How's the real estate market in Maine for home sales, a question we get asked a lot.
Because if the average Maine home owner is watching the network news, reading the national newspapers and hearing online blurbs about not so hot spots in the country, they would think same applies to the local area.
Not so, real estate is so much cheaper in Maine.
What is happening in cities that are struggling is not the way it is in Vacationland. Just like one national weather forecast won't work, apply in every zip code.
When we tell a local Maine home buyer, seller that places, houses are moving, many seemed surprised.
Really? But then have to admit they have seen lots of our SOLD panels screwed on the top of Maine home listing real estate signs as they tool around the area.
The more messed up it gets in expensive city living, the more attractive home prices and the safe small town lifestyle in Maine becomes. The lower home prices and fact Maine is 46th lowest in the country for FSSR (foreclosure, short sale, repossession affected house sales) are two areas that make us shine brightly.
But we also get the question on what is happening locally when lots of Maine homes are for sale on the same in-town street or country road location. The reasoning is oh oh, bad market, or lousy neighborhood. Or ancient burial ground located underneath. Or environmental hazards or something causing the log jam, pile up of just not selling Maine homes. Often it has nothing to do with market conditions. Because our prices in Northern Maine on homes don't sky rocket, spike sharply up one day and then dive bomb south the next.
What can happen within the local market is one Maine home owner is asked by the new, wet behind the ears real estate agent what they want for the place? Or how much do you think it is worth? Not how it is done.
A careful analysis of the local real estate market in Maine is performed for property listings like the subject. To compare what has sold like it in the neighborhood. What is on the market currently competing for a Maine home buyer to say "I do". If they are ready, willing and able to move forward with a property sale purchase of aMaine home.
So if the listing on the home in Maine is taken, advertising a grossly inflated figure. Strike one and two.
Because the neighbor looking out the venetian blinds gets wind of the price. And think hey, my Maine home is bigger, better than that one next door because of this or that feature.
And if that place is worth, will sell for that much, then I will list mine for $20,000 or more higher. And on and on down each side of the street.
Where one by one the owners all march to the market and with over priced domino Maine house pricing happening.
And then when none sell, it is blamed on the market everyone sees on the national news. Wrong conclusion.
Not the reason for the neighborhood pile up of Maine homes. It is over pricing alone. Not something wrong with the neighborhood that is causing the confusion, sale delay for the real estate buyer, sellers. Seller has the wrong notion on his expected property sale or hopes someone just appears. Comes along to take it off his hands. People with money have brains too. They kick property tires, shop around, ask questions before parting with the dead presidents.
Over priced Maine property listings.
I have heard it discussed at the state level with other market leaders in Maine real estate that roughly 25% of the statewide MLS is over priced, bloated. And when properties stay on the market longer, buyers start to think nice looking little house. But must be something wrong with it that they can not see. It has just sits there through the seasons change. Often the only problem is too big a price tag the Maine home has to carry. Weighed down by a market listing with a hernia, moving slowly due to simply too heavy a price tag it carries.
Listings taken on over priced places serve little purpose and clog the Maine property marketing channels.
Waste advertising space in local media. Besides eating up valuable time of buyers with Maine homes that won't bank appraise, the seller of the property listing has the wrong expectation of a sale that won't happen. If the owner is stuck in concrete on the price, all bloated property listings do is make realistically priced places look that much more attractive. Over priced property listings help sell fairly, realistically stickered Maine real estate.
As an Maine real estate broker, REALTOR for 33 years, I would rather talk to the owner in six months, a year when the over priced listing expires.
When hopefully I can show them what the market value currently is and why for their property. Those kind of home, house listings that have a fair price tag hanging off them have a chance of actually selling.
Of getting the Maine real estate buyer, seller, broker, lawyers, bankers, everyone to a property closing long conference room table on time.
Also what the Maine property listing is insured for in a total loss is not the basis for arriving at the place's price tag either.
Unless the seller is thinking of hiring an arsonist from the shady side of some large city out of state to come in and start a bon fire. And not for roasting hot dogs and marshmellows. Or a sing-a-long around the blaze. Replacement value is not the current real estate market value of the Maine home. Nor is the property town or city assessment for yearly taxes that may have been done six years ago or more. Today's market value is what a seller needs to know to hope to have a buyer make the purchase.