Real Estate Broker's Gone Wild

Here on the coast of Maine the real estate market gets just a little slow this time of year so many of us find this to be the opportune time to take a vacation.  While some of us, notably Connie Moss and Ken Gray (not together) have been able to slip away to warmer climates with their spouses and make it back uneventfully, it has been a comedy of errors for the rest of us.  Bill and Tracy Babcock managed to fly right into the teeth of all the crazy weather in the Denver area. Anne Peaslee is still stuck in West Palm Beach (thank you very much Jet Blue).  Tom Field went to Mexico and came back with a grey beard (possibly a tattoo also?) and Jim Cosgrove is still trying to explain to his wife why they went to Quebec  to ski in temperatures that were a good 10-20 degrees colder than here.

But probably the most anticipated vacation in our group was by Bill Byrnes and his wife Pat who are presently at Pineapple Beach in Antigua.  Bill being the savy techno whiz that he is promised us that if during our regular Tuesday morning meeting we were to turn one of the office computers to the web cam at the resort he was going to that he would come on and wave to us.

So this morning while Jim was trying to tell us all sorts of important things and we were trying to stay awake sure enough there was Bill.  It wasn't quite a wave but it's definitely him and Pat.  By the looks of it Bill is asking Pat where his cell phone is, no doubt so he can call in and check messages.  Since we didn't hear from him, Pat must not have been able to find it but at least we know where Bill is.  Assuming that all goes well with the airlines he'll be back in the office on Monday.  We're not sure about Anne.

For our next trick you can look for me in the crowd at The Masters in April. I'll try to stand next to Tiger, maybe I can pick up a few tips.

Lee Simard

Mid Coast Maine Snowmobile Trip

    My wife and I headed out on the snowmobiles Sunday for our first major trail ride.  Mostly we have been staying on Damariscotta Lake, cruising and enjoying the sights like the drag races and radar runs  on Great Bay in Jefferson (ever seen a snowmobile go 127 mph?) but this weekend we bought a map from the Jefferson / Nobleboro Snow Packers and ventured out onto the trails! We saw areas of Nobleboro, Jefferson, Waldoboro and Newcastle that we had never seen before because there are no roads to get there, only trails.  We saw deer, turkey and all sorts of tracks from other animals.  With temperatures in the high 30's it was a beautiful day.

    On our way back we saw the most surprising sight of the day; Topher, Kristin and Lulu Mallory out for a ride on their sled. Topher works at Mexicali Blues and among other things is responsible for their blog!

   Kristin works at Camp Kieve in Nobleboro which is the camp I wish I had gone to when I was a kid.  Now I guess I'm just going to have to settle for Red Sox Fantasy Camp!

   This is what we do on sunny weekend days in the winter.  Who needs Florida?

Tom Field

The Real Estate Broker who really does Walk on Water!

Boothbay Harbor Heats Up

    The weather is still cold but down in Boothbay Harbor things will be heating up as the incomparable Gaelic Storm comes to The Opera House on Feb. 25th.

   Gaelic Storm has to be the most high energy band touring today.  These guys will definitely raise the roof at the old opera house. To describe the group as "an Irish band" simply does not do them justice. I hesitate to even mention that way back when they were the band providing the music for the steerage scene with Leo and Kate in the movie Titanic because that's the first thing that every advertisement tells you and while it's true, they are certainly more than just another band playing tunes from the old country.  Most of their music is original and you'll find it pretty hard to stay in your seat for an entire show.  Now, there will be an occasional reference to strong drink but it's all in good fun and this will be a great show.  Don't miss it.  This is as hot as it gets around here in February!

   Tickets are $22 and you can call the box office at 633-5159.  I'll see you there.

Johnny Tarr

Definitely not A Maine Real Estate Broker

Valentine's Day Blizzard

    Happy Valentine's Day.  We're going home to celebrate.  Actually we're going home because it's snowing pretty good, we're on the receiving end of a classic nor'easter.  Some of our Brokers are popping in for a minute or two but our incredible office staff of Linda Mitkus and Stacey Cole are simply too valuable to risk having them driving home later when the roads get really bad.

