Steve's Blog

Falmouthport: Money in the Bank is a Great Thing

Steve Clay (Century21 Cape Associates) — Fri, 30 Oct 2009 16:39:10 -0500

A maintenance reserve: What an idea!

In the midst of our country's major financial crisis and with daily news casts about both public and private credit debt, it is refreshing to see a condominium community that has wisely put money aside since its inception. So while other complexes defer projects due to a lack of funds, FalmouthPort in Falmouth, MA just goes on about its business.

Falmouthport is a waterfront condo community on Cape Cod. Since it was built in the late 1970's, the Association Board with its professional management company, have managed the property in a highly professional manner.

Three points need to be highlighted:

1. The Board knew from day one that even though the complex was new, the day would come when repairs would be needed.

2. A Long-range Repair and Replacement plan was adopted and money was set aside.

3. The funds were invested conservatively. When stocks were rising wildly, the fund did not grow as fast as some would have liked. When the market tanked, however, the fund was barely touched.

What spurred this entry? Today the main road was repaved. No, there was not just a top coat applied; the old road was removed and a new one put in its place. And most important: there was no special assessment.

Lobster on the Lawn

Steve Clay (Century21 Cape Associates) — Thu, 27 Aug 2009 07:47:00 -0500

Now that summer is winding down, it's time to do all those things that you wanted to do but somehow didn't get to. Although many of the summer activities will soon give way to special fall events, there is still time to take advantage of some summer activites.

Click here for information on Lobster on the Lawn Mondays in Falmouth, MA. There's still time.

An Overview of the 2009 Falmouth Condo Market (Through July 31)

Steve Clay (Century21 Cape Associates) — Sun, 23 Aug 2009 21:55:16 -0500

Dec. 31, 2008 May 15, 2009 July 31, 2009

Units on the market 56 76 68
Average sales per month 4.5 3 4
Our absorption rate* 12.4 Months 25.3 Months 17 Months

*Absorption Rate: The number of months that it would take for all condos presently on the market to be sold. A balanced market is around 5 months.

Sales % of original list price 85.3% 85.2% 89.5%
Sales % of list price (at time of sale) 92.7% 94.57% 94.1%

Here are some statistics by price range:

0-299,000 300,000-399,000 400,000-499,000 500,000+

Listings 14 19 18 13

Sold (6 mo) 9 6 4 5

Pending 5 2 1 1

Average Days on Market (sold)

188 257 92 267

Positives:

•1. The fact that the number of condos listed for sale is down 11% is a good sign.

•2. The absorption rate is also down.

Negatives:

•1. The average sales price is down 10% from the same period a year ago (2008: $407,812; 2009: $367,576).

•2. In the past six months, 53 condos have come on the market while just 22 have been sold.

Conclusion: The continued downward pressure on sales prices means that the buyers' market continues.

Tomorrow I will post the statistics for the three upper Cape Cod towns combined: Falmouth, Mashpee and Bourne.

Downward Pressure on Prices Continues

Steve Clay (Century21 Cape Associates) — Wed, 15 Jul 2009 06:56:48 -0500

The downward pressure on the sales prices of Cape Condos continues as the challenges of getting financing continue.

The very same condo that I mentioned in May had a new buyer and a new lender and fell apart again at the last minute. This time it was about the buyer's income. Needless to say, the bank (in this case Citizens Bank) had preapproved the buyer, received all the information requested in a timely manner, and gave no indication of a problem until the day of the final commitment when they issued a "declination letter."

Another condo in a very well managed, well funded complex that has never had a special assessment, is under agreement with a strong buyer. The buyer is putting 20% down. Yesterday, the date of the final commitment, the lender (Provident) could not meet the original commitment date because their underwriters are backed up. The commitment is now due next week. Stay tuned.

Needless to say, this continues the downward pressure on condo prices because buyers are reluctant to get involved.

On the bright side, however, I do have a closing today on a very nice condo. Bank of America is providing the financing for this one.

Condo Financing Faces New Challenge

Steve Clay (Century21 Cape Associates) — Thu, 28 May 2009 07:52:02 -0500

We recently had the sale of a condo at Sea Oaks in Mashpee, MA fall apart over the condo associations refusal to answer four questions that required an opinion or judgement.

