Maine Real Estate Blog

The data is in on March sales. Home prices across Maine were down over 3% and home sales decreased by 28.41% Specifically, 650 Homes were sold this March as apposed to 908 homes in March 2007.

Though not nearly as bad as other parts of the nation, this data follows a nation wide trend where single family home sales were down 18.4% in March. The national median sales price also declined by 8.3%

Specifically in Cumberland county,sales of homes fell by 27.97% across a rolling quarter. Prices of homes fell 2.27% as well.

What does this mean for you? Email with your questions and we’ll post the answers on our blog!

If you are selling or buying a home and a home inspection reveals it to be positive for Radon, fear not. Below are answers to common Radon questions.

What is Radon? Radon is a radioactive gas that is found in homes across the United States. In fact, 1 in 3 homes in Maine will likely have an elevated radon Level. Radon comes from the natural breakdown of uranium in soil, rock and water and it gets into the air we breathe. It moves up through the ground to the air above and into your home through cracks and other holes in the foundation. It can also show up in your well water. Any home, no matter the age, and regardless of how well sealed it may be -can test high for Radon.

What Risks are Associated with Radon? In 1998, a study was done on radon and lung cancer by the National Academy of Sciences. It found that approx. 12% of lung cancer deaths in the United States are linked to Radon. Radon is the second leading cause of death due to lung cancer in the Unites States.

How do I Test for Radon? Testing for Radon requires special equipment because you cannot see or smell radon. Its best to contact a registered Radon tester. Many home Inspectors can do this test for you. Maine law requires that the testing device be placed on the lowest livable level of the home. If you have a full basement that can finished as additional living space it should be placed there however if  you have a crawl space, the first floor should be tested. Test for Radon typically need to remain on site for 24-48 hours.  When testing a house, all windows and doors MUST remain closed.

What is Considered a High Radon Level? Radon test results are reported in picocuries per liter of air ( pCi/L) Maine recommends that your seek radon treatment if your home tests at 4 pCi/L or higher.

How do I Reduce the Level of Radon in my Home?  Lowering the Radon in your home will vary in cost depending upon how your home was built as well as other factors, however most homes can be fixed for approx $1,200 on average. The level on Radon in your home has no bearing on the cost of installing a mitigation system.   The most reliable, durable, and least expensive method for lowering Radon is to install a simple system using pipes and fans. This system is referred to as Sub-Slab Depressurization or Sub-Slab Suction. This system removes Radon gas from below the home before it can enter the home.

How do I Find Someone to Fix my Radon Problem? If you are living in Maine you can call 1-800-232-0842 or visit www.maineradiationcontrol.orgfor a list of registered Radon mitigators in your area.

What About Radon in My Water? If you home gets its water from a well, it is also a good idea to have your water tested for Radon. The Maine Bureau of Health recommends Radon concentrations in drinking water of 20,000 pCi/L or above to be reduced. Testing for Radon in your water is a different test then testing for Radon in the air and you must specifically ask your home inspector to do both tests.

Here are a few reasons that homes often don’t sell:

 Smell: Often times, after having lived in a home for a while you grow accustomed to it’s odors and smells. You may not even realize that your home has a strong odor at all, but someone who is visiting for the first time will notice it almost immediately. Smells can come from pets, baby diapers, foods, cigars, mulch, neighbors, and the surrounding environment. Obviously, there is only so much you can do about what your neighbors are doing on their own property, but you can make sure your home has been freshly cleaned, and that anything odor producing has been removed from the house.

Not Staging Your Home First: Sometimes sellers don’t want to spend the money getting their home ready for the market, but its almost ALWAYS worth it. Getting all of personal items out and giving your home an updated look makes a home much more appealing to shoppers. Having a home stager come is highly recommended in a difficult market. Its what can set your home apart from the rest.

Avoiding Feedback: Listening to buyer feedback with an open mind is important. As a seller, you are likely very attached to your home and you probably feel that its one of the better homes on the market. Its easy to take offence when a buyer comes through and points out only the negatives, but try to take the emotions out of the process and really listen to what they are saying. You may have been ok with the problems while you lived there, but now buyers have  a lot to choose from, and they don’t have to live with all the little quirks.  Buyers have the ability to be selective and find a home that meets their expectations. If you can fix the problems, you may want to consider doing or so, or dropping the price to reflect the extra work needed.

Improper Pricing: No matter how well your real estate agent markets your home, it will not sell if it is over priced. Buying a home is an investment and people will be looking to make a smart one. Buyers also will likely be working with a real estate agent who will be advising them on what similar properties have recently sold for and helping them determine a fair market value. The chances that you’ll find a uneducated shopper who is willing to pay a high asking price in this market is unlikely, so don’t waste valuable selling time waiting for them.

Not Taking Your Agent’s Advise: Hopefully when you selected an agent, you made and attempt to pick a successful and experienced person. Almost all real estate agents want your transaction to go well and for you to be happy with the process. They are not looking to sell your home at a rock bottom price in order for a lightening fast sale, its just not in their best interest to do so. They want you telling everyone you meet about what a good job they have done, so when your agent tells you its time to drop the price, or gives you a starting price that doesn’t match what your expecting, don’t automatically think its wrong. When they say your home needs a paint job, or some cosmetic repairs, don’t throw them out on the lawn, take some time to consider what they saying. Agents have a very clear idea of whats going on in the current market and know what your home will realistically sell for.  You should want an agent who will be upfront and honest with you, the agents who are who arn’t will only cost you money, stress, and your valuable time.

 Request a free market analysis of your home: info@brettdavisrealtors.com

Browse Homes or find a sales agent

Others articles that may interest you:

How to Sell your Home Fast! 5 Mistakes Anxious Sellers Make

Tips for Selling as Features on Good Morning America

10 Steps to Prepare your Home for Sale

Below are some of the great tax benefits

of owning a home as seen on Maine Today.

