Real Estate: MEREDA’s Forecast Conference highlights story of supply and demand in Maine

“This article was reprinted with permission from MEREDA."  

On Thursday, Jan. 20, over 600 of Maine’s real estate and development professionals gathered both virtually and in-person at the Cross Insurance Arena to learn about the latest trends and predictions in the real estate economy at the Maine Real Estate & Development Association’s (MEREDA’s) Forecast Conference and Member Showcase. “There is so much energy in Maine’s real estate sector right now, and it is amazing to be in a room together to discuss the future of our state and our economy,” said Josh Fifield, MEREDA President. “The Forecast Conference helps set the tone for the year ahead, and I’m feeling positive about what opportunities all this energy will create for Maine.”

From James Marple, a Senior Economist at TD Bank who provided an economic outlook; to Speaker Ryan Fecteau, Speaker of the Maine House of Representatives, who spoke about the need for affordable housing; to an impressive lineup of industry experts; speakers were brought together for an informative conference at the Cross Insurance Arena following Covid safety protocols. MEREDA also streamed the conference for those who could not attend in-person.

The major theme resonating across sectors and presentations was that of supply and demand. Maine simply does not have enough inventory – of affordable homes, of homes in desirable communities, of industrial spaces – to meet the increased demand. Speaker Fecteau kicked off the conference saying that Maine needs more housing in all corners of the state. Aware that many of the presentations to follow would highlight the booming real estate market in the state, Speaker Fecteau shared, “Too many Maine families don’t have access to what is happening in real estate.” He went on to cite the fact that there isn’t a county in the state where a low-income worker making minimum wage can afford a two-bedroom apartment. Speaker Fecteau has helped enact a state companion to the federal low-income housing tax credit and sponsored a resolve to put in place a commission to study local zoning and land use policies that create barriers to the creation of more affordable housing. 

The affordability and supply challenge of the housing market was further underscored in later presentations at the conference. Brit Vitalius of Vitalius Real Estate Group shared his insight on the multi-family market in Southern Maine, which has seen a dramatic rise in prices and has been impacted by “Covid refugees” looking to relocate to Maine.

Dava Davin of Portside Real Estate Group provided an update on the single-family residential market in Southern Maine, a sector that reached $8.7 billion total sales in 2021. “Prices went up 20 percent in one year,” shared Davin. “That is incredible! I wrote ‘WOAH’ in my notes.” While the red-hot residential market is present across the state, 50 percent of the record-breaking sales are in Southern Maine and 35 percent of the buyers are coming from out of state. Davin cited a possible solution to the inventory crunch – new construction – reporting that there had been an 85 percent increase in land sales since 2019. Zoning will play a crucial part in how these parcels are developed. Looking ahead, Davin sees exciting growth opportunities in the state’s rural areas, saying that right now “people drive until they can afford it.”

Surprisingly, the retail sector had a solid year, with Peter Harrington of Malone Commercial Brokers providing a report. “If you didn’t buy a new house, you bought stuff for your old house,” Harrington quipped as he drew the connection between the strong residential market and a strong commercial market, saying, “The two go hand-in-hand.” Citing the success in Rock Row, Harrington saw a trend that he predicts will be replicated for new brick-and-mortar retail development across the state, where there is a symbiotic relationship between service retail, entertainment, and housing. “It’s all about getting people to the retail center.”

Nate Stevens of The Boulos Company provided a slightly different tone to the Conference with his report on the Southern Maine Office Forecast. With flat demand, and tenants back in the driver’s seat of the market, the market is learning to adapt. Painting a complex portrait of the office market, Stevens cited the significant sublease space currently available as being a large influencer on the market for the next few years. “This is a lot of space for our market to absorb,” said Stevens. <

This article was submitted with the permission of MEREDA by Larry Eliason, a Commercial Broker with Butts Commercial Brokers in Raymond. You can reach him at 207-415-2112.

Real Estate: Selling this spring, start planning now

By Matthew Trudel

The real estate market continues to strengthen even with the not so pleasant weather we have been having over the last month or so. There is still an enormous issue with the lack of inventory at this point. 

