Wake Up And Make That Dream Come True

2011 started off with a whimper, and some say it was due to the weather. Really? Then as the year was ending sales really revved up and we finished with a mild roar, the echo of which carried over into all of January 2012. Sales have slowed down now, which is customary for February, but the activity has not slowed down as there are a good number of buyers looking through the inventory for attractive opportunities.

I know this is going to sound like some kind of sales pitch, but this is a good time to buy. Rates are still low, sellers are unsure of the future economy and wondering if they should hang on or get out now, and there is very little competition in the market. Once activity ramps up, multiple offers will become common and as a result prices will go up.

I’ve always said the Vineyard is not for everyone and I believe being here has to be a passion and a dream, not just an investment opportunity. Although, buying on the Vineyard is most certainly a good investment opportunity in the long run. I’ve heard dozens of would-have should-have stories over the years. The current market is your opportunity to become a winner and not past tense. However, if you are not passionate about the Vineyard there are many other locations that are offering great opportunities right now as markets are at rock bottom and starting to turn around.

On New Years I received a correspondence from a Client I had been working with for several years gleefully announcing he had just purchased a property close to the water in Rhode Island. I knew that for him real estate was all about the price and did not involve emotion, so I was happy for him even though I had worked very hard over the years on his behalf. Then the other day I was reaching out to another Client I had not spoken with since before the new year. He responded proudly telling me that he had reversed his life plan and just purchased a property in Cape Coral, Florida on a canal with a pool. Once again, I was happy for him and I did not blame him one bit for making that decision. He still intends to purchase an Island home, it is just that now it may take him a little longer since he used up about half of his Island home budget. What I am saying here is that even though the prices are very attractive here, relatively speaking, there are many parts of the country where prices are probably even more attractive.

Martha’s Vineyard is a lifestyle decision and only if you love Martha from top to bottom, inside and out will buying a home here make any sense. Martha gave me a better life and brought me together with the love of my life. She provides shelter for one of my sons and my other sons and friends always ask to come for a visit. I love Martha’s Vineyard and if you do too, then I support your dream and want to help you make that dream come true.

Whatever Will Be Will Be Que Sera Sera

Back at the beginning of December I was asked by a local news reporter a series of questions about our real estate market. I thought I would review those questions and my answers now that we are gathering speed heading further into 2012.

Question: What do you see ahead for 2012?
Answer: I really don’t know anymore what is ahead of us but my guess would be more of the same. I think it would be foolish for anyone to prognosticate with any certainty on what the future will be. One survey I read suggested that most Americans think prices will go down 1.1% over the next year, but we just don’t know. In what has become a global economic meltdown we are constantly tinkering with possible solutions, but the uncertainty is vast and the landscape seems to change daily.

Question: Have there been any changes locally or nationally that might affect the 2012 market?
Answer: We hear about and read about changes every day as there is always something new that affects people’s thinking and confidence. There is a lack of confidence and an overall mood of uncertainty. The general consensus is that mortgage rates will remain low over the next 12 months. Financial institutions are being very stringent with their lending requirements. Corporations are playing it very close to the vest which means they are not hiring. It’s like listening to a broken record --- jobs, jobs, jobs. Until people go back to work and people start spending on a regular basis we will see little change. Island residents are affected by the poor job market and many of them are being forced to leave because they cannot find work. That means they are either putting their homes on the market, or they are unable to pay their mortgages and in some cases simply walking away. Nationally, a second wave of foreclosures is on the move and we will most likely see more foreclosures on the Island in 2012.

Question: Where are the best buys to be found on the Island? (geographically, in price segment, etc.)
Answer: Where are the best buys to be found on the Island? That is a good question. The short answer is so-called best buys can be found across the Island and in all towns. Personally, I don’t use the term best buys; I call them good opportunities. Oak Bluffs has seen a drastic decline in property values over the last few years. Tisbury, Edgartown and Chilmark have remained somewhat consistent. West Tisbury prices are softening and I think Aquinnah prices are too. Midrange higher end properties ($1.5mm - $2.5mm) have not been selling and prices have remained steadfast. However, I think we may be approaching a paradigm shift. For the last few years prices at the mid and low end (below $600K) have taken a brutal beating and that is where the majority of sales have been, although there has been a trickle of high-end and uber high-end sales, for the most part the high-end price range has languished. This year I am seeing some stunning price reductions with prices plummeting from where they were 5 and 6 years ago. I think the real opportunities are coming in 2012 with water front and water view properties priced very attractively. I also see a good opportunity to negotiate on properties in the $600K to $800K range.

Question: What's your best advice to sellers in 2012?
Answer: My best advice to sellers is to listen to the seller agent/broker they are choosing to hire, and don’t be attracted to one agent/broker just because they give you the highest price recommendation. Look at the comps and don’t chase the market – price your property sharply. Insipid little price reductions can only hurt a seller’s chances of attracting buyers. Sellers need to clean up their properties. I am not saying sellers have to rent fancy furniture (i.e.: Staging), just make it look presentable. Sellers should have a prelisting Structural Home Inspection to eliminate some of the mystery and concern for the buyer. Then they should either fix or repair what they can or be prepared to negotiate or credit the buyer on what they do not fix. It is unwise to try to hide anything. Some sellers have the attitude, ‘I don’t have to sell’. If that is the case, don’t list the property for sale. Sellers should not clutter the market with unrealistically priced properties; it only confuses the market and confuses real estate agents. Sellers will end up losing more than they gain. For all the sales that have occurred in 2011, the inventory seems to continuously replenish itself with more properties for sale. As long as we have a large inventory we will not have a balanced market.

