Cape Cod Real Estate Columns

Extending some forty miles from Chatham to Provincetown, the Cape Cod National Seashore comprises more than 43,000 acres. If you’re a relative newcomer to Cape Cod, perhaps you’re not aware of the Seashore’s positive effect on Lower Cape real estate values.

Surveys of the Atlantic coast by the National Park Service in 1939 and in 1953 prompted attempts to protect this land from the danger of widespread development. Historically, resulting proposals incited tremendous controversy among local residents who feared the Government’s taking of the land.

Ultimately however, the wisdom of the Seashore’s farsighted proponents prevailed with the 1961 creation of the Cape Cod National Seashore. Its primary purpose: “to preserve henceforth for public enjoyment the scenic, scientific and historic features and the landscape of settlement that existed here. To the people of Cape Cod, whose livelihood depends on an economy springing from the Cape’s natural recreation sources, this means insurance for the future.”

Well, the future is now. Consider that some of the five million people hosted annually by the Seashore become more than visitors to Cape Cod by purchasing property. What attracts them to this area are the aesthetics of pollution-free waters; expansive, sandy beaches; conscientiously preserved ecosystems; and stretches of undeveloped land.

Yes, the National Seashore does add a bonus to real estate values. But the greater bonus is the preservation of these lands for all who visit Cape Cod’s shores. American Heritage Realty’s values lie in service to its clients and customers.

The study of real estate law reveals an array of nuances which affect the ownership of property. Among those you may confront are easements, defined as the right of one party to make use of another’s real property. Generally, their purpose is to maintain utilities or to facilitate pedestrian or vehicular access.

Understanding the term “easement” requires differentiating between possession and use of property: Easements constitute a non-possessory interest in property. They encumber land owned and possessed by another party, but grant both the title holder and the easement holder simultaneous use of the same parcel of land. Further definition designates easements as affirmative or negative. In the affirmative form they may, for example, grant a right of vehicular use, permitting a specific activity on the land burdened by the easement.

In contrast, a negative easement imposes restrictions, such as the preservation of a waterview for other property owners, upon the owner of the encumbered land. Complicated title documents and property definitions frequently necessitate legal review in order to distinguish easements from such other types of property ownership as licenses (contractual rights which permit activities on another’s land) or property leases (exclusive possessory interests in another’s property).

A real estate professional is an invaluable resource for information on this subject. Likewise, your attorney can resolve any legal questions of title you may have.

DISCLOSURE Homes for sale—persistent, long-standing rumor says one is haunted; the owner of another died of AIDS; a group home has been established in the area of a third; a teenage suicide occurred in an otherwise perfect home. While such situations do not affect the use of a property, human emotions can create a significant impact on market value. Enter the subject of disclosure.

Several years ago the Massachusetts Association of Realtors worked to gain approval of legislation exempting brokers from liability relative to stigmatized properties. The resulting Stigmatized Property Law, applicable to all real estate contracts executed on or after November 9, 1998, clarifies the issue in general by dividing it into facts and questions.

Whereas previous regulations mandated that Realtors disclose to prospective buyers any and all material facts pertinent to a property marketed for sale, the new law stipulates that such psychological stigmas as haunted houses or murder do not constitute fact and as such, are immaterial to property transactions.

Thus, Realtors are no longer at risk for failure to reveal that a particular property has suffered some type of psychological impact. However, if questioned directly about supernatural phenomena or suicide, for example, brokers are duty bound to answer truthfully and accurately.

As with all real estate matters, whether you’re selling or purchasing property, it’s best to seek the guidance of an experienced real estate professional when considering what to reveal or what questions to ask

Believe it or not, Barnstable County began a system of recording deeds in 1686! As it was back then, the function of the Registry today is to provide a central location for the formal recording of deeds, mortgages and any other related documents which affect the legal or financial status of property within Barnstable County.

With each and every document on file available for public scrutiny, the Registry is among the busiest of the twenty-one in the Commonwealth of Massachusetts. When a disastrous fire destroyed the Registry and its contents in 1827, the building housed 94 volumes of recorded land deeds. After the smoke had cleared, one volume remained.

Not surprisingly, the ensuing chaos proved the complete antithesis of the heretofore orderly system. In a subtle, yet enduring manner, the ramifications of the fire exist to this day as witnessed by still-existing Cape Cod title problems, including titles referred for clarification to the Land Court system. Nowadays, modern technology essentially precludes the loss of vital records.