The mortgage provider had sent a form to the association's management company, American Properties Team of Woburn, MA. American Properties provided a comprehensive form that failed to answer four questions. Neither the lender or APT would budge.

There are several questions that I am attempting to get answered:

1. Can a condo be purchased with an FHA backed loan at a property managed by APT or any association whose attorneys refuse to allow them to answer questions requiring an opinion? (i.e. is the maintenance reserve adequate?)

2. Do all lenders use the same form?

3. Which lenders will accept the pre-prepared form provided by the association?

I will keep you updated.

Buyers Still in Control of Falmouth, MA (Cape Cod) Condo Market

Steve Clay (Century21 Cape Associates) — Sun, 17 May 2009 17:34:33 -0500

An Overview of the 2009 Falmouth Condo Market (Through May 15)

December 31, 2008 May 15, 2009

Units on the market 56 76
Average sales per month 4.5 3
Our absorption rate* 12.4 Months 25.3 Months

*Absorption Rate: The number of months that it would take for all condos presently on the market to be sold. A balanced market is around 5 months.

Sales % of original list price 85.3% 85.2%
Sales % of list price (at time of sale) 92.7% 94.57%
Median Sales Price $339,950* $278,750*

*The median sales price for the first 4.5 months of 2009 is down 18%

Here are some statistics by price range:

0-299,000 300,000-399,000 400,000-499,000 500,000+

Listings 18 22 21 13

Sold (6 mo) 10 3 1 4

Pending 0 2 2 2

Average Days on Market (sold)

246 195 13 470

Conclusion: Since there have been more condos coming on the market than have been sold, there is still downward pressure on prices and the inventory remains high. Buyers are clearly in control and will stay in control until there are three consecutive months with more residences being sold than come on the market.

The key to selling in this market is to price the property correctly.

Get on Stage! It Really Works.

Steve Clay (Century21 Cape Associates) — Mon, 06 Apr 2009 22:00:50 -0500

This one bedroom, free standing condo had been on the market for nearly a year. The sellers decided to enter into a short-term lease with a couple who was renovating their home as long as they could continue to market the property. The tenants moved in and tastefully decorated their temporary home. The next buyers who came in bought it!

Instant Convert

I became an instant convert. The current market certainly requires that homes be priced properly and effectively marketed, but staging seems to have a larger role than ever before. Statistics show that staging a home can increase the selling price by up to 7%, but there are still skeptics everywhere.

HGTV states on its website that "in a cold market, a properly-staged home can sell in half the time." It now offers several series that focus on staging and it will have a separate staging special, "Staging Secrets and Myths," on Sunday, April 12 at 8:00 PM.

Clutter, Clutter Everywhere

Occupied homes present a unique challenge. It is the opposite of home decorating. A home decorator helps home owners to personalize the home to their own tastes and needs. A home stager, on the other hand, depersonalizes the home so that buyers can more easily visualize themselves in the space.

Since this can be threatening to sellers, and therefore dangerous to the welfare of the real estate agent, I have made special pricing arrangements with talented stagers to provide 1.5 hours with my sellers to provide them with a "to do" list. I provide this at my expense and use it as an incentive to secure listings.

For the most part, it's simply a case of "packing now" rather than waiting until the house is under agreement. In other cases, it requires some serious sprucing up. In either case, the result has been very encouraging.

Painting on a Blank Canvas

Vacant homes and condos offer a unique opportunity. Local furniture stores will, for a fee, stage a home as long as it is not occupied. I recently listed an updated, adorable 2 bedroom 1056 square foot ranch condominium that was vacant. The first two open houses and several showings resulted in two primary comments: 1. I'm not sure my furniture will fit in here; 2. Since it was built in the late 70's, it's too old for me.

Bring on the Stagers!

I called a stager and told her that I wanted to give buyers an idea of the real size of the rooms and to make the home feel more current. The owners agreed to a two month staging agreement and the furniture was delivered.

The results have been amazing. The most enjoyable aspect for me has been seeing the look on the people's faces as they entered the condo. Of course, an offer will be even more enjoyable.

You can view the staged condo and take a virtual tour at www.273seawardbend.com.