Deductions:

Mortgage Interest:Mortgage interest is fully deductible from your tax returns. Since mortgage payments in the early years of a loan are mostly interest, this tax break has long helped buyers afford their new homes. The deduction is allowable on up to $1,000,00 in loan proceeds used to purchase a primary and/or second home.

Property Tax: Any local or state property taxes paid on your home from your federal tax returns is fully deductible.

Points paid on Home Mortgage: Fully deductible in the year they are paid.

Here is an example of the kind of tax benefits you can receive.

Say you purchase a home on Feb. 15th. for $250,000 and put $50,000 down. You have a 30 year fixed-rate mortgage at 6.17 percent and two points paid.

Mortgage Interest: $9,749

Two Points Paid (2%) $4,000

Property Tax: $4,750

Total Deduction Allowable: $18,499

Additional Tax Benefits:

If you spend money on certain home improvements and you save the receipts and records, you can reduce the amount of capital gain when you sell.

Also, if you sell your home and have a gain, it is not taxable if its no more then $250,000 for single person or no more then $500,000 for a married couple. To receive this benefit you must have lived in the home for at least two of the five years prior to the sale of the property.

Finally, if you use a part of your home exclusively and regularly for business, you may be entitled to a home office deduction.

Turn up your speakers and take a listen to the new Brett’s Team radio ad!

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Moving can be very  stressful on your pets. Follow these smart tips from the The Humane Society to make the transition with ease!

Moving Day

On moving day, when you’re packing up boxes and loading your truck, keep your pets confined to a quiet area of the house and put a sign on the door that says “do not enter- pets”. Then make sure to let all of your helpers know about their location. Keeping the pets separate in a quiet spot will help keep their stress level down and reduce their risk of running away.

Have new tags made for your pets as soon as you know your new address and telephone number. It’s best to do this before you actually move so that if your pet does get lost, you will be easy to locate.

Before you move, talk to your vet. Make sure you have all the documents you need if you will be transferring to a new vet, and see if they have any recommendations if you have a particularly nervous pet.

Traveling

When moving, make sure you pet has a sturdy carrier to keep them safely confined. Keep the vehicle well ventilated and allow you pets time to get out and stretch, drink water, and relieve themselves.

In Your New Home

When you bring your pet into their new home, show them the appropriate place to relieve themselves then reward them with lots praise when they do. Even pets who have been housebroken for years can become confused in a new place. Make sure you have some of their favorite belongings set out to help ease the transition. Put out their bed, toys, etc. But most importantly keep your routine as close to normal as possible.

If you’re considerate of your pet during this stressful period it will likely be no time at all before your pet becomes settled and king of their new domain!

http://www.hsus.org/

www.brettdavisrealtors.com

I read an interesting article in  Realtor Magazine this month about  the new baby boom that the United States is currently experiencing and its potential effect on home sales. According to the article called “The New Baby Boom” by Robert Freedman, the US adds one person every 13 seconds. At the start of 2008 the country had almost 3 million more residents then it did at the start of 2007. The US birth rate is now the highest it’s been in more then 40 years. This is great news for the housing industry according to economists, because a new household formation is the first step toward home ownership. The population gains we are currently experiencing point to huge demand in the years to follow.

The article also cites immigrant households as having the highest home ownership rates of all demographic groups, that’s according to the Home-ownership Alliance. After an immigrant family has been in the country for 30 years, their rate of home ownership rises to just below 75 percent.  Economists believe that once consumer confidence returns to the housing market, sales will boom.

www.brettdavisrealtors.com

It was a snowy month in January and along with the snow came fewer sales and lower sales prices statewide.  On average for the state, single-family real estate sales fell over 28% in January 2008 compared to January of 2007. High snow fall totals may have had some impact on this number.

The medium sales price statewide for single family homes dipped by approx. 2% to $185,000. While prices did decrease statewide some counties saw double-digit price gains like the Belgrade Lakes Region where many buyers have little need for financing.

Nationwide real estate sales were down by 22.4% this January when compared to last January and the medium sales price dipped 5.1% to $198,700.

In Cumberland County  the number of homes sold fell 25.63% in the rolling quarter between Nov. 1st 2007- January 31, 2008 compared to Nov 1st 2006-January 21, 2007. Prices fell by 3.39% during this same time period.

www.brettdavisrealtors.com

Feeling like there aren’t enough shopping options in the Portland area? Well you’re in luck! A Westbrook landowner and a developer from New York have just unveiled their plan to develop over 1.6 million square feet of space near exit 47 of the Maine turnpike. Stroudwater Place as its been named will be home to upscale shops, restaurants, hotels, recreational facilities including an indoor ice rink, offices and entertainment. The developers envision Stroudwater Place as a destination rather then just another shopping mall. Of course, the development must be approved by the town and will require a zoning change. Once approved it will be built in phases over the next seven to eight years.

www.brettdavisrealtors.com

It probably will, according to research by Spicerhaar, an independent estate agents network.

The managing director of Spicerhaar found that before a general election, home-buyers have a lot of anxiety about election outcomes and the possibility of looming tax increases that dig into their budgets. However, historically there has been a strong trend in improved confidence post-election going back 50-years regardless of the result of the election.

Spicerhaart’s research  looked at home prices and the number of property transaction prior to elections & post-elections. They found that in the run up to the 1997 election, the percentage increase in property value dipped from 2.4% to 1.3%. However after the election, house prices recovered and increased by 1.6%

Prior to the that same election year property transactions fell  but then increased by 8% after the election. 

www.brettdavisrealtors.com