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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.
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!
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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.
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Stunning oceanfront home in Kennebunkport, Maine.
Offering six bedrooms 4.5 baths and commanding ocean views from nearly every
room. Featured in Travel & Leisure
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for availability and more information.
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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.
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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!
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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.
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"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".
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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.
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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.
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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. |
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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. |
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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]
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