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Dear Friends,

We have just received a fresh batch of data on Maine home sales for the first half of 2010.  Single family homes sales volume for the first six months of 2010 increased more than 27% from the same period last year.   The median sale price also rose by nearly 5% to $167,000 for statewide sales during this time.  The month of June alone boasted sales volume improvement in excess of 10% combined with a small increase in the median home sale price.  With reports such as these, there must be plenty to celebrate!? Well, that is not exactly the case as we look at the prospective activity in Maine.  It seems more appropriate to revive a phase dating back to sixteenth century England, "All is not Gold that Glitters."

The national real estate market has enjoyed a resurgence of activity during the last year fueled by a generous government sponsored "First Time Home Buyer" tax credit.  By some accounts nearly 50% of all home sales during this period were to first time home buyers.  The participation by first time home buyers for Maine real estate sales is believed to be higher than the national average.  Much of the improvement in unit volume can be attributed to this program which expired on April 30 for new contracts.  As a result the number of homes "under contract " in June has declined 20% from a year ago and is down more than 34% compared to April.  It is clear that the government bonus was sufficient incentive to persuade prospective buyers to accelerate their "First Time" home purchase plans.   We must now consider the aftermath and its impact on volume and pricing.  The first signs are already evident in the "under contract" data for June. The drop in "under contract" properties was down nearly 40% for homes priced under $200,000.

There is however, a "silver lining" behind some additional data.  While the first time home buyer market is expected to moderate for a period of time after the year-long feeding frenzy, the middle market and luxury property sectors have continued to improve.  Unit volume increased nearly 30% in June for properties priced above $400,000 versus last year and nearly 65% compared to the past couple of months.  This trend is supported by "under contract" data which also improved 13% versus last year.  This is a healthy continued revival in the middle market segment which had been overshadowed in recent months. 

Suffice to say that the data which may be coming in the next several months will likely look anemic given the reduction in overall sales activity formerly driven by tax incentives.   That said, we continue to see improved confidence in the middle market and luxury market buyer combined with greater acceptance by the home sellers as to the "reality" of market pricing in 2010.  We believe that this underlying trend will continue to benefit from very low interest rates, better access to capital, lower listing prices and an absolutely gorgeous listing inventory for sale.   With more than 330 listings ( a new record)  at Legacy Properties Sotheby's International Realty, we have a fabulous selection from which to choose.  Click through to our site and have a look.  I am sure you will find a compelling buy!


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Click on the office name to view all the listings for each office.

Kennebunk | Portland | Brunswick | Camden
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Very private estate that offers a carriage house alongside the main home.  Community dock and walking trails.  Close to Portland and Freeport.  Sleeps 8.  $9,000 per week.

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This spectacular oceanfront compound is a very special setting.  Unparalleled views and close proximity to Portland.  It offers all that one would want and more.  Pool, tennis courts, private beach. Sleeps 8. $12,000 per week.

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Room to Negotiate

 

"We need to leave room to negotiate", is a frequently heard refrain. But do you need to leave room?

 

If you are running the 100-yard dash, do you add an extra 10 yards for room to negotiate? When selling a stock, do you leave room to negotiate? If you are a rider jumping a 4-foot fence, you don't make it 4'6" with room to negotiate.

 

Rather than leaving room to negotiate, think of what terms would be acceptable to a buyer or seller. How easy will it be for the buyer or seller to perform their side of the agreement? One way to eliminate room for negotiation is to look for precedent. Comparable sales set a precedent. You can base a listing price or offer on comparables.

 

In delivery rooms, it must be written, "Sellers must leave room to negotiate" and "Buyers should always make an offer." The listing price becomes "market value" plus room to negotiate. There are many benefits to negotiating. It creates the opportunity to dovetail the objectives of buyer and seller.

 

Yet, for all the potential negotiation offers, it is fraught with pitfalls. The clearest communication and the best of intentions are often misunderstood. Buyer, seller or both feel they're being taken advantage of. Buyer or seller may lock themselves into positions, from which it is difficult to retreat. Face-saving may become as important as the money. When these positions become extreme, they sound like: "I wouldn't sell to them at any price" and "They couldn't give me the property". Not a very productive outcome.

 

In the same delivery rooms, it must also be written, "thou shall not pay the sticker price". With few exceptions, everyone over 30 has negotiated the purchase of a car. You either love the process or swear you will never buy another car. But there has been a change. In a few delivery rooms, they forgot to put up the signs. There are an increasing number of dealerships where the sticker price is the price. The "room to negotiate" has already been removed. No chance of miscommunication.

No sweating palms, no churning stomach and no longer waiting for the salesperson to return with the manager's approval or disapproval.

 

It's easier to leave no room for negotiation on the purchase or sale of a car. It's likely several hundred have recently sold of the same year and model. Cars by their nature move. Their value is not tied to a specific location.

