Five small home projects that make an impact

By Lisa DiBiase

Summer is a great time to take a fresh look at your home. The sun is shining, the days are long, and it’s easier to spot the little things that might have been ignored through the winter. You don’t need a huge budget or full renovation to make meaningful improvements. In fact, here are five small, focused projects that our sellers often find useful. These small improvements don’t just check boxes off your to-do list; they help your home feel more cohesive and well-maintained.

1. Tidy Up Your Entryway and Exterior Details

Instead of repainting the entire house or replacing large fixtures, instead focus on smaller areas that catch the eye. The front door and surrounding area make a significant difference in how your home feels when you approach it. If the paint is chipped or the light fixture is dated, those are quick fixes. The aim of these small projects is to make your home feel well-loved, not well-lived in.

You might also look at:

● Replacing your house numbers if they’re faded or missing

● Cleaning the storm door glass or switching out the screen insert

● Adding one or two pots of local plants (we love geraniums and petunias)

2. Clear the Corners of Your Yard

Most people mow their lawns, but it’s easy to overlook the side yard, the space behind the shed, or the wooded edge where branches are creeping over the fence. These spots can start to close in around the house if they’re not trimmed back.

Take a weekend to:

● Remove dead limbs or scrubby brush

● Cut back any branches that touch or hang too close to the roof

● Rake out leftover leaves or needles that have collected near the foundation

3. Clean Walkways and Hard Surfaces

Instead of a full deck replacement or a new driveway, try a deep clean. You’d be surprised how different your property can look with just a bit of pressure washing or scrubbing.

Focus on:

● Walkways made of brick, concrete, or pavers

● Wooden stairs or deck areas that have turned gray or green

● Garage doors and trim that may have collected dirt from plows or splashback

Especially in Maine, where homes often have a mix of woods, waterfronts, open yards, and gravel driveways, these areas get a lot of wear. You don’t have to make them perfect, just clean enough to feel fresh again.

4. Inspect and Flip Your Ceiling Fans

You probably haven’t thought much about your ceiling fans since last fall. Now’s the time to check that they’re working correctly and spinning the right way for summer. A small switch on the base allows for the direction to be reversed, so that the fan pushes air down and creates a cooling effect.

Other small maintenance tasks:

● Dust the blades

● Make sure the mount is still tight and not wobbling

● Swap out any dim or mismatched bulbs

5. Sharpen Up the Kitchen Sink Area

This might sound small, but I can’t count the number of homes I’ve walked into where the kitchen looks great at first glance, but something smells off at the sink. The garbage disposal is often the culprit.

Quick fix:

● Toss in some baking soda and vinegar

● Let it sit, then rinse with boiling water

● Run a few ice cubes and lemon peels through the disposal to finish

It’s the Little Things

You don’t have to renovate your kitchen or install new windows to make your home feel better. These smaller updates help maintain your home’s value and make it more enjoyable to live in on a day-to-day basis.

If you’re ever unsure where to focus your energy or wondering which updates will matter most in today’s market, our team at Landing Real Estate is always happy to discuss it with you. No pressure, just honest advice from Realtors® who know the area and have walked through a lot of homes just like yours.

Enjoy the season, and if you're out and about, be sure to say hello. We’re always here to help guide you home.

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.

This article was brought to you by Lisa DiBiase, Broker/Co-Owner of Landing Real Estate. Lisa and her team proudly represent buyers and sellers across the Greater Portland area, the Lakes Region, and beyond. For all your real estate needs, contact Lisa at Lisa@LandingHomesMaine.com or call (207) 775-SOLD. <

Your First Step to Homeownership: 2025’s Essential Guide for First-Time Buyers in Maine

By Lisa DiBiase

Buying your first home can feel like stepping into the unknown – exciting, a little overwhelming, but absolutely worth it. It’s not just about the house; it’s about laying a strong foundation for your future. When buying your first home, this isn’t just a transaction – it’s a milestone. Having buyer representation will help to make the process as seamless and rewarding as possible.

