Avoid Costly Mistakes When Buying Cape Cod Waterfront Property | Expert Tips from Tia Lilly

[00:00:00] Jennifer J. Hammond: Down in Florida these days, and you’re up in this Cape Cod area. So we both have waterfront, but it’s so different. And I often talk about in Florida, like when people say waterfront, well we have Tampa Bay, we have Clearwater Beach. Sarasota Beach, we can have a beach and we can also have rivers. We have lakes.

[00:00:17] Jennifer J. Hammond: So waterfront encompasses a lot of different things. So I was curious for you, I know you also have lakes, you have riverfront, beachfront. Can you talk a little bit about the differences of when someone’s asking for waterfront, what are some of the things that you should ask them as questions to make sure they get the right waterfront property?

[00:00:39] Speaker 2: Welcome to the Jennifer J. Hammond podcast. Jennifer is a licensed realtor educator, speaker, and bestselling author. Jennifer’s goal is to help you find your ” yay” in every day.

Understanding Cape Cod Waterfront Property Types

[00:00:54] Jennifer J. Hammond: Hello? Hello? Hello, this is Jennifer J Hello. I would like for you to meet Tia Lilly. She’s the founder, which is the broker and owner of Property, Cape Cod Real Estate.

[00:01:08] Jennifer J. Hammond: Yay. Welcome to the show, Tia. Thank you, Jennifer. So excited to be here. Well, I’m so excited to have you because you know, I, I’m in waterfront area as well. I’m down in Florida these days, and you’re up in this Cape Cod area, so we both have. Waterfront, but it’s so different. And I often talk about in Florida, like when people say waterfront, well we have Tampa Bay, we have Clearwater Beach.

[00:01:31] Jennifer J. Hammond: Sarasota Beach, we can have a beach and we can also have rivers. We have lakes. So waterfront encompasses a lot of different things. So I was curious for you, I know you also have lakes. You have riverfront, beachfront. Can you talk a little bit about the differences of when someone’s asking for waterfront?

[00:01:50] Jennifer J. Hammond: What are some of the things that you should ask them as questions to make sure they get the right waterfront property? Ah,

560 Miles of Cape Cod Coastline: Deep Water Docks vs Regular Docks

[00:01:57] Tia Lilly: That is an excellent question. And Florida and Cape Cod coincide quite a bit, so we have a lot of, uh, lot of, you know. Yeah. So we got the, the summer here in the winter in Florida, but it’s, you’re right, it’s the same questions because the waterfront is different.

[00:02:15] Tia Lilly: So there’s 560 miles a coastline here on Cape Cod, you pick from. You’ve got, so when someone says to me, I’m looking for a waterfront home, that is, it’s, it’s, there’s so much, there’s so many diff, there’s rivers, there’s direct oceanfront, there’s lakes, there’s ponds, there’s properties with docks.

[00:02:37] Tia Lilly: There’s. Deep water docks. There’s a huge difference between a dock and a deep water dock. So a lot of it is just getting to know, right, what are you, how are you gonna use this home? What is important to you? And, and just diving deep with a lot of questions. That’s why it’s important to get somebody that’s gonna help you figure this out.

[00:02:57] Tia Lilly: ‘Cause there’s a lot to it. Right.

Private Beach vs Public Beach: Cape Cod Waterfront Property Laws

[00:02:59] Jennifer J. Hammond: And, and then what you, you know, you mentioned this again, the one thing that I also find is people who understand waterfront, there’s very different, um, laws that govern. Neither one of us are lawyers. Let’s be clear. I’m a licensed realtor. Yeah, you’re a licensed realtor.

[00:03:13] Jennifer J. Hammond: But there are a lot of different laws, whether you’re on a river, whether you’re on a beach, like down here also, um, people say, oh, I wanna be beachfront. But then they don’t realize that the beach is actually public beach. So it’s not like it’s a private beach or that you aren’t gonna have some people sunbathing.

[00:03:28] Jennifer J. Hammond: Right. In what might be your view from your house to the property, so, or to the water line. Right. So understanding those kind of different things, including, and as you mentioned before, when you’re asking for people like, so do you like kayaks? You might say that you wanna have a boat, but boat seems like this big, big, big word.

