Hard to not go anywhere in a small Maine town without the question "how's the real estate market ?" asked.
It is not just being friendly or making conversation. Folks want to know how is the real estate market today? Not last year, but maybe can you predict where this one is heading is a follow up inquiry.
Maine is one big vast state so the answer to the question how's the real estate market can be misleading.
How do the local real estate market listings and sales numbers line up?
Hard like most news to sum up in a short, convenience sound bite or video clip with an industry professional. Why so hard? Because the state is the sum of it's parts and one answer to use sizing it up does not work for each of the same sixteen counties in Maine.
So like weather forecasts, one size does not fit all when talking a state as big and diverse economically as Maine. So survey says ... (ding ding ding) more than one pat answer.
Here is the latest real estate press release for Maine property listings and sales as a whole and county by county. The study of the numbers prepared and just reported by the Maine Association Of REALTORS.
Whatever you border, should you buy the property next door?
The house, vacant lot, whatever type of real estate butts up to your border, should you purchase it before someone else does? Lots of ways to look at the situation when your neighboring real estate comes up for sale. Is available for purchase from you or someone else. The timing could be perfect or the worst for the opportunity to add to whatever you now own. It just may not be in the cards to consider buying what is next door to what you already own.
So if you can not purchase today, if the option to buy is presented, take the neighboring property owner up on the chance to make it your own down the road.
A first option to purchase is not the seller next door asks you if you want to buy or not and moves on with you now out of the picture if you pass up the chance to purchase. The first option means other buyers can wheel and deal and make offers all they want. But before the seller lets the property go to a new buyer, he or she will come back to you to give you one more chance to say yes or no. You could end up getting the property cheaper, with better terms than the figure first quoted.
Get that first option to buy real estate agreement in writing and expect anything verbally promised is gone with the wind when the neighboring property owner dies before selling. The heirs of the estate often care little about previous conversations and promises made between you and your neighbor. It's show me the money and settle the estate, pay the bills and split up any profit time for those left behind that you have no connection with personally.
If the property next door is priced so high that it is too rich for your blood, others may feel the same way too and pass up the option to buy. If the property is appraised by a bank lending money on the collateral, there is no way anyone is going to pay a King's ransom to make it their own. The appraiser keeps a lid on the fair market value. And makes sure value is there before the real estate closing ever happens when a bloated price property is being exchanged.
If you had a small lot, below the square footage of what is typical for the neighborhood, buying more land can increase the value of what you do own. If raw land is what is up for sale, if the purchase does not involve renting out a home or the added expense of tearing down a structure.