Here are a few tips and tricks to help guide you home.

Step One: Know Your Numbers

Before you start house-hunting, it’s essential to know where you stand financially. Understanding your budget range guarantees you’re making decisions with confidence.

• Down Payment Options: You don’t need 20 percent down to get started. Many first-time buyers qualify for programs offering down payments as low as 3 percent, like MaineHousing’s First Home Loan Program. Research your eligibility for grants and first-time homebuyer programs.

• Check Your Credit Score: A strong credit score can lead to better loan rates and terms. If you’re unsure about yours, pull a free credit report and address any errors before applying for pre-approval.

• Pre-Approval Matters: Speaking of pre-approval, getting pre-approved for a mortgage signals to sellers that you are serious about finding a home. It also gives you a clearer understanding of your budget range and what you’re able to afford comfortably.

Step Two: The Value of a Local REALTOR®

A REALTOR® is the key to unlocking the best opportunities. The housing market varies by location, so having a local expert with you from start to finish makes all the difference.

• Neighborhood Insights: Your REALTOR® understands market trends at a hyper-local level, helping you to find hidden gems or avoid overpriced areas. They know the ins and outs of every neighborhood, from the up-and-coming areas to the more established communities that will match your lifestyle and can provide you with invaluable insights into what it is like to live there – schools, amenities, traffic, and even the overall vibe.

• Tailored Recommendations: Everyone’s dream home looks different. Think about your priorities: school districts, walkability, commuting distance, or proximity to parks and shopping centers. Your REALTOR® can help you evaluate all your options and match you to an area that aligns with your priorities.

• Networks and Resources: Your REALTOR® often has a robust network of contacts, from home inspectors to contractors, they can help connect you to the right people through every step of the buying process.

Step Three: Partner with the Right REALTOR®

Buying your first home is easier with the right team by your side. A great REALTOR® is more than a guide – they’re your advocate throughout the entire home buying process. They can provide you with:

• Local Expertise: Our Realtors® know the market inside and out, which is a necessity for helping to find you the best neighborhoods and homes within your budget. Here are some questions you might want to ask when buying your first home.

• Negotiation Skills: From opening the front door the first time to closing, your REALTOR® ensures you’re getting the best value for your budget range.

• Reduces Stress: This is not a relaxing process, but an experienced REALTOR® can help streamline everything. Let them guide you home by handling all the details for a stress-free experience.

Step Four: Leverage First-Time Buyer Resources

There are so many resources designed specifically for the first-time buyer, and knowing how to take advantage of them will save you time and money.

• Grants and Assistance Programs: There are programs available that provide down payment assistance, low-interest loans, or tax benefits.

• Local Lenders: Working with your Realtors® preferred lenders ensures you’re getting the best and most competitive financing and personalized advice.

• Educational Tools: Many programs offer workshops or consultations to help you better understand the buying process.

Step Five: Let Us Guide You Home

When you’ve found the perfect home, it’s time to move forward with confidence. This is where all your research and preparation pays off! From making an offer to closing, your REALTOR® will guide you home.

That first moment you walk into your new home isn’t just about unlocking a door – it’s about starting your next chapter.

Why is 2025 the perfect time to buy?

House hunting is exciting, but it can also be overwhelming and with the ever-evolving housing market, first-time home buyers have more resources and tools than ever before. Whether it’s securing favorable financing to finding the absolute right neighborhood that complements your lifestyle, 2025 is the year to take the leap into homeownership.

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.

This article was brought to you by Lisa DiBiase, 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. <

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.

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

Real Estate: Navigating this hot real estate market

By Matthew Trudel

Both buyers and sellers have plenty of things to deal with in a market that has houses selling for $25,000 to $50,000 over the asking price.  I even know of a couple of houses that went for almost $100,000 over asking price. How do buyers and sellers navigate such a crazy market?  Both should start with finding an experienced real estate broker to work with to assist them in achieving their real estate goals. 

How do you go about selecting the correct real estate agent for the job? 