According to Mr. John Meade, Register of Deeds, all recorded information is stored on microfilm and computer disk, and is secured in a subterranean vault within a facility known as Iron Mountain. Located in New York State, it is purported to be impregnable to fire, water and nuclear holocaust.

Psychologists could have a field day observing the second-guessing of buyers and sellers who so frequently doubt the wisdom of their decisions, once committed to a real estate transaction. Buyers often seem to see only their folly, questioning that they bought the right property, worrying that they made a poor decision, and believing they spent too much. Real estate brokers refer to this as “buyer’s remorse.”

Reverse the scenario for an illustration of “seller’s remorse.” In particular, when a property sells quickly, many sellers conclude that their price was too low, feel they should have held out for better offers, and are convinced they really could have gotten more than the list price, however realistically determined.

So how do you chase away the specter of “remorse”? Do your homework, seeking out the expertise of an experienced real estate professional. If selling property, study the market before setting a price, defining your pricing strategy within the parameters of current market conditions. Understand yourself and your needs. Is it imperative to sell immediately, or will you have the luxury of considering offers over a period of time?

When buying, you must, likewise, understand yourself and your needs. Will you be able to conduct a leisurely search for property, or will you be operating under time constraints/ In both cases, establish your goals, evaluating how best to meet them within the latitudes of the current conditions, researching the what the market will bear, if selling, and assessing what your money will buy, if purchasing.

We’re all familiar with the terms “supreme court,” “probate court,” and even “kangaroo court.” And most of us have also heard of Land Court, but what is it, and what are its functions?

In broad terms, the Land Court, an arm of the Massachusetts Trial Court, determines who owns what, and gives properties clear title. Its staff includes title examiners, an engineering department, and judges. More specifically, the Land Court’s area of jurisdiction includes handling complaints to foreclose mortgages, proceedings for foreclosure or non-payment of real estate taxes, and planning board and board of appeals decisions. Most likely though, our familiarity with this legislative body is in its capacity of clarifying title.

The process of determining ownership requires examiners to trace 50-60 years of a property’s history; in some cases, title will be searched as far back as original land grants made in the 1600s. Though deeds have constituted the formal means of land transfer since the 1600s, the courts had no method of settling title disputes until the Land Registration Act was enacted in 1898.

In particular, this was true on Cape Cod where today’s method of metes and bounds used to describe land was not employed until the early 1900s. Previously, vague landmarks such as stone walls, trees or roads served as boundaries. With exact boundary definitions now a prerequisite for conferring title, the Land Court frequently works to convert old deed descriptions to our present-day title designations.

We’ve been through the UFFI (ureaformaldahyde foam insulation), asbestos, radon, and lead paint issues. And just when you think there couldn’t be anything else, insurance companies, attorneys, and others sound yet another alarm. This time it’s mold, and its potential impact on the value of your home can be significant.

A presence on earth for millions of years, the microscopic fungi come in myriad varieties, flourishing in moist environments. The cause of such health related problems as asthma/allergy-type symptoms; eye, ear, nose and throat irritation; coughing and wheezing, mold became a serious issue about ten years ago when the stachybotrys strain, a.k.a. “killer mold”, was discovered to have caused the deaths of ten babies in Cleveland, Ohio.

Seen or unseen, mold can live in your home—within walls, within plumbing, heating and ventilation systems. Today’s construction techniques,controlled environments and central air conditioning enhance mold-friendly environments. Insurance coverage for mold is limited and insurance companies have fiercely contested court claims.

So, as a homeowner you may want to determine if mold is present in your home, and perform any remediation necessary. Experts advise that eliminating the source of the mold—usually leaks—is the optimum way to stop its growth. Depending on the degree of buildup, cleanup methods can range from the simple combination of bleach and elbow grease to complex professional jobs involving sealing windows, filters to clean the air and vacuums fitted with filters.

The bottom line? Since mold is here to stay, it’s prudent to be aware of its potential effects on your home. Although there no state and/or federal regulations for mold consultants/contractors you can obtain remediation guidelines from the federal Environmental Protection Agency.

