Tanya Busch Maine Real Estate

It seems like it’s been a very long time since a national spokesperson like the National Association of Realtors’ Chief Economist, Lawrence Yun, has combined the words ‘optimistic’ with ‘upcoming real estate market’. But that’s pretty much what he did last week!

This spring home buyers and sellers from Lewiston Auburn to Augusta Maine have reason to be encouraged. Personally, I’ve seen the busiest and most productive February (typically one of the slowest months of the year with our Maine winters) … in my real estate career dating back to 1999. Our local residential real estate outlook is being buoyed by an upward trend in the national “pending home sales” numbers. Yun points to January's pending home sales as reaching the highest level since April 2010. The number rose from 95.1% in December 2011 to 97% this January – a 2% increase in one month.

Compared year-over-year, the January home sales level rose 8%, from 89.9%. This number may be significant. Pending sales are defined as homes that are under contract but have not yet closed. They are a leading indicator of the real estate market since they represent future sold homes.

January's figures are significant on two fronts. First, year-over-year comparisons are true apples-to-apples comparisons -- and 8% represents the kind of substantial gain that can make headlines. Moreover, the comparison to April 2010 is also encouraging. The new figures are the highest since April 2010 – a figure that was artificially inflated by the rush of buyers seeking to qualify for the then-impending expiration of the homebuyer tax credit …. Yun is optimistic that these newest figures will translate into what he terms a "meaningful gain" this year as the market continues to stabilize.

“Meaningful” indeed! If the mortgage markets normalize lending criteria, Yun predicts homes sales may increase as much as 15% nationwide. If that happens, we are well on our way to cleaning up “excess inventory” on the market and returning to, at the very least, a market of balanced demand and stable pricing if not a turn-a-round where homeowners will once again see a rise in their equity position!

Given the sales activity in the last 60 days I’m very encouraged for the 2012 spring real estate market in Central Maine! The Tanya Busch Team tracks sales data by location and price range. If you are interested in learning more about the direction of your specific market give us a call at The Maine Real Estate Network at (207) 689-9880 or homes@TanyaB.com.

By the end of February, The Wall Street Journal felt confident enough to print a headline touting, “At Last! Banks Rev Up Lending”. FHA loans are among the most popular loan programs funding real estate purchases in Maine right now. But there is much confusion over the term “FHA Loan”. To be perfectly clear, let’s get some terms straight. “FHA” stands for the Federal Housing Administration. And “FHA Loans” aren’t … aren’t loans that is. But that doesn’t mean that FHA loans aren’t going to continue to be significant to the Central Maine real estate market from Lewiston-Auburn to Augusta through 2012.

The term “FHA loans” actually refers to real estate loans made by companies other than the FHA. If that isn’t contradictory enough, the banks and other loaning entities are called ‘FHA Lenders’ (the ones who aren’t, actually). The reason behind the naming contradiction is that these mortgage loans are only guaranteed by the FHA – that is, insured by it, not funded by it.

The FHA offers to act as an insurer in order to lower the risk to the actual mortgage lender. Since the availability of FHA insurance makes it less hazardous for those lenders to grant people mortgages, the ultimate effect (and intention of FHA loans in the first place) is to make it easier for potential homeowners to obtain a mortgage, thereby freeing up the kind of large capital that mortgage loans usually involve. FHA loans help ‘unlock’ the real estate market, allowing people to move in and out of residences more freely.

FHA loans can be a good deal for some people, but as with most financial alternatives, there are both pros and cons to the program. A key advantage of FHA loans is that potential buyers with marginal credit scores can more readily quality to get them. FHA loans also carry relatively low interest rates, and because they are based on the good credit and massive financial power of the federal government (AKA taxpayers), down payments and closing coats for FHA loans can be kept low.

