Photobucket

Dear Friends,

Although this spot is largely reserved for market commentary, I wish to digress for just a moment to highlight some incredible accomplishments at Legacy Properties Sotheby's International Realty. For the first time in our history, we have hit two significant  mile stones with respect to Unit Volume Listed and Dollar Volume List with more than 300 current listings totaling more than a quarter of a billion dollars.  This is no small feat in Maine Real Estate.  In addition to the great work of our veteran agents, we have had an extraordinary recruiting season as well, adding terrific new agents in each of our offices and expanding our market territories further into the Lakes and Mountains.  We are so thankful to our trusted clients in making our goals a reality. Time to move the goal posts again!!

So much for "Relative Calm" and a return to "Normalcy" in the global financial markets!?  Greece, with its' 11 + million strong population, has become the focal point for intraday changes in interest rates, currencies, stocks and commodities.   We are looking at a whole new snapshot of economic indicators compared to last month.  The 10-year US Treasury yield fell below 3.10% last week in a flight to quality by global investors looking for a safe investment.  This dramatic reduction in interest rates has once again fueled lower mortgage rates. Crude Oil fell below $70 per barrel while most major currencies weakened relative to the US Dollar.   The Euro closed the session yesterday at a 4-year low.

The Maine home sales statistics for April were released last week along with regional and national real estate reports.  All of the data consistently demonstrated that we appear to be in the early stages of a significant recovery in single family residential markets in terms of unit volume sold.  The Maine Association of Realtors reported that home sales volumes increased by 63% from the same period last year while median prices improved by 3.4%. 

While we are encouraged by the monumental volume improvement in unit sales, we are also keenly aware that the expiration of the "First Time Home Buyer Credit" has accelerated the purchasing decision for a significant amount of the activity.  In fact, nearly 80% of the residential sales in April were sold below $250,000, which tends to be the price range for first time home buyers. 

On a national level, the home buyer credits also played a very important role in driving sales.  According to Bloomberg News, single family existing home sales increased by 5.6 % to 5.65 million homes in the US.  This is the highest level since November 2009 when it was thought the Tax Credits were due to expire.  Housing Starts in April reached the highest level since October 2008 in a sign that builder confidence has improved. 

The Maine Luxury Real Estate Market also evidenced a rebound with 10 sales over $1 million since the beginning of April.  Once again, Legacy Properties Sotheby's International Realty had a leading market share in representing both buyers and sellers during this time.  Of the 10 homes sold for more than $1 million, Legacy Properties Sotheby's International Realty was involved in 4 sales.  We are proud that eight of our agents participated in these market leading sales.  It is further confirmation of our market leading strategy with respect to Maine lifestyle properties.


mayenewschart2010

In conclusion, we believe that we will stay on the course identified in the last several newsletters.  We are looking for a moderation in volume in lower priced homes as the US Government home buyer credit has expired.  We believe that the market will continue to enjoy small increases in the median sales price in most markets in Maine.  We caution that the "Fasten Seat Belt" sign is still flashing as we work our way through some turbulent global economic times.

As we enjoy one of the most beautiful spring seasons in Maine history, it seems obvious that the Maine real estate markets will continue to show signs of strength and steady improvement in all market segments.   Wishing you a healthy summer season!

chrislynchsignature

Photobucket
C O N T E N T S
Real Estate Market Commentary
Current Company Profile
Save the Date: 3rd Annual Casco Bay Island Tour
Featured Current Listings
Join us at the MH+D Midcoast Home Show
Announcing George C. Ballantyne
BLOG OF DISTINCTION
Welcoming our New Agents
Sotheby's Auction House Calendar
SAVE THE DATE: MH+D Cape Elizabeth Kitchen Tour
View RESIDE Magazine
Contact Us
Photobucket
Photobucket
Photobucket
fb_like_button
Photobucket
Photobucket
Photobucket
Photobucket
Photobucket
Photobucket
Click on the office name to view all the listings for each office.

Kennebunk | Portland | Brunswick | Camden
Photobucket
Photobucket

Located near charming Pemaquid Point in South Bristol, this classic Maine cottage combines elegant simplicity with coastal splendor. Perched overlooking St. John's Bay, you'll enjoy breathtaking views and bountiful wildlife including seals, porpoises, bald eagles and whales right from your porch and balcony. Click here for a full description and more information.

