Real Estate: The Green Grass Grows All Around

By Nicole Foster, Broker/REALTOR

No Mow May has been steadily gaining popularity and even receiving official designations in some surrounding communities. This is a concept which helps to protect our pollinators including bees who winter in the “duff layer” of the grass. They benefit from the extra time for flowering weeds like dandelions, which are their first source of food after winter, time to bloom and can continue to find warmth on cold nights.

This new trend is well received by many homeowners as spring in Maine often arrives suddenly, catching many of us off guard as we transition from storm clean-up to yard maintenance. One moment, you're still removing winter's remnants; the next, your lawn is turning green and flowers are beginning to bloom, while your neighbor's Christmas decorations still linger. If you're feeling behind on your spring yard work, don't worry! 

Here are some expert tips to keep your lawn looking its best throughout the year.

Maine's climate, characterized by cold winters and relatively short growing seasons, requires special attention when it comes to lawn care. Start by thoroughly de-thatching your lawn to remove dead grass, leaves, and debris that have accumulated over the winter. Use a flexible metal rake or one that can be weighted and pulled. This will allow your soil to breathe and creates openings for the new shoots to grow.

There will be areas where you will need to add more grass seed to patches. Be sure to purchase new grass seed each year to maximize germination. The best time to overseed your lawn in Maine is in September, but the next best time to is during May.

Making sure that you select the correct type of seed for your site is very important so be sure to read the information label on the back of the bag of seed to confirm that the amount of shade and drainage your area has is suitable for what you are using. A blend that is high in fescues can best tolerate shade and foot traffic. Use a drop seed spreader to evenly coat the area in one direction, then make a second passage in right angles to the first passage.

Help to build nutrient rich soil by top-coating up to half an inch with a 50/50 mixture of compost and loam, but avoid doing this more than once per year. This mixture helps improve soil structure and fertility, reducing the need for additional fertilizers. For homeowners with mature lawns older than ten years, the lawn can often recycle nutrients naturally, eliminating the need for fertilizer altogether.

Mature lawns older than ten years old are able to recycle nutrients on their own. If you do choose to use a fertilizer on your lawn, then it is best applied between Labor Day and Columbus Day no more than once per year and select a phosphorus free product.

The majority of homes in Maine have soil that is acidic which favors the growth of weeds over grasses. Weeds will continue to grow and thrive even with the use of herbicides if you do not take steps to lower the pH in your soil. Contact the University of Maine Cooperative Extension in Falmouth to get a soil test box that can be tested in the laboratory so you can raise or lower your soil’s pH and add nutrients that it requires.

Often homeowners will mow their grass too frequently or cut it too short, leaving it more susceptible to drought, insects, and disease. A good rule of thumb is to cut no more than a third from the length of the blade of grass, so allowing it to grow to four inches then cutting off one inch can help to prevent it from turning brown. Leaving the clippings can also help to prevent sun scorch, is nutrient rich, and should not contribute to thatch if minimally fertilized.

If your lawn has been richly fertilized then participating in No Mow May could result in too much lush growth and clumping once cut, contributing to mold or tick habitats so you may opt to participate in Less Mow May by reducing mowing to once four inches in length instead of eliminating for the month. <

Nicole Foster is a real estate broker with Locations Real Estate with 19 years of experience and a Windham parent who loves people and real estate. Follow Nicole on Instagram @207nicolefoster or Facebook facebook.com/sellingmaine.

Real Estate: ‘Silver tsunami’ nearing for Maine real estate market

By Tia Morrell

Maine is well known for its beautiful coastline, picturesque landscapes, as well as vibrant, and wholesome communities. Over the last few years, these charming Maine features have captured the hearts of those from out of town and have put the state on the map as a popular moving destination.

However, our Pine Tree State is now at the forefront of grappling with the implications of an aging population on its housing market, ranking as the “oldest state” in the nation.

A recent analysis from Freddie Mac discussed how by 2035 there could be 9.2 million fewer baby boomer homeowner households in the United States. Experts predict that this wave of homeowners exiting the market could trigger a “silver tsunami,” which would involve an influx of homes coming into the market as baby boomers seek to sell.

Freddie Mac ranked Maine as the #1 state to find a good bargain, as there is a higher-than-average number of households that are occupied by homeowners aged 65 and older with the median age of Maine residents being 45, and 22 percent of the state’s population being aged 65-plus.

As this demographic continues to grow, so too does the demand for suitable housing options being tailored to the needs of our older population.

Fortunately, one solution stands out amidst the housing crunch, Accessory Dwelling Units. In the face of this demographic shift, ADU’s are emerging as a practical and innovative solution to address Maine’s housing needs.

ADU’s are secondary housing units located on the same property as a primary residence — think “in-law” apartments, or a backyard cottage. These units offer a range of benefits that include affordable housing, as well as fostering intergenerational living arrangements, and enabling aging homeowners to age in place, while also maintaining their independence.

For homeowners looking to capitalize on the burgeoning market for senior-friendly housing, investing in ADU’s could present a compelling opportunity. By incorporating these units into their properties, homeowners can unlock additional rental income streams as well as increase the overall value of their home.

Not to mention, ADU’s also offer a flexible housing solution that can adapt to changing needs over time, which makes them an attractive option for aging homeowners to downsize, without needing to leave their community. This is huge considering that the availability for assisted living, and nursing homes come with long waitlists, and large price tags.

Maine’s rich architectural heritage is reflected in its housing stock and Maine has some of the oldest homes in the country. While this adds to that “charm” I mentioned earlier, it also means that many properties are going to require renovations or updates to meet modern standards of comfort and accessibility. Fortunately, homeowners looking to undertake these renovation homes and projects (or ADU’s) may find themselves eligible for a variety of programs tailored to fit their needs.

Several financing options are available to assist homeowners to renovate or construct their homes. Programs such as the FHA 203K loan, or the Homestyle Renovation Mortgage, can offer homeowners flexibility to finance both the purchase of their property, as well as the cost of renovations in a single mortgage. Loans like these could just be the way to unlock the full potential and meet the evolving needs of Maine’s aging population.

According to recent projections, Maine is set to witness a surge of homes becoming available in the next six to eight years, with a significant portion of the population entering retirement age. It’s estimated that 40,000 homes are expected to hit the market by 2030, which will present both challenges and opportunities for homeowners and real estate developers.

If you’re interested in setting up a strategic real estate plan to set your family up for success in the future or have an innovative design that you’d like to configure into financing for a property, I am only a phone call away. Let’s stand together to lead our state to unlocking its housing potential for our residents, for generations to come.

Tia Morrell is a REALTOR for Landing Real Estate in Windham. Call her at 207-317-1833 or send her an email at tmorrell@landinghomesmaine.com.

The importance of calculating, reviewing and revisiting the replacement cost value of your home

By Tricia Zwirner

Oftentimes people will purchase a homeowners insurance policy when they purchase their home; however, many pay little attention to their policies after that. Over time, as they make renovations such as upgrading their kitchen, adding a deck, building a new garage, etc, they fail to review their homeowners coverage with their agent to ensure they are properly covered. This, unfortunately, can lead to a potential gap in coverage.

