How elections impact Maine’s real estate market

By The Libby Starnes Team at Signature Homes Real Estate Group

As Mainers head to the polls each election cycle, many of us think about the impact of elections on our communities, but few pause to consider how political shifts may influence the housing market. In real estate, elections can have ripple effects, shaping everything from mortgage rates to property values.

Here’s a look at how elections impact real estate in Maine and what that might mean for you as a homeowner, buyer, or seller.

1. Economic Policies and Their Influence on Housing Prices

One of the most immediate ways that elections impact real estate is through economic policies. The incoming administration’s stance on taxation, interest rates, and overall economic growth can impact the housing market. For instance, tax cuts or increases can affect people’s disposable income, which in turn influences housing affordability.

Similarly, a pro-housing policy from the federal level might incentivize homeownership, driving demand, and potentially increasing home values. In contrast, policies that make borrowing more expensive can reduce affordability and slow the market. While these effects may vary, any shift in administration often brings changes that impact housing values in Maine.

2. Mortgage Rates and Buyer Affordability

Mortgage rates fluctuate based on the overall economic climate, which can be influenced by election outcomes. When confidence in the economy is high, the Federal Reserve may raise rates to balance growth and inflation. On the other hand, uncertainty or concerns about economic instability could lead to lower rates as a stimulus.

Mainers looking to buy a home should consider how political changes could influence interest rates in the months ahead. For instance, a change in policy that encourages fiscal stimulus could drive up inflation and, consequently, mortgage rates, affecting buyer affordability. Lower rates often result in more buyers entering the market, creating competition for homes and potentially pushing prices up.

3. Housing Policies: Affordable Housing, Development, and Zoning

Local and state elections, just as much as national ones, can significantly impact the Maine housing market, especially regarding affordable housing and zoning policies. Maine communities, including the Greater Portland and Lakes Region areas, have seen an increased push for affordable housing solutions in recent years.

Candidates who prioritize affordable housing initiatives may create opportunities for first-time homebuyers or those seeking to downsize. On the other hand, policies that limit new development or impose strict zoning restrictions can reduce available housing, putting pressure on prices due to low inventory. It’s important for buyers and sellers alike to understand their local candidates' positions on housing policies as they directly impact availability and affordability in the market.

4. Consumer Confidence and Market Stability

Election cycles often bring periods of uncertainty, which can make both buyers and sellers cautious. When consumers feel uncertain about future policies, they may choose to wait until after the election to make significant financial decisions, including buying or selling a home. This "wait-and-see" approach can slow down the market temporarily.

However, as soon as election results are in and the direction of policies becomes clearer, market activity often picks up. Understanding this cycle can help sellers know when they might encounter more motivated buyers or face less competition in the market. The key takeaway for Mainers? The real estate market is often cyclical, influenced by shifts in consumer confidence around elections.

5. Property Taxes and Home Values

One of the most direct effects of elections on real estate is property taxes. State and local leaders can pass or increase property tax measures, which can impact the cost of homeownership. While property taxes provide essential funding for schools, public services, and infrastructure, higher taxes can discourage potential buyers, especially those on a tight budget.

In Maine, property tax policies have a pronounced effect on the local market since property taxes vary significantly across towns. Policies that address tax relief for homeowners or promote responsible budgeting can be a relief for property owners. This is particularly relevant in the Lakes Region and other rural areas where property tax rates can influence decisions to buy, sell, or stay put.
Preparing for the Future

For Maine residents, understanding the connection between elections and real estate is essential. Regardless of the outcomes, staying informed about proposed policies and economic shifts can help homeowners, buyers, and sellers make strategic decisions. As always, having a trusted real estate team can provide you with insights on timing your decisions based on market conditions, interest rates, and local housing policies.

At the Libby Starnes Team, we’re committed to helping you navigate the complex world of real estate, no matter the political climate. Whether you're considering buying, selling, or simply exploring options, we're here to support you every step of the way.

