Real Estate: Waterfront properties a proven and sound investment

By Pamela Starnes and Tiffany Libby

There’s something truly special about waterfront properties in Maine. Whether you're a local or someone from out of state, the charm of living by the water is irresistible. Imagine waking up to the gentle sound of waves, sipping your morning coffee on the deck as the sun rises over the water, or spending your afternoons kayaking, fishing, or simply unwinding at the water's edge. Whether it’s a cozy cottage on Sebago Lake or a luxurious estate along the coast, these properties offer more than just a place to live—they offer a lifestyle that combines tranquility and investment potential.

The allure of waterfront living is undeniable. There’s a peace that comes with being near the water, a chance to disconnect from the hustle and bustle of everyday life. For many, owning a waterfront home is the fulfillment of a lifelong dream—a place to escape, recharge, and create lasting memories with loved ones. Beyond the lifestyle, these properties have also proven to be sound investments. Even with the ups and downs of the real estate market, waterfront properties have consistently held their value, often appreciating faster than inland homes. The limited availability of waterfront lots, especially in prime locations, only adds to their appeal.

In recent years, the demand for these properties has only grown, especially with the rise of remote work. More and more buyers are seeking homes that offer not just a retreat from the city but also a comfortable year-round living and working space. This has sparked a surge of interest in Maine’s waterfront properties, drawing buyers from near and far who are eager to experience the natural beauty and relative affordability that Maine offers compared to other coastal areas in the Northeast.

However, before diving into waterfront living, it’s important to consider the unique aspects of owning such a property. Erosion, flooding, and the need for specialized maintenance are all factors that can add to the cost of ownership. That’s why it’s crucial to work with a real estate agent who understands these challenges and can guide you through the process.

Another key consideration is finding the type of waterfront property that best suits your needs. Maine’s diverse landscape offers everything from oceanfront homes with private beaches to secluded lakefront cottages nestled in the woods. Each type of property provides a different experience, so it’s important to think about what matters most to you – whether it’s easy access to boating and fishing, proximity to amenities, or the peace and quiet of a secluded spot.

Windham and its surrounding areas are home to some of Maine’s most sought-after waterfront properties. Just a short drive from Portland, Windham strikes the perfect balance between accessibility and seclusion. The town is famous for its beautiful lakes, including Sebago Lake, Little Sebago Lake, and Highland Lake. These lakes are ideal for a variety of activities, from boating and fishing to swimming and kayaking, making them perfect for families, retirees, or anyone who loves the outdoors.

In Windham, you’ll find a wide range of waterfront properties, from charming cottages to luxurious estates. Many of these homes feature private docks, spacious decks, and stunning views, offering the perfect setting to enjoy Maine’s natural beauty. With a strong sense of community, excellent schools, and easy access to shopping, dining, and cultural attractions, Windham is an excellent choice for those looking to embrace the waterfront lifestyle.

Waterfront properties in Maine offer a rare combination of natural beauty, recreational opportunities, and investment potential. Whether you’re searching for a year-round residence, a seasonal getaway, or an investment opportunity, the Libby Starnes Team is here to help you find your perfect waterfront home. With our in-depth knowledge of the local market and our dedication to client satisfaction, we’re committed to helping you navigate the complexities of waterfront real estate and make your dream of owning a Maine waterfront property a reality.

To learn more or to explore current waterfront listings, reach out to the Libby Starnes Team at Signature Homes Real Estate Group. We’re excited to help you discover everything Maine’s waterfront has to offer.

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. <

New real estate regulations take effect

By Matthew Trudel

In August we have just had some significant changes to how we can do business as REALTORS®. This applies to every REALTOR® and real estate company actively practicing brokerage across the state. Some of these changes were minor and we don’t need to really discuss those in depth.

One example would be the new requirement for the Flood Hazard disclosure for all properties including just land. There are some significant changes about how we can work with sellers and buyers. These are the things that I really want to share with you and explain how it might affect buyers and sellers.

