Buying a Cape House is not like buying a house anywhere else. It's a dream come true, but also comes with some quirks and challenges that are unique to Cape Cod. This step-by-step guide created by the Cape House team will help reduce stress and save money and time on your Cape House buying journey.
Do you already know what part of the Cape you are interested in? Do you want year-round vs seasonal, condo vs single-family? Cape Cod has a lot of environmental and historic regulations--are you aware of how they impact the neighborhoods you're shopping in? What’s available on the market now? If you haven't answered all of these questions, now is the time to start researching. In addition to looking for homes that interest you, ask one of us about recent changes in pricing, days on market, etc. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
Talking about money is probably the least fun part about buying a Cape house, but the most important. This likely includes doing a full household budget and taking into consideration the tax implications of this new property. If you will be subsidizing your costs with short term rental income, make sure you know what to expect for revenue and expenses, including off-season maintenance and security. And don't forget to consider insurance. With climate change, insurance on Cape Cod has gotten more expensive and, in some cases, difficult to even get. If you put in the hard work of the budget now, it will pay off in peace of mind later.
Most people use a mortgage to purchase their Cape house, though having the ability to use cash can give you a competitive advantage. Either way, you probably need to talk to a lender or financial professional to determine your capacity. In order for your offer to be considered by a seller, you will need documentation of your ability to make the purchase. If you're getting a mortgage, consult with multiple lenders, as not only do they offer different interest rates, they offer different specialized mortgage options, one of which might be a better choice for you than others. For example, Raveis Mortgage has a product that allows mortgage customers to present their offers as cash. Click here for more information.
You can shop for, look at, and ultimately make an offer on a Cape house without a Cape Cod real estate agent. But why would you? Not only will we save you hours of work, we will save you money in negotiations and we have specific knowledge of the Cape market that you can only get with a local agent, including connections to local contractors, inspectors and attorneys. Finding the perfect Cape house is a different experience than it is in other areas. Let us partner with you, save you some money, and get you into that Cape house that's right for you.
Our goal is to provide you with the most personalized service to help you buy your dream Cape house
This is the fun part! We will arrange showings of homes you’re interested in that are within your price range. We will also do behind the scenes research for you to understand each home's market history, check building permits, and let you know about any specific insights we may have about the house or area. Your job is to take a critical look at the property, take time to explore the neighborhood and mark how close it is to necessities like schools, the beach, and grocery stores.
Once you have selected the perfect Cape house, work with your agent to craft a fair offer based on the value of comparable homes on the market. Cape Cod has been a seller's market since 2017 but that doesn't mean you have to overpay. We will help you devise a compelling offer strategy that stays in your budget. If you receive a counteroffer we have some of the best negotiators on Cape Cod, and and will help you reach a fair agreement that your feel good about. At this point, the house will go into escrow.
In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. We can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.
Now is the time to go back to your financial professional and commit to a purchase vehicle. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. For a second home you may be borrowing against your primary home or cashing in investments. Work with your mortgage lender to select the option you feel the most comfortable with.
One benefit of getting a mortgage is you have the bank appraisal to protect you from overpaying (and the bank from over-lending). But it can be stressful because if you've agreed to a price that is more than the house is worth, you may have to go back into negotiations. Even if you are buying with cash, for peace of mind you can request that the purchase be contingent upon an appraisal that supports the price you've agreed to pay.
The closing seems like a whole lot of paperwork (and it is) but it's also a pretty big moment. Your real estate attorney, lender, and real estate agent will have arranged everything for you in advance so all you have to do is show up (bring ID and also a checkbook just in case), sign all of your documents. And when your are done you will walk out of the room as the new proud owner of a Cape house!
Welcome to Cape Cod!