Question: What's your best advice to buyers in 2012?
Answer: My best advice to buyers in 2012 is the same advice I have been giving my clients for the last few years. 1) If you are thinking of buying as a short term investment, this is not your market. 2) Plan on at least 7 and maybe 10 years before you will have any significant equity in your property. Buyers may also experience a slight negative equity in the short term if prices go down. One analysis I read suggests the home price appreciation rate may not exceed a 2-percent-a-year between now and 2015. That is not a very inspiring number. 3) Buy a property because you love it and it will bring joy to your life and your family. Life is short. 4) If you find a property you like but you think the price is too high, offer what it is worth to you. Nothing ventured, nothing gained.

Question: Is the demand for existing homes, condos, or buildable land similar?
Answer: I don’t think the demand for existing homes, condos, or buildable land is similar. The main attraction with condos is that the prices are lower than residential homes in most cases, and that attracts those buyers who thought they could never afford to live here. But most often when a buyer finds out the condo rules, regs and what the fees are, their interest quickly turns away from condos. Land is still very attractive but even with about 1/3 of the Island still not developed, nice pieces of land at reasonable prices are rare. I also think many buyers are dubious about the building process as a long distance absentee owner. We have many excellent contractors on the Island who are eager to work. However, pre-existing homes are still the most desirable. There are many very nice spec homes available right now, but they are mostly at the mid-higher end of the market and they are not selling. I find the problem with so many existing homes, especially those in the million dollar and below price range, is that many of them have not been properly maintained and they need a lot of work. We should no longer consider our market to be the goose that laid the golden egg and anything will sell just because this is Martha’s Vineyard. Buyers today want value and they are smarter and better informed than ever before.

It’s been almost two months and I don’t think the landscape has changed much. Que Sera Sera.

Why Not Wait?

I was going to title this writing, And the Beat Goes On, because it is going on – and on and on. With over 800 properties on the market now, depending upon who’s counting, there seems to be no end in sight.

There are not that many foreclosures for sale and most of them are overpriced junk, but the number of properties for sale in the $1.2mm to $3.7mm range is staggering. Short Sales may be on the rise and some banks are realizing it is better to be reasonable, cooperate with the mortgagor, cut their losses and not go through the costly foreclosure process. However, Short Sales still present some risk to a potential buyer.

There are some great buys out there right now in water front properties; you can even buy a Lagoon front property for $950,000 that is attractive and in good condition. But there are still too many properties that are unrealistically priced for this market and the level of competition between similar properties. I think part of the reason for overpricing is because July and August are the months of hope for sellers when the wealthier vacationers are here and emotional purchases are at their highest level. Of course there is always the ‘we don’t have to sell’ test the waters mentality that wastes everyone’s time, foolishly spends the listing broker’s ad money and confuses the market in general not to mention the real estate agents out there who do need to sell to stay in business.

Although I do not see a significant continuation in the downward spiral of prices I can see that the game plan for many sellers is to price their properties very high to start and then reduce the price giving the appearance that they are radically discounting their properties. That strategy is working when selling to the uninformed buyers. On the other hand, those properties that have been priced sharply and ahead of the market are getting an immediate response and in most cases multiple offers are being presented on those properties and they are selling quickly. You will also notice a trend for the acceptable differential between asking and selling price to be about 6%.

I think this is a great time to buy if you find your ‘dream home’, but if you have not then I say why not wait? Every week I hope and expect that the number of new properties coming on the market will slow down or abate, but they just keep coming. This week there are very view price reductions but still 28 new properties are being introduced and added to the inventory. It's been like this for many weeks now as the inventory continues to grow. This is just in time for the beginning of the two biggest months for tourists and big spenders – or so everyone hopes.

Once Labor Day has come and gone, or actually after the 3rd week of August I think sellers who have not made a deal are going to start worrying. It happens every year. Those who ‘don’t have to sell’ will probably take their properties off the market – again, around Thanksgiving and try again in 2012.

There are 568 single family homes available right now and that does not include the 36 properties that are either being negotiated or under contract to close. Perhaps I have answered my own question and maybe I should have titled this commentary, Why Wait?

Benefits of Purchasing a Vacation Home Rental

I'll admit that this is a silly lightweight video but it still emphasizes the value of owning a vacation 'income' property that could be partially or totally carrying itself and one day transition into your retirement home.

Is your dream to live on Martha's Vineyard, and were you hoping to get here sooner rather than later? If the economy has rearranged your plans extending your timetable, but has not sapped all of your financial resources, maybe now is the time to put those resources into real estate on Martha's Vineyard. Market prices have not been better in decades and interest rates while still historically low are beginning to inch up.

A recent survey by the Pew Research Center reveals that even five years after the real estate bubble burst, it has not shaken the confidence of the American public in the investment value of home ownership.

Ssshhhhhhhhh, Martha’s Only Sleeping

Please, don't wake me, no, don't shake me
Leave me where I am - I'm only sleeping

Everybody seems to think I'm lazy
I don't mind, I think they're crazy
Running everywhere at such a speed
Till they find there's no need (there's no need)

Please, don't spoil my day, I'm miles away
And after all I'm only sleeping

Keeping an eye on the world going by my window
Taking my time

(Partial Lyrics to I’m Only Sleeping by The Beatles)

I had to laugh when I saw a recent article from the WSJ selecting Martha’s Vineyard as one of the ten AMERICAN GHOST TOWNS OF THE 21ST CENTURY, ranking Dukes County at number 7.

