Here’s some quick information for those who are unfamiliar with the “Blogging world” and how these sort of sites work. The fundamentals are the same as any site… the sidebars contain clickable links; the center section contains “posts” that will change as new information is presented. I’m not going to offer highly technical explanations because I’m not highly technical!

At the bottom of every post you have the opportunity to “comment” to any post Read The Full Story…

The Multiple Listing System information has been capturing buyer’s previous zip code for a few months and summary statistics were recently released. For all property types, statistics show that in that time period 74% of buyers are already in Maine, 25% are from out of state, and less than 1% are International. 

Buyers from MA represented 7.5% of Maine sales, NH 3.4% is and CT 1.8%.  The were buyers from every state in the country, but WV had smallest representation with only 3 total sales. Well, like the song says… “Almost heaven, West Virginia…”

Most sellers believe (or maybe hope is more accurate!) that “some out of stater” will buy their property, but statistically there’s a one in four chance of that happening.

Sometimes we over-emphasize the complexities of transactions! I’m increasingly discovering that a number of buyers and sellers do not understand the fundamental process by which real estate ownership is transferred. So here’s a litte six step summary.

1. A purchaser locates and decides to purchase (with or without the assistance of a real estate broker) a property that is for sale and executes an offer to purchase that property. Upon acceptance by the seller, this document becomes a purchase and sale agreement between the parties. This agreement must properly identify the parties, the property, the price to be paid, when the transfer will take place, and any special conditions of the transaction.

2. The purchaser or a financial institution or both obtain legal counsel to search the title and ensure that the purchaser is getting marketable title to the property. In this search, the attorney(s) must find out any liens against the property, easements that affect the owner’s rights in the property and special classifications like tree growth or farm and open space classification. Municipal tax records should also be searched to find out about delinquent taxes or possible flaws in title information. The attorney then certifies title to his or her client.

3. The attorney, bank or a title company then prepares the deed, mortgage documents, declaration of value and any other documents necessary to completing the transaction. The responsibility for preparation of the deed, releases of mortgages and the declaration of value is usually the responsibility of the seller(s). All other documents are the responsibility of the purchaser(s).

4. At the closing, the deed is signed by the seller(s) and given to the purchaser(s) in return for the agreed-to consideration (delivery of seizin). This act consummates the sale and all conditions of sale are merged .into the deed. In addition, in Maine, a declaration of value must be executed by both parties and requires the actual consideration, taxable consideration and any special circumstances of the sale to be stated in that document. The information on the declaration provides the basis for collection of the transfer tax at the registry. 

5. The declaration is forwarded from the Registry of Deeds to the Bureau of Revenue Services, Property Tax Division, where it is audited under the terms of the statute and used to develop sales ratio analyses for each municipality in the state. These analyses are used by property tax appraisers in developing equalized values for all municipalities in the state. (State Valuation)

6. One copy of the declaration is sent to the Municipality for its use and the remaining copy is archived on microfilm as historical information concerning sales for the use of the state and others who are searching for transfer information.

Occasionally I like to “surf” around and look at how real estate folks are promoting themselves. Once in a while I see some relative genius. More often I have a little chuckle and discover some things I really don’t want to do…

Here’s two chuckles I’ve had recently. One no doubt very sincere (and relatively new, I’m sure) agent listed some eight phone numbers in her ad encouraging folks to contact her… I’ll give her an “A” for enthusiasm. But I’m not sure which one I’d dial if I needed to talk with her… and I wonder when she finds time to check all those numbers for messages! Some days I have trouble keeping up with two phone numbers! (In the interest of self promotion, the office number is 207 368-4333, but you’ll get the fastest response if you call my cell phone 207 343-1842.)

Another variation of this is the ad that lists a phone number offering “24/7 coverage.” Ummm… wow! Wait! I have that too! Just don’t expect me to answer 24/7.

I’m glad I only have two phone numbers to worry about! (And I think my clients are too!) I’m even more pleased that my value to clients is not that I can be reached 24/7. (But my voice mail is always available.)

My other chuckle was “call me for all your real estate needs.” Yikes! My original intent was to add a note here “please don’t call me for ALL your real estate needs - just the ones I can legitimately and skillfully address!” Fortunately, I thought better of that, because while I may not feel best suited to handle certain “needs,” there is a chance I know some one who is capable and I’m happy to provide referrals when I can do so confidently.

So I guess that’s actually pretty consistent with my overall philosophy: an important part of meeting your real estate needs is figuring out how you’ll do it and who is best suited to helping.

I guess I don’t think I need eight phone numbers to do that.

The Piscataquis Chamber of Commerce has moved the year’s most important business event to the new SeDoMoCha middle school in Dover-Foxcroft. Two huge gymnasiums and a large cafeteria will be transformed into the all new Chamber Showcase 2008. This year you can visit community service organizations and non-profits in the “Community Connections” area, take advantage of great sales presented by businesses in the “Marketplace,” & “Outdoor Marketplace” and enjoy the great tastes of Piscataquis County in the “Food Court!”

Friday evening WDME Radio and the Piscataquis Observer will host a very special Business After Hours event not open to the public. This business-to-business networking event will provide the perfect setting for you to meet, socialize and do business with other business & community leaders. There will be delectable hors d’oeuvres, finger foods and non-alcoholic beverages. On Saturday the doors open to the public from 10:00 am to 5:00 pm for a full day of making contacts, building relationships and selling product. Addtional information is available at the all new Chamber of Commerce Website.

