Archive for December, 2007
It’s Winter in Maine! Lakefront Property Inaccessible? How about a View Lot?
December 31st, 2007 categories: Maine Waterfront Real Estate News
January in Maine means cold and snow most anytime. These conditions generally curtail a lot of activity in the Maine lakefront property area, but afford opportunities for looking at other properties in ways not always taken advantage of.
Many of our clients are looking for land on which to build that special home. Often when a lakefront lot is not available or affordable, a client’s second choice is for a view lot. In this area of Maine a view lot usually means an elevated parcel that affords clear views of surrounding lakes and mountains.
I was out riding around recently and drove up into a recent subdivision that I first saw last year. In June, the rough, dirt road was rutted and wet. The lots had been cut over, but still there were many trees around, fully leaved out. You couldn’t always tell what the view was from a particular lot.
Today when I was up in the same subdivision the road was in much better shape. Gravel had been added and grading done and any place that was difficult in the past to drive over because of mud and ruts, was easy because today the road was frozen solid! No getting stuck in the mud today!
But the best part was to see the views. Magnificient! All the leaves are off the trees so I could clearly see what the developer had in mind - beautiful views of the White Mountains and Mount Washington.
Many trees are left to allow a new owner to decide how much to cut and how much to leave. In June my view was partially obstructed by the leaves on the trees. Now you can get an excellent idea of what your view would be without having to cut a tree prematurely.
Interested in a view lot? This is a great time to get out and have a look. Drive around and look for new subdivisions in elevated areas. Access roads are often kept plowed even if no construction has started.
Need some help? We can help you find just the right lot at just the right price and you don’t have to wait until spring to see it.
It may be cold out, but you can see for miles and miles.
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5 Top Attributes of a Maine lakefront property
December 31st, 2007 categories: Maine Waterfront Real Estate News
It’s important for a buyer of Maine lakefront property to understand what gives a lakefront lot its value. Everyone’s heard of location, location, location, but what is it about location that gives a lakefront property its value?
Maine lakefront properties are made up of two parts: the building and the lot. While it’s true that building costs have been ever-increasing , it pales in comparison to the increase in the value of the lot over the same period.
Here are the top 5 attributes that give a lakefront property’s location its value:
#1 Sandy Beach:
More members of your family can enjoy the water with a sandy beach. With a sandy beach, mothers can see their toddlers playing safely at the water’s edge and seniors can enter and exit the water easily. Lacking a sandy beach, sandy bottom frontage is the next best thing. Sandy beaches are rare, and that’s what makes them so valuable and desirable.
# 2 View:
Having a nice wide water view is very important at all ages. If a property is located on the eastern shore, you not only have sunset views, but also views of the western mountains. There’s nothing more satisfying than relaxing on a deck or patio overlooking the water.
#3 Level Lot:
The flatter the lot, the better - it’s easier to get to the water and enjoy the surrounding area. Homes that are on steep grades are difficult to navigate. I’ve seen lakefront homes on steep grades that require one to be half Billy goat to safely get down to the water.
#4 Proximity to the water:
Years ago, homes and camps could be built close to the water. It allows you to watch the kids from the deck or the screened porch and gives you the chance to be closer to wildlife - loons, mergansers and ducks. Closer to the water is better. Since 1990, all new homes must be built at least 100 feet from the water - unless the lot is grandfathered.
#5 Privacy:
If you’re coming to your Maine lakefront property from a metropolitan area, nothing quite beats the quiet serenity and privacy of a lakefront home. Having a thick privacy screen of hemlock and pine between properties is very desirable. Sadly, not all lakefront properties offer the privacy you seek. When looking at properties, be sure to check out the lake frontage area, which can express the amount of privacy. It’s tough to have much privacy with only 50 feet of frontage. The typical lakefront lot is a half-acre in size with 100 feet of water frontage. 100 feet of frontage starts to give one the privacy one seeks. The more frontage, the more privacy.
What attribute or attributes do you think deserve top consideration? Would you add anything to our list?
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Buyers and sellers in the Maine lakefront homes market are living in the shadow of the subprime mortgage fallout.
December 17th, 2007 categories: Maine Waterfront Real Estate News
Inventories on the rise - Where are the buyers?
Like it or not, whether you are buying real estate or selling lakefront real estate, this subprime mess is affecting us all. Inventories are rising, prices are falling, lenders are tightening, and everyday seems to bring another alarming headline about how the sky is falling. Well, fear not, my friends.