Let’s first talk about buyers and buyer’s agreements. A buyer’s agreement is a written document that is an agreement between an agency and a buyer. This explains what type of property the buyer is looking for and more importantly how the agency is going to be compensated and how much they will be compensated. We have had buyer’s agreements around for years, but they were not required. Now they are required before you can show a buyer any listing. The exceptions to this rule are if the property being shown is the REALTOR’s listing that they have listed for sale, or for any open house. Basically, if a buyer finds a house online that they like and would like to see it, they have only two options. Option 1 is to call the listing agent to set up a showing. Option 2 is to enter into a buyer’s agreement with a REALTOR® and have them set up a showing.

Option 1 is something I think most people should avoid. Going directly to the listing agent does not provide you with any representation. The listing agent is looking out for the seller and their best interest. The listing agent cannot or should not be advising a buyer who is not a client about negotiations, representations, value, and many more things. In addition, the listing agent is likely going to make double the commission and remember they are not looking out for the buyer’s best interest.

Option 2 is a much better plan that will provide you with representation from a professional REALTOR® that will be looking out for your best interest. This also allows you to negotiate exactly what the compensation will be for the service that the agency is providing. If you negotiate a buyer’s agency fee of 2.5 percent of the purchase price and the property you want has a listing agency that is willing to pay 3 percent to any broker who brings a buyer, then you should get that extra ½ percent as a credit toward closing costs. I would also suggest entering into a buyer’s agreement before you find that perfect home. Remember to interview a few REALTORs to find the right fit with a realtor with plenty of experience.

Let’s switch gears and talk about sellers and how these changes affect them. REALTORs are no longer allowed to post on any listing the amount or percentage that the agency is willing to compensate another agency who brings a buyer that is their client. Sellers can really negotiate what that amount will be or if there will be any compensation offered. Every real estate company has their own policy about how they are handling these changes. Now that buyers are going to likely have their own representation from another agency, the question that is now being asked is should the seller be responsible for paying that other agency? Why wouldn’t each party pay their own REALTOR® respectively? There are many reasons why it is easier for agencies to share the commission that the seller is willing to pay, and I can’t get into all of them. A lot of it has to do with financing and closing cost limits for buyers.

These changes just went into effect and like with any changes, there will be a learning curve as we get used to working within the new guidelines. It encourages buyers to obtain representation and a clear understanding of what the compensation will be. In the past I think this was sometimes not really clear to buyers and probably because the real estate agent did not properly explain the whole process. Sellers should hopefully have a better understanding of the compensation they are paying and that it might be negotiable depending on the listing agency’s policy. This is also why it is a good idea to talk to a few different agencies regarding what options each might offer.

This article was written by Matthew Trudel, Owner and Broker of Five Star Realty in Windham. Call him at 207-939-6971 or email him at: matt@fivestarrealtymaine.com for all your real estate needs. <

Commercial real estate is truly a people-first business

By Larry Eliason

As a Commercial Real Estate Broker, my focus is to provide my clients with sound Commercial Real Estate advice. I specialize in Sales and Acquisitions Representation for Sellers and Buyers and Commercial Real Estate Leasing Representation for Landlords and Tenants.

As a seasoned Maine Licensed Real Estate Broker, I have developed a diverse set of skills by accumulating years of experience that includes Sales and Marketing, Contract Negotiation, Due Diligence, Planning and Approval Process, Commercial Real Estate Financing and Commercial Broker Opinion Valuation to name a few.

I wanted to provide some basic Commercial Real Estate Terms to help Sellers, Buyers, Landlords and Tenants better understand what Commercial Brokers are looking at as far as Income, Expenses, Cash-Flow and Return on Investment in addition to the physical nature and condition of Commercial Real Estate.

Gross Potential Rent is calculated by taking the market rent of every unit on the property and adding them together. It is the maximum amount of money your property could make if it was 100 percent occupied and every unit was making market rent.

The Vacancy Rate is a numerical value calculated as the percentage of all available units in a rental property, such as a shopping center or business park, that are vacant or unoccupied at a particular time.

Gross Operating Income refers to the result of subtracting the credit and vacancy losses from a property's gross potential income. GOI is also sometimes known as Effective Gross Income (EGI).