Here are a few things to consider when making that decision and going through the selection process:

Almost everyone knows a handful of realtors.  The number of new agents over the last several years has increased significantly, even throughout the pandemic.  Experience and knowledge are some key things to look for when selecting a realtor to work with.  Try to find a real estate agent who knows the area in which you are looking to buy or sell.  Again, I would like to bring up experience as a key factor. 

There are so many things that come up in any transaction from problems in inspections, negotiations, legal documentation and/or financing problems.  Having the experience to negotiate and solve those problems can be the difference of a successful transaction or one that falls apart.  So, find a real estate broker who you are comfortable working with and get the process started.

Sellers are mostly concerned about the value of their home and the  price they should list their home for sale.  This is where it gets a little tricky and knowing the area and what the pulse of the market is in that area are crucial.  In the old days we would list homes a little over what we thought they were worth or would likely sell for.  Then wait for an offer to come in or slowly drop the price over time. 

That doesn’t work anymore in this market and is not a good strategy to get you the most money for your home.  Pricing it accurately and getting the most potential buyers at your home in the first few days is the correct strategy.  This creates more demand, more competition and produces higher offers generally well over the asking price. 

The number of potential buyers in relation to the listing price correlates very similar to a pyramid.  The higher the listing price the fewer the number of potential buyers will come see your house.  Raise the price a little more and that number of potential buyers shrinks a little more. 

Eventually, as you consider raising the listing price, you would run out of buyers altogether. This is what we call pricing yourself out of the market.  Buyers in today’s market are much too savvy and knowledgeable with all the technology out there with regard to home valuation.   However, when there is a lot of competition and interest in a home, the knowledge they have is used to try to outbid each other creating multiple offers well above the asking price.

Buyers right now do not seem to mind that the interest rates have ticked up a little to around 5 percent or slightly over that.  Inventory is still low even with all the new construction going on.  Buyers need to be prepared and ready to go as soon as a property hits the market. 

Your real estate broker should be working closely with you and your mortgage broker or lender, so everyone is prepared to get the offer in when you find right home.  It is likely going to be a competition between several buyers and yourself and having an experienced broker who has been through the process for years can give you the edge over other competing offers.

The highest offer is not always the best offer, so there is lot more to negotiating an offer than just increasing the price.  I have written several articles over the years about different strategies that can be successful in competitive markets like this one.  Sometimes it can be as simple as writing a short letter to the seller explaining a little about yourself and why you like their home and having your realtor present that letter along with the offer.  There are a lot of other things I like to incorporate into putting together my clients’ offers and all of that research has to happen quickly with time being of the essence. 

If you would like to learn more, feel free to give me a call to set up a confidential meeting.  <

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

Real Estate: Million Dollar Question, how much is my home worth in this seller’s market?

By Lisa DiBiase

One of the challenges of determining your home’s value is that “value” is subjective; one buyer may be willing to pay more than another. Buyers determine value by comparison shopping. 

They will look at the price of your home based on its features and benefits and compare it with similar homes that have recently sold or are currently on the market. So how do you find that sweet spot, meaning a listing price that will attract buyers and help you reach your goals?

In order to create value in the eyes of the buyer you either need to have a competitive list price or have more features and benefits for the same price! Most homeowners getting ready to sell their home are not looking to add any new features to their property.

Let me be clear, I am talking about adding a new feature, not simply making repairs to bring the property to today's current standard! Every home is going to have a kitchen, bathroom, etc. (at least we hope)!

Here are a few factors that influence the value of a property:

● Square footage of home, property acreage and age

● Location and local market conditions

● Comparable homes that have sold recently

● Economic conditions, including but not limited to interest rate environment

● Renovations and repairs

Realtors have their own techniques for determining a home’s value. The process many realtors use to estimate a home’s value is called a Comparative Market Analysis (CMA). A CMA includes information about comparable homes (also known as “comps”) in your area. The data is typically pulled from the Multiple Listing Service, the Realtors® database of properties in a given area that are listed for sale or have a sale pending.

