Fire Safety for Stick Season

By Warren O’Shea

I was in the midst of putting together an article about the typical winter prep suggestions like turning off and draining outdoor spigots, disconnecting garden hoses, air sealing windows, and breaking down what frequently causes ice dams when I smelled the smoke.

It wasn’t that comforting, seasoned hardwood in the woodstove on a damp and chilly morning that gets the yuletide juices flowing type of smoke. It was plastic. Nauseous and toxic plastic. White, double 4-inch with faux embossed wood grain vinyl siding plastic to be overly specific. Of course, I think to myself, “it’s only 50 degrees out, it’s way too warm to burn plastic.”

I then looked out my window and saw the smoke. And I think to myself,” it’s way too warm to burn a boatload of plastic.”

This begins my article. My neighbor’s house caught on fire. Everybody is safe, the family cat “Bob” took refuge under my ‘79 International Scout in the barn where I find him sometimes. He’s an aloof guy and for the most part, has stopped peeing on my dropcloths. I believe we have come to a silent understanding. The home appears to be a total loss. Five towns responded and a backhoe was called in to pull the metal roof off to get to the burning rafters.

No word yet as to what started the fire, but I will use this as an opportunity to convey what I know about the fire safety code in no particular order. You may have heard this before but…. Smoke detectors only work if they have power to them. Hard wired, interconnected, photo electric, with battery back-up is the standard. It is a good idea to test them monthly.

There currently is no “National Change Your Smoke Detector Battery Day” but it is recommended by the National Fire Protection Association (NFPA) to replace old batteries with new ones every six months and replace the detector itself every 10 years. It is a common First Responder recommendation to change the batteries in your alarms when Daylight Savings begins in the spring and ends in the fall, as this is an easy way to remember to do it twice each year.

Egress windows for bedrooms

In Maine, egress windows must meet the following minimum size. A minimum of 5.7 Square Feet, a minimum height of 24 inches, a minimum width of 20 inches, and be no more than 44 inches above the finished floor. These minimums are not based entirely on the occupant’s ability to escape but by the fire/rescue personnel, and their gear, to enter the building.

Fire extinguishers

Our friends at NFPA have some more recommendations. A multipurpose ABC, dry chemical extinguisher is a good choice for homes but needs to be readily accessible, stored away from a heat source, and kept out of reach of children and a certain Black Lab named Misha (buy me a beer and I’ll tell you the story). You should also consider keeping an additional “Class K” extinguisher in your kitchen for cooking fires. Class K extinguishers use alkaline chemicals to mix with cooking oils and fats to form a foam that cools the fire. In an emergency baking soda or salt can be used only if the fire is small. It takes a lot of baking soda to do the job, so be sure to sprinkle in an even layer. The heated powder releases Carbon Dioxide which smothers the flame.

Plan for fire emergency

Pull together everyone in your household and make a plan. Walk through your home and inspect all possible exits and escape routes. Households with children should consider drawing a floor plan of your home, marking two ways out of each room, including windows and doors. You can share your updated floor plan with the town office, so they have it in your property file. Rescue personnel can pull that floor plan en route and be able to navigate through the home more quickly than they could otherwise.

This is just a short list of what you can do to prepare for a worst-case scenario. When it happens, it happens so fast there is little time to think. Preparation is the key.

Warren O'Shea is the owner of O’Shea Builders LLC, Maine’s most award-winning remodeling contractor. He has 35-plus years of residential remodeling experience. He is a certified home inspector and has been featured on HGTV, Food Network, and Maine Cabin Masters. He is a recipient of the Portland Police Department’s “Citizen Award,” and is a staunch consumer advocate. Warren has, and continues to, co-author articles for nationally distributed trade magazines. <

Election is over, strong real estate market is not

By Matt Trudel

The election is complete, and another interesting thing happened in November. The Feds lowered the federal funds target range by 25 basis points to 4.5 to 4.75 percent.

Many analysts believe that at the next Fed meeting on Dec. 17 and Dec. 18, we will see another rate drop of .25 percent. This would continue to remain on track with the Feds plan to get interest rates down next year. Lower rates give buyers more purchasing power because it allows them to borrow more money while keeping the payment the same. Buyers need to start planning now so they are ready to go the first of the year.

