Functional Obsolescence, with regards to real estate, occurs when there is a loss of building utility. This can occur with a home that is too lavish or improved for a neighborhood, or on the other end of the spectrum, a home that is much smaller or under-improved for an area. Functional obsolescence can also occur when a property no longer meets the basic needs and wants of a certain society; such as a 2 bedroom, 1 bathroom home or a home heated with a wood stove. Functional obsolescence can be curable or incurable depending on how difficult it is to overcome the obsolescence.

Stylistic Obsolescence is a home which does not conform stylistically to the neighborhood or incorporates some sort of material that is no longer manufactured or utilized. It can be a contemporary home in a traditional neighborhood or a home with a type of exterior that is no longer used. Stylistic obsolescence is almost always curable, but it is not always economically feasible to do so.

Economic Obsolescence is rarely curable. This occurs normally with older properties and is usually out of the control of the owner. Economic obsolescence can occur when commercial zoning encroaches onto residential or when a road widening diminishes the front yard of a home.

It's important to understand obsolescence and the effect it can have on the value of your property. Call me, Deb Camuso, for a complimentary market analysis of your property in the towns of Provincetown, Truro, Wellfleet and Eastham in Cape Cod Massachusetts. There is a natural market demand right now for certain properties. I would love to talk with you about how you can capitalize on this current market. I’ll show you what properties similar to yours are selling for and what competition you’re up against.

The U.S. Department of Housing & Urban Development approved (some time ago) two updated forms that are CENTRAL to the real estate transaction. They are the Good Faith Estimate and the HUD-1 Settlement Statement and they went into effect on January 1, 2010

The new forms (and accompanying rules) are intended to help home buyers (who are obtaining mortgages) to better understand and compare their mortgage options. In theory, this will allow them to obtain better loan terms, lower interest rates, and lower settlement charges (closing costs).

The new Good Faith Estimate (GFE) is now a standard form across all lenders. In the past a borrower would receive a GFE with a different format from each lender that they visited --- each having a slightly different set of disclosed loan terms, or vocabulary for referencing such terms. Now, a buyer can compare two proposed mortgage scenarios from two different lenders and be able to quickly and easily compare the exact same terms from each. I see this as a huge improvement for the financing process (for buyers), as in the past there has often been much confusion about how to determine which proposed loan program is better than the other.

But there's more! Beyond a buyer's (borrower's) loan terms and closing costs being easier to comparison shop, and easier to understand . . . there is also more accountability on the lender to make sure that those terms and costs stay intact through to closing.

Some of the costs CANNOT change from the Good Faith Estimate, others can only change by a certain percentage, and others that can change without limit. This is a big improvement from current HUD guidelines whereby there was no guarantee that any of the closing costs or loan terms from a Good Faith Estimate would be carried through to closing.

Having been selling property on Outer Cape Cod - Provincetown, Truro and Wellfleet, Massachusetts - for nearly a decade now, I have experienced such major issues with lenders. With these new chnages, I believe the financing process will be much easier for buyers to navigate as we move through 2010!

Call me,Deb Camuso and let me help guide you through the buying process!

It's that time of year....winter...and I must say that it has been incredibly cold on the Outer Cape. A majority of the homes in the towns of Provincetown, Truro, Wellfleet and Eastham are used seasonly....ususally April through November. Many home owners feel comfortable vacating their properties during the winter months and simply leaving the heat on low. However, I can't stress enough that this is a bad idea. Crazy things can happen.....winter storms winds can damage windows, heavy snow accumulation can leak through warped chimney flashing, rodents and other pests find ways to get into insulation......the list goes on. So here's my advice for all of you homeowners out there with seasonal, summer properties.

Ways to Protect Your Properties from the Cold

1. Turn off exterior water spigots. There is usually a main shut off inside the home.
2. Drain any and all exterior pipes and hoses.
3. Remove and store any window a/c units.
4. Get your HVAC system serviced and tuned-up.
5. If you have old windows, get a window insulation kit from a local home store.
6. Insulate you pipes - if they are warm to the touch, they are ready for pipe insulation
7. Store all outdoor furniture, grills, hoses in a shed or garage
8. Make sure the chimney is swept and fireplace debris removed
9. Seal foundation cracks, no matter how small. A field mouse can get into a hold as small as a dime!
10. Check smoke detectors and make sure to have a carbon monoxide detector.
11. Hire a local property manager to check on the house on a weekly basis to ensure all is safe and sound.

It will cost a little bit of money, but will save you tons in the long run. Be smart and take care of your real estate investment. Your can rest assured during your winter months and you can come back in June with no headaches.

Many in residential real estate find that in a buyer's market, the buyer's have a buffet to choose from and the sellers are always looking for new and innovative ways to stand out as the better choice in the line. This is especially true in the Lower/Outer Cape Cod real estate markets in town such as Provincetown, Truro and Wellfleet Massachusetts.

Sometimes, offering creative ways of financing can open the property up to a new consumer or offer attractive financing terms the competition may not be offering. Below are a few examples of these creative financing terms.

Rent with the Option to Buy.
Commonly known as a Rent-Option, this type of financing usually has the buyer sign a lease to rent the property, and then a portion of their monthly rent payment will go toward a down payment, closing costs, debt payoff, etc. At the end of the lease term, the buyer has the "option" to purchase the home and have that portion of their rent go toward the sale. Generally, the rent amount is higher than current market rent. If the buyer decides not to exercise their option, they lose all or a portion of the amount that was supposed to apply toward the purchase.

Lease/Purchase.
This type of financing has the buyer rent the property; however, they also sign a purchase agreement obligating them to buy the property at the end of the lease term. The rental amount may be at, below or at market rate depending on how long the buyer leases the property and how quickly they can consummate the purchase.

Buyer Possession with a Delayed Closing.
In this scenario, the buyer signs a purchase agreement and takes possession of the property prior to closing. This may be attractive to buyers who need a place to live ASAP while their loan is being processed.

In tough economic times where the future of real estate markets is still uncertain, it's worth thinking out of the box to sell a home.