Tanya Busch Maine Real Estate

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!

Most sellers in the Augusta Maine area don't hesitate to list with a professional real estate agent in 2012 – especially in the current Buyer’s Market where Maine home sellers need all the leverage they can get! On the Buyer’s side, however, the idea of shopping for homes For Sale By Owner (FSBOs) and potentially “saving the commission” can be alluring. There is a problem with that theory however: the Seller’s purpose in “going FSBO” is generally to save the commission. And you can save the same commission twice”, not even in the Capital City. That monkey math only flies in the State House!

It's worth a closer look at some of the tradeoffs, both benefits and risks, that may accompany this kind of sale.The most commonly held belief (and it’s nearly universal among new buyers) is that buying homes for sale by owner means coming away with “a deal”. And who doesn’t want a deal? Another common notion is the idea that homes For Sale By Owner result in a quicker and smoother transaction because there is no ‘middleman’ involved. After all, since you can deal directly with the owner, wouldn’t the inclusion of a professional Augusta area real estate agent take extra time and effort? This scenario is vastly more likely if the sale involves an owner experienced in selling real estate -- who also has no emotional attachment to his property.

Occasionally a Buyer will come to me and ask me to represent them in a “FSBO” purchase. Typically what I find is that the FSBO’s asking price is significantly ABOVE going market value. Why? The Sellers have not had a professional opinion of value performed by a licensed Maine real estate appraiser or local Kennebec County real estate agent. Often times, Sellers will base their list price on what they need or want rather than market value. Or they will base their price on what other homes are “listed for rather than selling for” and eventually join the ranks of the dreaded “Expired List” which other overpriced properties.

Other factors that can hinder a transaction are articulated by writer Susan Brown, “Home owners may be reluctant to lower the asking price of a home due to repairs or other problems.” And the emotional connection with a property can trump even self-interest. As Brown writes, “The owner of a home is also more personally connected to the property than a real estate agent would be and thus may be more sensitive to any form of critique that the buyer could make.” In the world of homes For Sale By Owner, ‘sensitive’ can be an understatement. Experienced real estate agents are equipped to remain objective and keep the goal of consummating the transaction to the satisfaction of both parties the focus of communication. Good realtors are also trained to keep emotion is kept at bay.

But there is another major drawback that face buyers of homes For Sale By Owner: one with both time and cost dimensions. When Buyers are representing themselves, they will be shouldering the responsibility and sheer hassle of handling the necessary paperwork, inspections, and disclosures alone on the largest financial investment they will make. Seeing that these duties are performed fully and professionally while costs are kept to a minimum is either a job for an experienced professional -- or someone with lots of time on his hands!

Buying homes in Augusta, Maine For Sale By Owner may not be quite the no-brainer it seems…nor may the anticipated savings measure up. It could end up being more expensive. All this to point out a more solid no-brainer: if you are considering buying or selling a home in the Augusta Maine area, why not give me a call for a consultation?

The bedrock of the residential real estate industry is the American Dream of owning your own home. Current market conditions have amplified another motivator: those looking for great investment opportunities. There have always been professional “Flippers” in the market but today shrewd buyers recognize that the current market conditions offer some outstanding investment opportunities in Lewiston-Auburn and Kennebec County. It’s not just professional investors considering foreclosures; many first time buyers and existing homeowners are looking for unusual bargains.

The appeal is understandable due to some commonsense consequences caused by the mortgage meltdown (and the headlines that followed). When banks come into possession of foreclosed properties they find themselves in an unenviable position. Incented to sell them as soon as they can, they aren’t free to wait until the market rises to meet historic price levels. As a result, mounting numbers of those foreclosure listings are carrying price tags that are a fraction of their original market price.

Some current homeowners see a second home as a path to create a passive rental income stream. Foreclosure listings comprise tempting investment vehicles. And for first time homebuyers, the information in the same foreclosure listings can mean nothing less than a foot in the door of homeownership. In both cases, the first step to buying a bank-owned property comes with finding reliable Lewiston-Auburn and Kennebec County foreclosure listings. Looking for a trustworthy source means finding one that features up-to-date and accurate information. Too many dedicated “foreclosure” websites offer endlessly duplicated, incorrect, or woefully outdated information. Relying on them can send would-be buyers on a frustrating series of time-eating wild goose chases that end up locating houses that have already been sold.

One way to test a source of foreclosure listings is to take advantage of free trial subscriptions where they are offered. It’s a money-saving way to determine whether a foreclosure source can be trusted to include attractive properties listed soon after they come on the market. FIn any case, the opportunities that foreclosure listings represent also carry special characteristics that savvy buyers need to take into account. Home inspection rules are one example. Banks are under no obligation to disclose information about a property’s flaws in the same way that regular homeowners must, so it’s imperative to make a physical investigation of a foreclosure listing before proceeding further.

If you are curious about your chances of finding a great deal in today’s foreclosure market, I will be happy to send you the Lewiston-Auburn and Kennebec County foreclosure listings as well as other areas of the State. We can also help you identify other non-foreclosure “bargains” that may fit your criteria. While there are some great buys out there, there area many risk involved with foreclosure purchases and one should be fully aware of all the risks. Frequently there are also financing obstacles involved with the purchase of foreclosed property unless you are doing a conventional mortgage or you are a cash buyer.

Feel free to give us a call if you would like to know what you should be aware of upfront! You can reach The Tanya Busch Team at (207) 689-9880 or www.TanyaB.com.