Photobucket

Stunning oceanfront home in Kennebunkport, Maine. Offering six bedrooms 4.5 baths and commanding ocean views from nearly every room. Featured in Travel & Leisure Magazine and Maine HOME + DESIGN Magazine. Make this home your vacation destination. Click here for availability and more information.


Photobucket

Situated on a private home site overlooking the Sheepscot River, this completely renovated three bedroom retreat provides easy access to Boothbay Harbor and the Pemaquid Peninsula. Click here for a full description and more information.


Join Legacy Properties Sotheby's International Realty at the 2nd MH+D Midcoast Show. After a great event last year we are thrilled to be participating again this year! Hope to see you there!

Photobucket
Photobucket

George C. Ballantyne, a 30-year real estate industry veteran, served the Sotheby's International Realty brand as Senior Vice President, Distinguished Markets.  He has acted as liaison between the Sotheby's Auction House and the Sotheby's International Realty brand, overseeing referrals and synergies between the two.  He has been responsible for providing client level services to affiliates in nine states where licensed.  In all other markets, he has serve as a resource on pricing, negotiating and marketing strategies. 

 

In this role he was responsible for implementing a Distinguished Properties Learning platform for high net worth Sotheby's International Realty clients worldwide. 

 

He joined the Sotheby's International Realty brand in 1978 as senior vice president to establish an affiliate network in the Mid-Atlantic and Tri-state regions, New England, the Midwest and Eastern Canada.  In this role, he participated in the first on-premises sale of contents by Sotheby's Fine Arts and real estate by the Sotheby's International Realty brand. 

 

Between 1978 and 2004, he participated in the listing and negotiation of more than 2,000 luxury residential properties.   

 

His notable sales include: The "Anchorage" in Seal Harbor, Maine, property of former Governor Rockefeller; "Skylands" in Seal Harbor, Maine, purchased by Martha Stewart; "The Olson House" in Cushing, Maine, made famous by Andrew Wyeth in "Christina's World"; the Berkshire Property of Nat King Cole; the Litchfield County residence of Erich Segal, author of "Love Story"; and the Edgartown property of Peter Sharp, former owner of the Carlisle Hotel in New York. 

 

From 1975 to 1978, he worked for Citibank's Financial Management division in New York, responsible for serving high net worth clients' banking needs.  During his tenure there, he introduced a concept of fine arts as collateral for demand loans.  This concept became the foundation of Sotheby's Financial Services. 

 

Ballantyne began his career in 1971 with working with the director of the Detroit Institute of Arts, responsible for cataloguing the Tannehill Collection of French impressionist paintings and drawings.

 

He earned his bachelor's degree from The College Wooster, Ohio, and his master's degree in architectural history from Columbia University, N.Y.  Ballantyne also earned a master's in business administration from Boston University, Mass.


Photobucket


"More Than Money"

 

Money is ahead of whatever is in second place. Or is it? Too often we assume money is the pivotal issue. We can resolve all differences with more money.

 

Each of us has a risk tolerance. There are buyers and sellers who will pay or receive five or six figures more or less for certainty. An offer with no financing or inspection contingencies may have more value than a competing offer.

 

 It's often difficult to distinguish between the emotional and financial decision. The children have grown and the property is receiving little use. Financially, it makes sense to sell. Emotionally, it may be difficult to let go.  

 

This is a particularly difficult decision for seasonal properties that have been in the family for multiple generations. The business decision may have been made to sell but there's pressure from multiple generations to retain the property. The compromise is an above market-listing price. This ensures the property will remain available for multiple years. It's both available and not available. The family's ambivalence, laid out for all to see.

 

The first question asked by all buyers: "How long has the property been available?" While the family is going through the painful process of letting go, buyers are calculating days on market. As time on market increases, selling prices typically decrease.

 

A better question for buyers is not how long but the frequency and the amount of price revisions. A property on the market for two years with three successive revisions in the last six months tells a different story than a property with no revisions.

 

If you're a seller, a buyer's initial offer can provide insight. When would the buyer like to close? What are the contingencies? If financing is a contingency, what is the percentage of the proposed selling price? The seller might be able to find out, if this is the first property on which the buyer is bidding. If not, what happened to the last sale/negotiation?

 

By having as much information as possible, a seller can tailor their counter to most closely meet both buyer and seller objectives. A counter only addressing price may be less successful than one that seeks to uncover the underlying motivation behind the buyer's offer.