[00:03:47] Jennifer J. Hammond: Because does that mean you want a yacht or you have a sailboat, or do you have a kayak?

[00:03:53] Tia Lilly: Yeah, the depth, right, the water depth is very important depending on the water vessel that you choose. You know, your, your choice. Yeah. So, and you’re right, the beach. Somebody can say they wanna be on a beach. So here on Cape Cod, some of them are private, so it’s good to know that, and you’re right, some of them are public and you can walk.

[00:04:12] Tia Lilly: You know, everybody has the right to walk the low water mean, you know, or the high water means. So it’s important to know what you’re buying and what you’re not buying, what you can do, what you can’t do. Um, here on Cape Cod, we have 15 towns and within each town, the villages all have their own. Set of rules, if you will.

[00:04:32] Tia Lilly: Right, right. So you can be in the same town, one side to the other. It’s completely different. So it’s really important to know what you can and can’t do.

Selling Cape Cod Waterfront Property: What Sellers Need to Know

[00:04:41] Jennifer J. Hammond: And so we were just talking about buying, but let’s also talk about the other side of it. As a seller of waterfront property. Um, what are some of the things that someone should know when they’re going to sell?

[00:04:52] Tia Lilly: Selling a waterfront property is important. I think, and you probably would agree with me, is to have somebody familiar with waterfront, because right in Florida, you know the difference of the pricing from all the different water types, right? So, you know, I see sometimes sellers come up and I go, oh, I wish they talked to me, because we could have got them a lot more money for their house.

[00:05:18] Tia Lilly: They just, and they had no idea almost how much the house was worth just with what it had. And it, it has actually happened with fellow associates, like it’s so important to know, and if you’re a specialist, you’re watching it all. Like, I watch all the waterfronts, so you know what, you know what I mean?

[00:05:37] Tia Lilly: It’s that the values there and then also getting it set up and, and I’m drawing people to the house to create that hustle and bustle and desire for it. So.

[00:05:47] Jennifer J. Hammond: And I, I think one of the big things is educating people. Helping them understand like if you want someone to, um, be, see the value of your property, sometimes you have to educate them ’cause they don’t understand.

[00:05:58] Jennifer J. Hammond: Why Is it more valuable to have, say, for instance, the private beach versus the public beach or vice versa. What is it that is gonna bring more value and predictably, perhaps more value in the future? Right.

[00:06:14] Tia Lilly: Right, right. It’s all about building equity. Right. And, and having, and to be buying and, and selling, like when you buy and then you eventually sell in that location, that will gain you the most appreciation for your property as well.

[00:06:28] Tia Lilly: And it doesn’t, see, it’s, it mind boggles me, and I’m sure you, but you talk, they have no idea what their property’s worth. Sometimes, like it’s, it’s, you know, they could be on the waterfront with their private beach and acres, that’s rare. And they have no idea what their, what their value is. And it’s important to get to, to look at it and to get a couple different opinions so that you, and that’s what we ask always.

[00:06:55] Tia Lilly: We just want the opportunity because look, if you can make more money and get it at the best terms, why not? Right? You don’t need to, you know, they deserve to sell it for what it’s worth. The right amount. Yeah. And I think that, again, they’re so often when somebody brings it, when I go to see a listing and they, they actually will, um, print out what they’ve seen online in different sites.

Cape Cod Real Estate Market Trends: Interest Rates and Inventory Challenges

[00:07:20] Jennifer J. Hammond: Right. And I’m like, well, let’s be, um, you know, we have to realize that some of these, these computer algorithms that are on these public real estate sites don’t always have the correct estimation of value. And I mean, it can go both ways. I’ve seen it way under value, but I’ve also seen it way over value.

[00:07:42] Jennifer J. Hammond: And I’m like, okay, there’s a reason that you have a real estate expert who comes in and talks to you about the nuances of your specific property and then also what’s happening in today’s market. So. With this, of course we know this, um, episode will last for a long time, but we, I’m just gonna say we’re in the fall.

[00:08:02] Jennifer J. Hammond: Uh, what, what year are we? 2023. What’s happening as far as your real estate market now? Are you guys really busy? I mean, interest rates right now for anyone who’s not listening to this at this time, at the most current time, yeah. Are actually going up or at least they’re threatening to go up and they’re considered high, which of course I use my air quotes for that because.

