CATSCOMMENTS

Warren Buffet and the affordability of houses

2012-02-02T07:49:00.000-08:00

It was a wake up call to be quoted in the press as having an abandoned blog. And to think this one deals with real estate, my business. So, I have elected to hop back on this bus and create the time to post again as I actually have a wealth of information on real estate sales.

Warren Buffett came out with a statement in the last couple of weeks where he indicated to a staff member that the absolute best investment today is real estate. Boy, does that make sense! Why is that you might ask? There are several reasons.

1) Money is virtually free. When I bought my first house in 1982, rates on mortgages were 18%. Yikes! Today's rate is between 4 and 5%, even lower for terms less than 30 years.

2) Inventory is huge! There are more houses than there are buyers. Period. I have recently counseled sellers to take their houses off the market if they can't afford to price BELOW market. That's right...BELOW market. This is a buyer's market and has been for a few years. The Buyers set the price.

3) Affordability is back to historic levels. What this means is that the number of houses that are priced at levels that the average buyer can afford has increased. The Maine average sales price is down to $160,000. This means that a family with an income of $53,000 can probably afford a house at this price.

What can you do as a buyer? Talk to an experienced Realtor such as myself and get qualified. If your credit score is rotten, that's OK. We can help you make a plan to get on track for that purchase. And best of all...being represented as a buyer is FREE! That's right. No cost to you.
Shoot me an email at catmacgroup@gmail.com. I can help.

Unemployment DOWN in Portland, Maine, Mortgage Rates rising

2010-12-15T08:52:00.000-08:00

OK I admit it has been way too long since I have written on this blog. That's what happens when one gets busy with work and life! Time to make time to communicate my observations on the real estate market in Portland, Maine.

This has been a fabulous year for my group (http://www.wesellmaine.com/), and I attiribute that to a combination of the now defunct tax credit and hard work. Now we are heading into a new year and a new market and I ask, "Where are the buyers?"

To cut to the chase, we hear all sorts of whining about the 9 plus percentage unemployment in the US as a whole. But that is a red herring when it comes to Portland, Maine.

Recently named one of four markets in the USA where the value of real estate is rising (Today Show), one need only look at an adjusted unemployment rate of 5.5% in Cumberland County ( OCT ME DOL stats online)to realize that we are NOT in the dire straits of the rest of the country. In fact, since its high of 7.3% in February of this year, Portland, Maine has knocked off almost 2 % from its unemployment rate. My guess is that unless you have a government job, which may see some attrition this year, you are probably OK job wise.

What stirred me to write this blog today is that CNBC just noted that mortgage rates are now over 5% on 30 year conventionals. This is a jump from the 4.3% rates seen this summer. We are back to rates seen early this year and they aren't coming back down........we have seen the bottom!

What does this mean for you as a potential homebuyer? Job security is looking pretty good compared to the rest of the country, housing prices are starting to rise and rates are going up and are NOT COMING BACK DOWN!

Buy now, potential buyer! Buy now!

Congress looking to expand Homebuyer Credit

2009-10-20T07:36:00.000-07:00

Congress is considering the expansion of the $8000 tax credit to include all homebuyers who meet eligibility requirements. There are several proposals now before committees that would expand the credit from $8000 to as much as $15,000. Currently the full credit is available to first time buyers who make $75,000 or less ($150,000 for joint filers) and a partial credit for individuals making between $75,000 and $95,000 ($150,000 to $170,000 for joint filers.) Those in favor of extending the credit's scope say that doing so will boost home sales, stabilize housing prices, and create jobs.

Mark Zandi, chief economist of www.MoodysEconomy.com favors extending the credit until June 2010 according to a recent post on that website. He cites the impact of housing on the economy as a whole.

(Thanks to e news from Franklin Mortgage for the facts cited above!)

Interest rates will rise

2009-10-13T07:33:00.000-07:00

Yup....you are hearing it here, but did you know that as economies improve the Fed will be forced to increase interest rates? Used as part of the "toolbox" available to market regulators, interest rates tend to increase when inflation is on the rise. Inflation occurs when there is too much money chasing too few goods.(It is actually more convoluted than that...) People are afraid that the Fed has put too much money out there for the volume of goods being produced.
However, unemployment is still high, so the Fed is artificially keeping rates low for the time being, in an effort to assist businesses in getting affordable credit to create jobs. If people go back to work, more goods are produced and consumer demand increases......well, you get the general picture.

Eventually, rates will need to increase, or be increased, to remove money from the system. The hard part for homebuyers is that mortgage rates will increase , also, as the rates are tied to long term treasuries. For every quarter point of a rate increase, the homebuyer's monthly payment increases. This can limit the price of a house one can afford.

Why wait?? House prices are LOW, mortgage rates are LOW! A buyer can get the best deal seen probably since...........this writer doesn't know when!

NOW IS THE TIME!!!

The Perfect Storm

2009-10-13T07:22:00.000-07:00

October is the month of crazy weather changes and conditions that led to the October Atlantic storm giving rise to the conditions that were featured in the book and movie of the same name. This October is a perfect brew of conditions that are the most favorable that homebuyers have seen in a long, long time!

First time buyers in particular should be out searching actively for their perfect home. Not only can they take advantage of an $8000 tax credit (money in your pocket), but in Maine can possibly qualify for another $5000 towards closing costs through the Green Money program at Maine State Housing. Combine this with rates near and below 5%.......well it should be a no brainer.

If your credit score is above 640 and you have some money saved, get out there. The house you choose must be closed by December 1, 2009. It takes 4 to 6 weeks to close.....

Update on MSHA program

2009-06-19T11:08:00.000-07:00

I have done a little more research and have talked to a lender who is as familiar with the program as can be at this point. It is actually a credit of UP TO $5000 but no more than 4% of the loan amount. The borrower must contribute 1% of the loan amount. Under programs such as MSHA/FHA this can be a gift. The program ends November 30, 2009. Hope that is more clear!

I strongly encourage any borrower to consult with a loan officer regarding whether or not this makes sense.

There are income limits ,also, that apply!

Maine State Housing Offers $5000 to 1st Time Buyers

2009-06-19T09:13:00.000-07:00

I just learned today that MSHA (Maine State Housing) has finally launched their "Gift of Green" program. This program offers $5000 that can be put towards closing costs, down payment, or escrow funds. There are also coupons for up to $500 for energy audits. The money is limited to approximately 500 buyers. There are upper income linits. This is in addititon to the $8000 tax credit being offered by the Feds. For more information go to www.mainehousing.org.

Where did the time go or Tempus Fugit!

2009-05-31T16:13:00.000-07:00

I have been extraordinarily busy with first time homebuyers in the past week. They are all smart as heck to be out there looking and putting houses under contract while the sun is shining and the rates are still low. My little Wall Street prognosticator friends say all signs point to higher rates, sooner rather than later as the economy bumps and jolts out of its latest swoon.