   Inland the prediction is for 20 to 30 inches of snow but here on the coast of Maine we're only expected to get 6 to 10 inches before it turns over to a nasty sleet and freezing rain.  The good news is that the temperature has to go up for that to happen. It's a balmy 16 degrees now and rising!

   Truth be told, I kind of like this.  I know, I'm all grown up now and snow days are for kids.  But hey, nobody's walking in our door and no one is calling so I'm going home.  The fire will be roaring, my son is old enough to handle all of the snow shoveling now, my daughter will bake cookies and we'll watch some of those movies that come in the mail that I usually never have time to see.  Or, if I'm really lucky, the power will go out (just for a few hours) and we'll light candles and play board games.  We'll break out Monopoly and the kids will get to see just what a real estate genius their old man really is!  We're staying away from Trivial Pursuit though, the lovely Mrs. Cosgrove is a shark at that game and it's even worse when the kids know more about stuff I lived through than I do!

    If you are local and you're reading this please remember to check on your elderly neighbors or anyone else that may need a helping hand if this gets bad.

   We'll be back in the office tomorrow I'm sure.  Leave a message, send an email and we'll get back to you.

Jim Cosgrove

What is That Offer Really Worth?

    Following up on Jim Cosgrove's post regarding the need to adapt to a changing market; i.e. a Buyers Market, I thought it would be useful to have a brief discussion of the time-value of money.

   As Listing Brokers, working with someone who wishes to sell their home, we sometimes find it challenging to keep our client focused on the total financial impact of their decisions and the final result they are trying to attain.

   This of course begins with their initial asking price.  When we present a Seller with a pricing recommendation based on the final sales prices of comparable properties it is not at all unusual for that Seller to feel that their home has superior location, features or amenities to those properties to which theirs is being compared.  This is perfectly natural; they know their home best and understandably highly value certain features of their home that are important to them.

   However, a prospective Buyer will more than likely be represented by a Buyers Broker and together they will look at the Sellers property (as well as other, competing properties) with a cold and calculating eye.  The Buyer will act in enlightened self interest and buy that property which best suits their needs at the lowest price possible.

   By overvaluing and then overpricing their property a Seller can cost themselves more than simply a lost sale.  They also lose the value of the money they would have had if their property had sold sooner even if for a lower price.

   Here's an example: comparable sales indicate a home will sell for $250,000. We recommend an asking price of $259,000. The Seller believes their home to be worth more than indicated and insists on an asking price of $295,000.

  A potential Buyer sees one of our ads or visits our website, calls their Buyers Broker and comes to see the home.  They have a positive initial reaction and ask for additional information. We supply their Buyers Broker with reams of data. They visit the property again, this time with friends and/or family in tow to validate their decision to like this property.  We show them around, carefully pointing out all of the many wonderful features of this home being sure to explain exactly how those features will benefit them.

   The Buyers decide to make an offer.  They ask their Buyers Broker to look up comparable sales and advise them on the fair value of their potential purchase.  The Buyers Broker concludes that the fair value is $250,000.  They initially offer $240,000. and after negotiating for awhile arrive at $250,000 where everything stops.  Our Seller refuses and spends another year  (sometimes longer)on the market trying to achieve closer to $295,000. Eventually they give up and settle for the next offer they can get which is $235,000.

   In that year, had they accepted $250,000., paid off their mortgage and credit card debt and invested the balance, that money could easily have earned the equivalent of 8% or $20,000 ($250,000 X 8% for one year).  Over pricing cost them $20,000 in lost earnings on the proceeds plus $15,000 in a lower final sales price for a total loss of $35,000.

   The lost earnings opportunity for each individual is dependent upon their particular financial status.  We recommend our Listing clients discuss this issue with a qualified financial planner.  This can help avoid a lot of frustration after the fact.

   Although a higher asking price may sound good in the beginning it is the final result that is important. If you are considering selling your home, please call me and together we'll discuss what you are trying to accomplish and the best way to get there.