A Referral for a New Orleans C21 Agent

Steve Clay (Century21 Cape Associates) — Wed, 04 Mar 2009 16:51:44 -0600

I have a client who is going to be working on an advanced law degree at Tulane University and would like to purchase a home in either the Garden or Uptown sections of New Orleans. If you work in that area or know someone to whom I could refer this person, please let me know as soon as possible. The client will be visiting Tulane the week of March 9.

Thanks.

Winter Just Keeps on Giving

Steve Clay (Century21 Cape Associates) — Mon, 02 Mar 2009 18:35:52 -0600

We had another winter storm today, and although we did not get the foot of snow that some off-Cape communities received, we got a mix of ice and snow that made the roads quite treacherous. The good thing about a day like today is that it creates some unplanned "free time" to get some nagging projects done.

So what project did I get done: I prepared my 2009 Boston Red Sox schedules for mailing. Even with a winter wonderland outside, the home opener is just 34 days, 17 hours, and 35 minutes away (as of this writing). There is hope!

4 Great Reasons Ray Romano Would Buy a Condo on Cape Cod!

Steve Clay (Century21 Cape Associates) — Fri, 27 Feb 2009 20:53:20 -0600

You're probably asking yourself, "why in the world would comedian Ray Romano would ever consider buying a luxury condo in Cape Cod?" First of all, Mr. Romano is no stranger to Cape Cod. As a matter of fact, Mr. Romano was the Celebrity Guest Conductor for the 22nd Annual TD Banknorth Pops by the Sea concert back in 2005. Need more reasons why you might see the "Everybody Loves Raymond" guy purchase a Cape Cod condo? Take a look at...(read the rest of this entry)

Golf on the Cape in February?

Steve Clay (Century21 Cape Associates) — Wed, 25 Feb 2009 06:05:04 -0600

I love Cape Cod and I love golf. In most years, "winter golfers" who have all the cold weather gear can get out once or twice during January and February. Not this year! Between snow and cold, my clubs have been stored away.

Today it's going to be sunny, 37 degrees, with no wind. To those of you in warmer climates that may seem unbearable, but to those of us with pent up golf demand, it's worth a shot. Falmouth Country Club here we come!

Isn't it amazing what you can do when you have to? It's kind of like real estate...

Three Questions Buyers Must Answer

Steve Clay (Century21 Cape Associates) — Fri, 06 Feb 2009 09:45:37 -0600

Now that 2008 and the elections are behind us, we are all trying to determine how best to deal with the challenges that now face us. As is always the case, the challenges differ for each of us and the actions that we must take differ as well. This is never truer than in real estate.

It is safe to say that everyone now agrees that we are in a buyer's market. The debate, however, is whether this is a good time to be a buyer. The answer is "it depends." It depends on the buyer's personal goals and financial readiness. There is no question that the large inventory, the drop in prices, and the low interest rates point to "yes." There are three questions each buyer must answer before even thinking about buying:

1. How strong is my credit history?

2. Do I have sufficient cash to cover a down payment and closing costs?

3. Am I confident that my job will not be eliminated?

A "yes" answer to the above three questions would mean that this may in fact be a very good time to buy.

2008 Saw More Condos Sold Than Listed on Upper Cape Cod

Steve Clay (Century21 Cape Associates) — Wed, 04 Feb 2009 11:08:32 -0600

The good news for condo sellers on the upper portion of Cape Cod, MA (Falmouth, Mashpee, and Bourne) is that more units were sold in 2008 than were listed. This is a positive trend when compared to 2007. The bad news, however, is that prices have dropped.

The following chart shows the listings/sold comparison for both the upper Cape and the Town of Falmouth for both 2007 and 2008.





