finish and this process can be timely, as should any major transaction.  And be sure to ask for references - we are proud that an average of 88% of our business comes from repeat or referred clients who are always happy to speak with folks who are considering us to represent them."

"Thanks Agnes.  Now to actually having a house listed...what is that like?

    "Well again this depends on your current situation.  Needless to say it can be easier to sell a second home if it is not your primary residence because it is far less disruptive.  But let's consider a home that is occupied full time for this exercise.  First, there is generally a lot of activity when a house first hits the market.  The Cape market is heavily seller favored so there are buyers that are waiting for houses to pop up.  Literally we get calls within the first 20 minutes a listing activates.  Furthermore we schedule two different types of open houses as soon as is feasible for the seller.  First we schedule an agent open house during a work day so that local agents can preview the property.  Soon thereafter we do a weekend open house for the public so that anyone and everyone gets a chance so see the home.  It helps tremendously if the home is in tip-top shape for both of these events - clean desks, no drying dishes, fresh towels, swept, mopped, dusted, you get the idea.  From then on showings are as requested.  Keeping the house tidy and clean during this time helps it show well.  Also we love chatting with our clients about black-out times when showings are not possible (i.e. dinner or Sundays 1-3), as well as the best way to get in touch when needed.  Needless to say, when a house is on the market it can feel disruptive and intrusive to have strangers in it.  Setting some black out times is a great way to ensure your home still feels like your home, and we are happy to work with clients on which times make most sense (blocking out every day from 4:30-8 may be impossible when accommodating work schedules for example).  Additionally we always recommend that sellers leave for showings, it reduces stress for all parties and allows the buyers to make informed decisions."

Thank you Agnes.  As usual we rely on your years of expertise and insight.  Our next installment will involve getting from negotiation to closing.  Feel free to contact us with questions.

Ask Agnes: Selling and Buying on Cape Cod - Part 1

    We're back for another installment of 'Ask Agnes'.  Recently we have had a lot of interest regarding the process of selling your home on Cape Cod.  We'll start this series with the process of selling and be sure to hit relevant points to consider when listing your property including when, with whom, and why.

"Hey Agnes, should I sell my home and when should I put it on the market?"

    "'Should I sell' is probably the most important question to consider for any potential seller.  Before considering a move, research the time and cost for changing your current home into one more suited to your needs.  If you love your current location but need an extra 200 sq ft then an addition or reconfiguration may be a better idea than a move.  For more information on choosing a contractor check out our blog - 5 Things to Consider When Hiring a Contractor.  However a job relocation, undesirable location, or already maximized space in your current home are all reasons that necessitate a sale.  

   "Once you have made the decision to sell, timing can be critical.  Luckily a lot of the Cape Cod market has such low inventory right now that a home priced correctly for its condition and features can sell quickly regardless of the listing start date. Additionally we ran some numbers for the previous few years and there is no significant correlation between how close you get to your original asking price and when you list your house.  However, houses that list in the early spring and late summer spend less time on the market.  And the less time your home spends on the market leads to fewer mortgage payments, electric bills, insurance (etc...) so ultimately, more money in your pocket."  

"What can I do to prepare my home (and myself) for listing?"

    "Make a plan for the future: The most important question is where will you go once your home sells?  If your home is not a primary residence then this question may already be answered, but if your home is rented it is important to make sure tenants have somewhere to go as well.  Another thing to consider is your financial situation and how long you can afford to wait for your house to sell.  The reality is that some properties take longer to sell than others but be sure you have enough money to pay all mortgages, taxes and repair bills that may come up.  Just because you are selling doesn't mean you are not responsible for putting on a new roof or repairing damage due to flooding. Working with a local agent on a pricing strategy to meet your timeline is critical.

    "Prepare the property:  While squeaky hinges and jiggly doorknobs are things we all deal with in our own homes, now is the time to address each item on the punch list (a great example of a well prepared and kept property is 9 Osborn Snow Dr, East Dennis).  You would laugh at how often some of these items are on the original inspection report from years (sometimes decades) ago when the owner bought the house.  But don't feel bad, this is the reality of owning a home (and I have a few of these items still on the list too...Ed...).  Also cleaning and appropriately staging your home highlights its best qualities.  A pile of folded clothes on the bed during a showing is not as detrimental as a three foot stack of newspaper clippings on a cluttered and dusty desk.  Unique furniture, expensive menageries, and unfinished projects don't sell houses.  Let the best of your home shine through (and finish that 10 year old jigsaw puzzle in your new house).  The same goes for landscaping.  Trim the hedges, cut the grass, weed the garden, mulch the roses.  Check out some suggestions in an older blog on exterior improvements.  Curb appeal is the second impression of your home (the first is the photos!) and cannot be underestimated in importance."