The replacement cost of your home is a critical factor in determining the adequacy of the coverage provided by your homeowners insurance policy. It represents the amount of money required to rebuild your home from the ground up if it were to be completely destroyed by a covered peril, such as fire, severe weather, or vandalism. In Maine, like in many other states, this cost can fluctuate over time due to various factors, making regular reviews of your insurance coverage essential.

Most Important Factors Influencing the replacement cost of homes in Maine

~ Construction Costs: Maine's construction industry is influenced by factors such as material prices, labor rates, and regulatory requirements. Construction materials like lumber, steel, and roofing materials can experience price fluctuations based on market demand, supply chain disruptions, and global economic conditions.

~ Regional Economic Trends: Maine's economy, including its real estate market and overall economic health, can impact construction costs. Economic growth, employment rates, and industry trends can influence the availability of skilled labor and the cost of building materials.

~ Environmental Considerations: Maine's unique environmental factors, such as its coastal location, weather patterns, and risk of natural disasters like winter storms and coastal flooding, can affect construction costs. Homes in coastal areas may require additional measures to withstand saltwater corrosion and coastal erosion, adding to replacement costs.

~ Building Codes and Standards: Compliance with building codes and standards, which can vary by location and evolve over time, can impact construction costs. Upgrades or modifications needed to meet current building codes may increase the replacement cost of your home.

~ Home Improvements and Upgrades: Any improvements or upgrades made to your home, such as remodeling projects, additions, or energy-efficient upgrades, can affect its replacement cost. These enhancements may increase the overall value of your property and necessitate adjustments to your insurance coverage.

Importance of Reviewing Home Replacement Cost for Insurance in Maine

~ Accurate Coverage: Ensuring that your insurance coverage reflects the current replacement cost of your home is crucial for adequate protection. Underestimating the replacement cost could leave you underinsured in the event of a total loss, while overestimating could result in unnecessarily high premiums.

~ Compliance with Policy Requirements: Many insurance policies require homeowners to maintain coverage equal to a certain percentage of their home's replacement cost. Reviewing and updating your coverage helps ensure compliance with policy terms and avoids potential coverage gaps.

~ Protection Against Inflation: Inflation erodes the purchasing power of money over time. The cost of materials, labor, and services needed for home reconstruction can increase due to inflation. Regularly assessing and adjusting your insurance coverage protects against the effects of inflation and ensures adequate financial protection.

~ Risk Management: Maine is susceptible to various risks, including severe weather events like winter storms, coastal flooding, and wildfires. Understanding the specific risks in your area and adjusting your insurance coverage accordingly is a proactive risk management strategy.

~ Cost-Effective Premiums: Accurately assessing your home's replacement cost helps ensure that you're paying appropriate insurance premiums. Overestimating the replacement cost may result in higher premiums than necessary, while underestimating could lead to inadequate coverage. Finding the right balance helps maintain cost-effective premiums.

~ Expert Guidance: Working with an experienced insurance agent familiar with Maine's insurance market and construction industry can provide valuable insights. They can conduct accurate assessments of your home's replacement cost, recommend appropriate coverage levels, and help you navigate policy options.

In conclusion, reviewing your home’s replacement cost for insurance in Maine in 2024 is a fundamental aspect of responsible homeownership. It involves understanding the various factors influencing replacement costs, such as construction costs, economic trends, environmental considerations, and regulatory requirements. Regularly assessing and updating your insurance coverage ensures accurate protection, compliance with policy terms, and proactive risk management against potential perils. Seeking guidance from insurance professionals can further enhance your understanding and help you make informed decisions regarding your homeowners insurance coverage.

Tricia Zwirner is a State Farm agent celebrating her 21st year in Windham. She and her team would love to hear from you and can be reached via phone and text at 207-892-2864 or via email at tricia@TRICIAZWIRNER.com.

Spring has sprung so make your home shine

By Theresa Bouchard

Spring has arrived, which means it’s time to get your home in tip-top shape. Whether you are staying in your home or preparing it to sell, a good, deep spring-cleaning is essential both inside and out!

Traditionally, spring cleaning is a way to promote wellness in your home by keeping your environment clean, organized, and tidy. If you are selling your home in the impending spring market, this is your opportunity to make your home sparkle to attract buyers and show your home is well cared for.

Spring cleaning can be overwhelming so making a checklist can be helpful and keep you on track. Assigning a task or two each day for two weeks will help you accomplish a much-needed refresh to your home after the winter months.

Day 1

Declutter. As we hibernate during the winter months, we tend to accumulate more items than we need. If you haven’t seen or used something in a year, get rid of it! This includes food items, clothing, toiletries, etc. This will make you love your home again or attract a buyer’s eye!

Day 2

Organize. Organizing creates order in your life. From kitchen cabinets, bathroom vanities, laundry rooms, linen closets, basements, garages, you name it, organizing will give you a great sense of accomplishment!

Day 3

Wash your windows inside and out! With the buds blooming and the beautiful shades of green showing through, we want to be able to see it from our homes. Get those windows to shine!

Day 4

Clean all baseboards, banisters, walls, and mirrors then move on to all surfaces such as kitchen counters, backsplashes, vanities, etc. Then wipe down all electronics throughout the home and your office. Boost the air quality in your home by eliminating all that dust and grime! You will be happy you did!

Day 5

Power wash. Winter can cause a lot of wear and tear on the exterior of a home. Break out that power washer to give your home a new refreshing look! While you are at it, clean and sanitize your outdoor furniture and trash cans!

Day 6

Focus on soft materials in your home such as washing all curtains (including shower curtains) and all bed linens in each room. Use a cloths line to give your soft items a fresh spring smell!

Day 7

Clean and sanitize all appliances inside, outside, top and bottom!

Day 8

Change all filters such as furnace, water filters, heat pumps, etc. Replace burnt out lightbulbs.

Day 9

Clean all kitchen and bathroom cabinetry. Also, clean toilets, sinks and showers/tubs. Cleaning makes everything look new again!

Day 10

Vacuum out couch and chairs (you may find some money), wash couch cushions, wash rugs and sweep, vacuum and mop all floors. Make those floors shine!

Day 11

Shampoo all wall-to-wall carpets and change out batteries in smoke and carbon monoxide detectors.

Day 12

Step outside! Begin yard clean up with weeding, racking, blowing leaves, power washing decks and patios, etc. The exterior of your home speaks volumes! Driving into a well-manicured property is a great feeling and shows the homeowners care for their home.

Spring cleaning is a lot of work but well worth it in the end so you can relax and count down the days to summer in Maine!

If you are selling your home, this spring-cleaning checklist will make your home stand out above the rest! Along with an excellent real estate agent, talented photographer and professional home stager, you will be well on your way to attracting buyers to your decluttered, well organized, sparkling clean home!

If you are interested in making changes in your home such as paint colors, design changes or even selling your home and require staging services, please call us at TS Staging and Design at 207.400.9393. We are a seven-time award-winning home staging and interior redesign company based out of Windham. We are certified color experts, design experts and professional home staging experts. Call us today! <

Real Estate: Who needs a REALTOR these days?