If done properly, a CMA can tell you what homes similar to yours are selling for, how long it’s taking them to sell, and what homes sold for compared to their original list price.

What to look for in a CMA:

● Size

● Location

● Number of bedrooms/bathrooms

● Style and view

● Home type (e.g. single-family home, condo, townhome, etc.)

● Recent sales price

When a buyer purchases a home, the bank requires them to get an appraisal at some point before underwriting of the loan can be completed. As the seller, you’re not required to get an appraisal prior to listing the property, however it may be a good idea if you don’t want there to be any second-guessing about your home’s value when you’re ready to list.

It’s the appraiser’s job to provide an impartial, thoroughly researched estimate of a home’s value. They do that by visiting the property and reviewing recently sold or pending sale comps.

Appraisers use Fannie Mae’s Uniform Residential Appraisal Report as a guide for conducting an appraisal.

This report is a checklist of things appraisers should look for, such as:

● Where the home is located

● Whether the home is in a FEMA flood zone

● The condition of the utility services and fixtures on the property

● When the home was built

● The type of foundation

● The condition of the attic and basement, heating and air systems, walls, windows and doors

● Additional amenities, such as a pool, deck or fireplace

● Any structural improvements or repairs that have been made

● Whether any additional repairs or improvements are needed

● The condition of any appliances in the home

● Signs of damage that would compromise the structural soundness of the home.

In addition to using this report as a guideline, an appraiser would consider the sales history of the home and the approximate replacement cost to rebuild the home.

According to Opendoor.com: There are three types of home values you need to be familiar with as a seller:

● Appraised value: According to Investopedia, appraised value is a home’s value as determined by a professional appraiser at a given point in time. Appraised value is used by mortgage lenders during the underwriting process to determine how much a buyer can borrow.

●Assessed value: Assessed values are used to determine how much property tax is owed on a home. Assessed value is set by a municipal or county tax assessor, who evaluates the home’s features and those of comparable properties to arrive at a valuation. It’s usually a lower number than fair market value.

●Fair market value: Fair market value refers to how a home is valued when both the buyer and seller are reasonably knowledgeable about the property and neither is under any pressure to buy or sell.

According to Realtor.com, fair market value tends to be the truest measure of a home’s value overall, since it’s based primarily on supply and demand. This information is presented for informational purposes. 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 that can continuously give you the right advice for all your circumstances. <

Lisa DiBiase is a Broker/Owner of Landing Real Estate. She and her company represent buyers and sellers in the Greater Portland area. For all your real estate needs contact Lisa at 207-653-0823 or lisa@landinghomesmaine.com

Real Estate: Waiting on Bated Breath, The Appraisal

Submitted by Lisa DiBiase 

What is an appraisal?

When buying and selling a home, there’s no getting around the home appraisal if the buyer is taking out a mortgage to purchase the home. You can’t wave a magic wand to raise the fair market value of any property. My favorite quote is “you are what you are” which means it’s worth what it’s worth. But this doesn’t mean you shouldn't educate yourself about the appraisal process. The objective of an appraisal is to provide an independent and impartial cost analysis of real property according to the National Association of Realtors®, NAR. The appraiser’s client is the lender. However, the appraisal protects a buyer against paying more for a home than it’s worth, which could put their financial future in jeopardy. For example, if the buyer loses their job a year later after purchasing the property then they are “upside down”. This means they can’t sell the house for the amount owed on the mortgage, which leads to foreclosure. However, if they buy it at the right value and something happens a year or two into it they can get out without losing their skin. They may not make any profit, but they may not suffer any loss or at least as big a loss. To come up with an accurate value gauge, the appraiser conducts deep research of the comparable sales data and uses an on-site visit to verify the home’s size, features, and condition.

How does the appraisal impact a real estate transaction?

