Archive for the 'Observations and Commentary' Category
Maine Lakefront Real Estate - Can You Handle The Truth?
September 29th, 2008 categories: Observations and Commentary
One of my favorite actors is Jack Nicholson. In ” A Few Good Men” he played a world weary Marine colonel who was being interogated by pretty boy Tom Cruise in a military court martial. When Cruise told the colonel that he wanted the truth, Jack blurted out “You can’t handle the truth!” (Click here for that great clip.)
I was reminded of that scene the other night when I attended a seminar where the Mr. Lakefront website and blog were among a few being reviewed by a group of business folks.
Business people today understand that one’s effective presence on the internet is very important. Personally, I consider the internet to be the greatest advertising tool since Television. Having our website reviewed by fellow business people was a chance for me to get valuable input. No one likes having their baby called ugly. But I took that chance, feeling I could handle their criticism. Truth is, I was looking for a few good tips to make our site and blog more effective.
During the course of the review the class was unanimous about one particular thing about the Mr. Lakefront website and blog. They told me that Mr Lakefront was crazy to share negative information about the area with prospects who were considering the purchase of a lakefront home here.
What really bothered them was the many articles Jon and I have posted about the horrific boat crash on Long Lake which killed two people. “What possible good is there in sharing that story with people who you’re trying to sell?”, they asked. They said that it would be better to share positive stories related to waterfront property, but stay away from negative stories that perhaps tarnish the area’s image.
Should a negative story be suppressed? Should only upbeat and positive stories be shared? Should we not talk about invasive species, threats to water quality, and the strictness of state and town shoreland regulations? We don’t think so. While our Lake News and blogsite is not pretending to be the New York Times, we do endeavor to keep our readers informed about what’s going on in the area and to “keep it real”.
An acting coach friend of mine said that in order to have soft you must have hard. In order to have smooth you must have rough. Without contrast it’s all pablum.
We love Maine for the great place that it is. Living here is wonderful, but it’s not free of problems and challenges. No place is.
Can you handle the truth? Yeah, we think so.
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Maine Lakefront Real Estate - “Win-Win” Becoming a Thing of the Past
September 5th, 2008 categories: Observations and Commentary
Years ago, when I first dipped my toe into the waters of lakefront real estate here in the Lakes Region of Maine, I was told by a long time veteran broker that too strong of a market, one that favored either the buyer or the seller, was not good for business.
He explained that in a strong seller’s market the seller takes advantage of the many buyers and, conversely, in a strong buyer’s market the buyers take advantage of the many sellers. Of course, one side can only take advantage of the other when market forces are on their side.
I was reminded of this the other day when Diane Monaco, our senior buyer representative, poked her head in my office and said, “I’ve been reading your blogs lately. They all seem to describe unreasonable buyers. Why don’t you tell our friends about some unreasonable sellers.” Well, okay. Here goes!
In the great seller’s market from 2002 to 2005, sellers became very demanding of buyers. That’s because supply was very low and demand was very high. I witnessed offers of 99% of the asking price being turned down by sellers. Some sellers wouldn’t give up a cent. “We’re not giving it away” was their attitude.
I remember a 35-year-old seller selling a lakefront home that his grandfather had built in the forties. The seller had inherited the place and decided to sell. When it came to negotiating an offer one would think that he had personally built the place by the sweat of his brow. Someone who was to make a half a million dollars bargained for every last penny as if his life depended on it. Good business? Perhaps. Bad karma? For sure.
During the height of the sellers market one seller asked me to make it a requirement that all buyers produce a letter from a reputable financial institution proving that they were eligible to purchase prior to viewing his home. The seller didn’t want any riff-raff daring to look at his home. Only folks that had passed financial muster and were thus deemed worthy could view his home. Think I’m making this stuff up? I’m not.
Another seller, prior to a closing, instructed the selling agent not to give the keys to the lakefront home to the buyer until it could be proven that the proceeds of the sale (in the form of a cashier’s check drawn on a reputable bank) had safely been deposited in the seller’s bank in Florida. For three hours after the closing, the buyers, deprived of the keys to their new home, sat in the reception area of a local attorney’s office waiting for the bank in Florida to acknowledge the receipt. All the while, a moving truck with all the buyers belongings sat idling outside, belching diesel fumes as if to say “this stinks”. Where were the sellers? They went off for a celebratory champagne lunch! How do I know this story is true? Because I was the buyer. How much bad karma was stirred up that day? Plenty!
In more equitable markets the ideal is to have both buyer and seller feel as if they have gotten a fair deal. “You give a little and I’ll give a little and we’ll come to an agreement.” Both give and both get. This is the so-called “Win-Win” situation. But in unequitable markets one side has tremendous leverage over the other and that leverage can sometimes lead to feelings of greed, frustration, and resentment.