By Matthew Trudel

Seems like a funny question to ask, but with today’s technology and real estate sites like Realtor.com and Zillow, people have a lot of information at their fingertips. You can look at a house on Zillow and see what they feel the value is. You can see what the taxes are and what houses in that neighborhood sold for recently. You also see when the house was built, the number of bedrooms and bathrooms, and there are usually plenty of photos of the property.

So, who really needs a REALTOR with all this information out there? The short answer is almost everyone should have a realtor representing them when selling or buying. We are the ones who have gathered and input all that information for years. The next question then is who pays the REALTOR their commission?

The quick answer that most people go with is that the seller pays the commission to both the listing agency and the selling agency. I have also heard people say that if you are buying a home, you should have a REALTOR representing you because it doesn’t cost the buyer anything. It is the seller who pays the commission to the buyer agent that is representing you and helping you through the process of purchasing a home. I believe this to be a false statement and I will quickly explain why and how I look at the whole commission situation.

Let’s say that seller Dennis wants to sell his house and calls listing agent Kelly to help him sell it.

Kelly charges 5 percent and says the house is worth $380,000. Dennis says let’s try it at $400,000. Along comes buyer Kathy who is represented by her buyer agent Matt.

Kathy likes the house and Matt writes up the offer at $400,000 and Kathy buys the house. The REALTOR Kelly splits the commission with REALTOR Matt, and each get paid $10,000. So, the seller paid the commission in this situation some might argue.

I say buyer Kathy paid the commission and here is why.

Seller Dennis was happy with getting his $380,000 for his house. If he had happened to meet or know Kathy and had dealt with Kathy directly without any REALTORS, then Kathy could have likely bought the house for $380,000.

I say Kathy paid both realtors because she paid $400,000 for the house. Kathy is the one who brought $400,000 to the closing, the realtors each took $10,000, and seller Dennis got $380,000.

I bring up this conversation because I think this whole commission structure is going to be changing by the end of the year. I think we will see that clients will be responsible for paying their own agents separately. It will or can still be a part of the deal, but I think it will clarify things a little better, especially for buyers.

The buyers will be able to see that if they do want representation and assistance in purchasing a home, that there is a fee for that service that they are going to be responsible for it. This is going to bring about a significant change to a lot of agency’s company policies and how we list and show properties in the future.

Buyers might find it a little more difficult to see houses without using a REALTOR as a buyer’s agent. This will also likely affect sellers as well.

What if buyers are from out of town and don’t have an agent they are working with and want to see the house on short notice. They might not be able to see it before they have to head out of town.

Five Star Realty is looking ahead and researching some more creative ways to implement some of the changes that we are expecting to happen.

More information will be coming out over the next couple of months, but you can always call us or email us if you would like to know more.

This article was written by Matthew Trudel, Owner/Broker at Five Star Realty in Windham. Call him at 207-939-6971. <

Cost vs. Value

By Warren O’Shea

After doing a walkthrough of a bathroom remodel project, the potential client asked me how much it might cost to do the project. After taking into consideration what she wanted to do, the age of the house, the difficulty in accessing the bathroom, permits, design, the plumbing and electrical, existing code violations that needed to be corrected, etc., my ballpark estimate was $23K.

The very nice lady was taken back a bit by my figure and thought it was quite high. “It’s only a bathroom, it shouldn’t cost more than $15K.” I was curious, so I asked how she came up with the number that she felt was reasonable. “Well, my neighbor down the road has a house as old as this and had her bathroom done for about $15K.” I said “Wow, that’s great, do you have any details on how they were able to get it done at that price?”

Did they have a contract, did they get permits, did they arrive on time, did they leave it neat every day, did they stay on the job until it was done, was the work completed in the time frame listed in the contract?

Were they transparent with their billing, were there licensed plumbers and electricians doing the work or was the contractor doing that portion of the project illegally? Were they courteous and respectful of her time and property?

The problem was that she was basing her assumptions on what she felt was a fair price solely on the end price of a different project, without having any of the details of that project. Doing a quality job completely from start to finish includes time spent in design, scheduling sub-contractor labor and deliveries, acquiring materials, set up time, clean up, and waste disposal.

What she could not see was all the time and money spent vetting subcontractors, paying workman’s comp, being OSHA certified, and complying with insurance safety audits. She also did not know that I provide my employees with not only a good living wage but a benefits package comparable to companies four times as large as we are. They are offered health, vision, dental, and 401K benefits. They get two weeks’ vacation, holiday, birthday, and bereavement pay. Their personal and family time is encouraged and respected. Their happiness is related to a happy client and a successful project, just as much as their knowledge and skill are. They get paid to go to trade shows and product seminars. They get quizzed on residential code, life safety code, electric and plumbing code, deck code, and win prizes for their correct answers.

The State of Maine does not have classes or a certification process to verify if a builder/remodeler has knowledge of residential construction. Becoming a certified home inspector is one way for us to let the homeowner know that we have passed a national test, which is why I pay tuition for them to become certified if they choose.

When you consider the cost for a remodeling project, keep in mind that you pay not only for the material and the work to be completed. You also pay for knowledge, years of experience, commitment to quality and customer service, professionalism, specialized skills and tools, work ethic and transparency.

If you are requesting a proposal from a builder or remodeler, please don’t disrespect them by trying to get them to lower their prices or by devaluing their experience, time, or efforts. They have worked incredibly hard to get where they are, making sacrifices to provide for themselves and their family. They shoulder the risk and responsibility of all the things that can go wrong while being held to industry code, having to account for unknown, unseen conditions, and maintaining a productive and skilled labor staff.

If their proposal exceeds your budget, there is nothing wrong with getting another proposal. I am confident that you will always be able to find somebody cheaper to do your project, but at what cost? Just remember, you get what you pay for.

The author is an advocate for consumer rights and a supporter of contractor licensing in Maine. He is a board member of the Home Builders and Remodelers Association of Maine and the Portland Arts and Technology High School. His articles have been published in CEO World, USA Today, New York and Miami Weekly, and Journal of Light construction magazines. He is the owner of O’Shea Builders LLC, a remodeling contractor with more 5-star reviews and more awards than any contractor in Maine.

Tech Trends: Reshaping Real Estate

By Lisa DiBiase

Buying a home today looks very different than how our previous generations used to buy their houses. Nowadays, most people probably start their search online and get pre-approved online. They might even view the home online and close remotely.

The Power of Data in Real Estate

Easier Access: Previously, accessing real estate data often required physical visits to real estate offices or reliance on printed listings in newspapers or magazines. Today, real estate data is widely accessible online through various platforms, including real estate websites, mobile apps, and property listing portals. This increased accessibility has empowered consumers to research properties more easily and make more informed decisions.

More Information: In addition to basic property information such as price, size, and location, today's real estate data includes a wide range of additional details, such as property history, neighborhood demographics, school ratings, crime statistics, and even environmental factors. This wealth of data enables buyers, sellers, and real estate professionals to conduct more comprehensive analyses and evaluations.