It’s true that Martha’s Vineyard has always been like the tides that surround her, with a population that comes in and goes out on a regular basis. I think that ebb and flow is part of what makes Martha’s Vineyard so special. It is that time between the supercharged high tide that gives Martha and her permanent year round citizenship respite to recharge their batteries and enjoy all the tenderness and calm that is the essence of Martha’s Vineyard. That’s why I am here. Ssshhhhhhhhh!

How Does Martha’s Vineyard Feel About McMansions?

The Martha’s Vineyard Commission (MVC) routinely reviews projects in accordance with its Development of Regional Impact (DRI) Checklist (standards and criteria used by town boards to determine when it must or may refer a development application to the Commission for review as a DRI).

On Monday, April 4, 2011, at 5:30PM, the MVC’s Land Use Planning Committee will hold a discussion on the subject of Large Houses, which is a euphemism for what we call McMansions or Trophy Homes. The discussion is open to the public at their Offices in the Stone Building, located at 33 New York Avenue in Oak Bluffs.

When is Big too BIG?

Here are some of the questions being considered regarding ‘LARGE HOUSES’:
1. What are the concerns about large houses?
     a. Visual impact and disruption of community character?
     b. Loss of habitat?
     c. Consumption of energy?
     d. Impact of construction process on abutters?
     e. Encouragement of teardowns and loss of affordable homes?
     f. Other concerns?
2. How serious is the problem today and the threat for the future? Does it merit further action by towns and/or the MVC?

3. To what extent can concerns be dealt with through increased review at the town level? Do the towns need additional powers through the DCPC (District of Critical Planning Concern) process?

4. What types and magnitudes of projects have a significant enough regional impact to justify MVC review?

5. What is the best way to define a large house? Should this vary by town or area?
    a. An absolute threshold, such as an Island-wide or town-wide threshold of total floor space or building volume?
    b. A relative threshold, such as one that exceeds the average size of houses in its neighborhood?
    c. A threshold based on performance criteria, such as exceeding a threshold of visibility (e.g. an angle of view as seen from a public way) or habitat clearance?

Where Do You Think You Are Going?

Last week, as is my custom, I was driving around locating and previewing as many new listings as I could. There was a property in Katama that I was trying to find. In doing so I drove down a named dirt road that transitioned into what appeared to be someone’s driveway – typical on the Vineyard. I was puzzled but forged ahead with the moxie that is typical in my profession. As I weaved my way along the cluttered road, all of a sudden standing in front of me standing firm in what I can only describe as a shooter’s stance was a diminutive white haired elderly figure of a lady with a very stern look on her face. She had her hands on her hips and I immediately scanned her person to see if she had a gun and was preparing to draw on me.

I stuck my head out of my window and with a big smile on my face I introduced myself and explained where I thought I was going. She replied, “That’s my property you are looking for”. With that she smiled and briskly walked over to the passenger side of my car, opened the door and hopped in like a young 20 year old girl. “Come on, I’ll show you” she said. As we crept along with me following her pointing the way she began to talk. (This is where the fun begins.)

She asked me how old I thought she was and when I guessed (wrong) she told me she was 87 years old and had lived here all her life. During WW II a local man asked her to marry him but she said no. “Why would I marry a man and have his babies when he was going off to war and might never return?” She proudly told me that she stayed single, worked hard and bought a huge tract of land with a house for $5,000.00. She eventually married her suitor when he returned from the war and had a family.

When we finished looking at her property and I was preparing to take her back where I picked her up, she asked me if I knew there had once been a herring packing plant in Katama. “The history books have it all wrong; they say it was an ice house. My sister used to work there.” I said, “Sure let’s go”. So off we went down Herring Creek Road toward South Beach. As we drove she explained how they would pack the herring there and then send them off Island along with the scales that she said were made into artificial pearls. We drove through one of the parking lots and she pointed to all that was left of the packing plant, a concrete foundation. “How many ice houses were there in Katama?” “Two” She answered before I could guess. She also made a point of telling me David Letterman lives on Herring Creek Farm and that she sees him often. She said one time she told him she had a present for him. When he asked her what it was she responded, “My tax bill.”

The next part of what was becoming a quiz was whether or not I knew about the Katama Hotel and where it used to stand. Off we went with her in charge as navigator and me totally enthralled. We drove down the Edgartown Bay Road to the bend in the road by the Land Bank property where there is now one lone Osprey pole. “That’s it, the spot where the hotel used to be” she giggled. She explained how the railroad from Oak Bluffs used to carry people from the ferry wharf along what is now Beach Road all the way to Katama and the Hotel. “Do you know what the original name for Beach Road was?“ she quizzed, “Paper Patch Road”. She shared all kinds of neat information with me, but I just couldn’t remember it all.

It was getting late and I needed to get back to my office. As I was driving her home she explained that she drove a taxi on the Island until she was 80 years old and she loved giving tours. She even teased me by beginning to tell me the ‘true story’ about who was really driving Teddy Kennedy’s car that fateful night on Chappaquiddick but she got distracted when we passed one of the many big houses along the road. She had two pet peeves: One was why on earth they decided to change the name of the area out by South Beach from Great Plains to Katama. “Look at it; it’s all flat like a great plain and it was all farm land.” Her other peeve was the big houses that nobody lives in more than few weeks in the summer. “Look at them; it’s awful.”

I think I will have to give her a call someday and ask her out for a cup of coffee or a soda. When we said good bye she told me she had not had this much fun in weeks. I responded, “Me too”.

After I got back to my office and I found this nice melancholy poem about the Katama Hotel in a book of poems titled "An Old Fly Book And Other Stuff" published in 1913.

Living on Martha’s Vineyard is still a wonder to me and what seems like a never ending ever changing adventure. I am glad that I don’t know where I think I am going.

