With over 20 years experience in the
Vineyard Real Estate market in various
capacities, I have seen a strong market
with appreciation levels in the 20-30%
range as a normal occurrence with some
key properties in high demand areas
enjoying even higher gains.
It has not been unusual for our clients
to enjoy profits in the hundreds of
thousands and in some cases millions
of dollars within a very short period
of time. The market conditions which
supported these levels of appreciation
included a combination of factors such
as supply and demand, interest rates,
national/ world events (socio and economic),
and local rental market trends to name
a few.
This quick guide was created to help
you get all the facts about Buying and
Selling Real Estate in Martha's Vineyard
Market.
Current Housing Inventory
A key trend that we have noticed is the
sudden rise in inventory from less than
even a year ago. With a historically consistent
inventory of homes on the market in our
multiple listing database in the low 300's
we now have close to 450 homes on the market.
Is the Vineyard Housing
Bubble about to Burst?
No. My 20 years of experience
indicate otherwise.
What we are seeing is a knee jerk reaction
by some seller's who assumed that the
slight bump up in the prime in late summer
was an indicator that the rates were going
to go thru the roof like they did in the
late '80s.
Though the Fed rate has continued to move
up slowly, this has not had an immediate
impact on mortgage rates and while the
rates have increased a little there are
still some very attractive programs available
for investors in this market. Our office
still has an inventory of highly qualified
buyers.
CONFIDENCE IN THE
MARKET!
My confidence in this market is derived
from being involved in the market for
over 20 years during which I have been
able to observe and analyze a variety
of trends.
This confidence is also enforced by looking
at local indicators such as Land Bank
income, sales data and the stength of
the 2005 rental market.
LAND BANK INCOME
Land Bank fees (a 2% public surcharge
on most real estate transactions)
for 2005 are $11,406,000. significantly
outpacing those collected for
2004 - $9,870,857.98.
SALES DATA
Sales figures for the second quarter
2005 show a 30% increase in the
total number of sales when looked
at in comparison to the same period
during the past 5 years.
Strength of 2005
Rental Market
While off to a slow start in Q1 of 2005,
a rebound in the rental market in late spring
served to end the 2005 season on a par with
that of 2004. While not as impressive as
a gain, this stable rental market serves
to instill confidence in second home buyers
that they will be able to rent a few key
weeks to help defray costs. And, in investors
who rely on rental income exclusively to
help with carrying costs and (while no longer
anticipating a positive cash flow from rentals)
are able to enjoy the inherent tax deductions,
depreciation and profits upon re-sale. Impact of Market
Changes on Sellers?
This means that (unlike any time in
the past several years), sellers will need
to keep up to date with inventory, interest
rate fluctuations and price reductions.
How Can Sellers Stay
Up to Date?
Create a relationship with an agency
even before you are ready to market your
home so that their sales consultants can
keep you abreast of market changes.
Select a company that will become a partner
in this process to help you realize the greatest
profit on your home on a timely basis so
you can move forward with your investment
plans.
Use
their expertise to help you accurately price
your home so that it will stand out as a
terrific investment for a potential buyer
and not get lost in the shuffle with the
hundreds of other homes.
You need to align yourself with a company
with experience and integrity that will
represent you and your home in the most
professional light possible. Especially
in this market, you need a company that
is innovative in it's marketing techniques
to help attract the most qualified buyers
for your home beyond the customary MLS and
print alternatives.
GET A FREE MARKET
ANALYSIS
Call Kelleher Real Estate for a free,
no obligation market analysis of your home
to develop a strategy that meets your unique
investment objectives. We can develop a
comprehensive marketing plan utilizing our
local and internet based tools.
Selling Tips!
1. Staging - Don't underestimate
the importance of staging as a successful
tool in insuring a quick sale: - maximize
space by eliminating unnecessary of bulky
items.