While FHA loans are popular amongst current Lewiston-Auburn and Augusta Maine Buyers, there are some more competitive Conventional Insurance loan programs out there for buyers who can come up with a 5% down payment! For home buyers in Central Maine with good credit scores, other private mortgage insurance options are available. In many cases their premiums may be lower than comparable FHA premiums. As is well known, the FHA also places a limit on the size of a mortgage it will guarantee. If your transaction involves a larger “jumbo” mortgage, FHA loans won't be available. This isn’t much of an issue here in Central Maine but in other parts of the country where real estate prices are more expensive, it can be.

When you are thinking about buying a home, the first step is getting pre-qualified with a reputable lender or mortgage broker to assess your financing options and the pros and cons of the programs available to you in the Central Maine real estate market. The Tanya Busch Team is here to help you with these and all of the other current intelligence we take into account when helping you find a property and structure the most favorable terms for your Lewiston-Auburn or Augusta area real estate purchase. We have an in-house lender available to answer all your mortgage-related questions to assist you with the first step. Contact us today and we’d be happy to set you up!

You can reach us at (207) 689-9880 or www.TanyaB.com

The typical 2012 real estate buyer in Kennebec County Maine assumes that buying a pre-owned residence saves money. Period. In most situations, this is true. Because the current high levels of available properties for sale exceed buyer demand, an Augusta, Maine area buyer can get more bang for their purchase dollar (usually) buying an existing home and doing some minor renovations.

But what about the long term cost of home ownership? What about the buyer who can qualify for a slightly higher mortgage with the ridiculously low interest rates? Wouldn’t it be prudent for them to also consider building a new custom home rather than to buy a deal, and fix it up later once they’ve saved the cash to do renovations?

Building new construction in Kennebec County affords the new homeowner with peace of mind that everything is new: right down to the appliances! Hopefully there will be no replacements or repairs for years and the homeowner can sock away savings, including significant energy costs. The advances made in both energy efficiency and environmental sustainability are practical considerations homeowners will appreciate during the cold Maine winter heating season.

Having personal experience in both new homes and doing a major renovation of an antique home, I can assure you that it’s a pleasure to live in a brand new home. And having the ability to design your Augusta area home to suit your lifestyle, you will not waste costly square footage in rooms that won’t be utilized.

The fact is, there are both benefits and drawbacks that deserve looking at no matter which choice you wind up making. Of course it’s your budget, preferences, and level of patience that will largely determine which type of Kennebec County home will make the best fit for your family situation. The wisdom of planning carefully before investing your hard-earned money in any property goes without saying.

Since you are looking forward to many years of occupancy in either a resale home or new construction, I hope you will contact me for a consultation. I know Kennebec and Androscoggin counties very well and can help you sort out the choices that are available right now. My Associates and I also work with reputable builders that will stand behind their project legally and financially. You can reach us at (207) 689-9880 or www.TanyaB.com

Losing a home to foreclosure is a truly disheartening experience for too many homeowners these days in Lewiston-Auburn or Augusta Maine. It’s an unfortunate outcome for many otherwise model citizens: typical hard-working adults who fall victim to circumstances which are sometimes simply beyond their ability to control. It can happen for any number of unforeseen reasons: illness, divorce, or simply the repercussions of the larger economic forces in Central Maine that cause a job loss or closure of a business enterprise.

Whatever the cause, when a foreclosure happens the immediate problem is “‘Where do I live now?” quickly followed by “How long will it be before I can buy a home?”

Our Central Maine and Southern Maine real estate offices at The Maine Real Estate Network are no strangers to this question; but the good news is that a foreclosure is an obstacle that can be overcome. The realistic news is that it will usually take time – and although ‘eventually’ is not a word that typically fosters optimism, it is one that describes “the way home”. At The Tanya Busch Team, our goal is to build long-term relationships so we are always happy to provide assistance even if the outcome isn’t an immediate sale with us. So please don’t hesitate to contact us with your Maine real estate related questions!

To buy a home after a recent foreclosure you have three possible routes. The first is the shortest: it is appropriate only to those whose financial future is already strong, and who are willing to pay a high price. The risk that loan officers must attach to anyone with a foreclosure in their recent past is substantial, and to compensate for it, expect any proposed offer to combine a smaller mortgage (made possible by a more substantial down payment: possibly 20% or more) with a high interest rate.