Preserving Our History And The Magic That Is Martha's Vineyard

The other day I was reviewing my information about the environmentally sensitive areas down Island and the restrictions those areas impose upon the ability to build a home. That led me to thinking about our devoted and determined conservation groups like the Martha’s Vineyard Land Bank, the Sheriff’s Meadow Foundation, the Trustees of Reservations, The Nature Conservancy, and the Vineyard Open Land Foundation.

There are two primary roads on the Island that I would still consider to be untouched and basically the same as they were 100 years ago. One is Middle Road and the other is the road I live on, Lambert’s Cove Road. In the mid-90’s I brokered a sale to The Nature Conservancy of a 103 acre estate known as the John Hoft Farm.

I was thrilled that TNC agreed to save this ecological one-of-a-kind property from possible development. The property includes meadows and peat bogs as well as woodland areas where rare flora and fauna thrive. The TNC Hoft Farm connects with properties owned by the MV Land Bank and VOLF.

VOLF, the Vineyard Open Land Foundation, under the tireless direction of Carol Magee has been working with little sleep and even less funding to reestablish one of the original cranberry bogs on the Island that happens to be located right on Lambert’s Cove Road just below the Wakeman Center and Cranberry Acres.

Every summer I have watched with fascinated interest while teams of volunteers labor in the hot sun hunched over plucking invasive weeds of all kinds out of the sandy soil. And all the time that hand labor is going on the original cranberry processing shed built in the 1800’s progressively sags and seems to be folding in upon itself as the ridge beam disintegrates.

VOLF’s plan is to resurrect the cranberry bog and harvest the berries as well as to restore the original cranberry processing shed, move their offices there and establish a museum to house all the artifacts representing an Island industry from days gone by. They already have architectural drawings from a well respected Island architect who cut his fees to assist with the project. What they are missing is money. Right now they are getting by on about $20,000 a year but they will need a lot more than that in order to see this dream come to life.

If you want to know what you can do to contribute to the Island you love, I suggest this could be one of the ways to keep your dream alive and pay forward what this Island gives you.

Uninvited Visitors in Your Martha’s Vineyard Home, A Sign of Our Times

Home break-ins and burglaries are happening more often and it seems as if not a week goes by that there isn’t news of another burglary or home invasion. Because there are so many people out of work and facing increasing financial hardship I guess their desperation is leading them to extremes. Martha’s Vineyard is not immune to these violations in one form or another. There are many Martha’s Vineyard vacation homes empty for a good part of the year and located in remote isolated areas, which makes this Island a perfect hunting ground for thieves. Recently I learned of about three break-ins in the area near where I live in just the last month. Burglars can be very clever and calculating so it is a fact of life today that we all need to be more vigilant and “THINK’.

Here is a list of tricks of the trade that a burglar won’t tell you about:

1. He was the same person who cleaned your carpets, painted your shutters, cut your lawn, delivered your new refrigerator or repaired your TV service. Did you check references or his identification? Did you make a copy of his credentials or take his picture with your iPhone?

2. He was one of the landscape crew cleaning up your yard and he asked to use the bathroom. While he was there, he unlatched the back window to make his return a little easier.

3. Manicured opulent landscaping or fresh cut flowers around the house signal that you have good taste and money. You probably have a lot of nice expensive things in your home. All those big toys in the backyard and that huge outdoor play set says your children probably have expensive gaming equipment and electronic toys in their rooms.

4. Newspapers are piling up on the driveway or the mailbox is bulging with mail. That’s a clear indicator that no one is home. Make sure you tell your postmaster to stop delivery of your mail, even if you are only going to be away a short time. Your burglar might even leave a pizza flyer in your front door to see how long it takes you to remove it.

5. If it snows while you're out of town, get your caretaker or a good neighbor to create car tracks around the property and footprints up to the front door of the house.

6. If your entrance doorway has translucent or clear glass sidelights, don't let your alarm company install the control pad where your burglar can see if it's been set.

7. A good security company alarms the window over the sink. And the windows on the second floor, which often access the master bedroom which is where your burglar will first look for expensive jewelry. It's not a bad idea to put motion detectors up there too. More homeowners today are installing Security Camera Systems and they are not that expensive. Q-See http://www.q-see.com/ makes a popular inexpensive system that is currently available at stores like Costco. Even if you don’t have an alarm system, if you can get a large security display sign from a local alarm system dealer, it will deter many would-be burglars.

8. Your burglar is not deterred by bad weather and like the mailman; neither rain, sleet nor snow will keep him from his task – robbing your home. So make sure you always lock your doors and windows.

9. Your burglar will always knock first and if you answer the door, he may ask you for directions to somewhere else or say he is looking for odd jobs. Don’t let him into the house and don’t hire him.

10. Once in your house, your burglar will check places like all your dresser drawers, the top of your closet, your night table or the medicine cabinet, so don’t hide your valuables in a sock roll or in one of those Aquanet Hair Spray Can Hidden Safes.

11. Your burglar will rarely enter into or rifle through your kids' rooms except to steal their gaming equipment.

12. If you have a safe for your valuables your burglar will not have time to break into it, BUT if it's not bolted down, if he can move it, he will take it with him and break it open later on.

13. Staggered lighting on timers in several rooms or a TV or loud radio can be a better deterrent than the best alarm system. If you're reluctant to leave your TV on while you're out of town, you can buy a $35 device that works on a timer and simulates the flickering glow of a real television. (Find it at http://faketv.com/ )

Here is a list I found of secrets confessed during interviews with convicted burglars in various parts of the country.
In the burglars' own words:

1. Sometimes, I carry a clipboard. Sometimes, I dress like a lawn guy and carry a rake. I do my best to never, ever look like a crook.