There are a few primary reasons homes fail to appraise. Let’s explore a few options:

1. The contract price is over appraisal value. In rising real estate markets it’s common for buyers to compete for a house and drive up the price above market value. At that point the biggest mistake sellers make is assuming that the buyer will bring extra cash to the table as needed. The reality is traditionally the buyer has saved all the money they have for closing costs and down payment and usually not much more than that. On the other hand, there are buyers out there who do have cash on hand and can cover the difference between the contract price and appraisal value. This is known as “bridging the gap”.

If the appraisal comes in below the contract price, there are still options.

1. Seller can lower the price.

2. Buyer can bring the additional cash to bridge the gap between the contract price and appraisal value.

3. Buyer and Seller can renegotiate the purchase price and terms of the contract to work in the favor of both parties. This is also why pricing your house right from the start is so key. Don’t hire the agent who is going to flatter you with an empty promise to sell your house for more. Find one who’s done their homework and has the comps to prove it.

2. An appraiser finds an issue with the house that impacts its value.

 In some cases, an appraiser will identify an issue with the property that must be factored into the appraisal. This could be a room addition that doesn’t have a permit. In that case the appraiser may mark the room as a “cost to cure” line item on the report, which could lower the appraised value for a given amount. Some types of loans like FHA (Federal Housing Administration) also require specific problems like broken or cracked windows or peeling and flaking paint to be corrected before a house can appraise.

3. The appraiser was inexperienced or doesn’t know the area.

There are a lot of nuanced factors that go into appraising a property accurately. “Geographic competency” or an appraiser’s knowledge of the local area can make a big difference in whether an appraisal arrives at the true market value of a home. Other issues can be as simple as the appraiser rushing through the data compilation or applies short cuts. Lastly, If the appraisal value does not come in at contract price, there is one last ditch effort and usually the very last resort. Appeal the appraisal. This is not a guarantee and the appraisers are typically not thrilled when their professional opinion is being questioned. If you plan to appeal the appraisal, here are a few tips:

1. Contact your lender and find out what the steps are for their appeal process. Each lender has different processes.

2. Study the appraisal carefully. Review the basic information used in the appraisal for your home's actual features. Does it have the correct number of bedrooms, bathrooms, square footage etc.

3. Research the comparables used in the appraisal. Note any advantages that your house has over the comps used. Do you have a larger kitchen or perhaps it has upgraded finishes. Whatever advantages you can find, they should be able to prove that your home has a higher market value than the comps and that it is properly adjusted in the appraisal. Run the most recent sales in the last 6 months and sooner to make sure that a sale that supports your market value didn’t just recently close and perhaps was missed during the time the appraisal was being completed.

4. Last resort would be to order a new appraisal, but that can be costly with no guarantee of a different outcome.

You can present this information to your lender who will then forward to the appraiser for review. Hopefully the new information you bring to the table will help the appraiser reassess their opinion of value.

What can you do to prepare for the appraisal?

Here’s a short list of things you can do to prepare for an appraisal:

1. Deep clean the inside of your home. Act like you are showing the house all over again to buyers. Definitely make sure you’ve dealt with any issues related to pests and pets. First impressions are so important.

2. Secure your pets. This allows the appraiser to work more efficiently and can focus on your property without any distractions.

3. Spend an afternoon cleaning up the yard. No need to get too fancy. Just make sure the front of the house looks nice and tidy. Pull any weeds, mow the lawn, trim the hedges, edge the grass, brush away cobwebs, and clear leaves and debris. You can’t necessarily put a price on curb appeal, but appraisers can take it into account when reconciling that final value.

4. Touch up your paint on the outside of your home. It may not seem like a big deal, but appraisers will factor peeling paint into their evaluation, especially if they are doing an FHA mortgage appraisal. No need to repaint the whole house, just touch up the few places to make it shine.

Getting through the appraisal process is the last hurdle of the sale of a home. Working with a local Realtor® who knows the area is critical to having well-informed choices available to you as a consumer and ultimately guiding you successfully through the sale. 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 a Broker/Owner. She and her company represent buyers and sellers in the Greater Portland area. For all your real estate needs contact lisa@landinghomesmaine.com

Real Estate: Appraisal come in low, now what?