Thanks to the perseverance of a U.S. congressman, the enactment of the Homeowners Protection Act addresses a long overlooked issue: private mortgage insurance (PMI). Created with the consumer in mind, this law allows homeowners who meet specific critera to eliminate PMI fees from their monthly mortgage payments.

Private mortgage insurance, euphemistically labeled by the banking industry as “credit enhancement,” exists to protect the lender in the event of default on the part of the borrower, and is generally required of the homebuyer whose downpayment totals less than twenty percent.

With many consumers unaware of their right to terminate PMI, the legislation requires lenders to (a) advise buyers up front of the PMI premium figured into their monthly payments, (b) list PMI as a separate line item in the escrow account, © provide annual disclosures relative to the homeowner’s right to cancel, contingent upon satisfying the necessary requirements, along with instructions on how to do so, and (d) effect automatic termination on current loans, once the borrower’s equity reaches twenty-two percent of the original appraised value.

As with all matters legal, there are loopholes.

For instance, despite most creditors’ leniency, the Act technically pertains only to loans granted after 7/29/99. Additionally, while some lenders try to reduce monthly payments by paying for the insurance themselves, they pass on the cost in the form of higher interest rates. Pitfalls aside, however, the Homeowners Protection Act can result in substantial savings.

So, if you’re refinancing or reaching the seventy-eight percent PMI cutoff point, become informed and be proactive by putting this legislation to work for you.

Across the country, rising bills, fixed incomes, increased taxes, and poor-performance investments have driven increasing numbers of older homeowners to spend down their home’s value in order to defer certain payments until they move or die. This process, known as reverse mortgage, requires that the bank send the check to the borrower who continues to own and hold title to his/her property for the duration of the loan.

Money can be received in a lump sum, as a fixed monthly payment, as a line of credit to be drawn on over time, or as a combination of all three. And as with a second mortgage, it can be spent on anything—to help to avoid nursing homes, pay bills, pay for home health care nurses, prescription drugs, or for quality of life items such as a vacation or home repair/remodeling jobs.

With interest rates still low, reverse mortgage may sound enticing; however, there are risks which can include: adjustable monthly interest rates; high closing costs ($8,000-$10,000) and possible service charges of up to $35./month; expensive insurance plans to cover the difference if the property is worth less than the loan when it is sold; having little or no home equity at a time in the future when you will really need it; having less money to leave to your children; being ineligible for Medicaid or state assistance programs.

Significantly, federal law requires all borrowers to consult a government -approved counselor before proceeding with a reverse mortgage. And as always, your accountant can help to determine if this is a wise option for you.

Extending some forty miles from Chatham to Provincetown, the Cape Cod National Seashore comprises more than 43,000 acres. If you’re a relative newcomer to Cape Cod, perhaps you’re not aware of the Seashore’s positive effect on Lower Cape real estate values. Surveys of the Atlantic coast by the National Park Service, in 1939 and in 1953, prompted attempts to protect this land from the danger of widespread development.

Historically, resulting proposals incited tremendous controversy among local residents who feared the Government’s taking of the land. Ultimately however, the wisdom of the Seashore’s farsighted proponents prevailed with the 1961 creation of the Cape Cod National Seashore.

Its primary purpose: “to preserve henceforth for public enjoyment the scenic, scientific and historic features and the landscape of settlement that existed here. To the people of Cape Cod, whose livelihood depends on an economy springing from the Cape’s natural recreation sources, this means insurance for the future.” Well, the future is now.

Consider that some of the five million people hosted annually by the Seashore become more than visitors to Cape Cod by purchasing property. What attracts them to this area are the aesthetics of pollution-free waters; expansive, sandy beaches; conscientiously preserved ecosystems; and stretches of undeveloped land. Yes, the National Seashore does add a bonus to real estate values. But the greater bonus is the preservation of these lands for all who visit Cape Cod’s shores.

Through the years considerable controversy has arisen relative to the public’s right to pass along the tidelands that lie between mean high water and the lower tide line. While there is a perception on the part of the public that it is permitted to walk along the shoreline below the high water mark, technically this is not true. Generally speaking, the public has no legal right of access for bathing or recreational purposes.

Since early colonial times, the Commonwealth of Massachusetts has recognized the public’s limited, legal right of access only for “fowling, fishing, and navigational use.” This specific wording originates from a colonial ordinance dating back to the 1640s; that ordinance, in turn, derives from English law pertaining to tidelands. Land ownership, however, may extend no more than 100 rods (1650’) from mean high water.