2. The two things I hate most: loud dogs and nosy neighbors.

3. I'll break a window to get in, even if it makes a little noise. If a neighbor hears one loud sound, they'll stop what they're doing and wait to hear it again. If they don't hear it again, they'll just go back to what they were doing. It's human nature.

4. I'm not complaining, but why would anyone pay all that money for a fancy alarm system and leave their house without turning it on?

5. I love looking in the windows. I'm looking for signs that no one is home, and for flat screen TVs or gaming systems I'd like. I'll drive or walk through the neighborhood at night to pick my targets.

6. Avoid announcing vacation plans on Facebook. It's easier than you think to look up a home address.

7. To a home owner, leaving a window open just a crack during the day is a way to let in little fresh air. To me, it's an invitation to come in.

8. If there is no answer when I knock, I try the door. Occasionally, I hit the jackpot and walk right in.

Finally, here is one more neat security tip I had never thought about, and it is so obvious. Many security systems have panic buttons that are located in a primary bedroom at the bedside or in rooms most frequented by the home’s inhabitants like the kitchen or even in the garage. These security systems also may have a warning light beacon mounted in a conspicuous location on the house and/or a high decibel klaxon. A setup like this is a good idea even without a whole house security system. But did you know you may already have a security system setup similar to this? It’s your automobile.

If your car has an alarm system with a remote key fob, keep that remote by your bedside or on your person and in an emergency you can press the alarm panic button and if your car is within range your alarm system will be triggered, the lights will flash and your alarm will sound an alert. If you have a neighborhood watch group, make sure your neighbors or anyone close by that you trust is aware that your car alarm sounding may be a signal and a call for help. Times have changed and sadly we all must become more vigilant and aware. We no longer live in Mayberry, but Martha’s Vineyard is still a gentle and safe place to live. It’s just a fact of life that we all have to be more mindful and ‘THINK’.

Speak Softly And Carry A Big Bag of Cash

The National Association of REALTORS® revealed in a recent study that 28% of home sales were all-cash transactions in 2010, compared with 14% in a study done in October 2008.

Economists pointed out the obvious, the more depressed a housing market was, the more cash deals were transacted. Cash buyers are at a greater advantage and can actually save between 5 – 10% because cash deals close more quickly and there is no threat of a lender changing their mind in the eleventh hour.

Yes, that happens and that is why I tell my clients who require financing, after the Purchase and Sale Agreement is executed --- don’t even think about buying furniture, an automobile or anything that could alter your financial picture until after the Closing.

According to a WSJ article, “The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.” Wouldn’t that be nice? A return to a more quiet jungle.

The House That Built Me

“The World is Too Much with Us” Has that thought ever come into your mind when the pressures of your everyday world started getting to you? It was during those times I would recall days gone by when I was a young boy growing up in the country sharing dog biscuits with my pet collie in the front yard and catching fireflies in a jar just before bedtime.  Back then we thought nothing of walking three miles to pick up the mail at the post office located at the railway station, and I remember the school bus frequently stopping to let a herd of dairy cows meander across the road going from one pasture to another.

Life was so simple then, and I felt so safe and secure in my family home – a little pink farm house on about ten acres of land with a red two-stall barn, sprawling fields and a spring-fed pool hidden in the woods at the end of a long path. I loved my childhood home.

I have childhood memories here too, but those memories are of my own children. I remember how pleased my youngest son was, now 30, when he could climb a little stepladder and reach a limb on an old scraggly oak tree in the backyard. I refuse to cut that limb, because I see him there every time I pass by that old scraggly oak tree.

I was reading an article about an interview with songwriter, Tom Douglas. He wrote a wonderfully haunting song titled “The House That Built Me”. It was voted Country Music Association’s song of the year in November 2010 and was performed by Miranda Lambert.

When Douglas remarked that he was aware of how fractured people’s lives have become today, and even with all our modern technology we are becoming increasingly isolated it made me think. What is the purpose of a home? Is it just 'a thing' and nothing more than four walls? Do we look at it strictly as an investment? A financial advisor I was speaking with recently said real estate is not just an investment; it is an ‘investment commodity’ because we use it. And hopefully, if we use it, it is a place where family and friends come together and memories are made.

Think about where you live and what you have. Then think about what you want and why you want to become a part of the lifestyle on Martha’s Vineyard. This tiny Island is still a place where dreams can come true, a touchstone where you can come, regroup, recharge; a place where you can put away all your technology and become whole again as a person and connected as a family. You can take part in all the simplicity in life that exists all around you here, on the hiking and biking trails, ponds great and small – perfect for kayaking and canoeing, fishing from dozens of fabulous beach locations or just kicking back with a stack of light summer reading. You probably won’t have to stop your car today for a herd of dairy cows crossing the road, but be on the lookout because most likely you will encounter a rafter of wild turkeys casually sauntering across the road.

Owning a home on Martha’s Vineyard can be so very simple and keeping it simple is what you really want. Don't you? After all if you think about it, that is your dream -- a simpler way of life.

Don’t lose sight of the house you loved when you were growing up and how that house built you. It’s not too late to build more great memories or create those memories you always dreamed about, but life never presented the opportunity. The opportunity is here for you now.