A great sales manager once advised me that, when it comes to negotiating, do your best, but don’t leave a bad taste in your opponent’s mouth. It was simply bad for business. “You can’t make everyone a friend, but do everything possible to avoid making enemies. Never make the other side feel like losers by taking away their pride”.
At one time it was considered good form to be gracious in victory. Leave the other side their pride (and a few dollars!) so they feel like they’ve won something, too.
Well, today we’re in a buyer’s market. Supply is high and demand is low. The shoe is on the other foot. Now we have buyers making very low offers to sellers, hoping to find someone desperate enough to accept. What about Win-Win? I’m afraid that concept has been relegated to the dust bin of history - back when the market was more equitable.
Today, market conditions are being leveraged by buyers and brought to bear on sellers. Are sellers feeling the squeeze? You bet. It can be downright painful. Good business? Perhaps. But, how I long for that more equitable market, where “win-win” will once again rule the day.
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If you’d like to check out the multitudes of lakefront listings currently for sale, look no further than our Lakefront Locator. Just click on the hotlink and be carried away to hundreds upon hundreds of lakefront homes to choose from.
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Maine Waterfront Property - Can I Cut Down That Tree?
September 2nd, 2008 categories: Observations and Commentary
Buyers of waterfront property have many things to consider when looking for just the right property to buy. Right at the top of the list are questions concerning the land and what can and cannot be done with trees, bushes, and other vegetation that lie within the protected shoreland zone.
Most people like a nice view of the water. Can trees be cleared to open up an otherwise obstructed view of the water? Can dead or diseased trees be removed even if they’re in the protected zone? What about cutting existing limbs and clearing out underbrush? And what about that nice path you want to make all the way down to the water? I mean, what’s the point of having a nice lakefront home if you can’t see the water or walk down a nicely cleared path to the water?
Well, Maine’s Department of Environmental Protection has put together an information sheet describing, in a succinct way, the dos and don’ts about trees and other vegetation in the shoreland zone. It provides a helpful reference point and guidelines for landowners. Here is a hotlink to that information: http://www.maine.gov/dep/blwq/docstand/ip-szveg.htm
Please keep in mind that you should always consult with your local Code Enforcement Officer to get a specific answer to any question you have about what you can and cannot do on land that lies within the protected shoreland zone. The CEO is the person who applies, interprets, and enforces the Shoreland Zoning Ordinance. Foregoing a consultation with him or her is inviting trouble. Penalties and fines for not complying with the ordinance are punitive and severe.
Enjoy your shorefront property to its fullest by knowing the law and living by the rules. It’s in everyone’s best interest.
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Maine Waterfront Property Buyers - How Flexible is Your Wish List?
August 30th, 2008 categories: Observations and Commentary
Frequently our team members here at Mr. Lakefront meet lakefront buyers who seem to have a really clear idea about what they want in a lakefront property. At first blush, this might seem to be a good thing. However, sometimes it’s not.
In developing a lakefront home “wish list”, the mind of the acute and thorough buyer often conjures up the ideal house. Now, “ideal” is all well and good, but it’s a daunting, if not impossible, task to find a property that can fulfill all the criteria for the ideal house.
We suggest a more “elastic” approach, where a lakefront buyer would come to us with fewer preconceived ideas about what kind of lakefront property he or she wanted. Imagine the heightened sense of discovery a buyer would experience if he or she weren’t constantly looking for an ideal and was open to more possibilities. They would also lose that sense of frustration that comes with trying to fit a square peg into a round hole.
With fewer absolute criteria, the buyer could embark on an adventure, exploring possibilities where several, but not all, criteria are met. For example, it’s reasonable to hold firm on a realistic price and location. But rather than immediately dismiss any place that doesn’t have that two car garage, fourth bedroom, or finished, walk-out basement, set those criteria aside and open your mind up to other possibilities. Maybe something really special would come to the attention of the buyer if they had not become a prisoner of their own wish list.
It’s good to be discriminating. It’s not our place to tell buyers what they should like or dislike. But please, lakefront buyers, keep an open mind to properties that have less than 100% of your criteria. Your buyer agent knows the available inventory and what you wish to pay. Give them a chance to help you find it. What you eventually buy might not look like what you had originally conjured up. It might be better!
By the way, if you’d like to take a look at some current lakefront listings it’s as easy as clicking right here on our Lakefront Locator. View all the current lakefront listings for the entire state on this single website!