Interestingly enough, in some areas of Cape Cod Bay the topography is such that, at low tide is possible to pass legally on the sand flats beyond private properties . Incidentally, with all its bays, estuaries and inlets, estimates indicate that Massachusetts actually has more coastline than the state of California!

Since 1966 American Heritage Realty has advised buyers and sellers on wide-ranging real estate issues. Its staff welcomes the opportunity to assist you.

More than just the land where you might get your feet wet, wetlands encompass salt or freshwater marsh, meadows, swamps, and bogs, as well as associated resources (banks, dunes, beaches and flats).

The Orleans Conservation Commission’s Wetlands Guide defines the Wetland Protection Act as a safeguard from overdevelopment in any wet area where the groundwater level is at or near the surface of the ground for a long enough period during the year to support a community of wetland-type vegetation.

Thus, the legislation assumes jurisdiction over virtually any type of construction activity such as dredging, excavating or modification of wetlands, waterbodies or their surrounding environs. Furthermore, the Act regulates site preparation, ranging from the building of shopping malls to the addition of a deck to a house, and such alterations as tree/bush removal, vista pruning and the changing of land contours that could affect nearby wetlands or waterbodies.

In 1985 the town of Orleans expanded the control of activities within resource areas by adopting the Wetland Protection Bylaw. While the two laws are similar, the local bylaw identifies additional interests including erosion control, wildlife habitat and recreation. The Orleans Conservation Commission administers both laws by review of proposed projects involving wetlands and resource areas.

Applicants who plan construction activity would benefit from an informal consultation with the Commission to gain a clear understanding of the regulations that guide its decisions. The resulting knowledge will provide invaluable insights to the preservation of Cape Cod’s ecosystem.

The American heritage of home ownership hit the ground running. Things were pretty bleak back in 1934 — the housing industry was non-existent, thousands of construction workers were without jobs, mortgage terms for homebuyers were virtually insurmountable, and less than half of American households owned their own homes. The country needed to pull itself up by the bootstraps.

Congress’s solution: The Federal Housing Administration. Designed to create construction jobs by insuring 100% of the loans made for housing, the FHA simultaneously created lower risks for lenders, and encouraged homebuyers with minimal downpayments and longer amortization periods.

As it accomplished this, the FHA placed a unique signature on each decade: the 1940s witnessed programs to finance military housing and make home purchases possible for returning veterans; in the ’50s, ’60s and ’70s the FHA stimulated production of privately owned apartments for elderly, handicapped and lower income Americans; during the ’70s it buoyed up cash-strapped properties floundering under the weight of soaring inflation and energy costs; during the recession of the ’80s the the FHA’s ability to stabilize falling home prices made it possible for buyers to continue to purchase homes.

This particular area does not see a large number of sales through the FHA nonetheless, it continues to play a solid role in home ownership today.

The stark reality of homelessness or the risk of near homelessness, a significant human need, forms the raison d’être for the Interfaith Council for the Homeless of Lower Cape Cod. Established in 1990 it offers a structure not present in individual towns, agencies and churches. A community endeavor rather than religious organization, the Interfaith Council strives to meet the emergency needs of its clients while working simultaneously toward long-term solutions to their problems.

As illness, unemployment or hard times presents families or individuals with uncertainty, the Interfaith Council advocates that they remain in their home communities. Doing so creates opportunities to seek employment in familiar surroundings, means consistency and stability for school age children, and ensures the important support of family and friends.

Epitomizing the act of neighbor helping neighbor, and committed to empowering the working poor to help themselves, the Interfaith Council’s capacity to operate free of state and federal constraints permits it to offer deserved assistance here in our own “back yard.” Negotiating with landlords, budget counseling, guiding clients in finding affordable housing and in availing themselves of community resources as well as supplying transportation assistance to receive these services portray only some of the ways in which the Interfaith Council continues to make an impact on the Lower Cape.

The Interfaith Council for the Homeless receives a portion of the proceeds of each sale made by American Heritage Realty. Please join us in our efforts to further this vital cause.