The World Is Too Much With Us
by William Wordsworth

The world is too much with us; late and soon,
Getting and spending, we lay waste our powers;—
Little we see in Nature that is ours;
We have given our hearts away, a sordid boon!
This Sea that bares her bosom to the moon;
The winds that will be howling at all hours,
And are up-gathered now like sleeping flowers;
For this, for everything, we are out of tune;
It moves us not. Great God! I’d rather be
A Pagan suckled in a creed outworn;
So might I, standing on this pleasant lea,
Have glimpses that would make me less forlorn;
Have sight of Proteus rising from the sea;
Or hear old Triton blow his wreathèd horn.

How Can You Buy What You Cannot See – You Can’t!

Here we are approaching what some believe is the end of the recession, at least as far as real estate is concerned. Although prices are forecasted to remain flat this year, and in some areas they may even drop another 5-7%, sales volume is predicted to increase by between 7-8% in 2011 after falling almost 5% in 2010. Buyers have been ready and anxious, yes anxious to buy for several years now, but they don’t want to pay too much and if there is any chance of the market going down more, they’ll wait; what’s another year going to matter. Exactly! What is another year going to matter and what is another 5% going to matter over the next 10 or 20 years? If you find the house you love, then now is the time to buy.

Of course you’ve been hearing that from real estate licensees for the past few years. Now is the time to buy. Okay, let’s assume that now is the time to buy. But how can you buy what they cannot see?

I have been trying to figure out how many properties have been removed from the market in the last three months, but our database system makes it very difficult to separate Off-Market from other status types. I think I was able to get enough information to conclude that there are between 100 and 200 properties on a winter hiatus, most likely to be relisted in the spring. It makes me wonder if sellers are really motivated or serious about selling.

Historically, the assumption is that winter is a slower selling season – ‘the off-season’. This recession has created another kind of historic market. There are legions of buyers out there ready and willing to buy. So the real reason this is a slower selling season is because there are less properties on the market.

In the Martha’s Vineyard real estate market, buyers are looking right now for properties they can own and enjoy during the summer season. They want to find it, buy it and get it ready making it their own in time for those precious few family vacation months. They have cash in hand or are approved for a loan at what are still very attractive interest rates – although they are starting to inch up.

Buyers are ready to buy, but they can’t buy what they can’t see. If they don’t see a property they have been watching they may assume it has already sold and they will move on to one of the properties currently available or just wait until the spring-summer selling season when there will be more competition on both sides. Based upon the idea of supply and demand, it is a fact that sellers may actually realize a better selling price in a market where the inventory is low and where there are fewer properties similar to theirs in style, location and price.

My advice to sellers is not to worry that your gardens aren’t in bloom or your lawn furniture is in the living room. Buyers are not going to pay a premium for a few bushes or pretty plants. Actually, overly landscaped properties may turn off some buyers because that means more maintenance costs for an absentee owner. Buyers can see past the umbrella in the living room. Matter of fact, most houses are more cluttered inside during the summer season than they are now, and they are more difficult to show, especially if they are rented. So sellers, stop playing the listing shuffle and get back into the game. Listen to your seller agent and do your part to make your property saleable. I am an exclusive buyer agent and I cannot help you if you do not help me.

Martha's Vineyard Home Buyer Videos

The U.S. Department of Housing and Urban Development (HUD) partnered with the National Association of Realtors® (NAR) to produce three consumer information videos about the home buying process: Shopping for Your Home; Shopping for Your Loan; and Closing the Deal.

Shopping for Your Home


Shopping for Your Loan


Closing the Deal

Vineyard Conservation Society Publishes New Guide to Martha's Vineyard Walking Trails

 Martha's Vineyard is an amazing place, very much like a box of chocolates; you never know what you are going to experience when you set out on an adventure. There are dozens of beaches and walking trails as well as miles and miles of bike paths and mountain bike trails.


Long Point Wildlife Refuge

A few years ago I was in Bunch of Grapes and spied this really neat little spiral bound pocket book titled "Walking Trails of Martha's Vineyard" by William Flender. It was the 3rd Edition. It cost me ten bucks, but I think it is worth every penny. It is well written, graphically clear and very well constructed. It's a must have book for anyone who loves Martha's Vineyard.

Here is a link to a news article heralding the introduction of the 4th Edition of "Walking Trails of Martha's Vineyard"

Foreclosures Rely on Lenders Having Clear Title

We've been hearing about this for well over a year now as many homeowners across the country threatened with foreclosure are challenging lenders to produce proof of clear title to their properties.

Here in Massachusetts, the question is being raised again as the Massachusetts Supreme Judicial Court rules invalidating foreclosures on two properties in Western Mass. Here is the article that appeared Boston.com:

SJC ruling may void thousands of foreclosures
January 7, 2011
By Jenifer B. McKim, Globe Staff

The Massachusetts Supreme Judicial Court today upheld a contentious land court ruling that puts in question the ownership of hundreds, possibly thousands, of foreclosed properties in the state.

The ruling challenges the way lenders have traditionally foreclosed on properties -- without having all the paperwork in place at the time a home is seized. It affirms a 2009 lower court decision that invalidated foreclosures on two Springfield homes because the lenders did not hold clear titles to the properties.

Cambridge attorney Paul Collier, who represented one of the homeowners in the case, said the supreme court ruling invalidates thousands of foreclosures, reverting ownership back to the homeowners who lost the homes, at least temporarily. In most cases, those property takings will have to be redone, further clogging an already bogged down foreclosure process that many real estate specialists say has contributed to the stagnant housing market.

"The banks and the investors are going to have to deal with those homeowners as to what happens to those properties," Collier said.

During the housing boom, millions of mortgages were packaged into bonds and sold to investors, a process that resulted in lengthy and tangled paper trails that can obscure ownership. Many lenders believed they could complete foreclosure transactions and later produce formal proof they held a mortgage. Today's ruling makes it clear that the practice will not be allowed in Massachusetts.