[00:08:26] Jennifer J. Hammond: It depends on, you know, your viewpoint. If, if you’re, um, somebody who paid, you know, a 12% interest rate, then you’re like, wow, they’re super inexpensive now. But if you’re someone who got a 3% interest rate, you’re thinking they’re super expensive right now. So what’s happening in your market right now? We’re seeing a shift here for sure.

[00:08:43] Tia Lilly: It’s been coming for a while. It’s gradual, but it, it is definitely a conundrum, you know, and I, I’m sure other markets are experienced it with the rate so high. I think a lot of sellers are unsure of what to do and thus not doing anything. And so you’re not seeing, you’re not, we’re not seeing a lot of inventory.

[00:09:04] Tia Lilly: ‘Cause they, they either wanna get something bigger or maybe downsize. They’re not ready to let go of Cape Cod yet, but why are they gonna go to a higher interest rate when they have a lower interest rate, whatever position it’s in? So, um, I think a lot of people are like just sitting right now waiting.

[00:09:23] Jennifer J. Hammond: I think interesting when there’s a lot of change, it almost, it breeds a bit of uncertainty where people end up freezing, they decide not to make a decision, right. One way or another. So, and that’s, we’re seeing that down here. I’m also licensed up in Washington DC as well, and we’re seeing that there too.

[00:09:39] Jennifer J. Hammond: Yeah. Although it seems to be a much busier market, I’d say in DC at this moment. But again, it’s neighborhood by neighborhood as most things. Real estate is very, very local to whatever’s happening in that area. So one of the, the big takeaways I love is to share a specific story. So I know you have stories of real life, real estate transactions that have had an obstacle and they’re required a true out of the box kind of solution.

Creative Real Estate Problem Solving: $1,200 Fix vs $100,000 Quote

[00:10:06] Jennifer J. Hammond: I feel like in real estate, that’s one of the things we’re doing is we’re always creating a solution and so often it has to be out of the box to make everybody agree to it. Can you share a story where you’ve had to use an out of the box solution?

[00:10:21] Tia Lilly: Sure. Sure. Yeah. And uh, and that’s just, I love that out of the box ’cause we’re always problem solving, right?

[00:10:29] Tia Lilly: I mean, it, this is a big part of what we do is problem solve. So I was selling a home on the river. This is probably one of the bigger ones of problem solving. And they had built a stone wall- a this huge, beautiful stonewall. It was on a river, so the septic was out front and you had to, there was a component in the septic that would not pass, but it was so far down there and you had to go this tiered layer wall that was impossible.

[00:11:02] Tia Lilly: So brought out one of the top companies on Cape Cod. They said, look, we’re gonna have to take down this wall. We’re gonna have to then put this, it’s, we’re looking to $50 to  $100,000 for this component. So I reached to my sources and we got out the old, they, I should say, got out the old tools, a shovel, and dug and dug a six to eight feet hole.

[00:11:27] Tia Lilly: And we got down there and we were able to replace this piping and it cost my seller, all, in all $1,200 all in on something that he, he could, and he could have caused some 50 to a hundred thousand. So that was just getting creative. I’m actually in this pit with him looking at this pipe. How are we gonna get to it underneath?

[00:11:52] Tia Lilly: So, yeah. So that was, um, that was pretty creative. That was creative. Creative. Yeah. Like a creative fix. He was thrilled. Yeah. It all turned out, I don’t even think the, the, the people buying ever even knew. We put it right back to normal and it was fixed and it was all good. Yes. And I think

Why You Should Never Be Your Own Real Estate Agent

[00:12:08] Jennifer J. Hammond: it, that is exactly that.

[00:12:10] Jennifer J. Hammond: We have to think outside the box and honestly we have to be levelheaded. Um, because so often the emotions run so high that people end up Yes. You know. Exaggerating the, the problem. And I get it because I’ve also, it’s funny ’cause I’ve bought a lot of investment properties and I think the first time somebody insulted something, I had renovated something and I, I thought I had done a fantastic job.