Pamela Starnes and Tiffany Libby are the Libby Starnes Team with Signature Homes Real Estate Group. Call them at 207-838-8051 or 207-712-2424 or visit them online at www.libbystarnesteamhomes.com. <

Home Buyers and Sellers 2024 Trends Report

By Lisa DiBiase

Navigating the world of real estate can be a complex and often overwhelming experience, whether you're buying your first home or selling a long-time residence. As the real estate market evolves, so do the motivations, needs, and preferences of buyers and sellers across generations. In light of recent updates to real estate practices, working with a Realtor® has become even more advantageous for buyers and sellers alike. Realtors® are committed to greater transparency in pricing and can help clients understand how every aspect of their transaction is structured. With updated practices designed to prioritize the client’s interests, Realtors® continue to provide valuable market knowledge and negotiation expertise, ensuring buyers and sellers get the best possible results. These changes have reinforced Realtors®' dedication to professionalism, making them essential partners in navigating the real estate process confidently and effectively.

The National Association of Realtors® (NAR) has published its 2024 Home Buyer and Seller Generational Trends report, revealing some intriguing statistics that highlight the advantages of working with a Realtor®. Whether buying or selling a property, the process involves many complex aspects that benefit from a Realtor’s® expertise and guidance.

This comprehensive study offers key insights into the behaviors and priorities of home buyers and sellers, revealing valuable information about the benefits of working with a Realtor®. The report highlights the diverse, generation-specific reasons for engaging with a Realtor®, emphasizing the critical role that expert knowledge and experience play in making real estate transactions smoother and more successful. Whether you’re buying or selling, a Realtor® can provide the guidance and support needed to navigate each step of the process. To request a copy of this report, please reach out to me using my contact information provided at the end of this article.

What Sellers want from their Realtor®:

22 percent Help sell the home within specific time frame

21 percent Help price home competitively

20 percent Help seller market the home to potential buyers

14 percent Help seller find ways to fix up home to sell for more $

11 percent Help find a buyer for home

6 percent Help with negotiation and dealing with buyers

3 percent Help with paperwork/inspections/process

How long Sellers own home before selling:

1 year or less 2 percent

2-3 years 12 percent

4-5 years 14 percent

6-7 years 12 percent

8-10 years 12 percent

11-15 years 12 percent

16-20 years 11 percent

Younger Boomers made up one of the largest shares of home sellers at 26 percent and had a median age of 64 years. Gen Xers made up the second largest share of sellers at 23 percent with a median age of 52 years.

Across all age groups, 89 percent of home sellers chose to work with a real estate agent to sell their homes.

The top reason for selling a home among all sellers was to move closer to friends and family at 23 percent. This was followed by the home being too small at 13 percent, and a change in family situation at 10 percent. Older generations were more inclined to move closer to family or friends, while younger generations were more likely to seek a larger home.

Sellers typically lived in their homes for 10 years before selling. Younger Millennials stayed in their homes for 4 years, compared to 15 years for sellers 59 and older.

Benefits of using a Realtor® for Buyer:

61 percent Help understand the process of either buying or selling

58 percent Pointed out unnoticed features/faults with property

46 percent Negotiated better sales contract terms

46 percent Provided a better list of service providers

45 percent Improves knowledge of areas and comparables

33 percent Negotiated a better price

29 percent Shortened buyer’s home search

23 percent Provided better list of mortgage lenders

What Buyer’s want from their Realtor®:

50 percent Help finding the right home to purchase

12 percent Help negotiating the terms of sale

11 percent Help with price negotiations

7 percent Determine what the comparables are for the property

7 percent Help with paperwork

Across all generations, the first step in the home buying process is typically searching online for properties. The use of the internet in home buying is closely linked to age, with younger buyers more likely to rely on online resources throughout the entire purchasing process.

Buyers typically searched for 10 weeks and looked at a median of seven homes. The length of the home search was the longest for Gen Xers, at 11 weeks, and shortest for the Silent Generation, at just 6 weeks.

For more than half of home buyers, the most difficult step in the home buying process was finding the right property at 59 percent. This was even higher for Younger Millennials at 64 percent. Photos were the most useful website feature for nearly nine in 10 buyers aged 58 and under. Detailed information about properties for sale was also very important to all age groups.