The main reason for that is the weather and snow, which prevents most people from putting their house on the market. They are waiting for the snow to be gone, the grass to green up, flowers to grow, and the weather to warm up. This is generally a good idea and a solid strategy if you are thinking of selling this year and are not in a rush to sell.

It is not too early to start planning a solid strategy of how and when to best market your home, so the process is smooth and successful. This is where an experienced real estate broker can really help you achieve your goal and get you the most money for your home.

There are a lot of things you can and should do to get prepared to list your home for sale long before you actually put it on the market. We cannot discuss every one of those things in this article, but I will write about a few key things you can work on with your realtor and on your own.

One of the first things is to start packing and sorting through everything you have in your home, basement, garage, shed and anywhere else. Pack up things they you don’t need but want to keep, and the rest of the things that you don’t really use anymore should be sold, donated, or thrown away. You can have a yard sale if that is something you want to do or just sell things online.

The most important thing is to declutter so the house will appear to have ample space, closets are not over packed with coats and clothes, and cupboards are not crammed full of Tupperware and cups.

Next would be the maintenance and repair list that you and your broker should create and organize. These are all the little things that you know are wrong with the house but have chosen to either live with or have just put them off for a later date. Now is the time to attack and fix those little things. Things like the leaky faucet, the loose doorknob, the damaged trim, and the touch up painting that needs to be addressed. You don’t have to overwhelm yourself with trying to get everything done at once. Just make a list and try to tackle them one at time and maybe just get one or two done every weekend.

Perhaps there are some larger items that need addressing like a deck, porch, and railing repairs but really need to wait until the snow is mostly gone. Calling contractors ahead of time is a great idea because any of the good ones are already booking into the spring.

If you are going to do the repairs yourself, you can organize a material list and make a plan to get those materials ahead of time or at least ordered. A lot of materials are hard to come by these days so it may take several weeks or over a month to get items to complete the project.

There are a lot of other things homeowners can work on ahead of time and your real estate broker should be able to advise you on what those things are.

The goal is to get your home in the best possible shape to highlight all the amenities and benefits it has to offer potential buyers. This will help you obtain the most money for your home, possibly multiple offers, and hopefully eliminate any sort of negotiations over deferred maintenance or inspection items that might come up during the process.

This will allow for a smooth and successful transaction in the selling of your home. <

For more information or ideas feel free to contact the author directly, Matthew Trudel, Owner of Five Star Realty, Windham, 207-939-6971.

Real Estate: What to do now to avoid costly issues after your home goes under contract

By Richie Vraux

So, you are planning to list your home for sale. There are few things you should be aware of to keep your out-of-pocket expenses to a minimum.  

Your real estate agent should recommend you do a pre- listing inspection before listing your home. The up-front costs can run you $500 to $1,000, but it may be a small cost compared to if the buyers’ inspector finds these deficiencies, at your home. At that time, they will want those issues completed by a licensed contractor. 

We know that will be much more expensive than if you could have fixed it yourself, and you won’t have to scurry around to find the electrician or plumber in the timeframe of the contract, usually 30 to 45 days. I know most sellers will not want to lay out the cost of this inspection in advance, but in the event you can’t get everything completed prior to close, they may ask you to pay those expenses at closing, 

Those costs will be much higher than expected, most likely in the thousands of dollars.

Make sure your inspector is NACHI (National Association of Home Inspectors) certified. A typical home inspection will take two to four hours depending on the gross living space and what a full inspection entails.

He/ she will inspect all the systems, including a water test.  If it is on a well, make sure that the well water meets acceptable drinking water levels. A simple water test should check the radon levels. They should check for radon to make sure the readings are below EPA acceptable air levels; 4.0 pCi/L and also recommends radon concentrations in drinking water do not exceed levels higher than 20,000 pCi/L.

Electrical - Make sure your wiring was installed properly, and your box is adequate for the needs in your home. An inspection will also reveal things like double tapping circuit breakers and or double tapped exposing a possible overload of appliances.

Plumbing - Make sure the pipes are in good order and are not sweating. The heating system is important, You don’t want to find issues with this when it is below zero.  