As I have repeated frequently, there is $8000 out there waiting for you if you have not owned a house in three years. Why not take advantage of that? If you need to work out the credit blues, get hooked up with folks who can help you raise the scores. Believe it or not, you can get a 100% loan with a 640 score through RD guaranteed. Find someone who knows how to find out if you qualify!

The sun is out. Summer is around the corner........the time is NOW!

Working By Referral

2009-05-21T07:31:00.000-07:00

I find that the best source of great clients is to be referred by past clients, friends, and business associates. I know I will be working with folks who have values similar to mine (honesty, integrity, and valuing others) and appreciate the level of service provided by the team I have assembled to provide top notch real estate services.

If you are starting your own business or looking to further develop the one you are in, or if you are unemployed or underemployed, there is nothing that beats meeting with everyone you know and talking to them about their business. Learn what they do, ask about their needs, offer to bring something of value to them. Before you know it, you will build a fabulous network that will be of value to all of you. (Note that I didn't tell you to talk all about you!!)

I belong to a fabulous group of professionals in a group we started called S.M.A.R.T. Thursday. (www.smartthursday.com) We have decided that by working together we can all achieve more. You can, too, by referring business to others.

Get out there and see how you can help others - and yourself! The opportunities are endless!

Why do agents brag about the number of listings???

2009-05-20T05:56:00.000-07:00

I always wonder why agents brag about the number of listings they have. While being able to list houses is an admirable quality, being able to sell them is better. When interviewing an agent to sell your house, find out how many houses they have successfully closed in the last year. Ask about the ratio of price received to price asked. (In other words, how close to asking price did the seller receive?) Find out how familiar the agent is about the various financing options out there. Will you be required to pay some of the buyer's costs? (The answer is probably!) Make sure the agent gives you statistics regarding the movement in the market where you live. Can she articulate the probable scenario that will unfold? Does she offer staging, pictures, and video on the internet? And, last, but most importantly, does he roll over when you ask about reducing commisssion? If the agent can't explain to you his value proposition, go to someone else. Do you want an agent who will roll on your negotiations??

Who is working for you?

2009-05-19T16:01:00.000-07:00

When teaching first time buyer classes, I am frequently asked "How do I find a broker?" The search is simple.

Get the names:

1) Ask other people whose opinion you value whom they would recommend. Make sure their recommendation is based on their own experience!
2) Attend open houses and check out the agents holding them Ask anyone of interest if you can make an appointment to interview them. After all you are looking for someone to hire!
3) Go online and check out websites.

Got the names? Then interview your choices. Any agent worth their salt will be happy to arrange a time for an interview. If not, scratch them from the list!

At the interview, ask the agent how many transactions they have closed in the last twelve months. You want someone with transactional experience in this market! If they don't close at least one deal a month, I would want to know why not?

Another critical factor is their knowledge of the financing options out there. If they have no experience with the intricacies of FHA, don't know about spot financing, or have no clue about how short sales work, move on!!

Finally, how well do you "click"? You will be entrusting this person with one of the largest financial transactions you will ever make. Are they up to the task?

Ask for references if need be then decide who will be the best fit for you! And, importantly, don't let anyone sign you into anything before you are ready. It is ok to ask to get back to them later. A high pressure sales person is probably NOT the best choice for an buyer agent. You want the choice of house to be something you are comfortable with, NOT something you felt pressured to buy.

Good luck! By the way, we specialize in first time homebuyers and would be pleased to interview with you for this job!

Spring is Here.........The Perfect Storm

2009-05-18T14:40:00.000-07:00

....and all thoughts turn to buying that perfect home! That is right. Did you know that in times of trouble, there are always opportunities? While some sellers are taking it hard on the chin, this is the perfect time to buy that house that you have always dreamed about. With many more listings than there are buyers, the selection in the lower price ranges is outstanding.

If you have not owned a house in the last three years, you are eligible for an $8000 tax credit courtesy of the federal government. If you can't use all of that credit because you don't owe that much tax, you can get a check back for the difference. Wow!

If you own a house now and have decent equity, you can buy a house that better fits your needs. Whether it is larger or smaller, in a better neighborhood or closer to work or school, there is a wide selection at outstanding value. Priced and staged correctly, houses are selling in a timely fashion in most price ranges. An expert opinion by a seasoned real estate professional will give you the information you need to get the best price in this market.

Please don't wait too long. The $8000 is good only for those buyers who close on their house by December 1st of this year. The bargains on houses won't last forever, either!

A $270,000 house for $200,000?!

2009-05-17T07:43:00.000-07:00

Are you a first time buyer with time to wait for a house? Take advantage of the situation where a seller MUST sell and needs to sell for less than they paid! If you have a good credit score (over 680) and 3.5% to put down, (you can receive this money as a gift from a third party) you can buy a short sale. I have two first time buyers now who are getting great deals (under 130,000 each) on condos which sold for over $170,000 three to four years ago. We have another buyer who is geting a $270,000 house for $200,000! These are NOT foreclosures. They are in GREAT condition. It may take three months to get approval from the lenders and close, but the only way for the values to go are UP! If you have time and credit, take advantage. PLUS....if you haven't owned a house for three years you can get $8000 in a tax credit. (See my other posting) What are you waiting for????????

Uncle Sam has $8000 for you

2009-05-17T07:31:00.000-07:00

If you haven't owned a house for three years, the government will give you $8000 if you close on a home purchase by December 1 of this year. I know it sounds too good to be true, but it is! And, even better, HUD is looking at ways for you to use the $8000 as a down payment and NOT have to wait for your tax return.

Here is a description from the National Association of REALTORS:

The temporary credit is only available for
home purchases made from Jan. 1, 2009 to before
Dec. 1, 2009 and is equal to 10 percent of
the cost of the home, up to a maximum credit
of $8,000. (For example, a home purchased for
$80,000 or more would qualify for the full $8,000
credit while a $70,000 home would only qualify
for 10 percent, or $7,000)
Buyers claim the credit on their federal tax return
to reduce their tax liability. If the credit is
more than their total tax liability that year, the
buyer will get a refund check for the balance.
Only first-time homebuyers can take advantage
of the tax credit. A first-time buyer is defined
under the tax credit as an individual who has
not owned a home in the last three years.
For married joint filers, both must
meet the first-time
homebuyer test
to take the credit
on a joint return.
Eligible properties include anything that will be
used as a principal single-family residence—including
condos and townhouses.
There are income guidelines on the credit. Individuals
with an adjusted gross income up to
$75,000 (or $150,000 if filing jointly) are eligible
for the full tax credit. The credit is phased
down for those earning more and is not available
for those with an income above $95,000
(or $170,000 if filing jointly).
The new tax credit does not have to be repaid
if the buyer stays in the home at least three
years. But if the home is sold before that, the
entire amount of the credit is recaptured on
the sale.
People who purchased homes under the 2008
$7,500 tax credit program will still be required
to repay that credit to the government over a
15-year period.
The American Recovery and Reinvestment Act of
2009 features an $8,000 tax credit for first-time
buyers who purchase a home on or after Jan. 1, 2009
and before Dec. 1, 2009.
Details of the tax credit include:
First-Time Homebuyer
Tax Credit
Consult with your REALTOR® or tax advisor
and visit to
learn more about the tax credit and
state and federal loan programs.