As I have said before, please call a local REALTOR for all your real estate needs no matter how big or small. We are trained professionals here to make your life easier. It's best to surround yourself with the right team of professionals that can continuously give you the right advice for all your circumstances.

Lisa DiBiase, Broker and Owner of Landing Real Estate, represents buyers and sellers throughout Greater Portland and surrounding areas. For all your real estate needs, contact Lisa at lisa@landinghomesmaine.com or call 207-653-0823. <

 

Commercial Leasing Basics

By Larry Eliason

A commercial lease for any business can be a large expense and commitment for any business. Commercial leases are a lot different from residential leases as they have provisions that could impact your business from an economic standpoint to practical use of the space.

Whether it is for a small office, retail, warehouse, commercial garage or a ground lease, a Tenant should perform and do some due diligence to assure that the space and the site are properly zoned for the proposed use. In many towns, Building and Life Safety Codes will certainly be part of the discussion for occupancy.

Below you will see some highlights of what to expect in a commercial lease agreement. 

AGREEMENT of Lease made this 31st day of October 2024, by and between 123, LLC (hereinafter “Landlord”) and XYZ, LLC (Hereinafter “Tenant”).

WITNESSETH

That Landlord for and in consideration of the rent reserved, covenants and agreements hereinafter set forth to be kept, observed, and performed by Tenant, has demised and leased, and does hereby demise and let unto Tenant…

1. Description Leased Premises. Landlord does hereby lease and rent unto Tenant, one commercial building…

2. Terms. The term of this Lease shall be for a period of Five (5) years commencing on November 1, 2024…

3. Rental. Tenant agrees to pay to Landlord as rent, the sums as set forth in Schedule “A”…

4. Renewal. At the expiration of the term of this Lease, said Lease may be renewed at the option of the Tenant for two (5) year options on the same terms and conditions of this Lease excluding as to rent…

5. Security Deposit. Upon the execution of this Lease, Tenant shall pay to Landlord the sum of $ 000.00, which may be held by Landlord throughout the term of this Lease…

6. Specific Use. The Tenant may use the Demised Premises for Commercial Uses allowed by Local and

State Laws…

7. Personal Property Taxes. Tenant will pay all personal property taxes levied or assessed in respect of the personal property and trade fixtures on the Demised Premises belonging to or used by the Tenant.

8. Real Estate Taxes. Tenant shall pay all real estate taxes assessed against the Demised Premises.

9. Insurance by Landlord. Tenant shall, at his expense, maintain extended fire insurance protection for  the Demised Premises. 

10. Insurance by Tenant. Tenant shall maintain, at his/her expense, insurance protection for his/her own personal property and his/her leasehold improvements…

11. Utilities - Refuse. Tenant shall, at his/her expense, provide for reasonable electricity used of consumed in/at the Demised Premises…

12. Verification of Expenses. N/A

13. Assignment - Sublease. Tenant shall have the right to sublet the Demised Premises or any part thereof to any person with Landlord’s express written consent, which shall not be unreasonably withheld or delayed…

14. Signs. Tenant may not place any signs on the building or in or on windows or doors without Landlord’s express written consent…

15. Alterations and Improvements. Tenant will not make any interior or exterior improvements, modifications or alterations to the Demised Premises without the prior written approval of the Landlord…

16. Trade Fixtures. All trade fixtures including shelving, light fixtures, and other equipment installed by and at the expense of Tenant shall remain the property of Tenant…

17. Repairs and Maintenance. Tenant shall repair, renovate and maintain at its expense the Demised Premises including interior non-structural portions thereof and plate glass in as good order…

18. Indemnity - Security. Tenant agrees to indemnify and hold harmless the Landlord from and against all claims and demands of whatever nature arising from or caused by any act, omission or negligence of Tenant or of Tenant’s contracts, licensees, invitees, guests, agents, servants or employees…