2007	Upper Cape		Falmouth
	Listed	Sold	Listed	Sold
January	8	17	2	3
February	0	11	0	2
March	11	21	2	7
April	18	15	12	3
May	17	17	2	2
June	11	27	2	10
July	20	13	3	1
August	19	18	5	5
September	24	16	6	4
October	47	14	10	4
November	14	20	2	7
December	16	12	3	1

TOTAL	205	201	49	49


2008	Upper Cape		Falmouth
	Listed	Sold	Listed	Sold
January	7	12	3	5
February	11	16	2	5
March	3	17	0	1
April	13	14	3	4
May	6	27	2	6
June	15	17	3	4
July	21	21	7	5
August	25	17	9	4
September	18	17	7	6
October	15	18	6	8
November	14	9	8	4
December	10	9	3	2

TOTAL	158	194	53	54

2008 Falmouth Condo Market Statistics

Steve Clay (Century21 Cape Associates) — Tue, 27 Jan 2009 16:04:53 -0600

An Overview of the 2008 Falmouth Condo Market

July October December

Units on the market 55 55 56
Average sales per month 3.7 3.4 4.5
Our absorption rate* 15.3 16.2 12.4

*Absorption Rate: The number of months that it would take for all condos presently on the market to be sold. A balanced market is around 5 months. This is down from 18 months in May.

Sales % of original list price 82.3% 85.3% 85.3%
Sales % of list price (at time of sale) 90.62% 92.5% 92.7%
Buyers are still more demanding the longer a unit is on the market.
Average Sales Price declined $26,002. 2007 - $414,605; 2008 - $388,603

Here are some statistics by price range:

0-299,000 300,000-399,000 400,000-499,000 500,000+

July/Oct/Dec July/Oct/Dec July/Oct/Dec July/Oct/Dec

Listings 15 /16/15 22/17/16 8/14/13 9/6/7

Sold (6 mo) 12/9/10 2 /10/8 2 /5/7 6/5/1

Pending 1/3/0 6/3/2 5/6/3 3/0/0

Average Days on Market (sold)

227/235/272 181/186/236 466/221/128 341/348/649

What is selling?

Conclusion: The market is still the same. Buyers are clearly in control and will stay in control until there are three consecutive months with more residences being sold than come on the market.

The key to selling in this market is to price the property corr

Keep the Spirit

Steve Clay (Century21 Cape Associates) — Thu, 25 Dec 2008 12:34:05 -0600

Cape Cod is a magical place in any weather. Here is a view from the clubhouse deck at FalmouthPort on Saturday, December 20. By the way, this is a color photo.

Less than a week later, the snow is gone and this is the view at Falmouth Heights Beach on Christmas morning.

May the spirit of Christmas - Faith, Hope, Joy and Love - be with you today and throughout the coming year.

The Season for Predictions and Resolutions Is Almost Here!

Steve Clay (Century21 Cape Associates) — Mon, 22 Dec 2008 16:39:44 -0600

Starting the day after Christmas, attention will focus on the new year. With this, both resolutions and predictions move to center stage.

Since the market has slowed lately (both seasonally and economically), I have been spending a great deal of time preparing for 2009. New technology, a new "niche" website and blog, a new contact management program, adding a new "farm," a new education/coaching program, and developing some new twists on old marketing schemes are all figuring into my 2009 plan. I have also been analyzing what worked in 2008 to determine whether it stays or goes in 2009. But I'll write more about these items over the next few weeks and hope that you will share your plans as well.

I'm also going to save my Predictions and Resolutions for later. Frankly, the writing over the next few days will help to crystallize all the ideas that have been bouncing around my head into solid goals.

So here are a few pluses and minuses that I think we all need to consider in our thinking about 2009:

PLUSES

Low interest rates
A Large Inventory
Pent-up Demand
Investors seeing real estate as the "investment of choice"

MINUSES

Buyer Fear of the Unknown (Economy; Job Loss)
Tighter Credit Guidelines
(On Cape Cod) Springtime Listing Flood
Continued Foreclosures (in spite of the Federal bailout)

There is a lot to think about. The most important consideration for everyone who wants to have a good year in 2009 is this: BE PROACTIVE. Anyone who sits around and waits to see what happens is bound to be disappointed.

Your thoughts and comments are welcome!

The Interest Rate Situation (as of this minute)

Steve Clay (Century21 Cape Associates) — Wed, 10 Dec 2008 16:10:04 -0600

Numerous people have asked me about the possible lowering of the 30-year fixed interest rate to 4.5%.