Bill Byrnes

Pemaquid Points' "Net Results" Real Estate Broker

The Mid Coast Maine Real Estate Market

    We're into the heart of winter now, the Super Bowl is over, the mercury has been hovering in the low digits for a while, the snow does not look pretty and the cars have a dirty gray salty tint to them no matter what color they actually are.   It feels like it's going to be a long time until summer is here but time has a way of flying by so let's take a look at our local real estate market and assess where that is. 

   Anecdotally speaking most real estate brokers will tell you that they think the market is improving.  The phone is ringing a lot more than it did, more email inquiries are coming in and I know I've done more showings this year compared to this same time last year.

   But what does the actual hard data tell us?  At this time last year when we looked back at what had actually transpired in December of '05 and January of '06 we saw that there were 112 closed sides in Lincoln County. Now for those who don't work in real estate every day let me explain the jargon. The are 2 sides in every real estate transaction; the Listing side and the Selling side. Ordinarily this means that there were 2 brokers involved, one representing the Lister (or Seller) and one representing the Buyer.  Those brokers may or may not both be affiliated with the same agency but they have separate duties and different fiduciary responsibilities.  In some cases one broker may represent both parties, this is called Disclosed Dual Agency, it is approved of by the Maine State Legislature and is a topic for another post.

   So in December of '05 and January of '06 we had 112 sides of sales that actually closed for a total dollar volume of $42,250,700.  For the same period this winter, December '06 and January '07 we had 104 closed sides for a dollar volume of $31,376,800.  Some quick and simple math tells us that total sales are off a little more than 8% but that sales prices are off more than 25%. 

   Now let me disclaim these figures slightly.  Closed sales are really more of a reflection of the 30 to 60 days preceding the actual time period in which they close as that is how long it generally takes for the inspection period, financing and other arrangements.  But still I think this is usefull to help us all put our current market situation in perspective. 

   I think it is reasonable to look at the market this way:  those of us on the front lines in the real estate industry perceive a change in the market, we perceive that there is more activity, that there are more buyers looking at property and that there is a more up beat attitude towards real estate in general.  The actual figures show that there is activity in the market (104 closed sides in 2 months is not too bad) but at a lower price level than in the recent past.  But there is one more critical piece of information; right now in Lincoln County there are 536 single family residences for sale in the state wide Multiple Listing System! Newcastle Square Realty puts several new properties on the market every week as do many other agencies. Prospective Buyers have a great deal from which to choose.

   The days are getting longer if not yet warmer. Pitchers and Catchers report to Florida in 9 days. The spring selling season will be upon us before you know it. If you are serious about selling your property this year, the only way to accomplish that will be to get ahead of the market price wise, put your property in the best possible shape to sell (ask any Newcastle Square broker for a copy of our Market Preparation Guide) and engage the services of a top notch, professional real estate broker.

   This is not a bad market but it is a different market.  Success will come to those who change and adapt.

Jim Cosgrove

Newcastle Square Realty in the News

    Newcastle Square Realty's maine coast properties blog is in the news!  The Lincoln County News to be exact.  Recently I was asked by LCN's ace reporter Sherwood Olin if he could interview me for an article he was writing regarding blogs.  I figured we'd chat a little about blogs and maybe he'd mention my name in the article, maybe not.  We did wind up talking for quite some time but still I was surprised when this weeks paper came out and my phone started to ring.  I think we got almost as much ink as the folks who are fighting over the cost of the new town office and maybe even more that the report from the Sheriffs Dept.

   Now, Sherwood's a great guy and a super reporter. You know we must not have any big scandals going on around here because if we did he would have found them by now.  But I did have one small, very small, complaint about the story.  He quotes me at length, like I said we talked for quite some time. But in one of those quotes he has me using, how shall we say, an indelicate word. Not a real bad word, it's actually quite descriptive and as used, apropos.  But it is the kind of word that my mother is going to call me and say "you can't say that in the newspaper...and by the way why weren't you wearing a tie when he took your picture?" 

   Well, I'm not taking the heat on this one.  As they say in Washington D.C. and Augusta and the Portland School Board, "I didn't say it, I was misquoted.  And if I did say it I didn't mean it."

   No I'm not going to repeat it here, you'll have to read the article.

Jim Cosgrove

The Misquoted Maine Realtor