19. Maintenance of Common Areas - Contribution. Landlord shall cause all common areas in the building of which the Demised Premises are a part, including the walkways and parking lot and to be maintained in good repair and condition…

20. Access. Landlord shall have access to the Demised Premises during reasonable hours for the purpose of insuring compliance with this Lease…

21. Requirements of Law - Insurance Rates. Tenant shall comply with all laws, orders, ordinances and regulations of Federal, State, County and Municipal authorities and with any direction of any public officer or officials pursuant to law, which shall impose any duty, obligations or limitation upon Tenant with respect to the Demised Premises or the use thereof…

22. Insurance. Insofar as and to the extent that the following provision may be effective without invalidating or making it impossible to secure insurance coverage obtainable from responsible insurance companies doing business in Maine, the Landlord and Tenant mutually agree that with respect to any loss which is covered by insurance then being carried by them respectively…

23. Fire Clause. If the Demised Premises or the building in which the Demised Premises are located during the terms of this lease be so destroyed or damaged by fire or other unavoidable casualty as to render the Demised Premises or any portions thereof unfit for occupancy, then the rent herein before reserved…

24. Condemnation. If any portion of the Demised Premises shall be condemned for any public use by any legally constituted authority, then is such event as to said portion of the Demised Premises, this Lease shall terminate from the time when possession it take of such public authority and the rents herein reserved from said portion of the Demised Premises shall be abated as of the date of the surrender of possession is taken by such public authority….

25. Default and Landlord’s Remedies. It is covenanted and agreed that if the Tenant shall neglect or fail to perform or observe any of the covenants, terms, provisions or conditions contained in the Lease on his part to be performed or observed, or if the estate hereby created shall be taken on execution or by other process of law, or if the Tenant shall be declared bankrupt or insolvent according to law…

26. Subordination. This Lease is and shall be subordinate to the lien of any mortgage or mortgages, which are now or may hereafter be placed on the premises of which the Demised Premises are a part…

27. Waiver. Failure of Landlord to complain of any act or omission on the part of the other, no matter how long the same may continue, shall not be deemed to be a waiver by Landlord of any of his rights hereunder…

28. Quiet Enjoyment. So long as Tenant pays the rent and performs the covenants required of if hereunder, Tenant may peacefully hold and enjoy the premises during the term…

29. General. This Lease shall inure to and be binding upon the respective successors, heirs, executors, administrators and assigns of the Landlord and Tenant. This Lease is made in and shall be governed by and construed in accordance with the laws of the State of Maine…

30. Notices. Whenever by the terms of this Lease, notice shall or may be given either to the Landlord or to the Tenant, such notice shall be in writing and shall be sent by registered or certified mail, return receipt requested, postage prepaid to Landlord’s and Tenant’s addresses as set forth above…

31. Late Fee. All rent payments received after the 10th of each month will be subject to a 5% late fee of the total rent.

32. Addendum. See addendum “A” for additional agreements. 

IN WITNESS WHEREOF, Landlord and Tenant have caused this lease to be executed in, duplicate under seal the day and year first above written.

SIGNED, SEALED AND DELIVERED, This 31st day of October 2024 Landlord and Tenant signatures…

Tenants today should consider engaging a Commercial Real Estate Agent Broker assist them with the leasing process including market conditions so expectations can be met.

And in many cases, a Real Estate Attorney should also be engaged to review and negotiate some of the terms of the lease agreement depending on the size, scope, and complexity of the lease.

Larry Eliason is a Commercial Broker with Butts Commercial Brokers, 1265 Roosevelt Trail, Raymond. He can be reached at 207-415-2112 or by email at LarryEliasonBCB@gmail.com. Visit www.ButtsCommercialBrokers.com <

Should you rent or buy?

By Richie Vraux

Should I rent or should I buy? There are many things to consider whether you rent or buy today.

Richie Vraux is a Real Estate
Broker/Realtor with Pine Tree
Realty of Maine in Windham.
SUBMITTED PHOT

The world has so many uncertainties so consider what will work best for you and your family.

