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Should I buy or rent?
Some people buy a vacation home with the idea
of turning it into a permanent retirement home
down the road. Others like the tax benefits
or wish to expand or diversify their investment
portfolio. Most people who decide to buy on
the Vineyard understand that this is a special
place and have come to love it here. Owning
brings the benefit of having your own place,
becoming part of the community, blending into
the daily fabric of the island, and living in
all its seasons. Ownership brings great benefits,
but also the responsibilities of home management
and maintenance.
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Is now a good time to buy?
What do you think the market will do?
Although the Fall of 2001 saw significant changes
in our economy, the Vineyard is still experiencing
an active real estate market. Pricing has adjusted
somewhat to current market conditions, resulting
in a moderate softening of prices. There is
a slight increase in the number of available
listings, providing potential buyers with greater
choice of properties from which to select. Additionally,
interest rates are at, or near, 20-year lows.
These factors combine to make this a great time
to buy on Martha’s Vineyard. For more information
talk with your Coldwell Banker Landmarks
agent or visit the Sales
& Trends section of our site.
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What costs
I will encounter with a second home?
As with ownership of any property, there are
mortgage, utilities, insurance, and maintenance
and repair costs. If you’re thinking of
renting your property, or using the property
seasonally, it’s best to have an on-island
property manager or caretaker who can check
in on the property and deal with issues that
arise. If you’ll be renting the property,
you will also have agency commissions associated
with each group of tenants. Many owners prefer
to have lawn care and cleaning services to keep
the place in ready-to-use condition.
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Are there
tax benefits to owning a vacation home?
Today, a vacation home can be purchased for
investment purposes as well as enjoyment. And
yes, there are tax benefits. Visit www.irs.ustreas.gov
or talk with your tax planner for information
on the tax benefits of owning a second home.
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Are there other tax considerations
on Martha’s Vineyard of which I should
be aware?
Yes, in addition to the town
taxes, which vary depending on
the town, most island real estate transactions
are also subject to a 2% Land
Bank tax.
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Who does the Real Estate
Agent work for?
In Massachusetts, the state mandates that real
estate brokers disclose their agency representation
to you. Before showing you any properties, a
broker must disclose their representation and
have you sign a form that confirms that you
have been properly notified. An agent may be
a Buyer’s
Agent, a Seller’s
Agent or a Disclosed
Dual Agent. Be sure you clearly
understand the representation of any agent you
work with.
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If I am looking to buy a property
with the intent of using is as a rental, where
should I buy?
If you’re planning to use your property
exclusively for investment purposes (rentals)
you should consider Katama, near South Beach,
in Edgartown, where many visitors prefer to
rent. However, the most important consideration
is to choose a property you think is a good
value, in a location that appeals to you. The
summer rental market has been quite strong for
many years, and as long as you book your rental
with reputable rental agencies, you’ll
be able to rent a property in almost any location.
(See the Landlords
section of our site for more information.)
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What’s the difference between
a REALTOR® and a Real Estate agent?
Anyone who has completed their real estate certification
course in Massachusetts can show you properties
and act as a real estate agent. REALTORS®,
however are a group of agents who have achieved
higher levels of professionalism and adhere
to a strict and monitored code of ethics. Coldwell Banker Landmarks
Real Estate is one of only 19 REALTOR® agencies
on Martha’s Vineyard.
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What does it mean when a
property is listed as Exclusive?
Listing properties on the Vineyard varies from
most other markets, in that a seller may list
their home one of three ways. An Exclusive
Listing, is when the property
is contracted with one agency who works to find
buyers, and oversees advertising and promotions.
With Shared
Listings two agencies offer the
same home for sale, which may result in the
same property being advertised slightly differently
by two different firms. With a Tri-Listing
three different agencies market the property
simultaneously.
As a potential buyer, any island agent can show
you almost any property available, whether or
not they are the listing agent, even if it’s
an exclusive listing. In a few rare situations,
very high-end properties may be offered privately
to select agency customer lists, but by far
the majority of the properties available will
be included in the LINK network, the multiple-listing
service here on the island. Coldwell Banker Landmarks participates
in LINK, and can show any property listed within
to you.
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What’s the difference
between an Offer and a Purchase & Sale?
The Offer is the legal document, which is signed
by both parties when a buyer and seller agree
on the initial terms of the sale. The Purchase
and Sale is a more detailed, lengthy legal document,
which is often executed after certain contingencies
(such as inspection) have been completed. When
either document is signed by both the buyer
and seller, they constitute a legally binding
agreement. Be sure to consult with your attorney
before signing any legal documents.
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What’s the difference
between the assessed and appraised value of
a property?
State law requires that all real estate is assessed
at full market value, and all properties are
re-appraised at least every three years. Generally,
professionals are employed to make these appraisals,
basing assessments on actual sales 2-years preceding
to establish values as of January 1 of the re-appraisal
year. The assessed value of a property is used
to determine town
taxes.
The appraised value of a property is the current
market value of the property as determined by
a professional appraiser and reflects sales
prices of comparable properties within the prior
six-month period.
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What is a covenant?
Properties which are in historic districts or
that are part of neighborhood associations,
may be subject to certain covenants. These are
restrictions which must be adhered to by all
residents of the area and may include, use or
building restrictions, siting or sizing guidelines,
and behaviors which have been agreed upon by
the association or commission. Covenants help
to maintain a consistency within an area and
protect its’ value.
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Who is responsible for road
maintenance?
If your road is paved, it is probably maintained
by the town. Unpaved roads are maintained by
the local neighborhood association if one exists,
or by the individual property owner. Your Coldwell Banker Landmarks
agent can provide you with road
information on properties that are of interest
to you.
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How long will it take for my
property to sell?
There are three main variables that affect the
length of time a property is on the market:
the price of the home; the condition of the
home; and the current market conditions. The
seller can affect the first two of these variables—an
appropriately priced home in great condition,
with fresh paint and all details in order, will
have appeal to many potential buyers and is
more likely to sell more quickly—even in
a slower market. For more information on what
to expect when you’re selling visit the
Sellers
section of the site or talk with your Coldwell Banker Landmarks
agent.
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