 

Whether or not you are the buyer or seller, you will want to tie your offer to objective criteria favorable to you. If you are a seller, with few comparables, you might advance cost or replacement cost as objective criteria. If you're a buyer, attempting to justify your offer, you will want to assemble "comparables" to support your position.

 

Both approaches are self-serving with each individual advancing the "standard" to be used. Advancing a standard, however, will be more successful than submitting an offer or counteroffer not based on objective criteria. Wanting to sell for more or pay less, are not objective criteria.

 

There's always more than money.  Buyer and seller should explore their mutual interests. There may be multiple opportunities for dovetailing these interests. In a successful negotiation both parties "win".

 

 

Photobucket
Photobucket

Chris Lynch, President, Legacy Properties Sotheby's International Realty, recently participated in Sotheby's 2010 International Realty Global Networking event in San Diego, Calif. During the three-day

event, Sotheby's sales associates, managers and owners exchange ideas, leads, contacts and property marketing ideas. Among the keynote speakers were three time Olympic medalist Julia Mancuso and

Benjamin Zander, conductor of the Boston Philharmonic Orchestra.

Photobucket

Conditions that make it a buyers market for primary homes-motivated sellers, ample inventory and attractive prices-are enticing interested investors to diversify their portfolios. For those with capital and a strategy, it just may be the right time to pounce.

In 2009, investment home sales in the United States accounted for 17% of all residential real estate transactions (940,000 homes), according to the National Association of Realtors. While sales figures were still off significantly from 2008, investment activity continues to be on the upswing in 2010.

Sales picked up in January after a slow fourth quarter, which was no surprise to Stuart Saft, a partner at Dewey & LeBoeuf and chair of the global law firm's real estate practice. "We have seen a remarkable uptick since the beginning of the year. We represent a great many developers, and we're seeing a sudden dramatic increase in interest in their properties, both in multifamily buildings and in individual condominium units."

The interest is widespread. Some of Saft's clients are looking to buy distressed properties and hold them for appreciation. Others are interested in luxury units in places like Beijing, Paris, London, New York and the Middle East. "A year ago, there was not even a glimmer of hope. There was no money around," Saft says. Now, he adds, the dollars are available and there's a feeling out there that this is the time to start nibbling because prices will only go up. "It's still early in the cycle, but these are the green shoots we were hoping to see."

In the short term, mortgage lending for second homes, extremely tight in 2009, is expected to ease somewhat. The long-term demand for second homes is favorable. Buyers are typically in their mid-40s, with more than 44 million people falling into the primary buying demographic of 40 to 49 years old.

Experienced homeowners know the familiar real estate mantra-location, location, location. Investors, Saft says, would do better to follow a next-level mantra-location, timing and use. Location is, of course, always critical. As for timing, Saft says, "For the next 24 months, there's no doubt this is the opportune time to get in. The market is still recovering." After that, it's a matter of usage. Specifically, determine what areas are likely to experience changing demographics such as population growth, then project which markets will be in demand based on new housing and development.

That's the big picture. Once a property becomes a candidate for investment purposes, it comes down to the details. Beyond the sale price, taxes and insurance, what are the full and future carrying costs? Saft recommends doing legwork to mitigate any surprises. "If you're buying in a small community, check in with the town clerk to see if there are any plans for a tax reassessment, tax increase or if there are any new developments planned for the town." With so many municipalities struggling with finances, find out how they plan to maintain services. Will some services be curtailed or disbanded? If you're buying a condo or co-op, talk with management, request and review board meeting minutes, and have an accountant look at the financial statement, Saft counsels.

For overseas properties, investors need to ask a lot more questions to understand costs, ownership rights, and procedures for conducting real estate transactions. Some governments encourage foreign investment and accord non-residents the same property rights as residents. Others levy additional taxes or limit the size of property that can be purchased. Mortgages are rare in some countries or even nonexistent. It's important to have a local team on the ground-typically, a real estate agent and attorney-that understands the legal issues and nuances involved in international purchases.

Argentina has been a draw for international investors, particularly those from Europe and North America, according to Adriana Massa of Argentina Properties Sotheby's International Realty in Buenos Aires. The trendy neighborhoods of Recoleta and Puerto Madero in Buenos Aires-hotspots of premium developments-are considered very attractive because of lifestyle and, in some cases, prices. Outside the capital, places like Mendoza, Argentina's wine country, and the lake district of Patagonia are "very much appreciated by foreigners and excellent places to make investments," says Massa. Going in, however, it helps to know that both buyers and sellers pay agent fees, and that mortgages "are very few" and "not used for high-end transactions."