[00:12:36] Jennifer J. Hammond: Of course you did. And I heard. I’m the buyer insulted and I happened because I was the agent for myself, which never, never be the agent, never be the agent, be your own agent. It’s like exactly a stupid thing to do. And yet, it’s so funny. True because I was, I was young enough, I was probably still in my twenties when I did it, and it was so funny because I, I, I remember.

[00:12:59] Jennifer J. Hammond: I got so mad and I, I like, you know, I didn’t, thank God I stormed out of the room silently and didn’t say anything, but I was really grumpy. And it was funny, it was the lawyer, um, the, the title lawyer who came to me and said, so Jennifer, you know, there is a reason why we all suggest that you have a real estate agent represent you.

[00:13:19] Jennifer J. Hammond: Even though he said, just like as a lawyer, what do we say about a lawyer who represents themselves in court? What about their client? They have a fool for a client. So. We have to be that independent, calm, creative, out of the box thinker.

[00:13:35] Tia Lilly: Right, right, right. It’s so true.

[00:13:40] Jennifer J. Hammond: because it can get really sticky.

[00:13:42] Tia Lilly: Yeah. Well, it’s a big deal when you’re selling. It’s a big deal. Emotions run high. It’s a closing out, a chapter in your life. Ready? Ready for the new one. Sometimes it’s exciting. Sometimes it’s not, you know? So it definitely, but yeah,

[00:13:57] Jennifer J. Hammond: yeah. There was one though. Yeah. I have to, I was gonna say, I’ll tell you one quick, uh, story.

[00:14:02] Jennifer J. Hammond: Sure. I love it. I was pretty early in my career and I remember I was, I wanted to buy, and again, it was, I was way, it was early enough. I was still trying to represent myself. ’cause I, what, what happened is I had gone to show a property, which every so often, I don’t know if it’s ever happened to you, but I had gone to show a property and my client walked through and went, oh my gosh, this place is awful.

[00:14:19] Jennifer J. Hammond: And then I was like, oh, okay, I understand. And I let them go on their way. And then I came back. ’cause I was like, this place has potential. This is a great place. And um, and for me, I could see the bones and I could see this place would just need a little, you know, a little paint, little this, little that.

[00:14:34] Jennifer J. Hammond: And it would be fantastic. And, um, and so I came back and I went to buy it. And the seller, uh, ended up meeting the seller directly. He was, he was there and it was his mom’s place and she had died and he said. Um, I would be happy accepting less than the asking price. I was like, oh, oh, where’s your, where’s your agent?

[00:14:56] Jennifer J. Hammond: You shouldn’t be telling me that. And, and he goes, as long as I don’t have to clean out any of her clothing.

[00:15:03] Tia Lilly: Oh,

[00:15:04] Jennifer J. Hammond: he had opened a drawer and found her delicates.

[00:15:07] Tia Lilly: Yeah, I’m actually dealing with that right now. It’s very hard for them. It’s very hard. Yeah.

[00:15:14] Jennifer J. Hammond: Yeah. And it was So what did, did you do? I, oh, I told him yes.

[00:15:17] Jennifer J. Hammond: I said, absolutely, I’ll take that price. And I said, and I told him I’m the real estate agent, but I’m also the investor and did all the proper disclosures and I took care of everything for him. I, I didn’t make him clean out anything. And I told him, you know, I’m gonna donate as much as I can to the different charities that I couldn’t possibly use at my house in my life.

[00:15:35] Jennifer J. Hammond: But that I made sure that he knew that all of her belongings would be really loved and take care of, they’re not all gonna be thrown in a dumpster. And that he didn’t have to worry about a thing. And, and it, to me, it also felt like. I would hope somebody would do that for me when, you know, there’s a death of somebody that I, and I’m that close and I just, I realized that, again, real estate’s not like this straight arrow kind of thing,

Real Estate Is About People, Not Just Houses

[00:15:59] Tia Lilly: you know?

[00:16:00] Tia Lilly: Um, it’s people, it’s relationships, it’s feelings, it’s, you know, it’s, it’s not, it houses is just the, the, the. I’m always like, we’re in the people business and as a result we sell houses, you know? But it’s really all about people. Exactly. Yeah. Yeah. And I

[00:16:17] Jennifer J. Hammond: know you’re, you’re really big. And I feel the same way about relationships.