Seemingly intertwined with pricing real estate, the issue of assessment really stands apart from the entire buying and selling process. A mathematical formula devised for use in broad geographic areas, assessing standards vary from community to community and follow no uniform schedule for updating. Thus, while the assessed value of property is certainly a reliable indicator of what real estate taxes will be, it is not a good benchmark for determining current market value.

Although assessments are based on such criteria as the cost of similar properties, they can’t possibly take into account other factors which influence market valuation. For instance, larger may not signify more valuable, and assessment is based on size. A small, charming half cape home that’s an absolute gem could have a market value higher than an unattractive, poorly designed house three times larger.

Moreover, assessment does not account for condition. A lovely, perfectly maintained and manicured property might have the same assessed value as one in ill repair with front yard eyesores in the form of unregistered vehicles and “junk yard specials.”

With respect to land, consider that two one-acre lots, side by side and equal in size, one a kettle hole and virtually unbuildable, and one with ideal topography could share the same assessment figures. Nor does the assessed value reflect that only one of the sites might enjoy a beautiful water view.

Without doubt, prospective buyers and sellers should be cognizant of a property’s assessment. As a means of appraisal for valuation, however, it’s important to keep in mind that assessed value essentially takes a back seat to real estate’s pricing barometer, market value: what a willing buyer will pay a willing seller.

Simultaneously small town and vacation Mecca, the Information Age is right at home on Cape Cod. In today’s real estate industry on-line computer services have created the capacity not only to link consumers instantaneously with portfolios on property, but even more dramatically, to provide the capability for worldwide marketing opportunities.

Recognizing the importance of bringing the global world to Cape Cod and the necessity of making Cape Cod part of the global world, a few years ago American Heritage Realty became one of the first Cape Cod real estate offices to install a display page through an intercontinental multi-link website on the Internet.

Offering worldwide services for waterfront properties, vacation rentals, building homesites, buyer brokerage services and relocation assistance within the United States, it is a tremendous resource. What does this mean for buyers and sellers here on the Lower Cape? If you are selling your home, consider that your property can be marketed both nationally and worldwide.

Additionally, it can be viewed by any and all Cape Cod real estate offices. Likewise, prospective buyers possess the ability to conduct worldwide property searches which offer immediate, comprehensive access, to available properties.

With spring around the corner, and prospective buyers dreaming of summer vacation, this is a great time to sell.

Should you act as your own real estate agent? And if you do, will you be successful? Consider these points:

Today’s savvy buyers know the real estate market. How well versed are you in such marketing know-how as using appraisal values, for yours and comparable homes, to establish a realistic asking price? Are you aware of overpricing and underpricing pitfalls that can undermine a sale?

Knowing how to “sell the sizzle” is essential. Are you familiar with the most effective ways to advertise and promote your home, as well as which publications and online sites are most appropriate for your property?

If you are able to receive an offer, will you be able to hold the sale together? An agent has a huge advantage in the negotiation process to obtain maximum dollars for your property. In addition to being conversant with rules, regulations, completion of required forms and applications, federal and local disclosures, will you feel confident in drafting a purchase and sales agreement, with contingencies that are in your best interest?

Furthermore, are you prepared to oversee the all-important home inspection (frequently the cause of sales falling apart), along with the determination of a bank to hold the escrow monies, a mortgage lender and attorney for the buyer, writing of the statement of settlement costs, and arranging for recording the deed? For an untrained seller, these could be daunting tasks to undertake.

Can you sell your home on your own? Of course. Nonetheless, after assessing your knowledge of current real estate conditions, proven marketing techniques, the benefits of access to the Multiple Listing Service and the MLS Assistant program, and how practiced you are with regard to government regs and potential legal issues, you may decide to leave the sale of your home to an experienced professional who will put his or her expertise and guidance to work for you.

Along with assorted trends affecting home construction in recent years, the median size of building lots, today approaching one acre, has nearly doubled from the norm of twenty to thirty years ago.

Aesthetically pleasing, larger building sites (1-1.5 acres) are also attractive for a variety of other reasons. Among them, conservation and ecology come to mind: land becomes less dense and the effects of pollution decrease.

Conversely however, recent studies by the Massachusetts Institute of Technology Center for Real Estate and the Massachusetts Housing Partnership conclude that considerably less housing is now produced in Massachusetts than what is needed to sustain the state’s economic growth. Additionally, as rules and regulations call for larger building sites, the supply of homes becomes smaller, thus driving up housing prices.