Other Technology: Real estate data is increasingly being integrated with other emerging technologies such as virtual reality (VR), augmented reality (AR), and drones. VR and AR technologies allow buyers to take virtual property tours and visualize properties in immersive 3D environments, while drones enable aerial photography for property inspections and site surveys. These technologies enhance the marketing appeal of properties and provide stakeholders with new perspectives for decision-making.

Impacts of VR Technology

Technology has changed the real estate industry, reshaping traditional practices and introducing different solutions that enhance efficiency, transparency, and accessibility. One in particular and widely used in today's listings are virtual reality (VR) tours which stand out as transformative tools with profound impacts on how properties are viewed and ultimately bought and sold.

Virtual reality tours have redefined the property viewing experience. Prospective buyers can now explore properties from the comfort of their homes, immersing themselves in virtual environments that offer a walk through experience of the space. This not only saves time and travel costs but also enables buyers to envision themselves living or working in the property before making a physical visit. Real estate agents benefit from VR tours by reaching a wider audience and providing more engaging presentations of their listings.

Recent real estate journey

Last week I sold a home to an out-of-state couple which marked a departure from the traditional real estate process. It began with the couple viewing the property listing online through our automated email search system and being instantly captivated by the property and location. Despite residing miles away, their interest was piqued, prompting them to delve deeper. There was an open house that weekend which initiated showings, including a deadline for offers the following week. With great anticipation that this was their perfect home, they flew to Maine to view the property. Instantly they knew this was the property. With intentions and a strong offer, they went under contract.

Despite the geographical distance, the couple remained undeterred in their pursuit. Through the convenience of current technology, they embarked on a journey of remote negotiations and virtual inspections. Each pixelated image and video call brought them closer to their dream of owning this piece of paradise.

As the transaction progressed, there may have been an absence of physical presence, however it was replaced by a digital thread weaving through emails, documents, and electronic signatures. The once-familiar rituals of sitting across the closing table, customary handshakes and exchanged keys and sharing aspirations were not exchanged. Instead, in the comfort of their home state, the couple finalized the deal and signed remotely. Despite departing from the traditional route, all parties involved expressed satisfaction with the collaborative effort that led them to the closing table.

Although there was the absence of a physical closing, the journey was rich with shared determination and mutual understanding. As the out-of-state couple officially became the new owners of their dream home, they were reminded that in today's world, distance is no match for dedication and collaboration. And though they hadn't sat together at a traditional closing table, the bonds forged through this unconventional process were just as strong, carrying the promise of future adventures in their new home.

As technology continues to advance, its potential to revolutionize the real estate industry further remains limitless, promising a future where buying and selling can be more efficient, accessible, and innovative than ever before.

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 is the Broker/Owner for Landing Real Estate. She and her company represent buyers and sellers in the Greater Portland area and surrounding areas. For all your real estate needs contact Lisa at lisa@landinghomesmaine.com or call 207-775-SOLD.

Real Estate: Lakes Region a strong focus for commercial brokerage agency

By Larry Eliason

Butts Commercial Brokers is a Commercial Real Estate Brokerage Agency located at 1265 Roosevelt Trail, Raymond, Maine 04071.

Butts Commercial Brokers was founded in 1978 to provide professional commercial real estate brokerage services in Southern Maine, specializing in the Greater Sebago Lakes Region, which includes, Windham, Raymond, Casco, Naples, Fryeburg, Bridgton, Gray, Standish, and Westbrook.

For over 44 years, we’ve been representing buyers, sellers, banks, towns and cities, tenants, and landlords in all sectors of Commercial, Investment, Multi-Family, Industrial Real Estate and Land, as well as Leasing and Consulting. We have a long and successful track record of closing commercial real estate sales and leasing transactions.

In addition to our Commercial Real Estate Division, Butts Financial Group is our affiliate that assists Clients with Business Sales, Mergers, Acquisitions and Valuations of Businesses.

Butts Financial Group has been specializing in the sale of businesses since 1978. We offer our clients a full range of financial services to include business consulting, valuation services, financing options and loan packaging. The Professionals at Butts Financial group are experienced executives that can sell your business in a confidential manner.

Selling a business is a big decision. The process can be intimidating and complex. Usually, business owners are so busy with their daily operations that they are not able to put forth the time and effort to sell their own business for a reasonable price. All too often, the owner that attempts to sell their own business ends up with much less than its actual worth or worse...can't sell it at all.

This is where Butts Financial Group steps in. We are specialists in the sale of businesses. Our marketing program is designed to sell your business for the highest possible price within the shortest period. When representing the Seller, we coordinate the sale transaction which includes, assessing the value of the business, packaging your business, marketing, qualifying buyers, negotiating, and closing the transaction. When representing a Buyer, we assist with our own valuation, negotiate the transaction, assist with financing structure as well as assist with all the due diligence necessary to verify the business that is offered for sale.

Your business will receive professional treatment from start to finish. A comprehensive business prospectus will detail your business' operation, financial history, and assets available for sale. Our prospectus will help position your business in the best possible light.

Our marketing program for selling a business is discrete as we feel that confidentiality is of the utmost importance to protect the business that you wish to sell. We prescreen and pre-qualify each prospective buyer and each prospective buyer we work with signs a confidentiality agreement.

This brief column is just an introduction to make you aware of the services provided by Butts Commercial Brokers and Butts Financial Group. Please feel free to contact us for a confidential conversation about your commercial real estate and/or business.

As a seasoned commercial real estate professional based locally, I have more than 35 years of experience to help clients access current as well as future Real Estate needs and to advance the quality of their real estate project and goals by capitalizing on my ability to search out the ideal solution and problem solve impediments, experience knowing and recognizing all of the requirements pertaining to completing transactions, and talent for bringing all parties together to fulfill their expectations.

Please feel free to contact me on my cell at 207-415-2112 or email me at LarryEliasonBCB@gmail.com Butts Commercial Brokers is at 1265 Roosevelt Trail, Raymond, Maine 04071 www.ButtsCommercialBrokers.com <

Must-Do Spring Home Maintenance

Compiled by Jonathan Priest

When you think of Spring cleaning, things like scrubbing floors, sprucing up cabinets and straightening closets come to mind. But Spring is also a good time to perform routine home maintenance. Ignore these crucial home upkeep tasks at your peril. Fail to clean the gutters, for example, and you could end up with a flood in your basement. People know they should perform these routine maintenance chores, but do they actually follow through?

"Almost no one does, in my experience," says Dean Bennett, president of Dean Bennett Design and Construction in Castle Rock, Colorado, whose company gets called in to make repairs after a crisis. He told US News and World Report that "a lot of it is selective memory," where people think they recently changed the furnace filter when actually they did it two years ago. "There's kind of an amnesia about things like that," he adds.

The most important maintenance chores are those related to drainage. Failing to keep water out of your house could result in mold, rot, and foundation problems.

"That's most of your big bills – water coming in," Bennett says.