Repairs and Maintenance are the costs incurred with a real estate asset operating at its present condition. If a commercial building requires repairs, the cost to repair the damage is debited to repairs and maintenance expenses.

Reserves for Replacements is an amount of money set aside in anticipation of building components or equipment like HVAC wearing out in a relatively short time and needing to be replaced. Replacement reserves can be a mere accounting entry as a phantom expense item reducing net operating income each month, or it can be money deposited into an account and earmarked for replacements.

Property Management Fee is the operation, control, oversight, and accounting of real estate investments. Management is needed to monitor the property and offers accountability for collecting rents and reviewing expenses as they come along.

Net operating income (NOI) is a calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.

The Return on Investment (ROI) or cash on cash return is a commonly utilized investment measurement in the real estate industry. Return on investment is calculated by taking the monthly or annual cashflow of an asset and dividing it by the total amount of money you invested into a property.

The Return on Equity (ROE) is a measurement of investment returns. ROE considers your total equity, including equity that has built up over time, and measures your cash-on-cash returns against that instead of your initial investment.

The Income Capitalization Rate, also known as the commercial real estate cap rate, is the rate of return used by Commercial Real Estate Investors to assess the risk and potential return of a property. Cap rates are usually expressed as percentages such as 10 percent as a return on investment using debt and equity. When comparing investment properties, capitalization rates are a commonly used benchmark for measuring returns.

As much as Commercial Real Estate is a review income and expenses, analyze leases and crunch the numbers to evaluate risk and determine return-on investment, Commercial Real Estate is also a people business. I believe that success in this industry is earned over time by building long term relationships and being a valuable resource to your clients.

My service area is the Greater Sebago Lakes Region. I do go where a client needs me to travel sometimes hours away from my home base. In the Greater Sebago Lakes Region, the property may be zoned commercial, however, it could also be a residentially zoned Multi-family or an Income Producing Property with Lakefront, a Sales and Service business like a Marina, a Waterfront Campground or other Four Season Property with Lakefront amenities.

If you are looking to Sell, Buy or Lease Commercial Real Estate, I would greatly appreciate the opportunity to help you meet your Commercial Real Estate Goals.

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 <

Reading your property deed can help protect your investment

By Richie Vraux

In purchasing your home, you should read your deed thoroughly because it could be costly to you if it is incorrect. It’s important to make sure you understand and ask a real estate law professional for those things that are difficult to comprehend.

Your real estate title company always has a lawyer on staff that reviews the deed. If you use your family lawyer, make sure they are familiar with real estate law because it may not be their specialty. There could be things listed in your deed that you may not be aware of or understand. For instance, there could be an easement and restrictions and or even a (ROW) right-of-way designation that you might not have been aware of.

These are just some of the factors that show up in a real estate deed, and if you don’t understand something, always ask about it.

What is an easement

An easement is an agreed-upon use of land by someone other than the owner of the property. It allows access, mostly established for the utility companies for passage onto your property to maintain public services for the community. There are basically two types of easements.

Gross Easement

A gross easement usually allows for an individual to get onto his or her property that is landlocked. It would be the only way to get onto their property. This, of course, may cost you something extra, but it may be the only way to get to the property. This type of easement passes on to the new owner in the property deed when the owners sell the property.

Appurtenant easement

An appurtenant easement is usually set up to join two properties. Typically, the land with the higher amount of acreage will be the prominent party listed here. This property owner will have more leverage and will usually set the rules moving forward for this type of easement.

ROW-(right-of-way)

A ROW allows an abutter to pass over your land to get to their property. To be clear, a right-of-way is established in a deed to allow an owner of an abutting property to pass over your property to get to theirs. It does not allow you to park your vehicle, to stow your boat or for anything else for that ROW (right-of-way). For example, if a right-of-way is given to an abutter to get to a lake, you cannot store your canoe or kayak there for future use without written permission from the owner. Also, some people think, because they have a ROW agreement that they can build a dock or a slip for their boat there. It is only with written permission that they can do so and listed in the property deed.