“This environment may not be ideal in the world of lakefront real estate, but was it reasonable to think there would be an unlimited amount of buyers continually coming into the market?”
When properties are appreciating 15% per year, year over year - even when sufficient capital is available to lend to most anyone who wanted to borrow - buyers will eventually balk at the prices and stand on the sidelines.
Bernanke Shows the Way
It seemed the greatest fear in 2003, 2004,and 2005 was being left behind in the great real estate goldrush. Now the shoe is on the other foot. These are times that call for a steady hand, clear thinking, and the calming affect of perspective and, even if you don’t have those attributes, we have a federal government who does. Agree with the policy or not, Ben Bernanke seems to be hellbent on doing all he can to keep this economy out of a recession. And now Treasury Secretary Paulson is strongarming some banks and lenders to hold the line on those adjustable rate mortgages. He’s hoping to hold the rates down long enough so the Fed can catch up with rate cuts so that when the new adjustable rate does kick in the new rate won’t be so hard to deal with.
Not Out of the Woods - Yet
We have a ways to go to get out of this mess and I don’t think anyone will call the crises over until there is convincing growth in new housing starts, a decrease in the inventory of existing homes for sale, and a leveling in the price of homes. But until that day comes - in a year? 18 months? - take heart in knowing that the market will sort itself out with the steadying hand of the Fed, the Treasury, and the financial institutions.
Message to Buyers and Sellers - “Get Real!”
In the meantime, if you’re a buyer of real estate, do not be cavalier about this market by thinking there will always be lots of properties to look at and if “I don’t buy something today there is always tomorrow”. Several times I have seen buyers walk away from a great property because they couldn’t get the seller to lower the price enough and thought that there were greener pastures elsewhere. There is also the fear that maybe the market will continue to go down and, if they had just waited that extra three or four months, they could buy the same property at a lower price. Maybe so - and maybe not!
My advice to buyers is simple - if you find a property you like, negotiate a reasonable price, and buy it. What are you waiting for? A cheaper interest rate? Talk to someone who borrowed money in 1980 and ask them if a 6% fixed rate mortgage is a good deal. Trying to time the bottom of the market is a sucker’s bet. Most buyers I know plan to own their property a minimum of five years - and often for a lifetime. History tells us that, while it’s impossible to know which direction the next 2% move in the real estate market is going to be - up or down - the next 20% move in the market is going to be up. Nobody can predict movements in the market day to day, or even year to year, but, over the long haul, the movement is up, not down.
And what are sellers supposed to do in this climate? Tons of listings competing for attention, buyers playing hardball, and the sickening feeling that you should have sold two years ago, not now. You are right on all counts. Your medicine is to take a dose of reality. The market has come down some, a simple product of our great economic system, supply and demand. Just as buyers want to buy at the very bottom so, too, do the sellers want to sell at the very top.
How realistic is this?
Not very. And while this might not be very comforting to sellers who had a market evaluation done two years ago that came in ten percent higher than today’s price, there are still buyers out there and the mortgage rates are still quite reasonable. So, how do you get someone to buy your property? Well, like I said, take a dose of reality, really look at the local market, then set your price. Look at all the similar properties in your market, the properties that you are competing with to attract buyers. Price your property so that every one of your competitors will drive buyers back to you because you have the most reasonable and attractive price point. Buyers are fewer, but they are out there. Make sure buyers buy your property. Don’t give them the incentive to buy someone else’s.
A fearful market presents opportunities
The next year or so in the real estate market is going to be hard on a lot of people - especially on lenders who lent recklessly and borrowers who borrowed foolishly. For the rest of us, hopefully this will be a time to gain perspective - but don’t be inactive out of fear or greed. The market will sort itself out just as time continues to heal all wounds. If you’re in the market to buy there is a lot to look at and a lot of reasonably priced homes. Find one, fall in love with it, and buy it. If you have a property to sell, do not be afraid.get aggressive There are buyers out there. Sharpen your pencil, do your homework, and about postioning your property in the market to sell, not sit.
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Hello world!
December 5th, 2007 categories: Maine Waterfront Real Estate News
Welcome to TomatoBlogs. This is your first post. Edit or delete it, then start blogging!
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Tom - MrLakefront