[00:16:21] Jennifer J. Hammond: It’s about having a relationship and how can I help you at whatever your transition is. Right. Sometimes it’s, you’re getting married, sometimes it’s you’re getting a divorce.

[00:16:30] Tia Lilly: Yeah,

[00:16:31] Jennifer J. Hammond: sometimes it’s a death and it, and

[00:16:32] Tia Lilly: it’s, and sometimes it comes after too. We’re a lot after, you know, we’re there for you after the sale, not just during the sale and before the sale.

[00:16:40] Tia Lilly: I always encourage people to reach out to me, you know, even if you’re not sure, that helps you with your educational right. And the decision process. So, yeah.

Cape Cod Investment Properties: Weekly Vacation Rentals and Short-Term Rental Regulations

[00:16:50] Jennifer J. Hammond: So one of my, my last questions before we run out of time Yeah. Is about investment properties. So in your area what are some of the best investment properties in Cape Cod these days?

[00:17:01] Tia Lilly: Well, when you say investment properties, it depends. I would first ask you, how are you going to use the property? What is your goal? Right? And I think a lot of people should sit down and look at that before they just go out and buy. We see sometimes the residual of that, and it is good to take a minute or two or five or 10 and figure out how do you wanna use it.

[00:17:21] Tia Lilly: So when you say investment, I think of, yeah. Anything on, we think of like weekly vacations. We have a weekly vacation rental division as well. So, um, that’s probably where you get the best bang for the buck. Right, right, right. And that’s gonna be driven anything on near water location. So, um, but yes, so that’s, that’s just all depends on how, how it is or is it, you know, your family gonna enjoy it and just enjoy the appreciation over the years, so you’ve gotta dive deep.

[00:17:51] Tia Lilly: But yes, I think of it as. The weekliss right. With the best. And it’s,

[00:17:55] Jennifer J. Hammond: it’s funny because in, in Florida, unlike DC ’cause DC wasn’t like this or isn’t even at this, at this day and age, this publication of this. Right. Um, we didn’t have, we don’t have quite the, the division in Florida. We have literally some cities are like no short-term rentals and then others are like, yes, we can do short-term rentals.

[00:18:16] Jennifer J. Hammond: But the definition of short-term rental is at least a week. Or I have another area in this, um, down here where the definition of short term rental is three months. And I’m like, whoa, whoa, whoa. Wait a minute. That’s short term. And then of course, you know, um, as you know, there are some that is a daily, which is like a hotel, like an Airbnb that is literally a daily, not a weekly.

[00:18:37] Jennifer J. Hammond: And so you have to, just that I would agree with you for investment properties. Even in, in my area, um, we have a lot of similarities. We need to ask a lot of questions, including, do you wanna use it? Is it just gonna be so that you can make money on it? Is it something that you want to actually transition and live in someday?

[00:18:54] Jennifer J. Hammond: Is it something that, um, ’cause you also need to know what, what the. Upcoming. I use my air quotes. The upcoming laws and regulations are, are they talking about making it so that you can’t use it for short term anymore and all of that, so,

[00:19:09] Tia Lilly: right. That’s a big topic on the table for a, I think almost everywhere, right?

[00:19:15] Tia Lilly: Yeah, yeah, exactly.

[00:19:16] Jennifer J. Hammond: For sure. Well, we’re just about out of time, so I wanna make sure people know how to get ahold of you. Thank you. So website, anything you wanna share? Yes,

[00:19:23] Tia Lilly: yes, please. Um, property, Cape Cod. Dot com. Um, and there’s also, you can go to our podcast menu on there. We have talked more about living on the water’s edge.

[00:19:36] Tia Lilly: There’s some free offers, um, and all our contact information is there. So that’s property cape cod.com.

[00:19:44] Jennifer J. Hammond: Well, thank you so much and I love your bubbly attitude and I know Oh, you would be happy to have, you’re gonna lift your voice with me and say Yay as we go off the air. Is that okay? Sure.

[00:19:55] Tia Lilly: It sure is.

[00:19:56] Jennifer J. Hammond: Okay, good. 3, 2, 1. 

[00:19:58] Jennifer J. Hammond and Tia Lilly: YAY!

[00:20:04] Jennifer J. Hammond: Thank you so much for being a guest. Thank you.