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Maine Real Estate News - May 2018

What Is A Seller's Market

What is a Seller's Market? 

You hear a lot of talk in the Real Estate community about what type of market we are in currently. There has been a dramatic shift over the past few years putting a lot of Maine firmly into a Seller's Market. 
What does that mean?


In a Buyer's Market...
there is a large supply of real estate on the market...more inventory than buyers.  In this case, prices tend to be lower, and property tends to sell more slowly.

In a Seller's Market...
there is a large supply of buyers looking to buy...and less inventory for those buyers to choose from.  In this situation, prices tend to rise, tend to sell more quickly, and properties start to get multiple offers.

A Balanced Market...
is when there is roughly a 6 month supply of inventory on the market.  This is a more balanced scenario...not strongly favoring the buyer or the seller.

In Androscoggin County...  
at the beginning of 2015, there was just over 8 months of residential inventory on the market.  It was a buyer's market.  At the beginning of 2016, there was just over 6.5 months of residential inventory on the market.  A more balanced market.  At the beginning of April 2018 there was only 2.5 months of residential inventory on the market.  

In Cumberland County...
at the beginning of 2016, we are already firmly in a seller's market.  There was only just under 3.5 months of residential inventory on the market.  The market has been changing quickly, however.  At the beginning of 2012 there were about 8 months of residential inventory on the market. At the beginning of April 2018, there was less than 2 months of residential inventory on the market in Cumberland County. 

In this market, you have to be ready to make decisions quickly!  For sellers this means being ready for many showing very quickly & having a plan for where you will move.  For buyers, being pre-qualified and ready to make an offer is more important than ever.  Multiple offers are even becoming common.

Are you considering buying or selling in today's very competitive market? Don't you want a professional on your side to help you navigate?  

Give us a call today to put our team to work for you!

Auburn: (207)784-3800 
Scarborough:  (207)289-3830

Avoid These Mistakes When Buying A Home

6 Mistakes To Avoid When Buying A Home

Anytime you are buying a home, it can be stressful. 
In today's market where it is shifting toward a seller's market, it is especially important to be prepared
and to avoid missteps that could cost you a home that you have fallen in love with.
Here are our top 6 Mistakes To Avoid When Buying A Home!


1.  Waiting To Arrange Financing
"I am sure I won't have any problem getting a loan.  I just want to find the right house first."  We hear this sentence every day and I cringe every time.  Today's market is competitive and homes are selling quickly.  The seller is not going to wait for you to get your financing lined up.  You should meet with a lender and get pre-qualified or pre-approved before you start your search.  That is the only way you can be ready to make an offer when you fall in love with a home.

2.  Not Using A Reputable Lender
When shopping for a lender, make sure you ask for recommendations.  Your real estate agent and friends or family who have recently purchased are great resources.  Don't be afraid to ask questions!  Were they able to the loans they took?  Did they close on time?  Were there unexpected costs?  Did they stay in touch during the process?  This is one of the largest purchases you will make and involves a great deal of your hard earned money.  Make sure who you choose to handle the financing is trustworthy.

3.  Shopping Outside Your Price Range
It is tempting to "just want to take a look" at that home that is $25,000 outside your price range. In such a competitive market, this just sets you up for frustration.  If you love the house, you can't make an offer that is close to asking price so it will be difficult to compete with other buyers. 

4.  Making Lowball Offers
You may think it can't hurt to try a lowball offer...just to see if the seller will accept.  Don't assume the seller will counter offer.  In a seller's market, it is not unusual for a home to sell at or above the asking price.  There could be other buyers making offers at the same time.  One of those offers could be better than yours.  You may not get a second chance to offer.  Your real estate agent can be a huge help in the negotiation process.  They can compare the home you are interested in to other homes that have sold to give you the best chance at winning your bid without overpaying. 

5.  Spending Money After Getting Pre-Approved
Once you set up your financing for a home purchase, don't open any new accounts, don't make any big purchases on credit, don't withdraw large amount of money, don't change or quit your job.  In short, don't do anything to change your finances.  Your lender will re-check your credit prior to closing and if your credit score or debt-to-income ratio has changed, the lender may not be able to close your loan.  It might be tempting to go buy new living room furniture, but just wait until after closing. 

6.  Not Planning For Closing Costs
While there are great financing options out there, almost all loans require that the buyer pay some closing costs.  Your lender should be giving you an estimate of what your out of pocket costs to close should be.  Make sure you talk to the lender about how much those costs could be and make sure you plan to have that available for closing day.  You could also have other expenses outside of closing such as inspection costs.  Your real estate agent can help you plan for those expenses.

Buying a home is exciting and scary at the same time.  Working with the right real estate agent can make the process much smoother and less stressful.  Are you ready to get started?  Give us a call today and let us guide you through your new home purchase!

Auburn:  (207)784-3800
Scarborough:  (207)289-3830

Welcome to the Team!

WELCOME TO THE TEAM!
We are pleased to welcome two new team members to our Auburn location.


Natalie Kramer

Natalie grew up in South Paris and graduated from Beverly High School in Beverly, MA. She then attended Andover College. She now resides in South Paris with her husband and is looking forward to helping buyers and sellers in and around her home town fulfill their real estate needs.

Natalie’s past work experience includes sales, customer service, and she also worked for Carlson GMAC Real Estate in Massachusetts. Natalie will be working with both buyers and sellers. When she is not working, Natalie is active at the South Paris Congregational Church and with the Kairos Ministry.

Natalie can be reached at (207)740-2716 or at natalie@fontaineteam.com.


Chad Doucette

Chad grew up in Mexico, Maine, graduated from Mountain Valley High School, and attended the University of Southern Maine.  He currently lives in Auburn with his wife and 3 children.

Chad's strong self-employment work history gives him a unique advantage when it comes to working with clients to help them fulfill their real estate needs.  Chad is working with both buyers and sellers out of our Auburn office.  When not busy with clients, Chad enjoys hunting, fishing, and reading. 

Chad can be reached at (207)357-3778 or at chad@fontaineteam.com.

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Fontaine Family - The Real Estate Leader
336 Center St. Auburn, ME 04210
432 US Route 1 Scarborough ME 04074
(207)784-3800 Auburn
(207)289-3830 Scarborough
Fax: (207)786-2957

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