"We agree with the [land court] judge that the plaintiffs who were not the original mortgagees, failed to make the required showing that they were the holders of the mortgages at the time of foreclosure,'' the justices said in their opinion.

The decision will also have national implications at a time when lenders' foreclosure practices are being scrutinized by federal regulators and state attorneys general.

A Short Commentary on Short Sales

Should an agent disclose a Short Sale situation? In a recent court ruling it was determined that "When a real estate agent is aware that the amount of existing monetary liens and encumbrances exceeds the sales price of a residential property so as to require either the cooperation of the lender in a short sale or the ability of the seller to put a substantial amount of cash into the escrow in order to obtain the release of the monetary liens and encumbrances affecting title, the agent has a duty to disclose this state of affairs to the buyer, so that the buyer can inquire further and evaluate whether to risk entering into a transaction with a substantial risk of failure." Currently, about 70% of all Short Sale contracts result in NO SALE.

The key word of course is ‘aware’, and most agents hear no evil, see no evil and speak no evil. Make sure you do your homework, and make sure you are represented by an Exclusive Buyer Agent who will look out for your best interests.

Find The Perfect Home Loan and Get Your Financing On Track

Here are 5 really good articles for Home Buyers to help you get better prepared for the purchase of your dream vacation home on Martha's Vineyard.

• 

  5 Tips for Deciphering Your Home Loan’s Good-faith Estimate

  Knowing how to read your good-faith estimate can help you save money on your home loan. Read
• 

  7 Homeowner Tax Advantages

  When you’re evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership. Read
• 

  4 Tips to Determine How Much Mortgage You Can Afford

  By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget. Read
• 

  7 Tips for Improving Your Credit

  Here’s how to clean up your credit so you get the least-expensive home loan possible. Read
• 

  Find the Home Loan that Fits Your Needs

  Understand which mortgage loan is best for you so your budget is not stretched too thin. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

"The World's Gonna Find a Way" but we want it Now -- Today!

Do you remember Ray Steven’s 1970’s hit song, “Everything is Beautiful”?
I wonder how that song would play today.

“There is none so blind as he who will not see
We must not close our minds
We must let our thoughts be free
For every hour that passes by
You know the world gets a little bit older
It's time to realize that beauty lies
In the eyes of the beholder.”

For so many people, everything is not beautiful these days and life sucks. But we keep believing and trying to see the beauty in our lives. We must remain positive and hopeful.

The sing-song lyrics go on beseeching us –
“And we gonna get it all together now
Everything gonna work out fine
Just take a little time to look on the good side my friend
And straighten it out in your mind.”

We thought we were getting it all together but now all you hear is double dip recession, disrespect for our elected President and rancor among the political parties.

Working in real estate, I desperately want everything to be beautiful, but the truth is it is going to take longer than any of us thought before everything is beautiful again.

In a survey conducted by the Cape & Plymouth Business group, they concluded that the majority of respondents who were private business owners felt:
The economy will improve slightly in 2011
Small business owners will not hire additional staff
Businesses will not raise capital and if they do it will be through bank loans and private investors
Businesses will not expand or invest in property or equipment
Housing prices will remain flat
The strongest contributors to the Cape and Island economy will be Tourism/Retail and Health Care
Revenue increases of 1% - 10% are projected through local and regional sources

I guess that means there is hope, but not much confidence. Perhaps, because Cape Cod and the Islands are resort destinations, merchants are hoping people will still need mental health R&R vacations in 2011. I could use one right now, but I live here in paradise so I will simply go for a walk and appreciate what I have around me all the time.

What is not beautiful is the looming Shadow Inventory of foreclosures, and in 2011 it is predicted that nationally there will be a record high volume of foreclosures. According to Inman News, Core Logic reported that the "shadow" inventory of homes likely to be repossessed or already in REO inventory but not yet on the market reached 2.1 million units in August, up from 1.9 million units a year ago. Because home sales have also slowed, that represents 8 months supply, up from 5 months one year ago. Adding the 2.1 million shadow inventory to the 4.2 million homes on the market, causes the total supply to reach 23 months of inventory, almost double NAR's estimate in September. In the markets yet to be affected by foreclosures, prices will go down more but in markets where the majority of foreclosures have already occurred, they may have already bottomed out.

Experts predict that when tallied, 2010 will show fewer home sales than 2009 and the dollar volume will be lower than 2009. Keep in mind that 2009 was a lack luster year for sales. The beginning of 2010 was stimulated by the home buyer tax credits so we might consider that as being a false start. The fact of the matter is that there are better opportunities available right now even without the home buyer tax credit, but people are not jumping to take advantage of those once in a lifetime opportunities. Interest rates will most likely go up in 2011, as they already are right now. I doubt that will affect sales because despite the current record low rates it did not have much impact on sales this year. Without a job, job security or a steady income low interest rates become moot.

2011 will prove to be just more of the same and the housing market will not recover until people have jobs and the confidence to act upon their pent-up desire to BUY a home.

However, since Martha’s Vineyard is primarily a second home market I believe everything could be beautiful for those buyers who keep their finger on the pulse, have financial security and recognize that this is probably the best opportunity in their lifetime to own a piece of The Rock. They recognize to wait would be penny wise and dollar foolish. With 712 properties currently on the market and many properties ‘off market’ but still for sale there is a lot to choose from for a very limited pool of qualified buyers. There is no reason why a savvy buyer cannot find a good deal here. Currently, there are 70 properties either under contract or being negotiated, so some people are still singing ‘Everything is Beautiful’.