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Maine Lakefront Real Estate - A Lesson in Timing the Market
August 22nd, 2008 categories: Observations and Commentary
At the height of the seller’s market in the summer of 2004, I met with a seller, a resident of Florida, who owned a great family compound on one of the largest lakes here in Maine with three separate camps on over five acres. I recommended an asking price of $1.1 mllion. I told him that demand was exceedingly high and supply was very low.
During our discussion he realized that he could save a bunch on capital gains taxes if he would become a Maine resident for two short years. I cautioned him that the market can change abruptly and reminded him that “man plans and God laughs”.
He said that owning lakefront property in Maine was a sure thing. I wished him well. Two years later, almost to the day, I met with him again. He had become a Maine resident for the past two years. He had committed to stay in Maine a minimum of six months a year. This was twice as much time in Maine as the three months he formerly stayed. He had to come earlier in the Spring and stay later into the Fall. But now, he was ready to sell the property.
After reviewing the comparables, I told him the market had changed. His property was now, after two years, worth less, about $865,000. He couldn’t believe it and, after an hour of us haggling, arrived at an asking price of $925,000. Approximately one year later, after several price reductions, we sold the property for $859,000. He had gone through a lot of bother for nothing. In fact, it cost him money
Now why did I tell you this story? Was the seller foolish? Was he greedy? Perhaps, but I gotta tell you he’s one of the smartest, saviest guys I know. He simply overplayed his hand. There was one big variable he could not control. He couldn’t control the market.
Right now demand is low and supply is high. This is the perfect time to buy a lakefront home in Maine. Five years from now many of today’s buyers, who sat on the sidelines paralyzed with fear during the greatest buyers market in their lifetimes, will be shaking their heads saying ” I shoulda, I coulda, if only I woulda”.
Since gasoline has gone from $4.14 a gallon to $3.68 a gallon, a reduction of 46 cents a gallon, the real estate business has picked up. Offers are being made and offers are being accepted. Why would a 46 cents a gallon price reduction in the price of gasoline cause longtime lookers to make offers? My take: A little good news goes a long way. Good news made some folks more comfortable about making a buying decision. Fear took a step back.
Some buyers, however, keep looking. Their search now has evolved into a ongoing quest for the perfect house at a discounted price. They deprive themselves and their families a lakefront home in Maine fearing they might buy too soon, not at the bottom of the market.
Years ago I was a sales trainee with a large national company. I was sent to the home office in Dayton, Ohio for sales training. For two weeks a number of sales trainers lectured us about the “dos” and “don’ts” of sales work. The sales trainers, all pretty boys who looked good in three piece suits, had spent a bit of time in the field and presumably had experienced some measure of success.
But occasionally a real sales manager, a company legend and icon, would be brought in from “the field” to tell us how “the cows eat the cabbage”. (Don’t you love the midwest?) One crusty old sales manager told us, “Fellas (no women sales reps back then), people are motivated more by fear of loss than by expectation of gain.”
Diane Monaco and Sandi Potter, our capable, exclusive buyer agents, have told me that some buyers have seen 50 or more houses and have failed to find something they like. What??? When I hear things like that I know that the fear of making a bad decision is clearly at the wheel and that the road for some lakefront buyers will be a long and bumpy one.
By the way, if you’d like to take a look at some current lakefront listings it’s as easy as clicking right here on our Lakefront Locator. View all the current lakefront listings for the entire state on this single website!
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Maine Lakefront Real Estate Buyers - Victims of TDS?
August 12th, 2008 categories: Observations and Commentary
When it comes to lakefront property is bigger really better? Recently, I sat down with a nice couple who own a 3,000 square foot lakefront home. It had four bedrooms and guest quarters over the garage.
When I asked why they were selling , he said the place had “grown too big” for them. She said they bought a large place anticipating the future needs of their family. They figured their kids would have families of their own and that they would need a place large enough to accommodate them all.
“We did have great times here, but 95% of the time we were here by ourselves. We love it here, but we never needed a house this big.”These nice people clearly over bought. They miscalculated their future needs and wound up with a place that, because of it’s size alone, became a burden. As buyers, they fell victim to a malady I call the Thanksgiving Day Syndrome or TDS.
Folks who suffer from TDS only consider buying homes that can fully accommodate the needs and desires of the entire family on Thanksgiving Day. A buyer with TDS looks at property after property with a little voice in their head saying “could I do Thanksgiving Day dinner here?”
A few years ago I had the chance to perform a market analysis on a lakefront camp that I had stayed in with my family fifty years ago. Back in the 1950s Dad had rented “Violette’s” cottage on Little Sebago Lake in North Windham.