Consequently, requirements for larger building lots, which seem to be the rule of thumb nowadays, beg the question of affordability. Could this, in part, be why young people, families, and those of lesser means cannot afford to live here on Cape Cod?

Question: What happens when buyers with wherewithal step up to the plate to purchase desirably located properties?

Answer: A tremendous demand for high-priced waterfront homes.These residences don’t even have to be beautifully elegant—the unattractive is expendable. Prime location is the great motivator.

During the past year, sales of multi- million dollar-plus homes on Cape Cod increased dramatically, and demand is still high. But while homes representative of the entire market spectrum have appreciated over the past few years, the demand for waterfront properties is surging ahead.

As always, the response to the law of supply and demand is axiomatic—prices are driven up. On the Cape, for example, homes that sold in the $600,000-$700,000 price range four or five years ago now present themselves to the market with million dollar-plus price tags. And with large amounts of money available, people are attracted to Cape Cod real estate.

Prospective buyers, many with fat Wall street pocketbooks, are anxious to purchase waterfront homes for investment as well as for pleasure. These days, high-end listings are now a commodity at a premium. American Heritage Realty dominates the waterfront/waterview market, and, whether buying or selling, welcomes the opportunity to assist you.

Enticingly low interest rates and rising home values, along with the prospect of increased savings, have given impetus to record numbers of homeowners refinancing their mortgages. A major factor in the current US economy, refinancing at lower rates has, for the most part, been accompanied by spending money—to pay debts, to supplement income, to purchase home furnishings, to make tuition payments, etc.

As attractive as it seems however, cash-out refinancing (taking equity out of one’s home as part of re- mortgaging) can leave homeowners owing more than their homes are worth, should the market soften.Coupled with declining income levels and the fees incurred in the mortgaging process, refinancing may not always be a wise option.

The bottom line?

First, do your homework. Is refinancing appropriate for you? Is borrowing against your home, then spending the proceeds a good idea in the current economy? Second, become an informed consumer. If you decide to refinance, be aware that such fees as processing, under- writing, preparation of documents, appraisal, escrow, title insurance, credit reports, recording fees, tax service, will accompany the mortgage.

Shop around—all mortgage lender are not created equal. Find out whose services will be most reasonable. And as always, consult your accountant for valuable insight on whether this is best for you.

Approximately six hundred parcels of private property lie within the bounds of the Cape Cod National Seashore. At its creation in 1961, the National Park Service announced that it would eventually acquire a portion of the existing dwellings within its confines. In 1985, the Land Protection Plan for the Cape Cod National Seashore was adopted, with definitive guidelines for the use of these private properties.

In a nutshell, the Plan addresses private land improved prior to September 1, 1959, permitting it to continue in private ownership, exempt from acquisition by the Seashore. Additionally, the National Park Service offered a deal to homeowners whose dwellings had been built after the 1959 deadline: the Government would purchase their properties at the then market value, minus an annual fee for a 25-year or lifetime use and occupancy permit, at the end of which, the property would revert to the National Seashore. Homeowners who opted to do so signed an agreement for both the sale of their property and the use and occupancy permit.

So as you enjoy Cape Cod this summer, bear in mind that we have the authorization of Congress to thank for the establishment of the National Seashore. It provides for the protection and restoration of Cape Cod’s natural features, which, combined with its educational programs, continue to preserve one of this country’s unique treasures.

Negotiating the purchase or sale of a home can produce anxiety for both buyer and seller. Unlike a car, buying or selling a home evokes strong emotions. Negotiation, a creative process which frequently involves compromise, can be particularly stressful if each party lacks a clear understanding of the other’s function within that process.

Basic psychology assigns distinct roles to buyer, seller and agent: The buyer’s objective is to spend as little money as possible while the seller’s goal is to gain the most money under the most favorable terms. Added to this is the agent’s function as mediator, keeping everything amicable and on an even keel.

In simplest terms, the seller attempts to accomplish the reverse of what the buyer hopes to achieve, and vice-versa. It’s precisely because everyone behaves “normally” that friction occurs. And money isn’t always the cause. Animosity can arise out of anything from the condition of the house to the date of occupancy to one party’s sense that the other wants to take advantage of a given situation to attempts to re-negotiate.

