Maine Real Estate Update

    Now that the April rains have stopped (a record 5 inches in Newcastle yesterday) and we await the May flowers it seems like a good time to assess where our real estate market appears to be heading here in mid coast Maine.

   The good news is that inventory levels, although still somewhat high, have dropped.  At this time last year we had over 850 homes for sale in our MLS for Lincoln County.  At present there are slightly less than 700.  I expect inventory levels to climb as they always do at this time of year but not to the levels we saw last summer.

   We have had very good activity as far as phone calls and showings go for about the last 6 or 7 weeks or since the winter really started to break.  Again this is normal as we are a seasonal market. We have had a fair number of offers being made and more encouragingly, being accepted. Buyers are always quicker to adjust to a decreasing market than Sellers but at this point everyone knows the score.

   Prices seem to have settled in at about 14% to 18% lower than they were at this time 2 years ago.   Unless inventory levels spike much higher, say over 800 homes on the market, I expect that prices won't drop further.

   Mortgage interest rates remain extremely low.  The Fed meets this week and many expect another quarter point drop in the Federal Funds rate but most bankers I talk to say that probably won't translate into lower mortgage rates.  What it may do is loosen up some of the lending practices at the bigger banks.  We have found that local banks here in town have money to lend to qualified home buyers and are quite willing to do so.  The bigger banks, based outside of our area, who advertise slightly lower rates, paradoxically seem to always find a reason to deny a loan, usually by cutting down the appraisal.  In other words, the guys that got us into this mess have no inclination to help us get out. But why talk to some voice mail system in California or Florida?  I'll be glad to walk you across the street where you can talk with Roger or Ken or up the street to talk with Patricia or Gary.  They are friendly, courteous and professional bankers who live right here and they would very much like to talk with you about doing business.

   The vaunted stimulus package starts to roll out this week. This is the politicians way of trying to convince us that they understand what is going on and can do something about it. I tend to doubt it but we'll see. (Maybe they could have just sent the money right to Exxon/Mobil and saved us the trouble of paying it at the pump). Indeed with the job market remaining strong (less than 4% unemployment among college grads) the biggest problem after the credit crunch is commodity prices, particularly oil and food.

   Summing up, it's not going to be summer of '04 again but neither is it going to be summer '07.  This is a good time to buy and not a bad time to sell.  The market appears to have levelled off. Those homes that come on the market now will for the most part be priced realistically (there's a few dreamers in every market).  All the reasons why folks wanted to live here before (pleasant small towns, low crime, good schools, good health care, etc.) remain in place.

   If you've been thinking of making a move, why not give one of our professional real estate brokers a call and see where your wants and needs fit into todays mid coast Maine real estate market.

Jim Cosgrove

Top 10 Signs Spring is Really Here

    In other places they look for finches at the feeder or crocus's blooming as signs of spring.  But here in the greater Damariscotta area we have our own Top 10 Signs of Spring:

10. The roads are posted.

9. Local garages are busy taking snow tires off cars and putting summer tires on.

8. At Pinkham's Plantation they're preparing the Pumpkin Patch for planting.

7. The snow is gone and the nets are up on Lincoln Academy's 4 brand new tennis courts.

6. Larsen's Lunchbox has hung their sign back up, opening can't be far behind.

5. Three letters; MUD

4. Flip Flops (OK it IS a little cool but so what).

3. The docks have come back from where ever they go during the winter and will be going in soon.

2. Brown Christmas wreaths are starting to come down.

1. Round Top Ice Cream has opened (yeah!!!)

And, the special bonus number 1 Sure Sign that Spring Has Sprung...At Newcastle Square Realty we're showing and selling property! People are back and they've gotten the word that now is a GREAT time to buy!

Debby Schling

Moose on the Loose

Apparently summer is coming early to Bremen Long Island this year because the migration of visitors has already started. 

I was in Bremen this morning meeting with a client when it occurred to me that it might be a good idea to know the distance between their house and the town landing (is .7 miles still walking distance?). When I looked out onto Hockomock Channel I saw something swimming in the distance that was way too big to be anything but a moose.

From the picture it looks like after checking his moorings he is heading across the channel to have a look at the cottage to make sure that it made it through the winter.

View Larger Map

If you are looking for your own Maine summer cottage why don't you drop me a line.

Thomas Field

Home Staging in Damariscotta

   Today's Guest Blogger is Bonnie Grenier, owner of Day's Cove Interiors in Damariscotta, who talks with us about one of her first staging jobs here in Mid Coast, Maine. 

    My first local staging job happened quite by accident. I wanted to check out the house before beginning renovations on my own kitchen.  A new house with an updated kitchen would help me avoid the dust, mayhem, confusion, and stress that inevitably accompany every kitchen project.