When I walked in the door after 50 years I was absolutely stunned. The place could not have been more that 600 square feet in size. I asked myself how in the world did a family of six vacation comfortably for three weeks in a place this small?
I realized that the place had only one bedroom, for Mom and Dad, of course. My two sisters had stayed in the “loft”, a tiny attic space no more than four feet in height with two cots. My brother and I slept on the the screened porch.
For the very first time in my life the thought occurred to me, however fleeting, that as a child I must have been underpriviledged. If I found so much pleasure and had so much fun in a 600 square foot camp imagine the heights of delirium I could have experienced in a 3,000 square foot place!
It doesn’t work that way.
I realized that the pleasure did not primarily come from that old humble camp, however charming. The pleasure came from being with my family on the lake in Maine. It was the blueberry picking, the hunting for mushrooms in the woods with my Grandpa, the swimming in crystal clear Little Sebago, the canoeing on the lake at sunup, and fishing for white perch with my Dad and brother.
When it comes to lakefront property is bigger really better? Does size really matter? Dear friends, you’ll need to answer that question all on your own. Just be wary of falling victim to TDS.
By the way, if you’d like to take a look at some current lakefront listings it’s as easy as clicking right here on our Lakefront Locator. View all the current lakefront listings for the entire state on this single website!
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Maine Waterfront Property - Is Title Insurance For You?
August 9th, 2008 categories: Observations and Commentary
When you buy a property you are usually given the option to purchase title insurance. The first time the option was given to me I asked, “Why do I need title insurance? I have paid good money to a title attorney to research the title and to make sure a clear title is being conveyed to me at the closing.”
All true, but what I didn’t understand is that there may be problems with the title that are not apparent or even “discoverable” by the most capable title attorney. Therein lies the reason that purchasers of property should always buy title insurance.
Among the defects that a title might have that a thorough search of the public records might fail to disclose include the existence of a forged will or deed, a transfer of title by someone underage, undisclosed heirs, fraudulent impersonations, invalid divorces, prior conveyance by a married person without knowledge of the spouse, defective recordations, and false affadavits.
All of these things can, and do, happen - not often, but often enough that you should be willing to part with a few hundred dollars to protect your ownership of property and give you peace of mind.
When you have title insurance and there arises some claim against your property, some suggestion that there is a “cloud” on your title, or that you have not received “clear” title, your title insurance company will defend your ownership against any claims, at no cost to you, whether the claim is a valid one or not.
Without title insurance you could be in jeopardy of losing your investment. The title insurance company will come up with a solution even if it means paying you for a bad title.
There is a one time premium payment for the insurance and it’s good forever, theoretically. That’s right, one payment and you’re insured forever.
If you’re buying a property make sure you have a discussion with your title attorney. He or she can explain in much more detail the reasons for purchasing title insurance, the terms and the coverages. Rest assured that it makes good sense - and good cents!
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Maine Lakefront Real Estate - the Case For Lake Access
August 2nd, 2008 categories: Observations and Commentary
Lakefront Buyers often face a decision they would rather not have to make. The choice is between purchasing a very modest lakefront home or a very nice lake access home.
Suppose one had a budget of $300,000 to spend on a lake home. If one had to have a lakefront home the value of the lot often takes up a good bit of that $300k budget.
A typical lakefront lot has 100 feet on the water and is about a half acre in size. On a small lake like Saturday Pond in Otisfield (200 acres in size) the typical lot will run about $150K which leaves one with $150k to spend on a structure. Not bad.
But, what if one wants to be on at least a medium size lake of about 500 acres in size like Thomas Pond, Watchic Lake or Crystal Lake in Harrison? A typical lot on a medium size lake will run about $250k which then leaves only $50,000 to spend on the house. Let me tell you $50,000 is not going to buy you much of a house.
What if one had dreams of being on a large lake like Thompson, Long or Sebago? Lots on those lakes will start around $350,000. With a budget of $300k one not only has no money for a house, but no money for a lot!
Now with the same $300k budget let’s take a look at what kind of lake access home one can buy. A typical lake access lot is one half to one third the value of a lakefront lot.
So on a small pond like Saturday Pond a lake access lot will cost $50k to 75k. This will leave the buyer with $225k to $250k to spend on a house.
A lake access lot on a medium size lake will run $85k to 125k. This gives one $175k to $215k to spend on a house.
A lake access lot on a large lake can run from $100k to $150k. This leaves one with $150k to $200k to spend on a house.
Sometimes folks with a $300k budget will walk into my office and want a lakefront home on Long Lake for $300k. Not going to happen. But a lake access home to Long Lake for $300k is very do-able.