OMG! Do the finance reporters understand Real Estate??

2009-02-25T08:10:00.000-08:00

I just about flipped today when I heard a reporter on MSNBC report that January sales were at a 12 year low because buyers are waiting to hear about government programs and they don't want to buy. And, guess what, the Northeast is the lowest. Helloooo............sales in January are contracts from November/December. Sales are ALWAYS slow in November and December, paricularly in the Northeast. The buyers in the Northeast aren't particularly worried about anything other than their jobs.
If they have a job and realize their job is secure, they are buying!

Yes......buyers are reluctant, but, guess what? The buyers are out there. A huge part of the problem are the cobrokers who are less skilled at selling in this market, so buyers are receiving less good advice about what constitutes a good sale. However, I have been way busy....which I would expect this time of year.

No more GLOOM and DOOM! If you want to buy, do it now!!! You will be sorry this time next year.

Letter to Senator Collins

2009-02-14T07:43:00.000-08:00

Here is a letter I sent to Senator Collins. She needs to be complimented for not taking a partisan stand!!Senator Collins:

I want to personally thank you for taking a courageous stand in the face of your own party to get the Economic Recovery Plan out of the gate. I think that to do nothing would have been horrific. You and Senator Snowe truly represent what is best about Maine!

I am writing today as a person who absolutely believes in the principles of abundance and prosperity. Even though the real estate market has seen better days (!!), I continue to thrive and do well albeit it is like slogging through mud at times! I spend money when it makes sense and remind myself every time I pay my bills that I am increasing the prosperity of those around me. If I were to sit on my money, someone else will lose their job or go hungry or what ever…..

This brings me them to a recurring thought I have had regarding the so-called hoarding that is occurring with the banks and other financial institutions. I understand that they are offsetting losses on the balance sheets, but can’t something be done to get this situation reversed where there is a reward for putting the money back out in the system? After all, money is really a symbol for time, effort, power, values. It really belongs to the universe, not to individuals or entities. It can be such a force for good. It doesn’t do anyone any good figuratively sitting in a vault somewhere.

Along those same lines, has any thought been given to requiring that those entities who are benefiting from the taxpayers’ money, whether they be students receiving subsidized loans or financial institutions receiving TARP funds, give back to the country in time and effort assisting those less fortunate? ….or assisting communities or states with needs that are going unaddressed? It’s just a thought.

Thanks for listening. Maybe I am a pie eyed idealist, but I truly believe that together we all achieve more.

Keep up the good work !

Warmly,

Jean-Marie Caterina

Find out what's selling in YOUR neighborhood!

Free report at www.wesellmaine.com . Scroll down to "What's Sold" icon at bottom of page.

Jean-Marie Caterina, Broker

Caterina MacLean Group

Keller Williams Realty

50 Sewall Street, Second Floor

Portland, Maine 04102

(207)553-2606

Fax-(207)879-9801

jcat@kw.com

www.wesellmaine.com

www.catscomments.com (Blog)

We are NEVER too busy for your referrals!

Maine Home Sales 2008

2009-01-29T10:42:00.000-08:00

MREIS PRESS RELEASE - HOME SALES IN 2008: Single-family existing home sales in Maine fell 15.8% in December 2008 and 20.9% for all of 2008. According to MREIS, 9,502 homes sold last year, compared to 12,014 in 2007. The median sales price decreased 12.63% in December and was down 7.22% for all of 2008. The median sales price indicates that half of the homes were sold for more and half sold for less. The statewide median sales price in Maine was $99,990 in 1998. The statewide median sales price is $180,000 for 2008 - showing considerable long-term strength. Nationally, sales of single-family existing homes dipped 1.4% in December 2008. According to NAR nationwide sales for all of 2008 dropped 11.9%. In the Northeast, home sales decreased by 14.3%. The complete press release is posted at http://mainerealtors.com.

Seven Months Inventory- Portland, Me

2009-01-29T09:43:00.000-08:00

Did an absorption rate for my clients yesterday and learned that in the 150 thousand to 200 thousand dollar range, there is a seven months supply of houses. Man.......that means it will take seven months to clear out the current inventory IF no other houses come on the market.

Well.....guess that means that the buyers should come off the fence and get going as interest rates have ticked upwards a bit since two to three weeks ago.

Buyers ask me, will I lose money? My answer...no, honey!! Buy now and live in your house for more than three years. You will see the equity increase over time. It always does!

For those of you with money burning a hole in your pocket.......get investing. You buy when it is low and sell when it is high! Guess what!!!? It is time to buy.

Have to sell??? Get a good and ethical broker to help. Get someone with loads of experience. (Like me! Mike and I did 36 deals last year) Do NOT entrust your house to an agent who is part time or dabbling. This market is NOT for the faint hearted.

There is only today! Go and make the most of it.

Is There Blood On The Street ???

2008-10-30T13:18:00.000-07:00

I believe that it was Rockefeller who said that one should buy when there was blood on the street (Wall Street). Warren Buffet believes the same. In other words, buy when things are low, sell when they are high. Hello..........it is a BUYERS MARKET!! If you have decent credit and a little bit of money saved, why aren't you buying?

This same edict works for sellers. If you have equity and have owned your house for awhile, why not buy the house of your dreams when you can get a great deal on it?

Interest rates are low, banks are lending (believe it or not!), sellers are willing to be creative. The world is NOT coming to an end.

I have posted the most recent stats for the rolling quarter July to September 2007 compared to the same period 2008 in the prior post. While sale numbers have declined and prices have also come down, this means one thing for buyers - housing is becoming more affordable. As we move into the traditionally slower Fall market, the smart buyer is out looking for that perfect house at the perfect price. Watch the absorption rates, as they move closer to 6 months supply demand will begin to pressure prices up and there will be less deals to be made. Watch for my entry on the absorption rates for Portland, Maine!

Buyers--------get out there!!!!!

Rolling Quarter Stats - Maine Real Estate

2008-10-30T13:14:00.000-07:00

I apologize that this is hard to decipher! I will comment on the following BLOG!