For the vast majority of people, the second way to buy a home in Central Maine is the most common. It’s the one that involves substantial repair to your financial profile. The guidelines that mortgage officer’s follow are understandable: they read your financial history in order to predict the future: will you repay a new 30-year mortgage? Will your payments be late? To make sure the right answers are apparent, do the obvious: reestablish the kind of credit story that makes the foreclosure look like a one-of-a-kind bump on an otherwise smooth road.

Realistically, you will need to spend at least a couple of years saving money and paying bills. Two years at the same job in Maine with stable income is usually the minimum requirement for any lender. It is also of key importance that you make absolutely sure you do not miss payments of any kind. Your FICO score will have suffered enough after a foreclosure (often 100 – 150 points). To demonstrate that you are fully capable of handling the substantial debt of a Maine home loan, you need to spend a convincing amount of time making consistent on-time payments for all your bills. In the meantime, you should expect to rent a home. The regular payment of that rent will be a key part of the story you will be demonstrating.

It is in this area that there exists a third possible pathway: the lease option. It is an additional wrinkle that can shave time from the gap between a foreclosure and buying a home. While not easy to find, if you come across this opportunity, it’s a good option to consider. A lease-option can be a handy way to get one foot back into the Central Maine home ownership arena while taking the time you need to rebuild your financial history. With a lease-option, you sign a contract with a seller to buy a home at an agreed-upon price within a specified period. This can allow time to reestablish your financial footing as you get back to work, save some money, and pay bills. Since this is a binding legal contract, it is wise to seek the help of a real estate agent experienced in complex or creative solutions or a real estate attorney. Contact me if you would like to discuss this or have other questions about how to buy a Lewiston-Auburn or Augusta Maine home in the future.

This February there are a lot of Lewiston-Auburn and Augusta Maine properties for sale, but if this is the month you’re seriously entering the hunt, all that matters is how to find the best one! If you are a first time buyer, where to begin may seem a bit daunting, but you can relax. In reality, there are no “wrong” ways to search for a new home – but there are a few great places you can start.

Internet

Statistics shows that at least 94% of buyers make use of the Internet when they search for properties for sale. This is the most convenient source of information for most Lewiston-Auburn and Augusta Maine buyers. A great website provides them with the most up-to-date listing information, price alerts, and market statistics. Real estate agencies and most individual agents have their own websites with ample photos, listing particulars, area information, etc.

The Lewiston Sun Journal, The Kennebec Journal (KJ) or The Real Esate Book

This may seem a bit out of date but good ‘ole fashioned print ads can be a source for rentals. A better source for homes for sale in Central Maine, particularly Lewiston, Auburn, and Augusta, is The Real Estate Book. You will find many of properties for sale in the book, which you may pick up at your local stores including Hannaford. Most of these ads have beautiful color photos meant to draw you in – so let them! (Then re-check the listing online.) If nothing else, viewing the ads can help you get a snapshot view of the current Lewiston-Auburn and Augusta Maine market. Be mindful this isn’t a complete database by any means, but it gives you something to do when you’re sitting in a waiting room!

Real Estate Agents/Offices

I may be a bit biased here, but this last tip is the most sure-fire of all: finding the right agent. Establishing a relationship with a well-networked real estate agent will make your search for Lewiston-Auburn and Augusta Maine homes for sale easier, smoother, and vastly more productive. A well-informed agent is your singular best asset during the home hunt. He or she can explain and answer all your questions about the properties for sale you see online or in magazine, can give you the inside scoop on the neighborhood, the “comparables” (homes sold), the potential resale or long term value. The right agent will have seen hundreds of homes in Lewiston, Auburn, Augusta and surrounding towns. Putting that experience and market insight to work for you couldn’t be easier: I’m right here and I can save you thousands of dollars with my negotiating skills and years of experience! You can reach me at 207-689-9880!