By Kristin Piccone

The Real Estate market is experiencing an all-time low in inventory, not just in Maine, but across the country.  The historical low interest rates have created a surge in the amount of buyers with increased buying power, as a result.  Consequently, this is creating excessive bidding wars when a home hits the market for sale.  Sometimes there are buyers with financing and sometimes there are buyers with cash.  No matter what a buyer’s terms are within their offer; if there is a financing contingency and the buyer is putting less than 20 percent down; the property is likely going to require an appraisal. 

What is an appraisal? An appraisal is an evaluation ordered by the lending institution to ensure and protect the buyer and the lender from paying too much.  The appraised value must be at or above the purchase price, not loan amount.  By the time an appraisal has happened, a buyer is already under contract on a home and has, more times than not, completed most or all of their due diligence.  With this, time and money has been spent and maybe even several types of negotiations between real estate agents, buyers and sellers.

Ironically, the appraisal comes as one of the latter items to be checked off within a transaction, unfortunately.  It can create stress and tension when its down to a week before closing, for example, and everyone finds out ~ appraisal came in low.  Now what?

In my professional experience, there are options (I love options!).  In no particular order, here are some things that can be done:

Option 1: Buyer and Seller can agree that seller will reduce to the price of the appraised value.

Option 2: Buyer and Seller can agree that they will “split the difference.”  For example, let’s say the purchase price is $300,000.  Appraised value comes in at $285,000.  That is a $15,000 difference.  By splitting the difference, it can be done by reducing the purchase price by $7,500 (now, $292,500) and the buyer will bring an extra $7,500 to the closing table.  The seller receives $7,500 less for the property and the buyer brings more money to the table.

Option 3: Buyer and Seller can agree to work the numbers in any fashion to create a win-win for both parties.  As in my example above, it was a 50/50 split.  However, it could be any arrangement, for example 80/20; 70/30; 60/40, and so on.

Option 4: Dispute the appraisal value.  Generally, it would be the listing agent to write a letter to the underwriting department of the financial institution or complete a guideline form issued by the lender for completion and submission.  Within the letter or form, it would be likely that the listing agent would need to provide supporting evidence and information that supports the current purchase price.  For your reading pleasure, I will summarize and say, the appraiser will re-evaluate their report.  There are no promises, but a new appraised value could be given; it could remain the same, or it could be lower.

Option 5: Request a second opinion.  With this option and depending upon the financing type; you may or may not be allowed a second opinion.  For example, with FHA financing, you cannot get a second opinion unless there is underwriter agreed justification.  It is also worth noting that if the underwriter agrees to and can justify a second opinion, the second opinion appraised value is what you are “stuck with.”  Further, this FHA appraisal “sticks” with the property for six months. 

What does this mean?  This means that if a buyer and seller do not come to terms on any of the options listed above, as a result of the appraised value, the buyer’s financing will, effectively, be denied.  Consequently, the seller will be “back on market” and start back at square one, so to speak.  Since an FHA appraisal report has already been filed from the last buyer; the seller will have to carefully consider their options and who their next “pool of buyers” will be.  Of course, the seller could reduce their list price to meet the last appraised value; however, if that is not the case, the seller would likely limit their buyer pool since the previous FHA appraisal will stay with the property for a minimum of six months.  In my professional experience, I aim to create a win-win for all parties, especially when so deep and in the throughs of a transaction.  It does not always behoove a seller to go “back on market” in a scenario similar to this, as their buyer pool would be lessened, time extended and time = money!

This is a lot of information and can be even more daunting, in real life, however I wanted to keep it simple for the purposes of this column.  If you are considering buying or selling in today’s real estate market, I am a full-time, local, knowledgeable, trusted professional who would love to help you and learn more about your real estate goals! <

Kristin Piccone is a REALTOR for Landing Real Estate in Windham. Reach her at 207-951-1393 or by email at kpiccone@landinghomesmaine.com