Here are 12 home maintenance tasks you should do this spring to save money later:

Clean the gutters. Make sure they don't have holes and all the downspouts are still attached and taking water away from the house. "Gutters are one of the most valuable and affordable methods for homeowners to protect their homes from the elements," says Allison Hester, editor of eClean Magazine, an online trade publication for the home cleaner industry. "By channeling water off the roof and directing it to a location away from the home, properly working gutters help protect the home's shingles, wood under the eaves, siding, flooring and landscaping from a whole host of problems and expensive repairs." Clogged gutters can also cause mosquito infestations, mold and mildew from decomposed leaves and other problems. The good news is cleaning gutters is an easy job. You can do it yourself in an hour or hire someone to do it for about $50 to $100.

Seal holes where insects and varmints can get in. That includes openings around the foundation, especially entry points for wires and pipes. A spray can of foam, which you can buy for about $6, will handle most holes, Bennett says. To prevent insects from getting into your house, you should keep moisture away from the foundation and eliminate sources of standing water, according to the National Pest Management Association. Termites cause $5 billion in property damage every year in the U.S., according to the NPMA. These destructive insects need moisture to survive, which is why the NPMA advises fixing leaking faucets, pipes and air conditioning units; repairing fascia, soffits and rotted shingles; trimming tree branches away from the house and replacing weather stripping around windows and loose mortar around basement foundations.

Get your air conditioning system ready. You can hire a service company or do it yourself. Change or wash the filters, which should be done monthly. Clean the coils and wash the condenser outside, if needed. Trim away any shrubs from the unit, and make sure its drain line isn't clogged. While you're at it, change your furnace filter so it's ready for fall.

Make sure your windows are sealed. You want to keep water out and cool air in. You may need to replace caulking or weather sealing to accomplish this.

Clean your refrigerator coils and dryer vent. The Electrical Safety Foundation International notes that these chores not only improve the efficiency of the appliances, but also guard against electrical hazards.

Check smoke and carbon monoxide detectors. There should be at least one of each type of detector on every level of your house, and they should be working. Be sure to replace the batteries, if necessary.

Declutter. We all have too much stuff. Get rid of items you don't use, including the stuff you have stored in the garage or basement because you "might" need it sometime.

Organize your paperwork. Not being able to find an important document when you need it can cost you. Get rid of the paperwork you don't need while filing the paperwork you want to keep so you know where it is when you need it.

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

Should You Buy a New Construction Home or an Existing Home?

By Carrie Colby

Here are the Pros and Cons of buying a new construction home:

The Pros

Lower maintenance costs: Newer construction means a brand-new roof, appliances, plumbing, finishes, and more. You can expect major and minor repairs to be at a minimum (if any appear at all) in the first few years of ownership in a new construction home.

More customization options: As new construction homes are being built, buyers can customize everything from fixtures to appliances to paint colors to finishes and sometimes even floor plans. If you have a very specific vision of the home you want and/or you want the ability to make it fully your own, this may be one of your biggest decision factors.

Smart home features: New construction homes are being built with smart features such as security systems, lighting, thermostats, appliances that can all be controlled from a smartphone or other remote device. These features are more difficult (or sometimes impossible) to build into older homes.

Modern floor plan: They’ve been trending for a while now, but open floor plans are still a top preference for homebuyers. They offer more flexible spaces and common areas to gather and entertain in your home. Creating open floor plans in traditionally-built existing homes often requires knocking down walls and doing heavy renovations, which can get pricey.

Energy efficiency: Smart features, better insulation and windows, metal roofs, solar paneling — these are just a few of the energy-efficient features you’ll find in new construction homes. Not only are these features environmentally friendly, it lowers monthly utility costs and makes the overall cost of home ownership more affordable.

The Cons

Move-in wait times: As with any building project, you may experience move-in wait times when you buy a new construction home. Supply chain delays or unexpected construction challenges are just two of the reasons you may not be able to get into your home when you initially expected.

The Pros and Cons of buying an existing home are as follows.

The Pros

Established community: Existing homes are typically located in more established neighborhoods with schools, business corridors, parks, and more. If you’re looking to be immediately part of an active community, this might be the better choice for you.

Character and charm older homes often have architectural detail and historical charm that you just can’t replicate in new construction homes. For some buyers, this type of character is more preferable than modern features and amenities.

More location choices: Buying an existing home gives you a much wider range of location options — you won’t be limited to new construction communities. You can search anywhere you want to live.

Fixer-upper value: While some buyers prefer customization in the form of brand new features in a brand new home, others enjoy the project of bringing their home to life.

Lower prices: Again, this isn’t always the case, but existing homes often come with a lower price tag than new construction homes.

The Cons

Repair and renovation costs: Older homes naturally come with repair and renovation costs associated with maintaining a home. You can get a good sense of how expensive these costs may be when you walk through a home and read the home inspection report, so in many cases this isn’t a huge issue. Still, it’s something to be aware of and budget for when you purchase an existing home.

Outdated floor plan: Traditionally, homes were built with separate, closed-off rooms that all served a different purpose. If an open floor plan is your preference, you may have a harder time finding it in an existing home.

No personalization options: With an existing home, what you see is what you get. If you’re looking to personalize features and finishes in your home, you’ll have to do it yourself (or hire someone to do it) after you move in. Unlike with new construction homes, these costs won’t be included in your initial purchase price.

Higher utility bills: Older homes are generally less energy efficient than new homes. This may translate to higher monthly utility costs unless you choose to make updates like adding solar panels or getting new windows installed.

How to Decide Between a New Construction vs. Existing Home

The best way to decide between buying a new construction vs. existing home is to be as thorough as possible in your assessment of each choice. First, determine if you have a strong preference for one or the other.

Next, list your must-haves vs. your wish list for your new home. This will help you decide which option best fits your preferences.

Finally, go with your gut and choose the home that feels best for you. Give yourself time to look at many types of houses and get a good sense of what you’re looking for in your future home.

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

 

Should your home be inspected before you list it for sale?

By Richie Vraux

When you are ready to sell your home, your listing agent should recommend a pre- home inspection.

There are several reasons why the answer should always be yes! It may be a little costly for you up front, (usually between $500 and $1,000), but by knowing what your home’s issues are in advance, a home inspection can save you as a seller many thousands later.

Your real estate agent can recommend a reputable home inspector, but ultimately the choice is entirely your decision. Sometimes an inspector will identify minor problems, which when fixed in advance, will reduce the liability for both the buyer and the seller. Having done that will raise the seller’s confidence, that the potential issues are fixed and will minimize the issues that the buyer can come back at you with.

It just gives all parties peace of mind knowing they will not need to dole out large amounts of money in advance in selling your home. Minor deficiencies, such as a missing light switch plate cover or exposed wiring out of an electrical box could mean you would have to hire a licensed electrician to close it up, and we all know how expensive they might run you for a bill. It is always better to find out what your deficiencies are in advance, correct those problems in advance, rather than to hire a professional to fix it after the inspector points out all the issues in his report.

Having a pre-inspection report and fixing the issues can reduce the liability for the seller, get it sold in a timelier manner and might even award him top dollar, even more than asking price. Also, it will reduce any chance of having to negotiate the price due to the corrections that might need to be made and the potential risk of not closing on time. It just keeps the seller on target and the buyer happy so there are not any obstacles to slow the process.

