Welcome to City-Data.com forum! Make sure to Buying Maine Property With a Realtor
Posted 08-02-2008 at 12:59 PM by Nor'Eastah
Let me state up front that I do not know any Maine realtors personally or professionally, and nothing stated herein should be construed as criticism of anyone in particular. Also, I have bought property elsewhere with the help of realtors, and had very positive results.
My first impression of realtors is that they represent the status quo. Nothing wrong with that. For a buyer with a great credit history, with a high income that would support the purchase of expensive property, who would qualify for a conventional mortgage, and who has a hefty cash down payment, working with a realtor is just great. They have lots of nice properties to show. For a seller, a realtor is almost essential to get any action on the property. But here, I am discussing the buyer.
It is important to understand that realtors get a 10% commission in Maine, and although that commission is technically paid by the seller (who signs the listing with the realtor), in reality it is usually included in the purchase price, so the buyer ends up paying all of some of the commission. This comes as less than welcome news to those buyers looking for affordable land, realizing that they could likely get the property for less if not for the realtor's commission. I'm not stating that the realtor does not go above and beyond to earn that commission. Just that it's well...there.
As an example, if a Maine acreage was found for say, $43,000 then the commission on that sale would be $4,300 which is quite an additional sum. Remember - the buyer often if not always ends up paying a good chunk of the commission, as it is passed on with the property price.
For a buyer "from away", who has work, family, and other issues to deal with while searching for Maine property, a realtor is a godsend, having computerized MLS listings that pop up instantly once the realtor puts in the desired criteria. Having to 'go it alone' when one is not familiar with the area is no small task.
Yet I would like to suggest, to those who desperately wish to purchase a decent parcel of property on a small budget, that priorities are adhered to and other matters relegated to the back burner. If retirement is on the horizon for you, as it is for us, then there is time available for research. Or perhaps a vacation could be spent in Maine looking at various areas of interest. Almost everyone within driving distance of Maine who can spare an occasional weekend, can make progress on their own.
My purpose here is not to malign realtors, who perform a valuable service to buyers who are 'status quo', but to put the suggestion out there among the less well-heeled buyers (who may also have to fund the construction of a cabin once the land is purchased), that there is a whole LOT of acreage in Maine - some of it not even listed for sale - that is available for very reasonable prices. If you'd rather not pay for the services of a realtor, then find the time to do your own travelling and research, and keep your cash in your own pocket.
A realtor is a useful professional for those who are going to finance their properties. The commission just goes into the mortgage with the other fees, and becomes part of the monthly payment. For those who wish to live mortgage-free, that commission can be a real hindrance.
My first impression of realtors is that they represent the status quo. Nothing wrong with that. For a buyer with a great credit history, with a high income that would support the purchase of expensive property, who would qualify for a conventional mortgage, and who has a hefty cash down payment, working with a realtor is just great. They have lots of nice properties to show. For a seller, a realtor is almost essential to get any action on the property. But here, I am discussing the buyer.
It is important to understand that realtors get a 10% commission in Maine, and although that commission is technically paid by the seller (who signs the listing with the realtor), in reality it is usually included in the purchase price, so the buyer ends up paying all of some of the commission. This comes as less than welcome news to those buyers looking for affordable land, realizing that they could likely get the property for less if not for the realtor's commission. I'm not stating that the realtor does not go above and beyond to earn that commission. Just that it's well...there.
As an example, if a Maine acreage was found for say, $43,000 then the commission on that sale would be $4,300 which is quite an additional sum. Remember - the buyer often if not always ends up paying a good chunk of the commission, as it is passed on with the property price.
For a buyer "from away", who has work, family, and other issues to deal with while searching for Maine property, a realtor is a godsend, having computerized MLS listings that pop up instantly once the realtor puts in the desired criteria. Having to 'go it alone' when one is not familiar with the area is no small task.
Yet I would like to suggest, to those who desperately wish to purchase a decent parcel of property on a small budget, that priorities are adhered to and other matters relegated to the back burner. If retirement is on the horizon for you, as it is for us, then there is time available for research. Or perhaps a vacation could be spent in Maine looking at various areas of interest. Almost everyone within driving distance of Maine who can spare an occasional weekend, can make progress on their own.
My purpose here is not to malign realtors, who perform a valuable service to buyers who are 'status quo', but to put the suggestion out there among the less well-heeled buyers (who may also have to fund the construction of a cabin once the land is purchased), that there is a whole LOT of acreage in Maine - some of it not even listed for sale - that is available for very reasonable prices. If you'd rather not pay for the services of a realtor, then find the time to do your own travelling and research, and keep your cash in your own pocket.
A realtor is a useful professional for those who are going to finance their properties. The commission just goes into the mortgage with the other fees, and becomes part of the monthly payment. For those who wish to live mortgage-free, that commission can be a real hindrance.
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