Thanks Agnes, as always we appreciate your years (but not too many) of insight into the local market.  For the next installment we'll be examining how to choose a real estate agent and what having your house listed is actually like.  As always don't hesitate to contact us with questions about all of your real estate needs.

Market Trends and Analysis - Part 4

    Our goal in this series is it to help you understand how we interpret markets on the Cape and how this informs our recommendations when developing pricing strategies.  For our final installment we will evaluate the Cape Cod market for the past 3 years (starting in October 2014).  

    First the inventory of single family homes has been dropping over the past few years.  This factor coupled with rising median sales prices and fewer days on market indicate an accelerating market in Barnstable County.  Another interesting factor to note is the significant decrease in homes for sale over the past year and that 2017 did not show as stark a seasonal bump in inventory as is typical.  Additionally the affordability index is trending towards less affordability on Cape Cod.  

    What's our take? If you are thinking of buying, our advice is not to wait.  Interest rates are at historic lows and, if the current market trend continues, homes will continue to become gradually more expensive.  The long-term news isn't all bad, though - there are numerous local, state, and federal initiatives in the works which plan to ease the affordability pinch here on the Cape.  For more information, check out this local housing forum featuring none other than our own Ned Chatelain.  But you don't have to wait for new programs to buy something - give us a call and we can put you in touch with the top-notch mortgage brokers we work with who can walk you through low-downpayment and no-downpayment mortgages, first time home-buyer programs, or local lending incentives that can make the difference between buying this year or buying in three years.

     On the other hand, If you are thinking of selling, this is good news for you.  The Spring is an excellent time to get your house on the market and winter is the best time to get it ready.  Give us a call today if you are interested in a home valuation and comparative market analysis.

Market Trends and Analysis - Part 3

    Our goal in this series is it to help you understand how we interpret markets on the Cape and how this informs our recommendations when developing pricing strategies.  In this installment we will be evaluating a specific market - single family homes on the water, Barnstable to Orleans (Homes on Water Bodies & Homes on Beaches). Immediately we notice some relevant trends.

    First the median sales price for these homes is much higher than the Barnstable County median at $1,200,000, yet take far longer to sell with a median days on market of 95 (and an average of 231).  To be fair these are expensive waterfront homes, occupy a smaller market niche, and ultimately take longer to sell.  We also see, based on the bar graph at left, that the group of fastest selling homes (43 days or less) sell for 94% of the asking price - as compared to Brewster in Part 2, those fastest selling homes did so in 25 days or less with 99% of the asking price. 

    Getting back to the waterfront case study, the homes that take longest to sell require price reductions on the order of 12% off the original asking price and only sell for 79% of the original asking price.  What we see here is that people tend to price waterfront homes very aggressively (high) and require significant reductions before they sell.  Furthermore these homes are sold for far less than the original asking price as well as the current asking price - something to think about if you are in the market for a $1,000,000 home on the water.  Consider also that many of these sellers have a price in mind and are willing, can afford, and believe that waiting will get their asking price; however, as is evident in the data, waiting longer does not return a higher sale price.

    We discovered one more interesting thing here.  When analyzing certain markets it is useful to know how square footage affects sale price - and it may not be what you think.  In this market (and this is not always the case) the larger the home the fewer dollars per square foot ($/sqft) it returns.  Using the trend line on the graph we would predict that a 9000sqft home would sell for about $500/sqft whereas a 1000sqft home would sell for closer to $600/sqft.  Mind this is a loose relationship but it is a trend that reappears in many markets.  The takeaway?  Larger waterfront homes are having a harder time selling than smaller ones - price reductions may be warranted earlier in developing a sales strategy.

  Check back next time for our final part in the series: some long term analyses.

Market Trends and Analysis - Part 2

    Our goal in this series it to help you understand how we interpret markets on the Cape and how this informs our recommendations when developing pricing strategies.  In this installment we will be evaluating a specific market - homes in Brewster between $300k and $500k.  We chose this market because it includes the current median sales price in Barnstable County of $380,000. 

    From August 1, 2017 until October 26th (when we ran the numbers) only 25 homes have sold in this price range in Brewster.  Remarkably, the median sales price is ...$380,000, and the average days on market is 66.  As a result we note that in the past three months houses in Brewster sell more quickly than the average in Barnstable County.  Furthermore Brewster shows signs favoring sellers.  We see this in the fact that homes sell relatively quickly and return a higher % of original list price than Barnstable County overall (please see Part 1 for this graph and explanation).  When looking at the last 3 weeks we also note that fewer price reductions are needed before homes are selling.  Other points of interest that we consider - though don't have time to discuss fully - include absorption rate, total listings and withdrawn listings.

    We look forward to introducing part 3 of this series when we compare markets with specific features (water!).  If you are curious about how your home will compete in your local market please contact us today or click here to get a home valuation.