Consider the 5-year plan: If you move around or travel a lot you might find renting to be a better option while those wanting to create roots in a single location will find buying to be a better choice. It is really a decision you want to choose wisely.

Consider the time and money needed to maintain a home: If you rent and something breaks or something doesn’t work effectively, you can call your landlord to fix it.

But when you buy a home, you will be the one keeping up the maintenance of your home. It is always good to set aside money for a rainy-day fund to have extra money when those issues occur, and yes, they always do.

Make sure you carefully weigh in on all the factors of renting versus owning.

Buying a home is a big commitment but can have many benefits. If you enter into a 30-year mortgage agreement, you have several tax benefits of buying.

Renting really has no tax benefits unless you work from home or similar work-related benefits.

Yes, you do have property taxes that need to be paid every year and don’t forget insurance to cover any loss you may have, but I believe owning has many more benefits than renting.

Buying a home is typically best if you have a stable job and plan on remaining in your home for several years. Renting a home provided more flexibility. However, it can also result in higher costs as housing costs continue to rise.

This is because rentals are usually short term and have a12 month window, or longer depending on yours or the landlord’s situation. But at the end of your lease, there is no guarantee the rents may increase. It’s always a crap shoot. There is no current cap on landlords’ fees, so you just never know.

On the other hand, unless you are in a variable rate mortgage or have a mortgage rate less than 15 or 30 years, it will stay the same until it is paid off. You will not have to pay taxes if you are renting, that is up to the landlord.

The cons of renting are your monthly housing costs are not stable year to year. You don’t get to build equity with each rental payment. The landlord gets all the rental benefits here. In the rental market you do not have control whether the landlord sells the property. At that point you are under the gun to find a suitable rental within a short period of time. Then you want to stay in the same school district for your children.

Renting is a good idea when you move out of mom and dad’s home, and you are off to college, or your job makes you move from place to place.

Purchasing a home is the American Dream people always want, but some people don’t want commitments and are certainly satisfied renting. Paying off a mortgage over 30 years is usually cheaper than renting but may not be the best choice for everyone.

Many factors in different markets affect affordability, making it difficult to determine which option will work best for you. Deciding to purchase a home is a personal choice that only you can answer.

If you need advice about choosing which way you should go, feel free to contact me. Richie Vraux is a Real Estate Broker/Realtor with Pine Tree Realty of Maine, 76 Tandberg Trail, Windham. Call him at 207-317-1297 or reach him by email at richardjvraux@gmail.com <

Homeowner’s Guide to Fall Home Maintenance

Compiled by Jonathan Priest

Fall brings colorful leaves and cooler temperatures, but seasonal home care should also be on the calendar because winter has no mercy on homes unprepared for its surprises.

Roof and Exterior

A visual inspection of a home, from the chimney to the foundation, can help reveal vulnerabilities that lead to trouble when wind, freezing temperatures, snow or winter rains rule. Homeowners can use a drone or binoculars to look for debris, which will need to be cleaned up, and missing or loose shingles, which should be fixed or replaced before they lead to leaks. Overhanging tree limbs should be trimmed, so they can’t come down, potentially puncturing the roof and causing leaks, water damage and mold.

Fall and winter are also prime time for rodents to come indoors for warmth; seal up even the smallest holes and gaps in the foundation, attic or crawl spaces. Firewood should not be stored against the house because it can cause a beetle and/or termite infestation.

Gutters

To keep gutters running well, check them monthly for twigs, leaves and other debris. Plan bigger cleanings — including running water down all the downspouts — both before autumn leaves fall and again after trees are bare, to be sure fall and winter rain and snowmelt can flow down and away from the house — instead of into the walls, which can cause rot and mold and invite insects.

Clogged gutters — along with poorly ventilated roofs and under-insulated attics — are also a common culprit for damaging ice dams. Ice dams form when rooftop snow melts and refreezes, building up thick layers of ice that eventually push into joints and cracks in the roof and cause leaks.

Landscaping

Some experts note that grass will fare better if it is fertilized after the hottest days of summer are over, when the fertilizer can encourage blade growth and strengthen the root system for winter. Rake off all leaves and give the lawn a final mowing once it stops growing. (A local garden center can guide you on fertilizer formulas suited to your climate and lawn.)