FOR IMMEDIATE RELEASE

CONTACTS: Listed Below
Maine Real Estate More Affordable
SOUTH PORTLAND (October 27, 2008) - Maine’s median sales price for a single-family existing
home was $177,750 in September 2008, down 6.45 percent from one year ago. The median sales price
indicates that half of the homes were sold for more and half sold for less.
According to the Maine Real Estate Information System, Inc., statewide sales dipped 9.73 percent.
Realtors reported that 928 homes changed hands during the month, compared to September 2007’s
statistic of 1,028 homes.
Across the United States, single-family existing home sales were up 3.8 percent in September. The
National Association of Realtors reported a national median sales price of $190,600 represents an 8.6
percent decline over the past 12 months.
Regionally, sales in the Northeast were 7.7 percent lower than a year ago. The regional median sales
price was $246,800—a decrease of 5.4 percent.
Jim Fitzgerald of Coldwell Banker Residential Brokerage in Kennebunk says, “Having a Realtor is
essential in this market. Understanding the immediate past performance of the market and
determining the level of pricing aggressiveness that’s required to move the property are best
developed using an experienced Realtor—one who is currently in the trenches, dealing with the
realities of this market on a daily basis.”
For those looking to buy, Fitzgerald adds, “There is enormous potential to secure property at reduced
prices, using rates that remain close to historic lows. Half of our closings remain second homes, which
tells me that people are looking for a special place, like Coastal Maine, to bring their families. Quality
of life still ranks very high on people’s wish list when it comes to securing their next home in Maine.”
Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for
the month of September only, statewide. The second chart compares the number of existing, singlefamily
homes sold (units) and volume (MSP) during the months of July, August and September of
2007 and 2008.
(Continued)
Maine Real Estate Statistics –September 2008 Housing Report—10/27/08—Page 2 of 2
SEPTEMBER ONLY CHART
From September 1-30, 2007 and September 1-30, 2008
County # Units Sold # Units Sold % MSP MSP %
2007 2008 Change 2007 2008 Change
STATEWIDE 1028 928 -9.73% $190,000 $177,750 -6.45%
ROLLING QUARTER CHART
From July 1, 2007 – September 30, 2007 and July 1, 2008 – September 30, 2008
County # Units Sold # Units Sold % MSP MSP %
2007 2008 Change 2007 2008 Change
STATEWIDE 3700 2915 -21.22% $195,000 $182,500 -6.41%
Androscoggin 251 197 -21.51% $165,000 $145,000 -12.12%
Aroostook 118 95 -19.49% $77,175 $100,000 29.58%
Cumberland 876 709 -19.06% $255,000 $238,825 -6.34%
Franklin 101 75 -25.74% $142,000 $125,000 -11.97%
Hancock 171 117 -31.58% $192,000 $235,000 22.40%
Kennebec 334 315 -5.69% $155,950 $141,500 -9.27%
Knox 157 83 -47.13% $208,000 $192,000 -7.69%
Lincoln 127 88 -30.71% $239,000 $189,750 -20.61%
Oxford 178 118 -33.71% $145,750 $138,950 -4.67%
Penobscot 400 317 -20.75% $145,000 $141,000 -2.76%
Piscataquis 69 47 -31.88% $120,000 $108,000 -10.00%
Sagadahoc 114 71 -37.72% $211,600 $180,000 -14.93%
Somerset 92 100 8.70% $120,000 $125,000 4.17%
Waldo 118 79 -33.05% $185,000 $159,000 -14.05%
Washington 13 17 30.77% $110,000 $77,000 -30.00%
York 581 487 -16.18% $238,000 $224,900 -5.50%
Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a statewide
Multiple Listing Service with over 5,200 licensees inputting active and sold property listing data. Statistics reflect properties reported as
sold in the System within the time periods indicated
Contacts:
Marie Flaherty, President, MREIS (Prudential Northeast Properties, Westbrook) – (207) 797-8585 – marie@tfre.com
Marc Chadbourne, Past President, MREIS (Century 21 Nason, Winslow) - (207) 873-2119 – info@marcchadbourne.com
Kevin Robert, Past President, MREIS (Coldwell Banker Residential Brokerage, Saco) – (207) 282-5988 – Kevin.Robert@nemoves.com
For additional names – MREIS – (207) 780-1366; help@mreis.com
# # #

I Will Be Glad When the Election Is OVER!

2008-10-29T06:21:00.000-07:00

I love politics, believe me! That was my major in college. But, frankly, this election season has been painful. Nothing but bad news...potshots....negativity....no leadership. In the spirit of full disclosure, I am supporting the Obama/Biden ticket because we need a change and I think change of parties and policies is helpful. I wish that all the candidates could be out there outlining specifics on what they will DO to get this country back on the right track after the debacle of the legalized gambling aka credit swaps, derivatives, and other chicanery that has been allowed to dominate the financial markets. I thought a better idea on the part of politicians would be to have given every homeowner in the country a grant on their primary residence that went directly towards their mortgage or equity line. If they didn't owe money, then put it in a CD or other vehicle that could be accessed at retirement. Something!!!

So...we wait and hope that the next President surrounds himself with smart people who are willing to do the right things to turn us around. I am banking on Obama! How about you???

Wild New World!!

2008-10-15T10:48:00.000-07:00

I have been following this economic turmoil with great interest, and not just because of the historic potential! While my IRA's have been melting away, I have become somewhat philosophical about it all. After all, yesterday is gone and tomorrow isn't even here yet! So, what are the good things to come out of all of this mess?

First, it is a reminder that money is nothing more than a theory really. It is a symbol for time, power, material goods, or...in the case of weird things like derivatives....just theory!! Money is the cause for more angst, or more joy than just about anything. Money doesn't really belong to anyone. It can be used - for good or for bad. When it is hoarded, like the banks have been doing, it doesn't do any good for anyone. When it is freely circulated with good intention, it is very powerful.

I am very hopeful that more people will get into a better relationship with money as a result of this tumult! Buy only what you need, choose debt wisely, and, above all, spend it forward!!

Sizzling Summer - and dazzling oil prices!

2008-07-12T16:31:00.000-07:00

Good evening as I gaze out at the beautiful mid summer sunset! I seems hard to believe that another six months will see us in the cold and dark. Have you planned for the oil prices? With a sense of deja vu ( I came of age in the last major oil crisis), I gritted my teeth and made plans to lock in my oil and gas for the winter. $4.42 a gallon seemed unbelieveable a month ago, but now looks like a darned good deal. It's all relative I guess. So..what do we do?

Just like the late seventies and erly eighties, we need to get serious about conserving what we have and searching for new soluttions. It's too late to bemoan what might have been, but it is real easy to start thinking about winterizing the house, figuring out how to turn down the heat or close off rooms, tuning up the furnace, checking out alternatives, and putting aside some money to pay for it all.

Does your oil supplier offer lock in prices? Is there a downside plan if prices drop? Can you hook into natural gas? Would a Rinnai or Monitor work? How about those old drafty windows? Can you make use of passive solar gain? How about quilts for the windows?.......the list goes on.

Don't wait until the snow flies! Make plans now. It won't hurt as much. I promise!

Buying a house and the cost of oil

2008-06-14T06:02:00.000-07:00

It has been awhile as I have been very busy with my real estate business - a good thing. However, the perceived crush from oil prices seems to be having a choking effect on people's desires to move. This being said, I think that if I were looking for my first home, I would be anticipating that at least I can control my own fuel costs and not be at the whim of a landlord who will jack the rent to cover expenses, or, if I were paying my own heat, wouldn't be attempting to tighten up insulation, improving efficiency, etc. When one owns their own house, they are in control of their own destiny - and fuel costs - which in this market is a great thing!

Also, it looks like rates may be on the rise. If you are looking to buy, you might want to get out there now!

Happy hunting!

Where has the time gone??