When the inspector goes to the house, he looks at all the home’s systems: electrical, plumbing, roof, basement, structure, water leakage, signs of insect/ rodent presence both inside the home and out. He looks for all and any defects and writes a report. If you so desire, he will check for radon air and water, water test, septic inspection, and all other systems in the home.

All homes, those old and new, have issues, but an inspector will look at all systems. While newer homes are required to be up to current municipal, state and federal code guidelines, older homes most likely are not up to current codes and standards of today, and do not need to be. The older homes were built to municipal code when it was built. Your inspector will know this.

An inspector will write his report, which will usually be accompanied by pictures showing the defects listed on a scale of 1 to 5, with 5 being the most important to address first in decreasing order to 1, the least important to address.

This is a good way of seeing the issues firsthand to know what order of things need to be dealt with immediately and what problems are not as extreme. A home inspector will check for leakage both in the basement and in the roof. Remember, an inspector cannot inspect anything that is not visible.

Ask your agent who he would recommend as an inspector and if they are licensed, do they have liability insurance, E/O insurance and do they have third party coverage. These are all good questions to ask before settling on someone to perform a home inspection. The agent will recommend a few inspectors they have worked with previously and someone they feel that they can trust implicitly.

Listen to your agent as they are the professionals here and have gone through this process before and are experienced at choosing a proper home inspector.

Richie Vraux is a broker at Maine’s Premier Team at Better Homes and Gardens-The Masiello Group. With offices in Gorham and Windham, call Richie to seek professional advice for buyers and sellers at 207-317-1297. <

Fall in Love with Your Dream Home: A Real Estate Romance

By Nicole Foster, Broker/ REALTOR

Valentine’s Day is just around the corner, love is in the air and the pulse of the local real estate market is really beginning to heat up with a boost to the number of new listings coming to the market each day. Turn your real estate crush into more than just a fantasy in 2024 by making your move with the help of a matchmaker extraordinaire: your fabulous REALTOR!

Don’t Fall in Love to Soon: A Prelude to Happily Ever After

Picture yourself scrolling along when your heart begins to flutter after seeing a fine-looking new listing, fresh to the market. You drive by to see it’s in the perfect location and you are completely smitten, possibly obsessed. If you want a happy ending when shopping for a new home, it’s important to start at the beginning. Get pre-approved or pre-qualified with a trusted lender, ensuring that when you find “The One” it’s a match made in financial heaven.

How I Love Thee: Letters to the Seller

Looking to build a deeper connection? Prospective home buyers who wish to proclaim their love of the brick and mortar by penning a letter to the homeowner should first consult with their matchmaking REALTOR. It is possible that the sellers have requested that this display of affection not be shared with them, and your agent can help to guide you in how to draft this and help by including it with your real estate “proposal of marriage, with a mortgage.”

The One That Got Away: The Ultimate Real Estate Love Triangle

You don’t want your dream home slipping through your fingers because your current castle is practically destroyed. Get on top of things by having your current home ready for its grand entry to the spring market, if you need to sell in order to buy. Usually, a seller will want to see your current home listed with a top-notch REALTOR and on the market within a week or so.

When Not to Follow Your Heart’s Desire

It’s important not to wear rose-colored glasses when your heart quickens at the fixer upper you believed was special and not like all the others. Your heart is selecting paint colors for each room while your brain is busy calculating the costs of repairs and updating, like a dreamy waltz through the transaction. Sometimes you must allow your head to lead the dance and knowing when can make all the difference in the world. When the dance floor gets crowded with emotion and financial decisions, turn to your experienced dance instructor and REALTOR to help you find your tempo again.

Breaking Up is Hard to Do: Real Estate Edition

Sometimes real estate agreements hit a rocky patch, which can be disappointing, but don’t lose heart! Your REALTOR is the relationship guru who can guide you through the procedures and timeframes, as it is just like a breakup only with more paperwork. I’ve witnessed several occasions where the parties have gone their separate ways only to realize that they were meant to be, after some reflection or seeing that the grass may not be any greener elsewhere, then coming back together to close and live happily ever after.

Keeping it Fresh: After the Closing

After the dust begins to settle following the whirlwind which has been your life while moving and you begin to settle into your daily routines, it’s easy to lose that spark that you felt when you entered your home for the first time. You may be yearning for the visions of this space to finally take shape or feel discouraged that things haven’t gone as planned when you first purchased it. All too often we wait until it is time to sell and move to put the effort into making our homes look their very best. Shower your home with the affection that it craves, and you will love the results.

Be sure to work with a local expert who is passionate about real estate to save yourself a whole lotta heartache. It is rumored that buyers may start to see some love with mortgage interest rates predicted to lower in 2024.

Nicole Foster is a real estate broker with Locations Real Estate with 19 years of experience and a Windham parent who loves people and real estate. Follow Nicole on Instagram @207nicolefoster or Facebook facebook.com/sellingmaine.

Interest rate reduction boosts buyer purchasing power

By Tia Morrell

The real estate landscape in Maine is currently experiencing a shift that is capturing the attention of both prospective homebuyers and sellers. With home prices remaining steady and an increasing number of properties being listed at 'priced right' values, the market is creating an ideal environment for potential deals. A significant contributor to this dynamic is the recent decline in interest rates, dropping from 8 percent in November to the current range of 5.5 to 6.8 percent. This shift has sparked renewed interest from buyers, making it an opportune time for individuals to enter the real estate market.

One of the key factors driving the positive momentum in Maine's real estate market is the stability of home prices. Despite the various challenges posed by external factors, the housing market in the state has managed to maintain a consistent trajectory. Home prices are not only holding firm, but there is also a noticeable trend towards more realistic pricing, ensuring that homes are attractive to a wider range of potential buyers.

This shift towards 'priced right' homes is a positive development for both buyers and sellers. Sellers are finding that accurately pricing their homes leads to quicker sales, reducing the time their properties spend on the market. On the other hand, buyers are benefiting from a more transparent market where they can make informed decisions based on reasonable pricing, ultimately fostering a healthier and more efficient real estate ecosystem.

One of the most significant contributors to the current buoyancy in the Maine real estate market is the substantial drop in interest rates. Just a few months ago, in November, interest rates were hovering around 8 percent. However, a noticeable shift has occurred, and they now range between 5.5 to 6.8 percent. This dramatic reduction in interest rates has far-reaching implications for both buyers and sellers.

Lower interest rates make homeownership more accessible to a broader segment of the population, as the cost of borrowing decreases. For potential buyers, this translates to increased purchasing power, allowing them to afford homes that might have been out of reach just a short while ago. Additionally, lower interest rates often lead to a surge in demand, as buyers are motivated to capitalize on the favorable financial conditions.

For sellers, the decline in interest rates has created a more competitive market. With a larger pool of potential buyers entering the market, there is an increased likelihood of multiple offers, driving up property values. Sellers are finding themselves in a favorable position, with the potential for quicker sales and, in some cases, even bidding wars, particularly for well-priced and desirable properties.