Heating and AC - Keep on top of your furnace. Get your system evaluated and cleaned yearly to avoid a cold or a hot house. Have your attic inspected. Make sure it is adequately insulated and there is NO mold. If your attic shows signs of mold, check it out immediately. First find out where it is and how it started. It could be a roof leak or another source of moisture. Mold is scary to most people and can actually kill a deal so make sure your home does not show any signs. Windows- Make sure your windows actually keep out the cold and free of unwanted breezes.

 A new septic system can be costly, as much as $15,000, so check it out and make sure it is functioning properly. If it needs to be pumped- do it. If you don’t have a septic design, the town will usually have a design on file, or you can go to the state website and search there. It is always better to know what septic design was designed for rather than not.

After your inspector has completed his inspections, he/she will present you with a full- in depth report of your entire home, with recommendations and pictures showing all your house deficiencies. Read it entirely and take his advice as to the remedies to prepare your home for sale. Again, the deficiencies you address now will save you time, money and a lot of unneeded aggravation.

If you need real estate advice contact Richie Vraux, a Broker/Realtor with Better Homes and Gardens-The Masiello Group, 76 Tandberg Trail, Windham, Maine, 207-317-1297, or by email at richardjvraux@gmail.com

Real Estate: Do mortgage interest rates have an impact on purchasing power?

By Kristin Piccone

The real estate market of 2021 was aggressive and competitive.  It made a lot of buyers exhausted, frustrated and some have even made the decision to “hold-off until the market changes.”  The low inventory and extremely low interest rates drove a lot of buyers into the market to begin with. These lowered interest rates increased purchasing power.  Near the end of 2021, however, rates slowly started to increase and are expected to continue to rise in 2022.  

I spoke with Brian Gagnon of Northstar Mortgage to get his thoughts on mortgage interest rate trends: “With inflation showing signs of being more permanent than transitory and with the Federal Reserve promising to taper its bond purchases, I expect mortgage rates to modestly increase now and to increase into 2022. Mortgage rates tend to follow the U.S. 10-Year Treasury Bond yield, and I expect this figure to increase as our economy continues its recovery and if inflation remains elevated. While this may seem like bad news for those looking to invest in real estate right now or for any homeowners who are looking to refinance their existing mortgages, do not be discouraged. If the expected 2022 average rate, for a 30-year mortgage, increases to 3.5 percent, we must remember how historically low this is. Just three years ago, the average rate for a 30-year mortgage was almost 5 percent, so there remains a lot of buying power for individuals and for families. Also, with rising equities in people’s existing homes, cash-out refinances will remain a great option for many homeowners.”

Moreover, waiting for the market to change could play a significant role in how much your mortgage payment will be and/or how much house you will, effectively be able to purchase.  For example, when interest rates were 2.75 percent, the mortgage payment on a $400,000 home would be approximately $1,633 (principal and interest) per month.  As rates increase, that same home, at an interest rate of 3.75 percent, would be approximately $1,852 (principal and interest) per month.  Consequently, if you were previously approved for a $400,000 home, or looking to keep a certain monthly mortgage payment, your buying power could be lessened to $360,000 or less as rates increase. 

Overall, rates will still seem low compared to year’s past, but could be detrimental, nonetheless, to some.  Serious and savvy buyers will be ready and aware of the impact that any potential increase in interest rates will do to their purchasing power.  To be prepared, I would suggest working with a local, knowledgeable and trusted mortgage lender who will have a heads up of your financial standpoint and purchasing goals.  With this knowledge, the lender is able to keep an eye on market trends specific to your financial scenario and has the ability to advise or suggest actions based on trend performance, for example, rate lock.  On the flip side, I highly suggest working with a local, knowledgeable, and trusted real estate professional (Me!) who is able to act quickly when a home that meets your needs hits the market.  A pre-approval letter from the aforementioned lender, and getting into your prospective home in a timely manner, ensures that there will not be any delays when it’s time to make an offer. <

All in all, I would suggest that this is not necessarily the time to “wait and buy” OR “wait and see what the market does.”  I do not have a crystal ball, but we can see that rates are increasing; I know what I have been up to in real estate, and I am still experiencing multiple offer situations!  For this time of year, this tells me that the market is still going strong.  The bottom line is that any serious buyer should take the rising interest rates as motivation to buy sooner rather than later.  In the long run, waiting could actually cost you more money ~ yikes!