Here is what I have learned this week:

The mortgage industry is lobbying congress to lower the rate to 4.5%.
This was leaked last week and the Wall Street Journal picked up the story.
It is NOT a done deed and may never be.
Questions: Will it be for all buyers, re-financings, first-time buyers, principal residences only? No one knows.
Several people I know who could have locked interest rates last week at 5.25% but chose to wait, have now lost that window of opportunity as the rates have crept up again.

Two other bits of news that may be of interest:

Debt to Equity Ratio: Effective January 15, 2009, the TOTAL debt to equity ratio will be 45%. This means that all monthly debt payments (house, car, credit cards, etc) cannot exceed 45% of monthly income. Until then, the ratio can go as high as 60%.
The down payment on 2^nd homes will go from 10% to 15%.

Any buyer who has been pre-approved will have to be re-approved after January 15 using the changes mentioned above.

Now for my disclaimer: This is the situation as I understand it today. PLEASE check with a mortgage provider before taking any action.

Oh the Things That We Do!

Steve Clay (Century21 Cape Associates) — Fri, 05 Dec 2008 14:45:23 -0600

It has been a challenging year and every Realtor has had to put out extra effort just to keep up. Every sale this year has been unique and many have required something that would normally not be considered part of a Realtor's job. Here are the highlights of my list:

Helping an elderly seller burn off the gas in an undergroud tank so that it could be hauled away before the closing.
Replacing rotted floor boards and painting a deck for an elderly client.
Removing a stump (at the buyer's request).
Raking leaves and cutting the grass to make a "distressed" property look better.
Hauling away trash (on several occasions).
Conducting a combined open house and art sale
Conducting a combined open house and antique sale

And this does not take into account that the average buyer is looking at 18+ houses before making a decision.

It might make interesting reading if some fellow realtors would share their most unusual "Extra Service" from 2008. I'm sure that my list pales in comparison to many.

So, You Think Your World is Upside Down!

Steve Clay (Century21 Cape Associates) — Mon, 10 Nov 2008 18:23:58 -0600

This is a picture of the Wonderworks building that I have been passing several times a day as I travelled between my hotel and the National Association of Realtors Convention in Orlando. I couldn't help but make the mental comparison between the "upside down building" and the wacky real estate market in which we are currently operating. After listening to some of the best speakers in the real estate industry, there are two thoughts that bubble to the top:

If you think that you have it bad, look around. There is someone worse off.
If you can make it in this environment, you'll be awesome when things turn around.

As hard as it may be at times, keep your positive outlook and try to spread it to others. Who knows, if you focus on being a positive influence on others, you may sell an extra home or two.

"Is Now a Good Time to Buy?"

Steve Clay (Century21 Cape Associates) — Sun, 09 Nov 2008 07:48:14 -0600

People keep asking me whether this is a good time to buy. I am presently with over 20,000 of my colleagues at the National Association of Realtors Convention in Orlando and that topic has come up in numerous sessions.

David Knox, a well-known real estate expert, speaker and coach said it this way: "In three to five years, people are going to look back on this time period and say ‘I wish I had bought back then."

Here's why:

Inventory is high
Prices are low
Interest rates are historically low
Sellers are motivated
There is abundance of bank-owned property
Banks ARE making loans to qualified buyers
For first-time homebuyers, there is a $7,500 tax credit from Uncle Sam

As for Cape Cod, this time of year is especially favorable for buyers. Many sellers have decided to sell and do not want to carry the property over the winter.

Can You Sleep in Your Portfolio?

Heck, your portfolio may be keeping you from sleeping at all! If you have cash or good credit, and are looking for a solid investment, real estate is once again a good buy. Besides, you can't spend summers and weekends in your stock certificates.

Fellow blogger Ginger Wilcox of Marin County, CA said it even more directly. Here's the link to her blog on the subject: http://www.blogbythebay.com.

Have a great day :)

This 3 bedroom, 3.5 bath condo in a Cape Cod waterfront community is priced under $300,000. Check it out at http://209vineyardgate.com.

Live from Orlando

Steve Clay (Century21 Cape Associates) — Wed, 05 Nov 2008 16:33:12 -0600

I have just finished the first day of the Accredited Buyer's Representative classthat I am taking as a preliminary activity to the National Association of Realtors convention that gets under way officially on Friday. Last year in Las Vegas, the NAR convention served as a springboard to what has been a surprisingly good year. Needless to say, I'm hoping that this year's event is equally helpful.