The lower interest rates have acted as a catalyst, stimulating buyer activity in the Maine real estate market. As more individuals find themselves in a favorable financial position to enter the housing market, the demand for homes has increased substantially. This surge in buyer interest has not only led to a more dynamic marketplace but has also created a sense of urgency among potential buyers.

Buyers who were previously on the fence are now recognizing the unique opportunity presented by the combination of steady home prices and lower interest rates. The result is a more robust and competitive real estate landscape where properties are selling faster, and sellers are often receiving offers at or above asking prices.

The current state of the real estate market in Maine paints a promising picture for both buyers and sellers. With home prices remaining stable and a growing number of properties being listed at realistic values, the market is ripe for potential deals. The significant drop of interest rates, from 8 percent in November to the current range of 5.5 to 6.8 percent, has further fueled buyer interest, making homeownership more attainable for a wider audience.

For sellers, this presents an opportune moment to list properties at competitive prices and attract motivated buyers. On the flip side, buyers are finding themselves in a more favorable position, armed with increased purchasing power and a broader selection of homes to choose from.

As the real estate market in Maine continues to evolve, it's essential for both buyers and sellers to stay informed and make strategic decisions based on the current market dynamics. With the convergence of steady home prices, realistic property valuations, and lower interest rates, Maine's real estate market is poised for a period of growth and activity.

Tia Morrell is a REALTOR for Landing Real Estate in Windham. Call her at 207-317-1833 or send her an email at tmorrell@landinghomesmaine.com.

Why Homeowners Insurance costs so much

By Tricia Zwirner

Homeowners insurance premiums have been increasing annually since the pandemic. In fact, the years 2019 through 2023 were the costliest for insurers ever….and it doesn’t look like 2024 will be any different.

Prior to 2019, the three most common contributors to the increase of a homeowners policy premium were the policy’s claim history, the property’s location, and the home’s replacement cost- all factors somewhat within the owner’s control. Fast forward to post-2019 when the top three contributors shifted out of the homeowner’s control to the pandemic, inflation and Mother Nature.

The Pandemic

The COVID-19 pandemic has not directly caused homeowners' premium rates to increase. However, there are a few factors indirectly related to the pandemic that have impacted homeowners' insurance rates:

1. Economic impact: The pandemic has had widespread economic effects, including job losses and reduced incomes for many individuals. As a result, some insurance companies may have experienced an increase in policy cancellations or non-renewals, which can lead to higher premiums for those who maintain coverage since premiums are spread amongst insureds.

2. Changes in property usage: With more people working from home and spending increased time indoors, there have been changes in the way properties are used. For example, homeowners may have set up home offices or increased the use of home appliances and electronics, which has increased the number of property damage and/or liability claims. Many insurance companies have experienced increased claim frequency and severity and have adjusted rates accordingly.

3. Supply chain disruptions: The pandemic has caused disruptions in supply chains worldwide, affecting the availability and cost of building materials, repair services, and replacement items. These disruptions have led to increased costs for insurers, which are reflected in higher premium rates.

Inflation

Inflation refers to the general increase in prices and the decrease in the purchasing power of money over time. Here's how inflation has impacted homeowners' insurance premiums:

1. Rising construction costs: Inflation has led to higher costs for construction materials, labor, and other expenses related to repairing or rebuilding a home. As a result, insurance companies have increased premiums to account for the increased replacement cost value of the property.

2. Increased liability claim costs: Inflation can also affect the cost of liability claims. Medical expenses, legal fees, and other costs associated with liability claims have risen due to inflation. Insurance companies have adjusted premiums to cover the potential higher costs/frequency of liability claims.

3. Insurance company expenses: Inflation has impacted the operating costs of insurance companies, including administrative expenses, employee salaries, and other overhead costs. To compensate for these increased expenses, insurance companies have raised premiums.

Natural Disasters

Mother Nature has had the most significant impact on homeowners' insurance premiums due to the risks associated with natural disasters and severe weather events. Here's how Mother Nature has affected homeowners' insurance premiums:

1. Natural disasters: Events such as hurricanes, tornadoes, wildfires, earthquakes, and floods can cause extensive damage to homes and properties. Insurance companies factor in the risk of these events when determining premiums. Our weather in Maine has seen an increase in extreme weather events such as heavy rainstorms, wind speed, intense snowstorms, and occasional periods of high heat and humidity during the summer. These changes drive claim frequency which, in turn, has resulted in higher premiums.

2. Frequency and severity of weather events: Climate change has led to an increase in the frequency and severity of extreme weather events like storms, hail, and heavy rainfall. These events can result in property damage, which insurance companies consider when determining premiums.

3. Location-based risks: The geographic location of a property can affect premiums. For example, homes located in coastal areas may have higher insurance rates due to the risk of hurricanes or homes in flood-prone zones may have higher flood insurance premiums.

It's important to note that premium increases can vary depending on the insurance company, location, and individual circumstances. If you experience a significant increase in your homeowners' premium, it's recommended to contact your insurance provider or agent directly to understand the specific reasons behind the rate change and explore any potential discounts or adjustments that may be available to you. <

Tricia Zwirner is a State Farm agent celebrating her 21st year in Windham. She and her team would love to hear from you and can be reached via phone and text at 207-892-2864 or via email at tricia@TRICIAZWIRNER.com.

Real Estate: Time to prepare for selling your home is now

By Theresa Bouchard

Are you planning to sell your home in the Spring or Summer months? If so, the time to prepare your home is NOW!

With the market shift and chatter of interest rates dropping in the coming months, many folks are jumping on the opportunity to sell their home in hopes to get top dollar. Buyers are gearing up to purchase their Maine dream home for full-time living or vacationing. So, the real estate prediction is, more inventory and more buyers! What does that mean for sellers? Competition. That said, it is time to put your best foot forward and get your home to shine above the rest!

Preparing a home to sell may look different from one person to another. Here are some effective tips to guide you through the preparation process. Follow these tips and watch the multiple offers roll in!

- Hire a seller real estate agent and get a marketing analysis to determine the value of your home.

- Hire a professional home stager to do a walk-though to define what areas of the home need to be fixed or upgraded and identify an action list of what you need to do to prepare your home to make it most appealing to buyers. A detailed checklist is provided to assist you.

- Paint goes a long way when enhancing the look of your home. A fresh coat of neutral color paint will give your home a new appearance and look beautiful in photos.

- Start the declutter and organization process. Cabinets, closets, storage areas such as basements and attics. The more you purge now, the less you will have to do on moving day. Decluttering and organizing makes a world of difference in photos and during showings.

- Pack away all personal items such as photographs and anything of sentimental value. Buyers need to envision themselves in this space and your personal items can prevent them from doing that. Additionally, the goal is to help buyers make an emotional connection to the home which in turn will create more offers! So, pack personal items away and save them for your next home adventure!

- Update lighting fixtures and/or hardware on your cabinets. Lowe’s and Home Depot have very affordable selections which can make a world of difference when trying to make your home fresh and new!