Right now there is a very nice selection of lake access homes on the market. If having a nice home in the lake region with lake access to your favorite lake is important, give lake access properties a look.
Check out all the lake access homes on your favorite lakes by using our Lakefront Locator. It’s easy and fun! Try it out!
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Maine Waterfront Property - 15th Annual Antique & Classic Boat Show
July 29th, 2008 categories: Observations and Commentary
As a boy in the 1950s on Little Sebago Lake in North Windham I fell in love for the very first time. The object of my attention was not Carolee Leadbetter, the pretty girl next door, but the boat next door, a 1956 Lyman speed boat!
Our summer neighbors, the Ripleys, were exceptionally nice people, especially to folks they hardly knew - the folks on vacation from a three decker in South Boston. Say what you will about Mainers, they’re not snobs.
Mr Ripley owned an Oldsmobile dealership in the Portland area, a camp on Little Sebago and that 1956 Lyman speed boat. When I saw that boat for the first time my heart skipped a beat.
Lyman boats were wooden boats constructed in Michigan and were built to withstand the rocky shores of Lake Michigan. They may have been built for durability and reliabilty but I loved their classic lines and their gleaming white bodies against perfectly varnished mahogany.
A few years ago I stopped by the Ripley camp in North Windham and found that, after over 50 years of ownership, the family had sold the camp on Little Sebago. For old times, I took a peak at the dock hoping to see the Lyman tied up there. The Lyman was gone, too. That glorious boat now exists only in my memory.
Although Lyman boats are no longer built you can see a number of them this Saturday, August 2nd from 10AM to 3:00PM at the causeway in Naples, Maine. In fact, one of the finest restorers of Lyman boats in the world lives here in Maine and will be attending the show.
I mention the restorer only because you too can own a classic boat. If you attend the show my friend Howard Perkson, who has forgotten more about classic boats then I’ll ever know, can point you in the right direction. It’s easy to find Howard, he’s the friendliest guy at the town dock. Howard is a great ambassador for the sponsors of the show, The Mountainview Woodies Classic Boat Club Of Maine.
At the show you will not only see Lymans. You’ll see the gorgeous mahogany Chris Crafts, Gar Woods, Century’s and other classic wooden boats. Do try to make the show. It’s the closest thing we have to a “must see” event all “summah”. See you there!!!!
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Maine Lakefront Real Estate - Is a Fixer-Upper For You?
July 24th, 2008 categories: Observations and Commentary
From time to time a lakefront listing will come on the market that will be in poor condition. Lakefront buyers will ask Mr Lakefront, ” Why did the owners allow the place to slip or fall into this condition?” “It’s a sin that they let the place go.”
Well, if it is a sin, it was a sin of omission, not commission. In most cases, it was not a willful act on on the the part of the owners. Here is the most common scenario.
Mom and Dad pass away and leave the lakefront home to their three kids. Over time, two of their children move away and no longer visit the Maine lakefront home, prefering Cape Cod or some other vacation area.
Sometimes one of the adult children will just want the money from the sale of the property. Whatever the reason, the much loved summer place becomes a burden. “Why should we pay to maintain something we don’t use”. Their share of the taxes and maintenance becomes a burden and they want to sell the place.
The third child lives a couple of hours away, perhaps in Massachusetts, loves the place and does not want to sell. The trouble is the third child can’t afford to buy out his or her siblings.
When it comes time to replace the roof, or the leach field, or the furnace, the two children who live away refuse to spend the money. The third child won’t bear the expense solely, so things slowly fall into disrepair from neglect. In time, the third child relents and the place goes on the market.
One person’s problem becomes another person’s opportunity. Some folks will look at a fixer upper as a daunting task, too much to take on. Others will view it more positively. They will see an opportunity to buy low into a better location than they could have possibly afforded otherwise.
Some folks are handy. They understand the power of sweat equity. They look upon a fixer-upper as a challenge. These are the kind of folks who watch “This Old House”on PBS. If it’s not impossible, they are willing to give it a go.
If one is not handy, that does not necessarily mean a fixer-upper is out of the question. You can hire an interior designer who understands construction. For example, my friend, Lorraine Blais of Blais Interiors, can restore the lustre to almost any rundown situation. She has the command of a group of trusted and skilled trades people. Turning the sow’s ear into a silk purse is her stock and trade.
Okay, are you ready to consider a fixer-upper? Here’s a great one. It’s a listing on majestic Long Lake in Naples in an incredible neighborhood. Check it out here!!!
By the way, if you’d like to take a look at more current lakefront listings it’s as easy as clicking right here on our Lakefront Locator. View all the current lakefront listings for the entire state on this single website!
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Tom - MrLakefront