2008-03-16T13:39:00.000-07:00

Believe it or not, the time has flown since my last sign in and that is because I have been very busy selling real estate! It is about time. As mentoned in previous musings, now is the time to be out there scooping up deals. With the dollar in a dive and treasuries not being sold, the only direction for mortgage rates is UP!! Contrary to popular belief, the prime rate which has fallen in recent months only helps the short term borrowers, like equity lines, credit cards, and the like. The mortgage rate is tied to long term treasuries which in turn are very susceptible to the vagaries of the dollar and the stock market. With the dollar at historic lows, investors are not buying tresuries which means less money is avail ble to be lent which means rates go up.........and on and on. While housing prices might come down some more in the next six months, with a rise in rates there will be no difference in monthly payment to borrowers. I have read that it would take an additional drop of 12% in value to make up for an increase in rates. In fact to wait for a drop in price may mean you end up paying more monthly due to a rate increase! Why wait?? The savvy buyers are out now and are getting great deals! This is the time to buy!

The Recession is Good News

2008-02-10T11:13:00.001-08:00

OK. I think we are in a recession. I am no economist, but I am a consumer and a small business owner. I think folks have taken their money and gone home. At the very least they are warily looking about for the great deal, the highest and best use for their hard earned dollars. This is the good news.

According to Ben Stein, "in a recession in this era, more than 10 million men and womenwill need cars and trucks. Many millions will need new homes. ....even in a recession, there are plenty of people with money to spend." (Rethinking the Recession, January 17, 2008, Yahoo Finance)

He goes on to write," Those who tend to their work, who get to the office or showroom or shop early, stay late, work hard, stay on the phones dialing for deals ....will make money. Those who stay sharp and make a point of befriending their clients will make money. Yes, some extra effort will be needed, but it'll pay off."

Stein reminds us that that there are always going to be recessions and they always end. The economy is adjusting to "move onto a new plateau."

Listen to Stein and "Stay hungry. Work harder. Dig deeper. Keep investing....You'll come out all right on the other side."

Get to it!!!

Buyers are coming out of hibernation!

2008-02-02T16:10:00.000-08:00

Maybe we are in a recession, or maybe not, but the showings a re picking up and the offers are coming in! With the Fed Rate at 3% and the inventory plentiful, buyers are CRAZY not to get out there and make their dollars go further!

The most recent report from MREIS indicated that prices have come down over the state. While one will not see the huge drops in value seen in the speculative markets of Florida, California, and Las Vegas, there are still good values out there. These values will not continue indefinitely!

2001 to 2002 saw a recession after the tragedies of 9/11. Within a year after, the housing market started to pick up and soared into the stratosphere. By 2005, the sky seemed to be the limit. With the slowdown of 2006 and 2007, it only makes sense that prices will begin to increase again. The analysts are predicting a bottoming out this year.

If you have a house with equity and want to buy up, now is a great time to take advantage of the opportunity. If you are a first time homebuyer, now is the time to get into the market. YOU will NOT be disappointed!

If you must sell for whatever reason, get yourself a professional REALTOR who knows the market and get priced competitively. Your house will sell!!

Mortgage Rates are LOW!

2008-01-17T13:13:00.000-08:00

Did you know that today's mortgage rates are the LOWEST since the Summer of 2005??!! It is a terrific time to find out what you qualify for and take advantage of today's low FIXED rates.

Don Cohen, Downeast Mortgage
207-773-6161

2008-01-07T05:50:00.000-08:00

Save on closing costs by choosing your title company.

Your title company may seem like the last step in the purchase of a new home or refinance. In reality your title company has been working along with your realtor and/or lender to produce that magical day where you refinance or buy your home. (And sign a 2 inch thick stack of paper work). It’s called the closing, escrow or settlement depending on your state.

The title company you choose performs three essential functions, the title search, issuing title insurance and the closing. The title search consists of reading the previous deeds and any other in documents recorded in your county’s offices regarding the property to determine if the seller does indeed have title to the property. A title company should be searching back at least 40 years in the registry of deeds to establish clear title.

Your title insurance company also issues title insurance. Title insurance is an insurance policy which protects the lender and the homeowner against loss resulting from any defects in the title or claims against a property that were not uncovered (or missed!) in the title search. These claims may result from liens on the property, claimed easements, forged documents, unrecorded “wild deeds” or the lack of proper authority to sign a document.

You will be required to purchase Lender’s title insurance which protects the lender. You will also have the option to purchase an owner’s policy of title insurance. It is a one-time fee that protects you as long as you own the property against claims to your title. Note, that a lender policy protects the lender only, not you. The only way for you to benefit from the title search that was performed is to purchase the owner’s title insurance.

The last service the title company you choose will perform is the closing. The closing is the day when you will go to the title company and sign all of the paperwork to purchase or refinance your house. The title company will coordinate the lender, the real estate brokers, the sellers, the buyers and any lawyers if they are involved. After the closing your title company will record the relevant documents and you can move into your new home.

I’ve used the phrase “title company you choose” a few times in this article. That’s because you should choose your title company and avoid being directed to one particular title company by your lender or realtor. You should be shopping for your title company just as you shopped for a realtor or shopped for an interest rate. State law guarantees you the right to choose your title insurance company and protects you from any increased fees for exercising this right. If you feel that you are being forced to use a particular title company, you should contact the attorney general.

All title companies are not created equal. They vary on the quality of service, price and the product they provide. Here are the questions you need to ask.

1. What is the price for the closing and what is the price for the title search? These are the fees for coordinating all of the parties involved in the closing and performing the title search at the registry of deeds. You should ask your title company to account for every charge that it is going to assess to you.

2. What is your overnight carrier fee? Title companies will have to overnight mortgage payoffs and all the documents you just signed at closing to the bank via an overnight carrier. This is an area where there are frequent “up-charges.” You shouldn’t pay any more than $15.00 for each overnight package.

3. How much will I pay for recording? Recording fees at the registry of deeds are the same in all 16 Maine counties. Generally the charge is $16.00 for the first page of a document and $2.00 for every page thereafter. On your settlement statement you will be able to note the amount you are being charged and at closing you will be able to count the pages of your deed and mortgage to make sure the amount is correct.

4. Will you close at my real estate sales agent’s office? It may be more convenient to close at your mortgage brokers’ office, your real estate sales agent’s office or even your home. Will the title company you are choosing close away from their office?

5. If I am not satisfied with your service will you refund my closing fee? The closing fee is payment for organizing and performing the closing. You as a buyer will most likely be paying the closing fee and if you are not satisfied with the service you received, ask for it back. Make sure your title company puts this guarantee in writing; don’t just accept their word on this.

6. How much is the title insurance premium? Different companies charge differing amounts for title insurance and you can request a quote ahead of time. You will be required to purchase a loan policy of title insurance to protect the lender and the owner policy is optional (but a very good idea).

7. Are there any other fees I will be paying directly to you? This is the catch-all question to hopefully identify any other miscellaneous charges that the title company may charge.