   I was intrigued by the house because of the great location, right on Day's Cove with an ever changing water view as the tide goes in and out. The outside is immaculate with very attractive landscaping. My high expectations for the house were totally obliterated when I walked through the front door into a dark, dated, dirty and cluttered house with bright red tile in the foyer and adjacent kitchen.  you couldn't miss the stale odor of a house that has been vacant and closed up for months.

   My first thoughts were that this house was incredibly dated and in dire need of staging. There was so much potential, but I knew most buyers would not be able to get past the red floor and dark paneling throughout the house. (Very 70's!) Then, there were all those faded pictures adorning the walls, not to mention at least 3 dozen plates on the walls in the kitchen and dining room. Ahhh...so much "stuff" to look at inside at the expense of that fabulous water view!

   Fortunately, a forward thinking real estate broker and the attorney for the estate selling the home agreed to let me stage the house with a generous budget.  (No small leap of faith in an area of the country where staging has yet to come into it's own!) We agreed that 2%-3% of the asking price was a fair amount for a staging budget.

    We hired a terrific painter with a crew of two who painted 2/3 of the paneling in the house with 3 coats of paint.  A new tile floor in the kitchen and foyer were a no brainer.  The three quarter bath was updated with paint, new light fixtures, and removal of a very dated vanity mirror. We kept the light blue sink, toilet and shower to save on costs but new grey paint on the paneling muted their impact.  We eliminated a fair amount of furniture throughout the house to visually enhance the space.  Our "carpenter on call" did a great job on a variety of small jobs. Fresh bedding, removal of yellowed  accordion style shower curtains in both baths, and a really good cleaning completed our staging efforts.

   That's not to say we couldn't have done more, but given our budget we got a lot of bang for our buck and the changes were remarkable (even if I do say so myself!) The entire job took about 6 weeks, and that was with time off for Christmas and New Years.

   Now, the house has a great, attractive space for entertaining, water views from every room, and is in move in condition.  If my husband and I hadn't already begun construction on our new kitchen in the meantime, my staged house would be a serious contender!  However, you may want to take a look!

  In this competitive real estate market, every home needs to look its best to have a chance of selling. If you'd like to talk with Bonnie Grenier she can be reached via email, dayscoveinteriors@roadrunner.com or by phone 207-563-1305.To see this home in it's new splendor please call Lee Simard or Bill Byrnes at Newcastle Square Realty.

Saturday "Solds"

   Another in an occasional series, where we give you a brief snapshot of the market and a sampling of those properties that have been selling in Lincoln County.  Sold prices are publicly available, days on market are gathered from the Maine Real Estate Information System.

   Editors note: Despite persistent negative media reports, not everyone has defaulted on their mortgage and homes are selling, albeit not as fast as 2 years ago.

   On the Damariscotta River at Perkins Point in Newcastle, this home was originally listed at $835,000 and sold for $800,000 after 248 days on the market.

   On Townsend Ave. in Boothbay Harbor, this home which has been used as a B&B, was originally listed for $459,000 and sold for $300,000 after 870 days on the market.

   Located at the corner of Foster Rd. and Bristol Rd. in Bristol and originally listed for $180,000, this home sold for $110,000 after 467 days on the market.

   Townhouse #3 of this condominium conversion sold for $386,000 after 518 days on the market. It was the last available unit in the project.

   Located on Damariscotta Lake in Jefferson, this home was priced at and sold for $595,000 after 4 days on the market with Newcastle Square Realty although it had been previously exposed to the market with another company.

   Beautifully sited on the Damariscotta River in Newcastle this elegant home was listed for $795,000 and sold for $750,000 after 444 days on the market.

Local Retailer Wins Energy Efficiency Award

 

 

Reny's, our favorite local family run store, made the news today by winning an award for energy efficiency.

From The Kennebec Journal

Reny’s Department Stores, a longtime favorite of bargain-hunters, has received an award for becoming more energy-efficient.

The Newcastle-based chain, which has local stores in downtown Gardiner, Farmington, Madison, Pittsfield, Belfast, Camden, Saco, Bath, Bridgton, Damariscotta, Dexter, Wells and Ellsworth was one of 10 businesses honored by the Northeast Energy Efficiency Partnerships with a Northeast Business Leaders for Energy Efficiency award, the only winner in Maine.

Reny’s, sponsored for the award by Efficiency Maine, demonstrated a 30 percent reduction in energy use. The reduced energy usage resulted in annual cost savings of almost $30,000, according to a news release.

The winning organizations were chosen based on their outstanding achievements to adopt and implement energy efficiency practices. Their efforts, the release said, resulted in demonstrated energy savings which improved the organizations’ financial bottom lines.

This doesn't surprise me at all since being energy efficient is a good business decision and Reny's has a history of making good business decisions since Robert Reny opened the first store on Main Street in Damariscotta in 1949.

Thomas Field

Well, at least it's not getting any worse...