Fall is also a good time to cut dead branches off trees, according to the Arbor Day Foundation, but pruning for shape and size should wait for late winter or early spring.

Outdoor furniture

Umbrellas and furniture that could be blown over can be brought inside or stacked and weighted down, to reduce the risk of damage. Grills should be moved indoors and outdoor appliances, such as mini fridges, should be unplugged.

Doors, windows and other drafty spots

To keep houses warm without sending heating bills through the roof, and to save energy, the federal Environmental Protection Agency recommends sealing spots where cold air can sneak in, focusing on the attic, foundation and around windows and doors. Caulking, weather stripping and door draft guards can be inexpensive DIY fixes.

For single-pane windows, adding plastic film or storm windows reduces heat escape and cold penetration. Replacing them with insulating double-paned windows is a more expensive option.

Heating

A good time for an annual HVAC system check — to look for wear in parts like the blower motor — is before having to turn on the heat, according to the International Association of Certified Home Inspectors.

Also, check with local utilities to see if they offer free energy audits or rebates for energy-efficient appliances, including furnaces. It is also good practice to change furnace filters every 60 to 90 days.

Thermostat

Using a programmable thermostat or adjusting a manual thermostat before leaving the house or going to bed, can cut the heating bill by as much as 30 percent while still keeping a home cozy, according to the EPA. Consumers can find Wi-Fi-enabled thermostats, which can be managed remotely via smart phone, for about $100 to $300.

Basement

Along with cleaning gutters, making sure a basement is ready for winter means checking the foundation for cracks, which freezing water can widen and make for a very expensive repair. Sump pumps need to be checked for wear.

The big payoff is savings on repairs — and peace of mind.

This article was brought to you courtesy of Farmers Insurance agent, Jonathan Priest, with an office at 57 Tandberg Trail, Suite 7, Windham and StaySafe.org. Call him at 207-893-8184 or send him an email at jpriest1@farmersagent.com <

Why does it seem like everyone is moving to Maine?

By Carrie Colby

Maine’s rising popularity is a fascinating trend influenced by several factors that resonate with a diverse range of people. Here are some key reasons why more folks are calling this beautiful state home:

1. The Weather

Maine’s climate presents a unique blend of experiences. While winters can be brutally cold, the summers are a highlight, offering mild temperatures and plenty of outdoor activities without the oppressive heat found elsewhere. Residents can enjoy hiking, biking, and water sports in the warmer months, making the most of the state’s stunning natural landscapes.

2. Air Quality and Climate Change

With climate change impacting many regions, Maine has emerged as an appealing refuge. Its relatively stable weather, lower incidence of natural disasters like hurricanes and wildfires, and overall good air quality attract those looking for a safer, more sustainable environment.

3. Quality of Life and Peace of Mind

Safety is a major draw for many. Maine consistently ranks as one of the safest states in the U.S., making it an ideal place for families. The sense of community is strong, and many residents appreciate the slower pace of life. This environment fosters peace of mind, where people feel comfortable letting their kids play outside and engaging with neighbors.

4. Remote Work Opportunities

The pandemic accelerated the trend of remote work, allowing many individuals and families to relocate without the constraints of proximity to their offices. Maine’s serene environment and access to nature have proven irresistible for those looking to enhance their work-life balance.

5. Outdoor Recreation

Maine is a haven for outdoor enthusiasts. From hiking the Appalachian Trail to kayaking in its many lakes and rivers, and even skiing in winter, the state offers abundant recreational opportunities that appeal to nature lovers and adventure seekers alike.

6. Community and Culture

Maine boasts a rich cultural heritage, with vibrant arts, food, and local traditions. The state’s renowned seafood, particularly its lobsters, is a culinary draw, and many towns host festivals that celebrate local culture and community spirit.

7. Affordable Living

Compared to many urban centers, Maine offers relatively affordable housing options. This affordability can be especially attractive to those moving from high-cost areas, allowing for a higher quality of life without breaking the bank.