As always, I am happy to chat with you personally about your real estate goals.  Consider me as your local, knowledgeable, and trusted resource for ALL of your real estate needs.  There is never any obligation and I always keep your information confidential.  I value my work ethic and the service that I am able to provide to my clients.  Additionally, I align myself with like-minded industry professionals who are also ready to assist you; teamwork!

Happy New Year and wishing you much success in 2022! 

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

Real Estate: What is Rental or Income Property Insurance?

By Jonathan Priest

As a property owner or landlord, you take risks by letting others live in your space. Not only do you risk them doing damage to your property, but you also take the risk of them possibly becoming injured on or because of your property.  Rental or income property insurance is designed to protect against these risks and to give you the coverage you need to continue renting your space successfully even when everything doesn’t work out perfectly.  

Rental insurance is available through many national insurance companies, and this policy is highly customizable as well. It’s possible only to get protection against the primary liabilities you may face or to increase your security to cover all the potential costs and issues you’ll encounter as a landlord. Only by working with an experienced insurance expert can you get a policy that is protective enough and that covers the specific issues you’re facing. 

Why is Tenant or Income Property Insurance important?

When renting out a piece of property, people move in and around that space all the time. This is a daily risk and when something goes wrong, that impacts your bottom line. Tenant insurance or income property insurance is protection against these potential issues. This insurance is meant to safeguard the property owner from liability lawsuits and help with significant damage to the property itself caused by the tenants or natural disasters.

Common things that are covered by such policies include damage to appliances, the plumbing system, fixtures in the home, water heaters, roofing and other significant areas of the home. These are all parts of the property that are expected to wear out and go bad eventually, but that can be covered against accidental damage and malfunctions under some policies. Since these areas of the home can be costly, it’s beneficial to have that added protection to prevent you from suffering from unexpected emergency repair costs.

Natural disasters are another fundamental area of concern for rental property holders. A lightning strike could do severe damage to the electrical lines throughout the house, while a fire could leave you without a home to rent at all. Hail storms can irreversibly damage roofing, and there are always risks for you to consider that can impact your investment in profound ways. Not only do these policies help with making necessary repairs when something goes wrong, but they can protect you if a tenant is injured in your home. You can also stay protected if you lose out on rental income for a long period of time because of something going wrong with the home that’s covered on your policy. 

Who is Tenant or Income Property Insurance made for?

As a landlord or property owner that’s renting out a home, apartment, condo, or another type of property, tenant or income property insurance is for you. This form of insurance is protection for anyone that’s renting a space for money that they own. If you own a property and you depend on it to generate income for you, it’s worth spending a small amount each month to protect that property with insurance. 

Property owners who don’t rent out their properties or have vacant spaces for extended periods may not want to use this form of insurance. Tenant insurance can be more costly than a basic home insurance policy because it considers the additional risks that renting a space creates. Most landlords and property owners that are running a real estate business can benefit from this insurance, though. 

Income property or tenant insurance is a critical investment that can seriously impact your ability to run a successful real estate business. With the right insurance policy, you are more protected, and your business is likely to be more stable overall. With the wrong policy, you open yourself to serious risks. It can be difficult finding the right policy, though, which is why it’s important to make sure you’re working to track down the suitable options for you. You can do this by talking with many different insurance companies and getting quotes yourself, or you can work with a local agent you trust to explain your options and get help faster. <

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

Real Estate: What to expect in 2022 – The Housing Market

By Katie Kinney

The real estate market has been a wild ride for both buyers and sellers since the spring of 2020. We have seen record high purchase prices, extremely low mortgage rates and cutthroat competition among buyers in multiple offer situations.

The good news, according to experts, is that 2022 may bring more equilibrium to the real estate industry. Here are the key trends to pay attention to if you are considering buying or selling property this year.

