A New Look (For Our Website)

We have continued to make improvements to our website, which we would invite you to take a look at if you haven’t recently…www.WaterfrontPropertiesOfMaine.com.

A major change is that we have added some outstanding photos of the state of Maine taken by Paul Vose, a well-known photographer from Cape Elizabeth. His specialty is aerial/panoramic photos taken with specialized equipment. As you will see, the results are fairly spectacular. You can order prints of his photos in several sizes -- and framed if you like. Just go to his website www.eaarts.com for a look at his images and ordering information.

Other recent improvements include “Interactive Maps” for each category of waterfront property, which lets you locate each listing on a map of Maine – and each listing now has a “Body of Water” button, which, when clicked, will give you extensive information on the lake, river or coastal area where the property is located.

Stay tuned for future improvements…

"Now" is the Time to Buy...

There is an old saying in real estate circles: “NOW is always the best time to buy”. Why? Because it is always a good time to buy a good piece of real estate, at a good price -- if it meets your needs.

Historically, real estate in the United States has always increased in value over the long run – and it is the best wealth building tool available to individuals -- plus for the majority of Americans, it ends up being the largest slice of their net worth and financial estate.

Today, given the current market conditions, many professionals think this is the best buying opportunity in decades:

1) Selection: There is an unusually large inventory of properties to choose from.
2) Prices: There has been an average decline in prices of 20-30% since the peak of the market 2 years ago.
3) Interest Rates. With decent credit, 30 year fixed mortgages at 5% (and perhaps going down to the 4% range) are historic lows, making lower priced housing even more affordable.
4) Timing: Because of real estate’s cyclical nature, sooner or later the inventory will decline (it is already starting to be absorbed by bargain hunters), prices will level off, interest rates will start to rise, sellers will become less flexible…and the bottom will be behind us. We think buyers will have this unique opportunity through the first half of 2009 before the market begins to change -- as it always does.

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Our Stimuls Program: Save Hundreds, Maybe Thousands.

Housing has always led the way out of economic downturns. To play our part in re-invigorating the real estate market, Waterfront Properties of Maine will contribute 20% of their commission to our Buyer’s closing costs on any sale completed before July 1, 2009. Depending on the size of the sale, this could amount to several hundred – to possibly several thousand dollars in savings…

Obama's Stimulus Program: Free Money, Other Perks

With the signing of the American Recovery and Reinvestment Act of 2009, the federal government has made some bold and unprecedented moves to stimulate the housing market.

America’s home buyers and homeowners will soon have:

1) Lower interest rates for home mortgages, probably in the 4% range.

2) A greater ability to get financing through FHA, Fannie Mae and Feddie Mac in high cost areas.

3) Foreclosure mitigation and short sale standards.

4) A true tax credit incentive to buy a home NOW. If you are a first time home buyer or have not owned a home in the last 3 years, and you purchase a home this year of 2009, have an adjusted gross income of less than $75,000 ($150,000 on a joint return), then it is likely that you will qualify for $8000.00 tax incentive which is almost FREE money that you won’t have to repay, unless you resell your home in the next 3 years.

For more details, you can go to either http://www.federalhousingtaxcredit.com/2009/faq.php or to http://mainerealtors.com/First-TimeHomebuyerTaxCreditFAQ.pdf.

Fall In Home Prices Boost Sales

Fast-dropping interest rates and the most affordable homes in more than three decades helped prop up the staggering residential real estate market in December, according to a report released Tuesday.

The pending home sales index increased 6.3 percent to 87.7 in December, the first gain since August, according to the National Association of Realtors. The December figure is also 2.1 percent higher than the same month in 2007.

The closely watched index is a forward-looking indicator based on contracts signed in December -- or basically the number of home sales in process. The West region had a mixed report with the index declining 3.7 percent to 97.5, but was 17.5 percent better than December 2007.

“The monthly gain in pending home sales spurred by buyers responding to lower home prices and mortgage interest rates more than offset an index decline in the previous month,” NAR chief economist Lawrence Yun said in a news release. “The biggest gains were in areas with the biggest improvements in affordability.”

The NAR’s Housing Affordability Index increased 10.9 percent to 158.8, the highest since the index started in 1970.

“Significant uncertainty still clouds the housing market despite improved affordability conditions,” Yun said. “For a sustainable housing market recovery and, hence, sustainable economic recovery, we need a significant housing stimulus and mortgage availability for qualified buyers.”

February 3, 2009

San Francisco Business Times

Some Christmas Cheer -- Zero Interest Rates !!!