Get your finances in order ahead of time so you are prepared when it comes time to make an offer when your dream home hits the market. You should have a savings account of some type set up for your housing purchase. You will need funds for inspections, tests, and closing costs. This can be more than most people realize. These are all things your buyer’s agent should be going over with you.

If you do not have or have not selected a real estate agent to work with as your buyer’s agent, that is the first thing you should be doing. There is a lot to consider when choosing a realtor to work with on what is one of the bigger financial decisions people have to make.

Find a REALTOR with plenty of experience. This will pay off in many ways and make the whole process smoother and less stressful. Negotiating price is just a small part of the transaction and not the most important part often when successfully putting a deal together.

Talk with a few realtors and ask them about previous deals and people they have worked with. I would also ask them about their policy if you decide that it isn’t working out great, and you want to change realtors. Not all agents charge the same percentage and that varies from office to office.

There are also the new real estate regulations that I wrote about in my last article which almost makes it mandatory for buyers to have a buyer’s agent prior to viewing a home that is listed. Realtors are basically not allowed to show other agencies listings unless they have a signed buyer’s agreement.

Remember that savings account we mentioned for closing costs. Part of your closing costs will be the commission that your buyer’s agent is going to be paid. It may be able to be negotiated that the funds will come from the seller’s proceeds, but sometimes the seller is only willing to pay a portion of what is owed. This is all information that you should be told upfront before looking at any property so you can make better informed decisions. This is also something you should discuss when interviewing prospective Realtors who want to represent you as your buyer’s agent.

Like I said before, not all agencies charge the same percentage when representing buyers. Also, if the seller is offering to pay out a higher percentage of commission than what you negotiated with your buyer’s agent, shouldn’t you receive those extra funds toward your closing costs?

I do feel we are going to have another strong real estate market next year and probably for at least two years. It will be very competitive for buyers and likely faced with many multiple offer situations. This is another area that having a buyer’s agent with years of experience in dealing with these situations can make all difference between a successful transaction, or another missed opportunity for you. This is an important decision, and you should not worry about hurting a friend or family member’s feelings because you made the choice to work with another realtor. You need to make the best decision for yourself.

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

How elections impact Maine’s real estate market

By The Libby Starnes Team at Signature Homes Real Estate Group

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

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

1. Economic Policies and Their Influence on Housing Prices

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

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

2. Mortgage Rates and Buyer Affordability

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

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

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

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

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

4. Consumer Confidence and Market Stability

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

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

5. Property Taxes and Home Values

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

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

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

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

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

Home Buyers and Sellers 2024 Trends Report

By Lisa DiBiase

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

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

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

What Sellers want from their Realtor®:

22 percent Help sell the home within specific time frame

21 percent Help price home competitively

20 percent Help seller market the home to potential buyers

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

11 percent Help find a buyer for home

6 percent Help with negotiation and dealing with buyers

3 percent Help with paperwork/inspections/process

How long Sellers own home before selling:

1 year or less 2 percent

2-3 years 12 percent

4-5 years 14 percent

6-7 years 12 percent

8-10 years 12 percent

11-15 years 12 percent

16-20 years 11 percent

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

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

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

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

Benefits of using a Realtor® for Buyer:

61 percent Help understand the process of either buying or selling

58 percent Pointed out unnoticed features/faults with property

46 percent Negotiated better sales contract terms

46 percent Provided a better list of service providers

45 percent Improves knowledge of areas and comparables

33 percent Negotiated a better price

29 percent Shortened buyer’s home search

23 percent Provided better list of mortgage lenders

What Buyer’s want from their Realtor®:

50 percent Help finding the right home to purchase

12 percent Help negotiating the terms of sale

11 percent Help with price negotiations

7 percent Determine what the comparables are for the property

7 percent Help with paperwork

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

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

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

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

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

 

Commercial Leasing Basics

By Larry Eliason

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

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

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

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

WITNESSETH

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

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

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

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

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

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

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

State Laws…

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

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

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

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

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

12. Verification of Expenses. N/A

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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