   For real estate brokers, "how's the market doing?" has replaced "What do you think my house is worth?" as the most asked question they are likely to hear.  So how does one answer that?  Well, faithful readers of this space may have noticed that we haven't posted for a couple weeks.  No we were not someplace warm sipping a pina colada, we were right here, showing property and talking with clients, both Buyers and Sellers.

   I certainly don't mean to give anyone the impression that the market has gone crazy, far from it.  Buyers are being very careful, as they should be and where they may have looked at 8-10 homes previously they look at 20-30 homes now.  Of course part of that is a function of there simply being more inventory on the market. They ask for information about all of the neighborhoods and communities where these homes are located.  They ask for careful analysis of what they can expect the value of their potential purchase to be in the future and we're happy to provide them with that.

   Sellers ask hard questions, also.  No one puts their home up for sale in the face of the unrelenting negative media reports such as we experience now unless they are absolutely serious. They want the clearest possible analysis of their homes value and how they can expect the market to react to it.

   Meanwhile on a macro scale, the Fed cuts rates and pumps liquidity into the banking system. The Administration and Congress actually do something and pass a stimulus package. The unscrupulous mortgage brokers go out of business leaving only the most competent still standing like wheat separated from chaff. And the business cycle keeps on turning.

   Slowly, methodically we work our way out of this mess.  We take 2 steps forward and 1 step back.  Today the CPI report looks good, tomorrow oil prices will rise on a weak dollar but then next week the Fed will cut rates again.

   But pent up demand, low rates and just maybe a light at the end of the tunnel and all of a sudden it feels like we can answer that constant question with "Well, at least it's not getting any worse."  Now truly is the time to buy and for those individuals who have been trying to time the market and wait for the bottom, I'm afraid some will be kicking themselves someday over not buying now.

Jim Cosgrove   

Do Oddly Priced Homes Sell Faster?

    The Washington Post is reporting that a recent study at Cornell University has found that people will pay more for a house if the listing price does not end in several zeros.

   "It's a psychological bias," according to a professor of marketing  at Cornell's Samuel Curtis Johnson Graduate School of Management. "A bias in judgment."

   The study concluded that because people are used to precise numbers for items that don't cost much and to round numbers for large amounts, consumers generally and home buyers specifically tend to perceive that a price is smaller if the digits at the end are not zeros.

   "It does seem ridiculous," said the professor. The results were confirmed in laboratory tests with 134 graduate students and by examining real estate transactions in South Florida and Long Island, NY where most list prices had three zeros at the end.

   Now I admit my first thought was "Gee, I hope they didn't get government funding for this study", but they probably did so let's get over that and examine the results.  In a "laboratory" experiment they asked 134 graduate students who probably have no money and are not even remotely in the home market, what price they would pay in a hypothetical situation and then compared it to real transactions that actually occurred in the real world and from this they determined that a home priced for $484,700 would sell for $1,380 more than a home priced at $485,000. That's pretty definitive.

   We don't have a laboratory and we don't engage in hypothetical situations.  Here at Newcastle Square Realty all we do is sell homes. Lots of homes.  We are the leader in our market area.  We find that real buyers here in the real world who use real money to buy real homes think very carefully about their purchase. They use a professional Buyers Broker to help them gather all of the relevant data about homes that meet their needs in the community where they wish to live.  They negotiate to make their purchase at the best price and under the best terms and conditions they can get.

   Todays home buying consumer is highly sophisticated and well advised.  Todays Sellers need to be just as sophisticated and just as well advised.  The homes that sell for the highest asking price to sale price ratio, in the shortest period of time are those homes that are priced properly relative to the market and then prepared in such a manner as to make them attractive and welcoming to those sophisticated buyers.

   There are no shortcuts or magic tricks that will cause someone to give someone else more money, at least not here in the real world.  If you are a prospective Buyer or Seller of real estate and would like to be advised by a professional, highly experienced real estate broker who will use knowledge and hard work to help you achieve your objectives, please call our office and we'll be glad to work with you.  If you are a dreamer or a schemer who would like to engage in hypothetical transaction,  I'm sure there's someone somewhere doing a study who would like to talk with you. And that's my "bias in judgement".

Jim Cosgrove

Bald Eagles in Maine

  In other states folks get all excited when they see the first Robin in the spring.  Here in Maine we watch the Eagles all winter long.  This is a truly remarkable creature, the population of which has made a comeback since the days of Rachel Carson and Silent Spring.  It's amazing what nature can do when we just leave it alone.

   This video is from a nest up in Hancock County to our north where someone has rigged up a camera.  There are several active nests in our area and three that I know of on Damariscotta Lake.  I have seen Eagles land on the ice to eat low value fish such as perch and pickerel left behind by ice fishermen in search of salmon and togue.

Jim Cosgrove

Damariscotta Mills view of Eclipse

   It was a beautiful and clear night (if somewhat chilly) in mid coast Maine and the eclipse was spectacular.  Look carefully and you'll see Saturn and Regulus.  Click on this to enlarge on your screen.

Tom Field