As a property owner, you should always be prepared and be knowledgeable about what could affect your quality of living. You should always be aware of your limitations and requirements of your easements or rights-of-way as listed in your property deed. You may require legal services to understand what terms are defined in your property deed. Not all attorneys specialize in real estate law, so investigate thoroughly and know who to call when you have specific real estate questions. If you are unsure of where your property deed may be, you can always go online to the registry of deeds in your community to look up and research your property.

Richie Vraux is a real estate broker with Pine Tree Realty of Maine. We will be back at our same location at 76 Tandberg Trail in Windham shortly. Richie has been a real estate specialist for more than 25 years, so take advantage of his expertise. Call him at 207-317-1297. <

Real Estate: Summer Safety Tips

Compiled by Jonathan Priest 

What’s your plan for this summer? Enjoying the water? Going camping? Firing up the grill? Whatever you prefer, we have safety steps to follow. And don’t forget your furry friends.

There are steps you can take to help keep them safe too.

Preventing unsupervised access to water, providing constant, active adult supervision and knowing how to swim are critical layers of protection to help prevent drowning.

Classes to learn how to swim are available for both children and adults. Check the internet for Learn-to-Swim providers in your community. Everyone should learn first aid and CPR too, so they know what to do in an emergency.

Download the Red Cross Swim app, sponsored by The ZAC Foundation, for safety tips, kid-friendly videos and activities, and take the free Water Safety for Parents and Caregivers online course in English or in Spanish.

It’s best to swim in a lifeguarded area. Always designate a “water watcher” whose sole responsibility is to keep a close eye and constant attention on everyone in and around the water until the next water watcher takes over.

Drowning behavior is typically fast and silent. Unless rescued, a drowning person will last only 20 to 60 seconds before submerging. Reach or throw, don't go! In the event of an emergency, reach or throw an object to the person in trouble. Don't go in or you could become a victim yourself.

It only takes a moment. A child or weak swimmer can drown in the time it takes to reply to a text, check a fishing line or apply sunscreen. For additional information about staying safe while swimming in larger bodies of water like oceans or lakes, review our beach safety tips below.

Learn how to reduce the risks so your family can enjoy swimming in open water, such as the ocean and large lakes:

Watch the weather and get out of the water at the first sign of lightning or the rumble of thunder. Stay indoors and away from water for 30 minutes after the last lightning flashes or thunder roars.

Swim only at a beach with a lifeguard, within the designated swimming area. Obey all instructions and orders from lifeguards and ask them about local conditions

As when swimming or relaxing in a pool or hot tub, always designate a “water watcher” whose sole responsibility is to keep a close eye and constant attention on everyone in and around the water until the next water watcher takes over

Children, inexperienced swimmers, and all boaters should wear properly fitted U.S. Coast Guard-approved life jackets.

Protect your neck – don’t dive in headfirst. Walk carefully into open waters. Watch out for and avoid aquatic life.

If you are caught in a rip current, stay calm and don’t fight it. Swim parallel to the shore until you are out of the current. Then, turn and swim to shore. If you can't swim to shore, float or tread water until you are free of the rip current and then head toward shore. Draw attention to yourself by waving and calling for help.

If a camping trip is in your plans, know the level of ability of the people in your group and the environment around you. Plan accordingly.

Pack a first aid kit to handle insect stings, sprains, cuts and bruises and other injuries that could happen to someone in your group. Take a Red Cross First Aid and CPR course and download a First Aid app so that you will know what to do in case help is delayed. You’ll learn how to treat severe wounds, broken bones, bites and stings and more.

Bring nutritious food items and water, light-weight clothing to layer and supplies for any pets.

More than three-quarters of U.S. adults have used a grill — yet grilling sparks more than 10,000 home fires on average each year. To avoid this, the Red Cross offers these grilling safety tips:

Always supervise a barbecue grill when in use. Don’t add charcoal starter fluid when coals have already been ignited.

Never grill indoors — not in the house, camper, tent or any enclosed area.

Make sure everyone, including pets, stays away from the grill.

Keep the grill out in the open, away from the house, deck, tree branches or anything that could catch fire.

Use the long-handled tools especially made for cooking on the grill to help keep the chef safe.
Don't leave perishable food out in the sun.

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 <