You should be shopping for a title company just as you shopped for interest rates and a great real estate sales agent. You can save hundreds of dollars (or more) and more importantly, you can choose a quality title company which will result in a smooth and problem free closing.

And lastly, buy the owner’s title insurance. It is optional so you could save a few hundred dollars by declining it. However, your home is your largest investment and just as you would not want to be without hazard insurance, you don’t want to be without title insurance. A recent survey by the by American Land Title Association found that there were title problems in one-third of all residential real estate transactions. An owner’s title insurance policy is your protection against a title error such as previously recorded liens or an outstanding ownership interest by prior owners in the chain of title. It is cheap protection for your most valued possession.

For More information contact Matthew J. McDonald
mjmcdonald@landam.com

2008-01-02T11:49:00.000-08:00

First time homebuyers take note: if you qualify for the Maine State Housing program, you could receive a rate under 5% on a 30 year fixed mortgage loan!! Even if you do not qualify for this program, FHA fixed mortgage rates are as low as 6.25%!!

Sellers take note: work with a Realtor who understands the affordable loan programs that are available in today's market, thus assuring you the expertise needed to navigate through today's market.

There are many fixed rate programs available to help buyers BUY and sellers SELL.

D. Cohen, Downeast Mortgage

The Local Paper is NUTS!!!!

2007-12-29T11:22:00.000-08:00

I don't know about you, but I am tired of the gloom and doom surrounding stories of the economy and the housing market. I will repeat.....get out and buy!! There is great inventory and super mortgage rates! Even if you have a house to sell, if you have any equity now is the time to move up!!

Read the following story, courtesy of Inman news! Maine is definitely one market that has NOT crashed. Real estate continues to be great investment.

NAR economist underlines real estate's silver lining
Friday, December 21, 2007
By Bernice Ross Inman News

In all the years I've been writing this column, I have never received such an outpouring of response as I did from the two November articles on how media coverage of negative housing news is hurting our industry.
In spite of gloom and doom of recent news reports on the state of the nation's housing, there is plenty of good news, the most recent of which comes from the National Association of Realtors.
Laurence Yun, the chief economist for NAR, had plenty of positive news for Realtors at last month's conference. Yun attributed much of today's subprime mortgage problem to greed. Wall Street wanted the 10-12 percent return that subprime mortgages yielded as opposed to the smaller returns from more traditional mortgage products. His take on the Wall Street types: "They gambled. They lost."
Yun's outlook for 2008 sees a shift from greedy speculators to serious homeowners. 2008 will be a year of opportunity where there will be serious, healthy business. Furthermore, Yun predicted that the market returns to normal by 2009.
According to Yun, one of the biggest mistakes that reporters make is talking about national trends. Nationally, 2007 was the fifth best year ever on record. Home prices declined about 1.5 percent after a 50 percent run up in prices.
The challenge is that national numbers are pretty much irrelevant. Yun argues that talking about national averages is about as effective as having a national weather forecast. Like the weather, all real estate markets are local. In fact, you may have a buyer's market and a seller's market operating within a single market area based exclusively upon price point. Here are the other key pieces of positive news from Yun's economic report:
1. New housing starts: Even though these are dropping, there was too much building in recent years. The market is simply adjusting to normal supply-and-demand pressures. The inventory is "being controlled which makes stabilization occur more quickly."
2. Foreclosures: According to Yun, the 41 percent increase in foreclosures has resulted primarily from investor-heavy real estate purchases in Arizona, California, Florida and Nevada. The majority of these individuals are flippers whose investments did not payoff. More importantly, the number of foreclosures in Utah, New Mexico, North Carolina and South Carolina is actually declining.
3. Under-priced markets and superstar cities: Although the coastal markets are still overpriced, Middle America is under priced. Nevertheless, Yun cites a new trend termed, "superstar" cities. These cities will command premium prices, regardless of what the market does. There is so much wealth concentrated in these areas, that measurements are simply not predictive. In addition to London, Paris, Tokyo and New York, Yun also identified San Francisco, Miami and Seattle as potential new superstar cities.
4. The recovery has started: Other than the three states hit heavily by job losses in the automotive industry (Indiana, Michigan and Ohio), the states that first experienced a downturn in the Northeast, are now in recovery. Specifically, Connecticut, Massachusetts, New York and Rhode Island were the first to feel the slump and are now well into a recovery. Furthermore, there appears to be a pent-up demand for first-time buyer properties due to a large number of Gen Ys (born 1977 to 1994) that are now buying their first homes. Falling interest rates will motivate many of these buyers to step into the market now.
5. New jobs and corporate profits are still strong: Corporate profits are still strong with companies as diverse as Microsoft and Jack Daniels reporting close to record profits. Furthermore, the economy has generated 4 million net new jobs and wages are rising.
6. A weak dollar may harbinger more foreign investment in U.S. real estateAlthough the decline of the U.S. dollar will end up costing us more when we go overseas or purchase imports, it has resulted in more manufacturing jobs returning to the U.S. It also may mean more foreign investment in U.S. properties as well. Just a few years ago, the Canadian dollar was only worth 70 cents in U.S. currency. Today, the Canadian dollar has been hovering at about $1.05 to $1.10 U.S. What this means is that we can expect more Canadians and Europeans to be purchasing U.S. property, because our prices are approximately 50 percent cheaper than they were just three years ago.
7. Real estate: Still the best shelter: For those agents who represent reluctant first-time buyers, Yun points to some interesting research from the Federal Reserve. Between 1995 and 2004, the average renter accumulated $4,000 in wealth. In contrast, the average homeowner accumulated $184,400. Furthermore, the typical homeowner holds their property for six years. Within this period of time, NAR's research shows that approximately 97 percent of the homeowners will have a positive equity position after that period of time.
Bottom line: 2008 represents the best window that buyers will have to find excellent deals with excellent financing. Get the word out there. If they wait, prices and interest rates will be higher and the reluctant buyer may be forced out of the market.
Bernice Ross, national speaker and CEO of Realestatecoach.com, is the author of "Waging War on Real Estate's Discounters" and "Who's the Best Person to Sell My House?" Both are available online. She can be reached at bernice@realestatecoach.com or visit her blog at www.LuxuryClues.com.
***
What's your opinion? Send your Letter to the Editor to opinion@inman.com.
Copyright 2007 RealEstateCoach.com

The True Story of the $10 Bill - A Christmas Story

2007-12-21T17:59:00.000-08:00

The other day I was entrusted with a beautiful $10 bill neatly wrapped with a brilliant red ribbon and the admonishment that I should go forth and "spend it forward". So, I tucked that beautiful $10 bill decked in a bright red ribbon into my wallet and sallied forth wondering where it should go and what I should do with it.

Trusting always that Spirit would let me know just the right place for this bill, I was wandering through Hannaford's tonight looking for this and that when what should appear in front of me, but a display of brown paper bags filled with all of the trimmings for a wonderful holiday meal. They have been there all Fall I am sure, as the sign mentioned that when one took the bag to a register, a meal would be charged to you that would be given to a family in need. The dates for this special were from sometime in November to December 22nd.The cost?? $10, of course. And to think I had never seen it before!