In summary, Maine’s combination of stunning landscapes, a strong sense of community, safety, and growing remote work opportunities makes it an appealing choice for many people looking to relocate. Whether seeking a peaceful lifestyle, better air quality, or simply a place to enjoy the outdoors, Maine is increasingly becoming a top destination.

Carrie Colby is a Broker with Allied Real Estate, 909 Roosevelt Trail in Windham. She can be reached at 207-232-5497. <

Is a condo right for you?

By Nicole Foster, Broker/ REALTOR

A growing segment of the residential single-family real estate market is struggling to keep pace with the strong demand from buyers of all ages who are seeking the condo living experience.

A condominium, often referred to as a "condo" for brevity, is a unique type of residential property that is privately owned but located within a larger complex or community. Condos can take various forms: they might be situated within a multi-story building, share walls with neighboring units, or even be standalone structures often termed “house-a-minimum” allowing for different living experiences, catering to a range of lifestyles and preferences depending on its location.

Condos are particularly appealing to individuals seeking to simplify their lives, such as those looking to downsize after a larger family home or first-time buyers eager to transition from renting to owning. Many find that condos provide an excellent opportunity to start building equity, as they are generally more affordable than traditional single-family homes. This affordability makes them an attractive starter home option for many, enabling buyers to invest in real estate for less money.

Living in a condominium typically entails fewer responsibilities compared to homeownership, fostering a more relaxed lifestyle with increased leisure time. This can be especially beneficial for those who wish to spend less time on maintenance and upkeep and more time enjoying their surroundings and pursuing personal interests.

One of the primary distinctions between owning a single-family home and a condominium lies in the ownership structure. When purchasing a single-family home, the buyer acquires both the dwelling and the land it sits on. In contrast, when you buy a condo, you own your individual unit but share ownership interest of the land and communal areas with all the other residents within the complex. This shared ownership model often results in a collaborative living environment.

In terms of maintenance responsibilities, condo owners enjoy a significant advantage. In a single-family home, the homeowner is responsible for all aspects of property upkeep, including repairs, landscaping, and snow removal. However, in a condominium, many of these tasks are managed by the homeowners’ association (HOA) or a property management company. This arrangement can be particularly appealing to individuals who wish to own real estate without the burden of owning and maintaining tools and equipment, such as lawnmowers or snow blowers.

The costs associated with condo living typically include monthly fees that contribute to the overall maintenance of the community. These fees can range significantly, often falling between $100 and $700 or more, depending on the amenities and services provided. Most frequently, these fees are collected on a monthly basis, although they can also be charged quarterly or annually. For complexes with upscale amenities—such as swimming pools, fitness centers, or concierge services—the fees may be higher. It’s essential for prospective buyers to inquire about what these fees cover and how frequently they are collected. Additionally, owners may be subject to one-time assessments for upcoming repairs or improvements within the complex, which can also impact their financial obligations. Owners usually have options regarding payment for these assessments, whether in a lump sum or through installment plans.

Living in a condo also means embracing a sense of community, which comes with adhering to the rules and regulations set forth by the homeowners’ association. These guidelines can be quite comprehensive, covering a range of topics such as parking restrictions, quiet hours, clothes lines, pet policies, guidelines for outdoor grilling, and regulations regarding the renting out of units—an important factor that can influence resale value. It is crucial for potential buyers to thoroughly review all governing documents to fully understand their restrictions and responsibilities as a condo owner.

Before purchasing a condo, it is critically important to assess the overall financial health of the condominium community. Prospective buyers should request access to the most recent financial statements and accounting records to ensure the community is well-managed and financially stable.

If you are contemplating purchasing a condo as your next home, be sure to have a discussion with your lender. The financing for a condominium can involve additional considerations and requirements compared to a traditional home purchase and understanding these aspects will help determine if your loan would be suitable for a condo.

Nicole Foster is a real estate Broker with nineteen years of experience and a Windham parent. Follow on Insta @207nicolefoster or Facebook facebook.com/sellingmaine <