- Deep clean your home. Wash windows, windowsills, screens, walls, doors, etc.! A sparkling clean home gives the impression that the home is well taken care of.

- Curb appeal! Spring clean up is important and displaying potted flowers can make a great first impression and create a welcoming feeling.

- All shades and curtains must be pulled up and open. Natural light creates beauty in a home so let light shine in! If curtains or shades are old and dingy, either remove them or replace them before photos and showings.

- Have your home professionally staged.

Preparing your home is a must in this market. If the process becomes overwhelming, call a professional home stager to help you with the process. They will provide assistance and direction during and an exciting yet stressful time. Don’t go it alone!

For information on staging services, please call 207-400-9393 on visit our TS Staging and Design website at www.tsstaginganddesign.com <

Exploring this resilient Real Estate market

By Matthew Trudel

The real estate market in Maine has shown steady growth over the past decade even with the recent fluctuation in interest rates. This has made Maine a very attractive place for new residents and investors to consider. 

There is a strong rental market throughout a large portion of the state which investors like. There are many lakes, rivers, and of course the ocean which attract new residents who can now work from home or a remote location. The cost of living in Maine is considerably lower that some of our neighboring metropolitan cities which is attractive to many families. Lower crime rates and generally good education opportunities are also factors that entice people to move to Maine.

The market values in Maine have held up well even with the interest rates nearly doubling. This is because in Maine we don’t see the extreme pricing moves up and down that some other areas across the country experience. Maine has more of a steady growth rate without the big spikes and valleys. This gives investors additional comfort that their investments will not only be profitable, but will also continue to grow and increase in value over time.

This is also why we are seeing a large increase in the construction of multi-unit housing projects across the state. Part of the goal is to create more affordable housing options for people to choose from. Affordable is probably not the best word to describe what the rental market is currently dictating for pricing, however, they do create more options for people to consider. 

We have a solid economy and the job market here is really good too. These are also contributing factors that make Maine a desirable location to move to.

What does this all mean to potential buyers and sellers that are considering making a move? We have a solid real estate market and with interest rates ticking down a little I would predict another solid year of slow steady growth. If interest rates are deterring you as a buyer, I think that is a mistake. Remember that you marry the property and you just date the rate.

Refinancing is always an option and many banks are streamlining the process and waiving most if not all of the fees. Sellers can expect another good year starting in late March to mid-April. The time for planning is now whether you are a buyer or a seller. 

There are a lot of things that both parties should do ahead of time to make the process smooth. First and foremost, find an experienced realtor who know your market area and that you are comfortable working with. Let them help guide you through the process and put you in contact with other professionals that will be able to assist you.

Sellers should be looking at what things they can be taking care of now ahead of time. This includes repairs, painting, decluttering, and overall prepping for showings in the spring. Also looking at what type of financing potential buyers might want to use when they purchase your property. What incentives you can do to make your property stand out over the competition. 

Buyers have just as much homework to do, if not more, than sellers. Making sure your finances are in order and that your credit report doesn’t have discrepancies or is reporting something that isn’t yours. Selecting a lender or mortgage broker to use and determining what are the best options for financing your purchase. There are a lot of different programs out there to assist everyone from doctors to teachers to self employed people as well. 

Again, the most important thing is to select an experienced realtor to help you with the process and make it a successful and smooth transaction. <

This article was written by Matthew Trudel, Owner Five Star Realty, Windham. 207-939-6971 Matt@FiveStarRealtyMaine.com

1031 Like-Kind Exchanges for Commercial Real Estate

By Larry Eliason

A 1031 like-kind exchange is a tax planning tool for deferring tax on capital gains. You can sell an investment property and reinvest the proceeds in a new property. This essentially postpones the tax liability from the sale.

The term “like-kind” refers to the nature or character of the property. There is a wide variety of property types that you could consider to be like-kind as long as they qualify as investment type properties.

A good example is an investor who owns a small shopping center in Windham valued at $1 million. The investor has held this rental property for many years and has accumulated substantial appreciation. Now, the investor wants to diversify his/her portfolio, and they’re eyeing a mobile home park in North Windham for $1.5 million as they see considerable upside potential.

The investor decides to utilize the 1031 like-kind exchange. They sell the small shopping center and use the proceeds to acquire the mobile home park. The 1031 like-kind exchange can help defer paying capital gains tax on the sale of the shopping center.

This transaction should qualify as a like-kind exchange because it involves similar types of real estate assets. The net market value increases from one property to the next. The 1031 like-kind exchange allows the investor to seamlessly transfer their real estate investment while deferring tax liabilities.

If you are considering a sale with the intent to use the 1031 like-kind exchange, identify the property you want to sell. This must be a qualified investment property and not your primary residence. Again, personal residences don’t qualify for a 1031 like-kind exchange. The subject properties must be held for investment or used in a trade or business.

Before you sell your property, hire a Qualified Intermediary. This step is instrumental because the IRS doesn’t allow the seller “you” to touch the money between the sale and the purchase of the new property.

Once your property is sold, the proceeds minus any closing costs and debt pay-off go to the Qualified Intermediary. Again, the sale proceeds cannot go to you. If you were to receive the proceeds directly, this would be the basis for a disqualification and result in a tax event that you wanted to avoid in the first place.

You have 45 days from the date of sale to identify up to three potential replacement properties. To fully avoid paying any tax, the net market value and equity of the property acquired must be the same as, or greater than, the property sold. This is regardless of their total value or as many properties as you want, as long as their combined value doesn’t exceed 200 percent of the sold property’s value. You must document this in writing and deliver it to your Qualified Intermediary.

From the date of sale of your initial property, you have 180 days to complete the purchase of any property or properties identified in the previous step. The Qualified Intermediary then transfers the funds from the initial sale to the seller of the replacement property.

When you file your taxes for the year the 1031 like-kind exchange took place, include Form 8824 in your tax return, notifying the IRS of the exchange and informing them what property you sold and what property you purchased as part of the exchange.

The IRS rules for 1031 exchanges are very strict, so be sure to follow them closely. If done correctly, a 1031 like-kind exchange can be a powerful tool for deferring tax and building wealth through additional real estate investment.

The tax return and name appearing on the title of the property being sold must be the same as the tax return and title holder that buys the new property. Today, many properties are bought and sold using LLC’s or Trusts so keep this in mind and be consistent.

No additional value received in an exchange can be allowed that isn’t like-kind property, such as cash, property improvements or debt relief.

When you sell a property as part of a 1031 like-kind exchange, all of the equity you receive from the sold property must be reinvested into the replacement property.

When you sell and buy property as part of a 1031 like-kind exchange, both the sale and purchase need to be arm’s length transactions. Family related transfers can certainly come under a lot of scrutiny by the IRS so consult with your advisors.

A Reverse 1031 like-kind exchange is another option that allows you to purchase your replacement property before selling the property you intend to replace. This has many of the same rules and requirements as a normal exchange.

As always, consult with your professional team such as your Lawyer, Accountant, Banker, Qualified Intermediary and Commercial Broker early in the process so that you may take full advantage of this very useful tax planning and real estate investment tool. <