A competent broker, aware of these possibilities, strives to manage all relationships in a transaction successfully. Your ability to view negotiations dispassionately will lend a positive perspective to a rather predictable set of circumstances, furthering your capacity to compromise when appropriate. The moral of the story: don’t get angry. Keep your cool—and pause to observe human nature at work.

Entrepreneurship, a vital ingredient of the American Dream, enjoys an added twist these days: rather than start from scratch, many enterprising buyers are purchasing pre-existing businesses. Buying someone else’s “baby” has its advantages—you avoid the headaches of start-up, it’s usually cheaper, and a proven track record can facilitate the financing. Not a foolproof way to profit, “caveat emptor” applies big time here.

So if you’re contemplating the challenges of business ownership, be savvy about your purchase. Most first-time buyers don’t know exactly what they want. Conduct a thorough search for opportunities via the media (local and regional business newspapers, trade association journals, the Wall street Journal, the Internet) and by talking with local business groups (law, accounting, insurance firms), friends and colleagues. Know what you’re getting into.

When building from the ground up, you’re familiar with the skeletons in the closet. When buying someone else’s enterprise, you’ll need to find them. Assemble a team (attorney, commercial banker, insurance specialist) of professionals to help you. Be aware of the documents critical to an informed analysis of any establishment: income and expense statements, balance sheets and income tax returns for the previous 3-5 years, an inventory list, and contracts with major suppliers and customers.

Get personal. Get to know the owner, find; find out why he wants to sell. Will he supply financing? Will he be your partner initially? Volunteer to determine first hand how the business functions and how active its customers are.

When you do buy, verify that your purchase and sales contract contains a complete list of the assets you’re purchasing, specification of any liabilities you will assume, a provision to ensure clear title to the business, a clause to protect you against any undisclosed liabilities, mention of any contingencies you must meet, employment or consulting agreements with the seller, and any restrictions on the seller’s right to compete with you.

Clapboard or vinyl? With pros and cons defining the desirability of either type of siding, which do you choose?

Following are some facts about each:

• When considering vinyl be aware that decorative molding will be stripped and artistic details removed in order to accommodate the plastic covering. So, if you own an antique or older home, this means losing those unique aspects of its personality.

• However, vinyl’s lower cost, durability (it’s dent-free), virtually maintenance-free attributes (power washing it restores it to an almost-new condition), and its clapboard-like appearance from a distance, make it a natural, not to mention sensible, choice for many homeowners.

• On the flip side, it’s hard to top the appearance of clapboard—whether close-up or from a distance—although it comes with strings attached. Upkeep requirements, including scraping, painting, and at times, replacement of boards, in addition to a considerably higher price tag, bring many people around to the practicality of vinyl.

So, will it be clapboard or vinyl? There are positives to recommend each. And of course, your own needs and preferences will determine your selection, as will certain property locations.

Thus, residents of the Lower and Outer Cape will want to keep in mind the predominance and popularity of clapboard in those areas.

Walking the beach—whether we have the pleasure of doing so yearround or only for brief periods of time, the water draws us to its edge.

But what if access to your favorite stretches of shoreline were suddenly denied? Not possible, you say?

Consider the following: History tells us that in the 1600s the Commonwealth of Massachusetts enacted legislation which guaranteed its citizens the use of beaches for hunting, fishing and navigating, at the low water mark. In 1991 the Beach Access law added the word “walk.” The addition of that one word called into question the public’s access to beaches from land currently held in private ownership. The crux of the matter revolves around a portion of real estate law termed “prescriptive easement,” a form of squatters’ rights.

Most of us know this as a method employed to gain legal claim to someone else’s property. In essence, creating a prescriptive easement is accomplished simply by making continuous use of a property, without permission, for a period of twenty years or more. A 1996 case specific to this issue pitted the town of Rockport against a property owner whose land included a path to a popular beachfront walkway.

Incidentally, while Department of Environmental Statistics show that approximately 63% of Massachusetts’ coastline is inaccessible, with all of its bays, estuaries and inlets, estimates indicate that it has more coastline than the state of California.

Renting can be an excellent way to retain the use of your home for part of the vacation season while deriving added income during the remaining weeks. As with most business ventures however, successful renting is predicated on a positive, realistic understanding of the rental business.