 

No two residential properties are identical. Each enjoys a unique location, even if the location is the other side of the wall.

 

Even if all real estate is unique, market value typically falls in a tighter range than buyers and sellers would like to acknowledge. For almost all properties, there are reasonable "substitutes". A buyer will not pay more for property than the price of a reasonable substitute.

 

In 1729, Jonathan Swift wrote an essay titled "A Modest Proposal" offering a solution to overpopulation. This modest proposal is less controversial. It suggests we remove negotiating room from listing prices and offers. If you need to haggle, do so over the sconces, after the real estate agreement is signed. No more positioning over who came up or went down and by how much. Less miscommunication and less need for face-saving. No more anxious nights wondering, if the offer will be accepted.

 

Is there hope for this modest proposal? Likely not, too many signs to take down in the delivery rooms. If we can close the gap to 5% between listing and selling prices, real progress will have been made. Even if there is not an initial meeting of minds, progress can be made on other issues that will help bridge the price gap. With a 5% difference, we should be able to negotiate to a successful sale.

 

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July 28th, 2010 - Under Contract - Idyllic location in the lakes region yet twenty minutes to Portland. This year round home was recently renovated and is just steps from the lake. Abundant use of windows ensures water views from every room. Very private setting. Fabulous deepwater dock completes the package. MLS# 976905 $328,000 Glenn Jonsson | 207.776.0036 [email protected]

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Located at the confluence of the Back River and the pristine Sheepscot River, Wiscasset has long looked to the sea for its livelihood.  As one of the most protected deep water ports north of Boston, the first fortunes were made in supplying ice to the shipping merchants. Returning with their families, these merchants soon made Wiscasset their home and the harbor a major ship building port.  Their skilled shipwrights built multiple-masted schooners that raced across oceans delivering goods and materials. In the winters these shipwrights turned their hands to home building, much to the delight of many Wiscasset's residents today. 

 

Indeed as Wiscasset celebrates its 250th anniversary its classic New England village center has hardly changed.  As easy stroll around town tells the story from the tall brick retail shops on Main Street to antique vintage capes of the 1700's.  Privately owned Greek Revivals, English Manors, soaring Italianates, whimsical Victorians, stately Georgian and Federal homes enrich the village with stature, depth and character. In addition, the Nickels-Sortwell House, Castle Tucker and the old historic jail are open to the public.

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Wiscasset still looks to the sea for its commerce as home to the world famous Red's Eats and its equally famous lobster roll.  From April  to October, Route One travelers pass the long lines of patrons happily waiting for their annual treat. The annual consumption estimate exceeds 8.5 tons of lobster meat. Wiscasset also lays claim to being the world's largest producer of blood worms used for bait. These large, pink worms complete with fangs are harvested from the Sheepscot River and shipped worldwide.

 

Whether you arrive by car, foot, or the Maine Eastern Railroad, be sure to check out the gourmet foods, the elegant clothing boutiques, a fine stationery shop, an antiquarian book and map store, buttermilk mold market, art galleries as well as a French linen and hard goods merchant.  Family friendly restaurants feature the freshest of local organic produce, exceptional homemade desserts and superior views overlooking the Donald Davey Bridge and the eastern shoreline of Edgecomb and Westport.

 

Pack a picnic for the sunken garden, or wander down to the community yacht club and watch the fishermen bring in the day's catch.  For those more energetic, participate in organic farming at the Morris Farm and hike the natural trails maintained by the Chewonki Foundation.  For the rainy days, there are over 27 antique stores featuring 18th and 19th Century American, French and English antiques, furniture, china and art to poke through.  Be sure to save some time for the Musical Wonder House Museum with its antique music boxes, phonographs and paler pianos.

 

Wiscasset is more than a summer stop. Year round residents enjoy a rich and wonderful sense of community passionately demonstrating diverse civic commitments.  You will find the Town Planner coaching the high school JV soccer team. The Fire Department sponsors the Opening Day of Babe Ruth baseball.  The Bed and Breakfast owner chairs the local conservation group. The local hay farmer sits on the Board of Selectmen. Even the postmaster greets you by name. 

 

Served by its own municipal airport, Wiscasset is also just 50 minutes from Portland International Jetport.  In less than � an hour you can visit the state capitol in Augusta, attend classes at Bowdoin College in Brunswick, enjoy fresh oysters in Damariscotta, and catch a show at the Chocolate Church in Bath. Ideally located in MidCoast Maine, Wiscasset is small in size, but large in heart - offering something for everyone. 

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Magnificent 1850 Greek Revival, 43 acres & 1,100 feet on the Sheepscot. Exquisitely renovated to gracefully accommodate generations of family. Frederick Law Olmstead landscaping with an emphasis on elegance. Commanding presence overlooking Wiscasset Harbor. $2,750,000 MLS# 975136


POE CILLEY | 207.729.2820 | [email protected]

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