In an action that was unprecedented in its 95 year history, the Federal Reserve cut its benchmark interest rate (the rate banks charge each other) to as low as zero Tuesday, a surprisingly strong move that should make it cheaper to borrow money and pay some obligations.

The Fed hopes lower borrowing costs will entice people and businesses to spend more, helping the economy. Citing "weak economic conditions" the Fed said it expected to keep its funds rate at "exceptionally low levels...for some time to come.

For consumers, the Fed move essentially means money is now on sale. Most observers now expect mortgage rates to get to 4 1/2% next year, maybe even lower.

The Fed also cited a program it announced late last month to buy $600 billion in debt and mortgage-backed securities from mortgage giants Fannie Mae and Freddie Mac, which has already pushed mortgage rates down.

And early next year the Fed, in another previously announced program, plans to roll out a $200 billion program to boost the availability of auto loans, student loans, credit card loans and other lending to consumers.

The Federal Reserve's statements yesterday can give us all something positive to take with us over the holidays...evidence the Fed will take steps next year to drive down mortgage rates and help home sales and prices.

Waterfront Buying: Top 10 Tips from Agents

By Shannon Petrie, FrontDoor.com | Published: 9/24/2008

Before purchasing that dream home, master these tips from the experts.

From pre-approval to paying points, buying a home is always a complicated process. But throw "waterfront" in the mix, and things get even more complex. Fortunately, real estate agents who regularly deal with waterfront properties know the ins and outs of this process. These 10 tips from the pros will give you a heads-up on what to expect when purchasing a home by the water.

1. Find a real estate agent who's a true waterfront specialist. The average agent won't have the detailed knowledge of waterfront properties in your area to help you find the best deal on a property that's right for you, says Ramara Garrett, owner of Waverly Property Group in Daytona Beach, Fla. "You may think you've found a great deal, but the reason it's a great deal is because there are oyster beds and people can't get their boats in and out," Garrett says.

2. Consider the property more than the structure. "Oftentimes, people fall in love with a house, but after they buy it, they realize the swimming is mucky, the view's not very good, it's difficult to get down to the water, or the place is not very private," says Tom Ferent, a broker with Mr. Lakefront, which specializes in lakefront properties in Maine. You can change the house, but you can't change the location, so buy a property that you really love.

3. Choose a property that truly fits your lifestyle. You may find a beautiful property for sale, but it's half an hour away from getting out to the ocean. "If you love to go out deep-sea fishing, that's going to make a difference in how often you actually do it," Garrett says. Focus on the activities you're passionate about and choose a property accordingly.

4. Look into loans early. Since many waterfront properties are more expensive than other properties, loans will often fall into the jumbo mortgage category, Garrett says. Lenders will therefore only consider very qualified buyers. "Buyers ought to start that process before they start looking for a property because that can take a lot longer than a normal home loan," Garrett says.

5. Make sure the structure can withstand the weather. Waterfront homes receive more abuse from the elements than the average home, so extra measures should be taken to protect them. For instance, Garrett recommends investing in storm shutters for homes in hurricane-prone areas and stainless-steel locks to avoid corrosion from salt air.

6. Insurance can be costly and complicated. Look into this early to make sure you know what you're getting into. For instance, Garrett says waterfront homeowners in Florida have to buy three policies (a wind policy, a flood policy and a general hazard policy) typically not all through the same insurer.

7. Find out what you can do with the property. If you want to make any changes to your waterfront property, such as adding a dock or a seawall, start this process early to ensure that these alterations will be possible. "Government agencies are very strict to deal with, and you don't want to commit to purchasing a million-dollar home without knowing that you can really do what you want to make it your own," Garrett says. Also find out what kind of activities are allowed on the body of water, as some areas have restrictions on jet skis, speedboats and other watercraft, says Les Taylor, principal broker of Waterfront Properties of Maine.

8. Talk to neighbors. Get insider information from neighbors by asking if they enjoy living in the community, if they have any issues with the property you're thinking about purchasing, or if there are any waterfront-related problems, Taylor says.

9. In rural areas, look into utilities. Waterfront buyers who are accustomed to the convenience of suburban life may assume that electricity, clean water, an adequate septic system, cable and Internet will be readily available at their new property, but this is not always the case. Bringing these services in to remote areas can be very expensive, says Taylor, so investigate these issues before buying.

10. Get to know your responsibilities as a waterfront homeowner. If you're part of a homeowners association, find out what kind of upkeep and maintenance of the property will be required from you by reviewing the conditions, covenants and restrictions, or CC&Rs, and talking to the HOA's management company, says Gordon Baker of Re/Max Elite in Chandler, Ariz.