All-cash purchases are, in fact, fairly common. In the U.S., half of all investors made cash purchases last year. Eliminating interest charges on loans nets a better return on investment. Patience bodes well, too. Real estate wealth is typically created through appreciation, which takes time. Craig Venezia, a self-described conservative investor and author of Buying a Second Home: Income, Getaway or Retirement, says, "Anyone looking for a quick jump in appreciation is a little misguided." Venezia takes a buy-and-hold strategy and recommends a 10-plus-years' view. "We're in a dip but historically, over the last 25 years, housing prices have gone up about 5% a year. If you buy now, assume an appreciation of about 3-5% over the next 5 or so years," he says.

Investors are more likely to purchase homes in metropolitan areas, but there is no single ideal investment. The important thing, Venezia says, is to "take over a property, start renting it as soon as possible, and don't get bogged down with a fixer-upper." Multifamily units generate cash flow from several renters, so if one unit is vacant income is still flowing in. Vacation homes are attractive because an owner can use the property for personal use for up to 14 days (per IRS guidelines) without losing business deductions.

Vacation areas that offer easy access, a long season and plenty of recreational options make for some of the soundest investments. Add waterfront or water views and you boost the likelihood of strong gains. "When comparing similar homes, those located in close proximity to water have historically yielded a higher return for investment," says Linda Briggs of Anne Erwin Sotheby's International Realty in York, Maine. She cautions investors, however, to put personal preferences aside, no matter how alluring the property. "A buyer of an investment property must set aside his or her own desires, opinions and needs, take a step back, and look at what is collectively in demand."

Property at top presented by Argentina Properties Sotheby's International Realty, property ID #4000014685. Tel: +54.11.5648.9880.


Photobucket

As most people whiz by on Route One, the people who call Westport home are happily treasuring their island haven which is bordered by the Sheepscot, and Back Rivers, both of which are salt water. Westport is connected by a bridge spanning the slim gap of the Cowsegan Narrows to the town of Wiscasset. It is bounded across tidal waters by the towns of Wiscasset, Edgecomb, Southport and Georgetown. Originally called Jeremisquam Island, or simply Squam Island it was part of Edgecomb before incorporating into an independent town in 1828. This 10 mile long island is crisscrossed by fields and brooks and offers a strong sense of community which is bolstered by the community association which maintains a year round calendar of events. When questioned, many residents were reluctant to share the wonders of their precious gem feared that their secret will be spilled.  However, those who did share spoke of their contentment at finding a peaceful retreat. One couple described how purchasing a home on Westport was "accidental". They were staying at the Squire Tarbox Inn and so enjoyed the locale that they decided not to leave the island--and happily bought on the west side.

Photobucket

This island community is approximately 50 miles northeast of Portland and yet is an oasis from the hustle of route one and from the business of other coastal communities based strongly on tourism. Westport still supports a strong fishing industry with the focus on lobstering and crabbing. The population of just under 800 is a mix of retirees from away and locals, and that is exactly what keeps the strong sense of community pride alive. Driving along the main road you see a mix of architecture and views out across to the rivers. As you head down the eastern side you are looking directly across to Boothbay, and Boothbay Harbor-- both a quick trip by boat, and if you go a bit south, and west you arrive at Georgetown. This makes Westport an ideal base for sailing, and boating--protected, quiet and yet close to all the activity the larger harbors have to offer. Cruise along the rivers, and out through Townsend Gut into Boothbay Harbor, Southport, and beyond, or head out to open ocean--all within easy reach.

If you take the time and explore this charming island spot, traveling along it's back roads you will be delighted with it's simple beauty. If you are lucky perhaps some residents will share their favorite spot to picnic, or to pick up some fresh lobster for dinner. If you choose to eat dinner out or spend the night the Squire Tarbox Inn is a magical place.

Photobucket


Inviting home on 2.67 acres with 227' of deep waterfront and dock on a protected cove and with easterly views across to Townsend Gut. Eight fireplaces, a living room flooded with light and a cooks kitchen. Combo of new construction and period detail from the historic Ross/Hall house. $1,350,000 MLS# 955024


KIM LATOUR | 207.729.2820 | [email protected]

Photobucket
Photobucket
Photobucket
Photobucket
Photobucket

News archive