I picked up the bag with a heart full of glee that here indeed was the purpose for that $10 bill that had been entrusted to me. After my groceries had been rung up, I then placed the bag in front of the cashier and handed her the $10 bill brightly trimmed in red ribbon. She looked askance at me and the bill until I explained that I had been entrusted with this bill for this purpose and would she please accept the $10 bill shining brightly in its gorgeous red ribbon?
Well....she was quite taken with that $10 bill, and its red ribbon, and marveled at such a wonderful idea! The lady in back of me in line was so entranced by the idea that she, too, gave $10 for a Christmas meal for someone deserving. I left the store feeling very happy that this little $10 bill wrapped in brilliant and glowing red ribbon had not only fed one family, but influencedanother $10 bill to come out of hiding and feed someone, too. And just
in the nick of time! The program ends tomorrow!

Abundance is here, swirling all around us. All it takes is a gentle reminder, like that $10 bill in its beautiful, bright, and glowing red ribbon, to pay attention to the subtle signs that, indeed, we are blessed.

Merry Christmas and Happy Holidays to all of you!!! May you find the Spirit of the Season,
too! JCAT

Hello, Buyers! Where are you?

2007-12-17T15:47:00.000-08:00

Hmmmm.......interest rates bouncing around 6% and a HUGE inventory?? Sellers getting anxious and lots of houses just wating for you? Don't wait for the holidays to be over! Give yourself a great gift and get out there while everyone else is sleeping!! Once the holidays are over and the rest of the buyers wake up, more people will be competing for those well priced houses, and those houses will sell near their asking price! Go...find an agent who recognizes this opportunity (http://www.wesellmaine.com/) and make an offer. You won't be disappointed!

Actual Press Release RE: Real Estate Sales Maine

2007-12-10T13:54:00.000-08:00

Here is the actual MREIS Press Release regarding October figures in Maine. I apologize that the format won't translate well. Please note how some counties are doing well! Even though the number of sales are down, some counties show very little reduction in median price or even an increase. I think this means that the serious, well qualified buyers are out there. I know the smart ones are!!

Thanks to MREIS for the press release. I wish the press would publish it!! Cat :)

FOR IMMEDIATE RELEASE
CONTACTS: Listed Below
MAINE REAL ESTATE MEDIAN PRICES DIP 1.95 PERCENT INOCTOBER; SALES DOWN 12.23 PERCENT

SOUTH PORTLAND (November 29, 2007) -- Sales of Maine real estate continued to drop in
October 2007, while prices for single-family, existing homes dipped a slight 1.95 percent.
According to the Maine Real Estate Information System, Inc., Realtors reported 1,041 sales
across Maine last month. This is down 12.23 percent compared to 1,186 sales during the
month of October 2006.

The median sales price for a single-family existing home was $188,500 in October, down
slightly from $192,250 one year ago. The median sales price indicates that half of the homes
were sold for more and half sold for less.

The National Association of Realtors (NAR) today reported that national sales of singlefamily
existing homes dropped 20.8 percent in October. The national median existing singlefamily
home price decreased 6.3 percent in one year to $205,700.

In the regional Northeast, sales were down 12.6 percent. However, NAR said the regional
median sales price rose 1.3 percent in October to $258,700.

Buyers want to know: Is this the time to buy? Tobin Malone, owner of WaterMark in
Rockport says "Anybody with a strong credit history who can put some cash together for a
down payment should be buying real estate right now--land, rental income property, a larger
or smaller or newer or second home, you name it. These buying opportunities don't come
around every day, but when they do you can't ‘hem and haw’ and drag your feet. The way to
build equity in today's market is to buy, and with the help of a knowledgeable REALTOR, buy
right."

Jeff Wooster, CCIM of Lynam Real Estate Agency in Bar Harbor, says of sellers, "Most can't
understand what happened to the strong market and why they can't get what their neighbor
got for their property two years ago. It's market shock. We show them what their competition
is, suggest pricing in the lower strata, and advise them to be ready to negotiate if they
want to sell."
Malone looks to the future: "There seems to be a new spirit of realistic, controlled, and
sustainable growth that the markets (and the country) seem ready to embrace."

Below are two charts showing statistics for Maine and its 16 counties. The first chart lists
statistics for the month of October only, statewide. The second chart compares the number of
existing, single-family homes sold (units) and volume (MSP) during the months of August,
September and October of 2006 and 2007.

(Continued)
Maine Real Estate Statistics –October 2007 Housing Report—11/29/07—Page 2 of 2
OCTOBER ONLY CHART
From October 1-31, 2006 and October 1-31, 2007

County # Units Sold # Units Sold % MSP MSP % 2006 2007 Change 2006 2007 Change
STATEWIDE 1186 1041 -12.23% $192,250 $188,500 -1.95%
ROLLING QUARTER CHART
From August 1, 2006 - October 31, 2006 and August 1, 2007 - October 31, 2007
County # Units Sold # Units Sold % MSP MSP %2006 2007 Change 2006 2007 Change
STATEWIDE 3746 3494 -6.73% $194,000 $191,200 -1.44%
Androscoggin 297 230 -22.56% $160,000 $162,650 1.66%
Aroostook 124 115 -7.26% $84,725 $80,000 -5.58%
Cumberland 850 792 -6.82% $255,000 $254,943 -0.02%
Franklin 101 104 2.97% $130,000 $141,000 8.46%
Hancock 164 160 -2.44% $197,500 $200,000 1.27%
Kennebec 371 311 -16.17% $144,900 $155,000 6.97%
Knox 121 140 15.70% $214,000 $204,031 -4.66%
Lincoln 130 130 0.00% $270,950 $237,500 -12.35%
Oxford 198 170 -14.14% $157,000 $143,750 -8.44%
Penobscot 388 373 -3.87% $142,600 $140,000 -1.82%
Piscataquis 74 68 -8.11% $120,000 $128,500 7.08%
Sagadahoc 96 107 11.46% $200,000 $189,000 -5.50%
Somerset 112 106 -5.36% $110,850 $120,000 8.25%
Waldo 117 124 5.98% $165,000 $204,250 23.79%
Washington 19 14 -26.32% $92,500 $110,000 18.92%
York 584 550 -5.82% $240,000 $239,950 -0.02%
Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a
statewide Multiple Listing Service with over 5,800 licensees inputting active and sold property listing data. Statistics reflect
properties reported as sold in the System within the time periods indicated.
Contacts: Marc Chadbourne, President, MREIS (Century 21 Nason, Winslow) - (207) 873-2119 –
info@marcchadbourne.com; Sue Doughty, Past President, MREIS (Homestead Realty, Winthrop) – (207) 377-
2223 – suedoughty@fairpoint.net; Kevin Robert, Past President, MREIS (Coldwell Banker Residential
Brokerage, Saco) – (207) 282-5988 – Kevin.Robert@nemoves.com. For additional names – Ken Duke (MREIS)
– (207) 780-1366; kduke@mreis.com
# # #

Patriots and perseverance!