And… for those who haven’t seen the Maine Choice Realty exhibit I usually put together… I always have some “cheap Maine Land” for sale! Be sure to stop by and say “hello!”

In 2006 Harris Interactive published a poll indicating consumers’ level of trust in professions. Doctors faired well — if you consider that only 50% of respondents “completely trusted” them and that put them at the top of list! Real estate folks neared the bottom of the list just above stockbrokers, mechanics, lawyers, and insurance agents.

The columnist reporting this explained the mistrust as a measurement of the respondents own ignorance! He somewhat rightly suggests that it is quite natural to mistrust people who know more than we do — particularly if they are trying to sell us something.

This reminds me a bit of the story I heard recently. After examining his patient, the doctor asked “If I told you that you needed an operation, would you be able to afford it?”

The patient replied, Read The Full Story…

Given the current market conditions — especially current mortgage rates — “trading up” can make a lot of sense. Just because it makes sense it won’t necessarily be simple or easy! If you’ve dreamed of a bigger home… or more land… it is a good time to get serious!

Most people want to start looking for the new home and in a way, that makes sense. It is, after all, the most exciting part! But to keep the process as stress-free as possible it’s best to sit down (with your Realtor!) and outline a disciplined approach. This will make a few general observations; your situation is going to be very unique.

One method for buying the new home before selling the old is to make an offer on the new home contingent on the sale of the old. In simple language you tell the seller of the new home, “I’m offering to buy your home but not until mine sells.” If the seller accepts that offer you have a contract “holding” the new home, at least temporarily. But the assumption in that is that the seller will accept such an offer. Many times that will not be the case. Or the seller may accept the offer with what’s called a “kick out” clause. Without getting into specifics, this is a clause that allows the seller to terminate his/her contract with you if another buyer comes along.

Another method for buying before selling is to simply proceed with the purchase of the new home and then sell the old. The obvious downside to this approach is you’ll have a cash requirement and then pay two mortgage payments until the old home sells.  That just isn’t feasible for most buyers and lenders are going to expect buyers to qualify for both mortgages if that is the plan. In addition, it will be tempting to make the sale of the old home correlate to the commitment made on the new home. Unfortunately, the market for your old home is not driven by your new home needs.

It certainly pays to do some research. In general terms you want to know what that new home is going to cost you. But to begin serious shopping early is too often putting the cart before the horse. You really want an integrated plan that will get your old house sold and your new house bought.  Most will agree that it’s impossible to time the real estate market, but it is possible to minimize your risks and make this happen with that plan.

A lot of calls from prospective buyers start with “I don’t really know much about buying real estate…” It’s always tempting to be relieved when I hear it, because known ignorance is actually a great quality. What more often gets folks in trouble is when the think they know something and don’t.

My short response to that buyer’s statement is “That’s okay because I really don’t know much about you!” We have lots in common! We’re both “ignorant” so let’s start learning together!

Getting started requires that we both learn a lot — hopefully in a relatively short period of time. One decision we need to make before moving too far down the road to a purchase is the relationship we are going to share. For a further explanation of this process, see About Real Estate.

But let’s talk quickly about some things buyers need to know, particularly in the current market conditions. We are still hearing lots of talk about “buyers’ markets” with buyers being encouraged to “take their time.”

You can do that, certainly, but that doesn’t mean you shouldn’t be ready to decide. If you are shopping for real estate, make a little note and look at it often: Regardless of the market the best properties sell first.

I’ve seen it happen; it’s not pretty. A potential buyer starts Read The Full Story…

Land purchases have historically been difficult to make without cash or at least a willingness to make large down-payments and pay very high interest rates! There are a number of reasons for this that “make sense,” but those reasons are not very comforting to those who would like to own a piece of Maine. While we aren’t seeing a major change, it does seem that some of the local banks have programs that are not unreasonable — in fact the interest rates are quite low! Down payments remain fairly significant - 25% to 35% is not uncommon – and there will be closing costs, but for many people this makes a purchase “do-able.” (Note these programs are designed for people who intend to build; not large acreage investments.)

Yet another option for some is to use equity in their existing home or property. While this - like any financial decision - is not a good route for all, it does allow some prospective buyers to take advantage of a favorable market.

The most familiar option is “owner financing” or land contracts, but it is not an option all sellers can or will offer. Buyers need to be cautious of these arrangements, particularly the terms they are agreeing to and how the installment contract or mortgage is written. Legal counsel is highly recommended!

Like financing in general, don’t let the media scare you out of making at least one or two phone calls to determine what’s possible. Call the bank you’ve been doing business with all along and discuss your options… or let me know and we’ll talk about it!

An article in Advertising Age attacking the latest National Association of Realtors ad campaign is described as “scathing.” (The ads have been fairly prolific; they glowingly and somewhat emotionally describe why it’s a good time to buy a home.) The attack on the campaign fundamentally encourages people to notice what the ads are NOT saying.

That’s actually pretty good advice.

As I read through the attacks and counter-attacks I spotted one quiet voice of reason. A realtor quietly raised his hand and suggested he wished the ads took a slightly different approach. He’d like to see ads that describe what realtors do including “taking the time to help home buyers decide whether or not it is the right time to buy.”

He makes a good point and I would add that we ought to be doing the same for home sellers as well.

Advertising is, by its very nature highly general. Any generality is “wrong” some portion of the time.

Real Estate buying and selling is, by its very nature highly localized and individualized. It is very easy to argue that the statement “it’s a great time to buy” just isn’t true in every place and for every person.

I won’t fault the Ad Campaign for attempting to counter the negative press. And I sorta like the attack Read The Full Story…