2. Septic System - Neglecting to
determine the status of your septic system
before a sale can cost you thousands of
dollars once it is under contract. You will
have to pay for the septic inspection anyway
and it is good for two years. If it is determined
an upgrade is required after you have committed
to providing a Certificate of Compliance
you will be forced to pay for the entire
upgrade or replacement.
3. Home Inspection - While inspections
are usually done by the Buyer upon acceptance
of an offer, this contingency is the principle
reason for a transaction to be terminated.
If you know up front what the house needs
you can either price it acknowledging the
deficits or you can correct them and command
top dollar. This will also reduce the chances
that the sale will not close which is especially
important if you are buying another property.
4. 1031 Exchanges - If you are selling
a property that is used primarily as an
investment you may be entitled to do a tax
free exchange which can save you tens of
thousands of dollars in deferred tax liability.
5. Internet Exposure - Realtor.com
is the number one resource buyers use to
look for homes for sale. Only Board of Realtor
members are eligible to present their properties
on their site. When interviewing listing
agencies determine whether or not they have
access to this valuable site. As a Board
of Realtor member, Kelleher Real Estate
not only has exposure on this site but has
also invested additional advertising dollars
to utilize a variety of tools they offer
to help showcase their client's listings
and to attract a larger number of buyers.
Coming Soon - Seller's Toolkit
which will address every phase of the sales
process. Contact our office if you would
like us to put you on the wait list for
this valuable resource.
Impact Of Market
Changes on Buyers?
View Featured Listings
As a Buyer this means that for the first
time in many years Sellers are making pricing
concessions and in some cases significant
ones. There are many more properties on
the market and you must be sure you have
a qualified agent representing your interests
and assisting you as you wade through the
larger inventory.
How Can You Insure a Smooth Buying Experience?
Select an agency you can rely on to:
Help identify key properties that will
uniquely meet your investment objectives.
Counsel you on negotiation strategy.
Review the paperwork.
Oversee contingency tasks on your behalf.
Look for an agency that embraces technology
and uses it in every phase of the sales
process to help you best utilize your time
and to keep you abreast of the transaction
as it proceeds.
Kelleher Real Estate can review your
unique investment needs and send you timely
updates to position you for success in this
market. Upon buying you will always have
a "friend in the business" here as our sales
consultants will remain a terrific source
for referrals, rentals, etc. as your use
of the property evolves as the years go
on.
Buying Tips:
1. Location - The anticipated
use of the home you buy here will dictate
the best areas of the island to consider.
If purchasing a home for investment, Katama
in Edgartown and areas of Oak Bluffs are
among the two most requested areas by renters.
2. LAND BANK Fees - Don't forget
to incorporate the 2% landbank fee into
your budget when determining how much you
can afford to spend on your home here.Keep
in mind that some lenders may be willing
to bundle these costs into your loan amount
if necessary.
3. Deposit Amounts - While a deposit
of 10% is customary as an acceptable deposit
upon execution of the Purchase and Sales
Agreement, this amount is negotiable and
can become a useful tool at the bargaining
table if used correctly. Putting less down
reduces your exposure if you were to default
on the contract for any reason and also
frees up cash for you to use during the
contract period.
4. Contingency Dates - Use contingency
dates as negotiating tools to encourage
a Seller to make price concessions.
5. Buyer Representation - While Mass
law requires that all brokers now offer
buyer representation, not all agents are
certified as Buyer Brokers with the National
Association of Realtors.
This designation requires additional educational
courses and a set number of closed transactions.
In addition to real estate law, Buyer's
brokers need to be well versed on the different
areas of the island, on projects of regional
impact, etc.,to alert you to any activity
in an area that could impact your property
values or quiet enjoyment of the property.
Kelleher Real Estate can offer both the
island knowledge, experience and education
required to offer support to you in all
areas of the sales process.
Coming Soon - Buyer's Toolkit which
will address every phase of the sales process.
Contact our office if you would like us
to put you on our wait list for this valuable
resource.
We invite you to visit the rest of our site
to learn more about us and to View All Listings
currently on the market.