2007-12-05T10:27:00.000-08:00

OK, it is known fact that I am a great fan of sports - football and baseball in particular. Being from New England, we are in a period of particularly fruitful results vis a vis winning - frequently and often. This has not always been the case,as any loyal Red Sox or Patriots fan can attest. So....why the fascination?

As I grow older and wiser, I am realizing that every game is like a metaphor for life. There are winners and losers; some people do the activity, others watch; emotions run high and low; some succeed and others fail. Throughout there is this undercurrent of what the sportcasters and coaches call "momentum". It is this momentum ,or lack thereof, that decides the outcome of every game.

The team that is able to stay focused and concentrate, ignoring the current reality in favor of a new one, are more often than not able to harness a universal power and turn the situation around. Teams learn and practice startegies over and over and over, so that the game plan becomes an automatic response. So...the team gets behind in the score, the batter gets behind in the count, so what!! The excellent teams and the excellent batters just keep at it, believing deep down inside that they are winners, that they will succeed, and even if they lose, it is only one game, one inning, one touchdown. Those who excel ask "How can I do it better next time?"

As Vince Lombardi said, " Quitters never win, and winners never quit." So it is in sports. So it can be in life. Be like the Patriots over the Ravens! Don't give up. Stay with your game plan. Dig down deep. We are all winners. We just need to believe!!

Rates are ideal for financing

2007-12-03T12:05:00.000-08:00

Did you know that if you're a first time homebuyer in Maine, that the interest rate is under 5%? Maine State Housing's program is ideal for folks seeking their first home. And in addition, regular 30 year fixed rates with -0- points are now just over 6%, the lowest we've seen in some time. It's a good time to chat with a local lender to see what types of fixed rate loan programs are available.

dcohen@downeastmortgage.com

Maine is NOT Miami!!!

2007-12-01T07:09:00.000-08:00

According to a November 29, 2007 press release from Maine Real Estate Information (MREIS), for the rolling quarter, August 1, 2007 to October 31, 2007, the number of units sold dipped only 6.73% as compared to the same time frame last year ( 3746 units in 2006 compared to 3494 The median sales price dropped by a mere 1.44% ( $194,000 2006 to $191,200 2007) during the same period.

Cumberland County, Maine's largest county, saw a drop from 850 units sold to 792 units sold, but the median price dropped only 0.02% from $255,000 to $254,943 in the period August 1 to October 31.

What does this mean, you ask?? It means you are CRAZY not to buy right now. There are great deals out there. Even if you need to sell, as long as you have equity in your home and are willing to price correctly, YOUR HOUSE WILL SELL!!!

The gloom and doom of the media does NOT apply to Maine !! We never went crazy when the market boomed, and we won't crash with this healthy correction.

Welcome to Maine! It's a great place to live!!!

Gratitude is a Good Thing

2007-11-20T10:06:00.001-08:00

With the arrival of another Thanksgiving holiday, it is important to remember to keep the "Thanks" in the holiday! Just as Christmas has become far removed from the celebration of Christ's birth, as a society we have lost the meaning of giving thanks, or recognizing the upside of life, as we rush frantically from task to task every day.

When one takes the time to slow down for even a few minutes every day and look at all that is right with their world, they will soon find that good things start to happen. Look at the sky, take in your surroundings, find something that makes you heart sing, even if only for a minute. Add this routine to your life every day, gradually expanding the minute to a few minutes then to an hour then........you are the only one who can limit the possibilities!!

So....go forth, eat your turkey, ....... and be thankful!!! Happy Thanksgiving!

First Time Homebuyers??

2007-11-16T15:14:00.000-08:00

There is no time like the present to start the process of purchasing your first home. Put aside all you think you have learned from HGTV and the possibility of making a bundle on the sale( which is down the line, by the way) and think about how nice it will be to NOT be paying the landlord, how cool to be able to paint the walls any color you like, have any pet you want, plant flowers if that's your thing, have a pool, sit on your own patio......the list goes on.

With the LOW interest rates and HUGE number of properties from which to choose, a buyer can take their time and really choose the house or condo which makes the most sense.

There are two people who will be critical to your success. They are a REALTOR who specializes in first time home buyers and a lender who is familiar with all of the loan options out there for those buyers.

So.... sit down with a lender you trust and find out what you need to do to get qualified for a loan. Late making payments? Owe on that student loan? New to the job? It's all OK. You can begin a process that allows you to charge up that credit score and sock some bucks in the bank.

The next person to whom you should talk is a REALTOR who knows your needs. Please make sure this professional is geared towards working with the first time buyer. That means familiarity with loan programs, knowledge of affordable housing options where YOU want to live, and the ability and desire to TEACH you about this process. Oh yea.....patience is a good thing, too!

How do you find these folks? Ask friends, family, others who they would use. Go to Open Houses and interview the agents. Go on line and check out websites and blogs. (www.wesellmaine.com) Ask your lender who they use. You can use the same process to find a lender. Your bank or credit union might be an option, too.

Don't be afraid to ask questions. Don't be afraid to go with your gut. And, for Pete's Sake, don't sign any contracts that "marry" you to anyone until you have "dated"!!

That's it for now. Get going! Your future is out there. All that is missing is YOU!!!

The Real Estate Market Keeps Tanking!!

2007-11-15T11:11:00.001-08:00

THE REAL ESTATE MARKET KEEPS TANKING !!!
Posted by Jean-Marie Caterina under For Buyers, For Sellers
Or does it? The last few weeks have seen gloom and doom all around according to the market gurus. But has the same happened in Maine? While properties above $250,000 seem to take longer to sell there is a decided pent up demand in lower ranges.
Buyers need to take advantage of the LOW rates and HIGH inventory! It is a candy store out there, folks! Sure, you may have a house to sell, but if you bought more than five years ago and have not pulled your equity….NOW IS THE TIME TO BUY!!! You have money to spend and deals are there to be made.
First time homebuyer?? Don’t sweat. If you have decent credit, there are programs out there. Buy your house to live in and if you make money …..and you will if you are there long enough….super!! Quit paying the landlord!!
The only day you have is today! Get on it!! Cat

Who Says Real Estate Sales Are Down?

2007-11-15T11:09:00.001-08:00

WHO SAYS SALES ARE DOWN???
Posted by Jean-Marie Caterina under For Buyers, For Realty Professionals, For Sellers
The headlines screamed ” Sales in Maine Drop 16% in September” Yikes! Well did they also tell you this?
Cumberland County - Rolling Month- 7/1/2006 to 9/30/2006 compared to the same period 2007 (7/1/2007 to 9/30/2007)
# Units sold - 2006 - 812 2007 - 876 INCREASE 7.88%
Median sales price $255,000 in 2006 - $255,000 in 2007 NO DECREASE IN VALUE
Hmmmmm………..what tanked market?? Cat Thanks to MREIS for the figures!
For info on any listing in Maine go to www.wesellmaine.com . On the left sidebar choose Search Maine Properties.