It’s essential that you, as landlord, possess a belief in the basic integrity of people. Nine out of ten tenants enjoy and respect the property they rent. Add to this attitude the importance of consideration. Vacationers expect and deserve to rent a well maintained, well equipped, attractively furnished home.

Recognize that your preconceived ideas on rental fees, appropriate furnishing/equipment and proper home maintenance may not meet rental standards. Implementing the advice of an experienced rental agent can transform your house into an attractive vacation home.

While most rental agents do not perform the work of a property manager per se, a reputable rental agent will assist homeowners in a variety of ways, ranging from opening a home for cable TV or phone installations to arranging for appliance repairs to scheduling appointments for pest control services. A reliable rental agent with good PR skills will provide prompt, efficient service for tenants, cultivating friendly relationships which turn people into yearly visitors to your home.

American Heritage Realty has rented vacation homes for more than thirty years. Call our full-time rental specialists at 800-420-1776 or 255-2202 to discuss the possibilities of renting your property.

Renting can be an excellent way to retain the use of your home for part of the vacation season while deriving added income during the remaining weeks. As with most business ventures however, successful renting is predicated on a positive, realistic understanding of the rental business. It’s essential that you, as landlord, possess a belief in the basic integrity of people.

Nine out of ten tenants enjoy and respect the property they rent. Add to this attitude the importance of consideration. Vacationers expect and deserve to rent a well maintained, well equipped, attractively furnished home. Recognize that your preconceived ideas on rental fees, appropriate furnishings and equipment, and proper home maintenance may not meet rental standards. Implementing the advice of an experienced rental agent can transform your house into an inviting vacation home.

While most rental agents do not perform the work of property managers, a reputable rental agent will assist homeowners in a variety of ways, ranging from opening a home for cable TV or phone installations to arranging for appliance repairs to scheduling appointments for pest control services. A reliable rental agent with good PR skills will also provide prompt, efficient service for tenants, cultivating friendly relationships which turn people into yearly visitors to your home.

If you’re thinking about renting, please contact our vacation rental specialists.

While sometimes frustrating and without apparent purpose, zoning laws really are justified. Designed to protect a town’s property and activities, their hallmark is permanence. Zoning laws can be put to the test for a variety of reasons.

For instance, you may want to operate a small business out of your home, but find that town ordinances forbid it in your neighborhood. Or, the certified plot plan for your property shows that the home you’ve built extends by several inches into the required setback. Either of these situations, might prompt you to seek a “variance,” an exception to the zoning law.

To do so under Massachusetts law, three conditions must be satisfied. First, the property owner must identify specific reasons which, due to existing local ordinances, would cause him undue hardship. (It is important to note that property owners cannot knowingly violate a town bylaw and then, claiming hardship, request a variance.) Second, the zoning board must determine that a variance will not create substantial detriment to the public good. Third, the board must be certain that the variance will not compromise the intent of the ordinance in question.

To arrive at a decision, a zoning board schedules a public hearing to which it invites “parties of interest” (owners of land abutting, directly opposite or within 300 feet of the property line in question). If granted, the variance becomes effective upon its recording at the county registry of deeds. If denied, the board’s ruling may be appealed; however, it’s not likely the decision will be reversed. After all, requesting a variance is, in essence, asking permission to break the law. So variances are serious business. And towns treat them as such, granting few.

This weekend’s commemoration of Columbus Day got me thinking about current real estate markets around the world. In the Old World, Denmark’s sales are booming (as they have been in parts of the U.S.), making it difficult for first-time homebuyers to enter the market. And while housing prices have softened some in France, Spain, Ireland and Italy, other countries, the UK, Australia, New Zealand and South Africa among them, have seen a dramatic drop in inflated property prices.

Here in the New World, on Cape Cod, and throughout the Northeast, it appears that the market has experienced a slight downturn, primarily in the number of sales. Also indicative is the fact that considerably more properties have been listed for sale in 2005, as compared with 2004. The market in other areas of the country (Miami, Phoenix, San Francisco) continues to soar.

In San Francisco, in fact, the real estate situation truly reflects the definition of a seller’s market: In order to purchase property, it’s very common for a buyer to submit a bid along with many other buyers. Similar to silent auctions, those offers to purchase are nearly always higher than the asking price. Continually subject to change, the real estate world encompasses a variety of trends simultaneously, no matter which side of the Atlantic we call home.