Over the years, many Buyers who have contacted me, read through the copious amount of FOR BUYERS ONLY information on my website and subscribed to my Buyer's Basic e-Newsletter have remarked that they perceive my function as one of a consultant and information provider, rather than as a 'realtor'. As an exclusive advocate for buyers I believe educating buyers is a vital part of my job. However, as a real estate professional, my business is consummating the purchase and sale of real estate. If you appreciate the consistent effort I make to bring you 'No Bull' educational information, please contact me when you are ready to buy. I want your business, so please come to me first. I can assure you that I will put your interests before my own and do my utmost to negotiate the best price and terms for you. I will work very hard to discover all the details and hidden secrets of the property you are purchasing so that you will not have any unpleasant surprises.

Keep the faith, “The world's gonna find a way.”

How to Overcome the Fear of Buying a Home In This Economy?

The first questions any buyer must ask themselves today are:
1) Can I afford to buy a home?
2) Can I afford to keep and maintain a home?
3) Can I sell the home quickly if I need to?

Can I afford to buy a home?
Before you get into a car with your buyer agent to drive around looking at homes, do yourself a favor and find out how much home you can afford to buy. That means going to a trusted lender and painting an accurate picture for them of all your finances – how much cash you have for a down payment, the extent of your debts, employment – everything! Do you know your credit score? Today there is more to consider when buying a home than simply PITI (Principal, Interest, Taxes and Insurance), but if you keep this in mind you are now free to begin the fun part, looking for your dream home at a price you know you can afford. Your buyer agent can give you a list of lenders to contact and make sure our excellent local banks are on your list. Prices and terms have never been better than right now.

Can I afford to keep and maintain a home?
You found your dream home and the seller has accepted your Offer to Purchase. Buying a home today means you had better plan on keeping it for at least 10 years. This is going to be a very slow and long recovery. This is not an economic environment conducive to quick money making turnovers. This is the time to buy ‘generational properties’.

This is all the more reason you must factor in repairs and maintenance. Big ticket items like roofs, siding, windows, fuel tanks, heating systems and water heaters all have life spans. If the roof is 25 years old you can probably plan on having to replace it within the first 5 years you own the home. If the oil tank is the old single-wall design it needs to go right away.

As part of any Offer to Purchase contract there must be a contingency for a Home Inspection. The inspection will seek to determine the condition of the home construction, its systems and appliances. Ongoing maintenance and replacement expenses need to be factored into any budget so it behooves you to use a good structural inspector and additional specialists if necessary. You want to find out as much as you can about the house before you buy it. If the structural inspection shows significant deficiencies see if you can negotiate concessions with the seller to offset the repairs, or if the onus becomes yours at least get repair estimates to determine if you will have the funds to make the repairs yourself. This way if you won’t have the additional funds, you are still able to reconsider your purchase so you don’t get yourself into a bind.

Can I sell the home quickly if I need to?
Location, Location, Location. The majority of buyers today begin their search for a home on the Internet, but what does the Internet tell you about location, very little. Advertising and marketing is all about selling the sizzle. Even though false advertizing is against the law and also violates the REALTOR® Code of Ethics, we see subtle prevarications all the time. So, don’t believe everything you read about a property on the Internet. Google is not enough. You need to get up and get out and get educated. The purchase you are about to make is too big to have a casual armchair attitude about it.

Martha’s Vineyard is a complex market and one that most buyers know very little about. That is why you want a real estate market expert who will advise you about the area you are considering for your purchase. You want someone who does the research and will give you accurate information. What is good about the area? What is bad about the area? Is there any forecast for change in that area? Knowing about an area will give you a good idea of how easy it would be to sell a home should you have an unexpected emergency?

As I said before, it is going to take years for the real estate market to recover, which is not to say you should not buy a house now, but do your homework and wait for the right house at a price you are comfortable with.

ADVICE TO SELLERS – Not from me, a Martha’s Vineyard Broker, but from a nationally renowned ‘Expert’.

If you have ever watched the NBC Today Show and their ‘Today’s Real Estate’ segment, then you have listened to the self-professed real estate expert and mogul, Barbara Corcoran who has been in the biz since she was in her early 20’s. Her latest advice to Sellers is as follows – and I totally agree with her.

1) If you have listed your property for sale and it is not selling at the listing price, lowering the price in small increments does not get noticed and never gets attention. It is better to take a one-time big chunk off the price. That will get noticed.

2) If you list your property with a seller agent, stick with them unless they have done something absolutely awful and unethical. Changing agents only serves to confuse the market, and since agents sell 90% of the houses, you don’t want to confuse the agents either.

Here on Martha’s Vineyard, and throughout the national real estate market overall it has been common practice for seller agents to accept overpriced listings.

In some cases seller agents have given unrealistic inflated opinions of value in order to charm the sellers and get the listings. Or even more often, the seller agents let the uniformed and biased sellers price the property contrary to the studied opinion of value offered by the professional seller agents.

I have argued this point with some of my colleagues here on Martha’s Vineyard for years, but I do respectfully – and I do mean ‘respectfully’ understand their point of view. Why do they take an over priced listing instead of walking away from it? Their usual defensive response is, “If I don’t take the listing someone else will.”

Come on SELLERS, get real.

Do you want to sell NOW? Be honest, do you need to sell and cut your loses? If you price your property correctly it will sell, and if you don’t price it correctly just assume that you have not listed it. Matter of fact, the only purpose your property will serve is to help sell comparable properties that are priced correctly.

If you don’t have to sell, relax, sit back and wait. Don’t worry; the market will recover some day soon.