Mortgage rates will rise, rates reached all time lows in the beginning of 2021, with 30 year fixed loans averaging less than 3 percent. “Mortgage rates are expected to slightly move up, to an average of about 3.5 percent,” Gay Cororaton, senior economist and the director of housing and commercial research with the research group of the National Association of Realtors (NAR) says.

Even with the slight rise, the rates will be still be low by historical standards, prior to 2020 rates were around 4 percent. While this means refinancing opportunities for existing homeowners may dwindle, borrowing will still be very affordable for new and existing buyers.

Smoother supply chains are predicted for the new year. Hopefully this change will help builders and homeowners get their homes listed sooner than later. Assuming the worst days of the past few years are behind us, home inventories should grow in the year ahead.

When the inventory rises, we should see price stability and a decline in the home buyer competition. The prediction is home prices will grow by 5 percent in 2022, compared to 15 to 20 percent growth in 2021.

Historically speaking a 5-plus percent growth from year to year is a normal trend. As far as the sell side goes, sellers should be prepared to price their homes aggressively and take advantage of the buyers still in the market.

This year should feel a little more normal to experienced real estate shoppers and calmer to first time homebuyers who have only experienced the past two years. Keep in mind, regardless of the market conditions, the advice for people interested in buying or selling remains the same. It is always important to be prepared and understand the current market. Having a knowledgeable agent at your side will make navigating listings or offers much easier.

Your realtor should also advise you on the specific dynamics of the real estate market you are listing or shopping in. < 

Katie Kinney is a broker with Landing Real Estate. Contact her by email at

katie@landinghomesmaine.com or by phone at 603-205-2276.

Real Estate: The Risks of Skipping a Home Inspection

By Carrie Colby

In the crazy real estate market we are in, many buyers are forgoing building inspections. This may make your offer as a buyer more attractive to the seller but there are significant risks in doing so. 

Just this week I put a house under contract for my buyers. While the sellers and buyers agreed on a purchase price the seller said they would be selling the house “As Is”. I recommended we go ahead and do an inspection anyway to make sure there were no major defects that would cost the buyers a considerable amount of money now or in the future.

Low and behold the inspection revealed that the septic failed and there is quite a bit of mold in the basement. Now I am in the process of finding out if the septic can be fixed or needs to be replaced and what it would cost to remediate the mold.

We will see how this pans out. Will the seller agree to have the septic fixed and mold removed? Will the seller stick to their “As Is” guns? Will the buyer decide to walk away or take on the repairs themselves?

That being said, as with any major purchase, buying a home requires a significant amount of due diligence to protect your interests and make an informed decision. A thorough, professional home inspection is a fundamental piece of the information puzzle. It’s nearly impossible to gain a complete and accurate overview of the home without it.

Here are a few of the main issues you may not learn about when you waive your right to a home inspection:

Unknown safety hazards
Without a home inspection, you may not learn about pressing safety issues that should be addressed before closing. Home inspections take several hours to conduct, and many safety issues will only be identified in the course of a normal home inspection. This includes concerns such as electrical hazards, fire hazards and carbon monoxide hazards.

Need for expensive repairs or replacements
You may think that major structural or maintenance issues requiring extensive (and expensive) work would jump out at you. Many problems that might give a home buyer pause are hidden by nature or by design, and it takes an experienced home inspector to suss them out. There is a laundry list of deal-breaking problems that have come to light during home inspections.

No maintenance plan for the home
Unlike vehicles, homes don’t come with a maintenance manual. When you get a home inspection, you’re not just getting a professional honey-do list. Home inspectors also give advice about the future maintenance needs of a home to help make sure the new owners are well-educated.

Knowing what big jobs may be coming in the next five to 10 years makes it easier to create a financial plan and be ready for them, like roof repairs or replacement, or a new furnace. Sometimes telling home buyers when to expect a repair is almost as valuable as finding major defects, as it allows you to budget,

A home inspection provides a home buyer with the information they need to consider in the overall home purchase equation. For example, a home that is selling at a lower price but will require major repairs in years shortly after the buyers move in may not be the right house for them. A better option may be to pay a bit more for a home with updated systems. <

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