I am taking the ABR class for two reasons. First, having the certification will add more credibility to my marketing efforts. Second, and more important, is the fact that over 60% of my sales this year have been with buyer clients. This is the exact opposite of what my business plan called for. Since I believe that 2009 will be much the same as 2008, this class should be helpful to me.

"Knowledge vs information." One thought (among many) that I have taken from today's class is the concept that even though buyers can get an infinite amount of "information " from the internet, we as Realtors can help them interpret the information in the context of our local markets because of the "knowledge" that we bring to the table.

I'll write an update each day of the conference and will highlight which sessions I attend that especially meaningful. If there are any topics that you would like me to address, just let me know.

Cape Cod Absorption Rates Continue High

Steve Clay (Century21 Cape Associates) — Tue, 28 Oct 2008 06:42:08 -0500

Even though there have been 391 condo sales in the past six months on Cape Cod, the number of new listings continues to out-pace the sales. As a result, the number of months it would take to exhaust the current inventory (absorption rate) remains high. The rate in a "normal" market would be approximately five months.

What does this mean? It means that we still have a buyer's market and there a many good deals available.

Town Listings Sales 6 Months Absorption Rate

Barnstable 146 46 19

Bourne 50 13 23

Brewster 74 32 14

Chatham 33 7 28

Dennis 95 36 16

Eastham 34 3 60

Falmouth 57 30 11

Harwich 57 10 34

Mashpee 118 59 12

Orleans 37 19 12

Provincetown 228* 67 16

Sandwich 35 7 30

Truro 60 13 28

Wellfleet 28 2 84

Yarmouth 104 45 14

*Includes approximately 50 timeshares

Cape Condo Market Leveling Off

Steve Clay (Century21 Cape Associates) — Wed, 15 Oct 2008 20:10:28 -0500

In July I posted the statistics that demonstrated the current health of the Condominium market in Falmouth, MA (Cape Cod). Here is an update of the same statistics:

July October

Units on the market 55 55
Average sales per month 3.7 3.4
Our absorption rate 15.3 16.2

(The number of months that it would take for all condos presently on the market to be sold) A balanced market is around 5 months. This is down from 18 months in May.)

Sales % of original list price 82.3% 85.3%
Sales % of list price (at time of sale) 90.62% 92.5%
Buyers are still more demanding the longer a unit is on the market.

Here are some statistics by price range:

0-299,000 300,000-399,000 400,000-499,000 500,000+

July/Oct. July/Oct. July/Oct. July/Oct.

Listings 15 /16 22/17 8/14 9/6

Sold (6 mo) 12/9 2 /10 2 /5 6/5

Pending 1/3 6/3 5/6 3/0

Avg Days on Mkt (sold) 227/235 181/186 466/221 341/348

What is selling?

Conclusion: The market is still the same. Buyers are clearly in control and will stay in control until there are three consecutive months with more residences being sold than come on the market.

The key to selling in this market is to price the property correctly.

Condo Websites

Steve Clay (Century21 Cape Associates) — Tue, 30 Sep 2008 20:49:32 -0500

I have started taking the Michael Russer Internet Dominance program and am interested in seeing some good websites that focus specifically on condos. I am a second year agent on Cape Cod and have discovered that many agents here prefer to specialize in the second home market because of the higher sales prices. Personally, I think that many empty nesters and first time home buyers are prime candidates for condos and they are not getting the service they need. If you have a website (or know of one) that is successful in your area, please let me know. I would love to check it out.

Moving...A Refresher for Realtors

Steve Clay (Century21 Cape Associates) — Fri, 18 Jul 2008 09:36:17 -0500

Well, my wife and I have just downsized and moved all our earthly belongings (those that we wanted and the kids did not) from Springfield, MA to Falmouth, MA. Even though we had movers do the bulk of the heavy work, the two or us are exhausted and we are now living with boxes and a cellar that you have to manuever through sideways.

When we congratulate our buyers at the closing and wish them well, we sometimes forget what lies ahead. Maybe realtors should move every so often just so we can keep in touch with what our clients are experiencing.

Oh well! Back to the unpacking.