Housing Bubble? Your thoughts, predictions (Portland, Bangor: second mortgage, hotel, lawyer)

[Mainer61]

I've had my Associate Broker license for over 20 years. In recent years it was very easy (now things have changed again) to get a Sales Agents license. There are so many incompetent people selling real estate these days. I had one broker listing my house and I had to show it with the selling brokers. Can you imagine that? I have a different broker now. The market is slow, but at least I have someone who shows my house and gives me great feedback.

[Submariner]

Originally Posted by Mainer61

... In recent years it was very easy (now things have changed again) to get a Sales Agents license. There are so many incompetent people selling real estate these days....

Amen brother!

You are preaching to the choir now.

And how do you say these things, which we all agree with, and yet you get no stones thrown at you?

You preach from your experience, as do we all.

Amen brother!

[moughie]

Originally Posted by Boomerang

For your late-night, toes to the fire reading time, in keeping with the subject of this thread:

Maine's economic<br>outlook looks mixed

Thanks for posting the link to that article! Very interesting.

[Boomerang]

Originally Posted by moughie

Thanks for posting the link to that article! Very interesting.

You're welcome -- and here's a related piece:
Lincoln County News

It can be difficult to find Maine-specific articles. I usually find them listed as links on the various housing bubble websites such as
Housing Crash Continues, Bubble Pops
Housing - Seeking Alpha
Maine Housing <strike>Bubble</strike> Crash Blog
(one of our on-board realtors is featured here!)

[Zymer]

Originally Posted by Elcarim

And when do you predict the pendulum will swing back the other way?

According to info from CNN Money and Moody's, there is an 11 month backlog of houses on the market. They are currently estimating the decline to continue into 2008, with recovery expected to begin in the 2nd quarter of 2009.

[Zymer]

Originally Posted by WhoFanMe

When I'm initially working with buyers, we don't know whether the seller has 1% or 100% equity. If the sale of the home would create a "short sale" the listing agent either discloses that prior to showing or after an offer is received on the property that the offer will need bank approval. At that point, the buyer needs to make a decision as to whether or not they want to wait and do the extra work it would take to purchase the property. I showed one of these home yesterday that my buyers loved online by the flattering pictures, but when they saw the condition of the home were quickly turned off and crossed it off their list.

If the house does go under contract, most of the liens you mentioned can be resolved out of the seller's proceeds- if the owner has any equity, but it's not always easy and can be an agonizing process. The buyer has to decide if they are willing to go through the exercise.

To answer your question, I don't see any additional value in your home if it's paid off. You as a seller would probably prefer an offer from a buyer that is 100% cash, as those can be closed much quicker and without an appraisal. I had cash buyers in 2006 who absolutely had to have a home, which may not have appraised for the price they paid, but they plan to stay in the home for 10-20 years and unless the U.S. economy fails, they will be fine when it's time to sell.

The house I am buying was originally listed at $310k, I'm buying for $160k. The sellers owe $295k total on 1st and 2nd mortgages so it's going $135k short.

I made the offer in July and specified that I could close in 28 days. It is now Jan, I took possession today, it will close in two weeks. It's been a long process.

[moughie]

Originally Posted by Zymer

The house I am buying was originally listed at $310k, I'm buying for $160k. The sellers owe $295k total on 1st and 2nd mortgages so it's going $135k short.

I made the offer in July and specified that I could close in 28 days. It is now Jan, I took possession today, it will close in two weeks. It's been a long process.

Congratulations on surviving the long ordeal!!! Sounds like you got yourself a smokin deal - hopefully it was well worth the long wait.

Best of luck with the new home!

[Elcarim]

Originally Posted by Zymer

According to info from CNN Money and Moody's, there is an 11 month backlog of houses on the market. They are currently estimating the decline to continue into 2008, with recovery expected to begin in the 2nd quarter of 2009.

Not good news for anyone who cannot afford to give their house away. So, we may be stuck for another year and a half. I can't wait to get back to Maine for that long. I'll have to make a visit up.

[moughie]

Originally Posted by Elcarim

Not good news for anyone who cannot afford to give their house away. So, we may be stuck for another year and a half. I can't wait to get back to Maine for that long. I'll have to make a visit up.

Hey El, we go in October during our Fall break. Do you have a similar Fall break in Texas??? We could rent a home together for one week

[Elcarim]

Nope, we have Christmas break which runs from the Friday before Christmas to Jan 7th this year. We also have Spring break the 2nd or 3rd week of March every year.