So. Maine real estate market (Gorham: appointed, sale, new home)

[umograd83]

Are home prices dropping in southern Maine?

[WhoFanMe]

The median price is coming down slighly, but more importantly that median price is buying a better house than it did a year ago.

[Northern Maine Land Man]

Southern Maine had a bigger bubble. It isn't going to bust, but it will deflate some.

[elston]

That is good news Who Fan Me! And I want to acknowledge the consistently helpful information that you bring to the Maine forum. Thank You!

[WhoFanMe]

Thank you, I call 'em as I see 'em. If you are buying your home to live in for 5 years or more, you should be just fine. Those who bought their home in 2004 or after and are selling now are the ones who are troubled.

[elston]

Originally Posted by WhoFanMe

Thank you, I call 'em as I see 'em. If you are buying your home to live in for 5 years or more, you should be just fine. Those who bought their home in 2004 or after and are selling now are the ones who are troubled.

If they are moving and buying another home; hopefully they can make up on the purchase of the new home, what they lost on the sale of their previous house.

[WhoFanMe]

That is very true, I tell my disappointed sellers to evaluate after both transactions and the formula works if they are moving up market.

[Need to Relocate]

Hi WhoFanMe - are you experiencing any problems with seller's appraisals coming in too low in southern Maine?

[WhoFanMe]

I haven't seen it personally, but my company and I practice very conservatively. When I represent the seller, we price the house accordingly or it won't get any offers. No offers, no appraisals. I lost a listing in Gorham yesterday because although the buyers paid 344,000 at the top of the market in 2005, the comparables are coming in close to 300,000 and the sellers elected to use an agent who was willing to price the house higher than I was. When I represent a buyer, I do a also do a competitive market analysis on the home they want to write an offer on and look at homes sold within the past 6 months, homes under contract, homes on the market currently, make appropriate adjustments for the differences and make sure that my buyers are offering the right amount. I did have cash buyers pay more than I recommended back in 2006, but they had fallen in love with the home and were willing to pay even more than they did. Since there was no lienholder, there was no appraisal necessary.