Real estate is the most powerful investment vehicle that exists. There are three huge benefits afforded to real estate investments that typically don’t occur in other investments: 1) Leverage, 2) Depreciation and, 3) Loan Interest Deduction. These accomplish very powerful results for income sheltering and equity appreciation. The compounding of these produces returns that dwarf stocks and bonds. Running a successful business would be the only way to beat it, but that is accompanied by greater risk and a lot of work.
Most people expected a downturn in Maine’s real estate when the pandemic hit in March. There was a pause as buyers and sellers alike decided to wait until there was a clear direction in the economy. That direction is not yet clear, and remain cloudy for some time. However, real estate prices have held firm, and in some cases, buyers are paying premiums over asking price.
When a buyer goes under contract on a home or commercial building, the due diligence period begins. Now it is the buyer’s chance to unearth anything that needs repair or replacement. An attorney or title company will look for defects in the title, encroaching lot lines, hidden easements, etc. Most of the time it’s a material defect that needs attention, and this can only be revealed by a knowledgeable inspector. Sometimes, even an experienced inspector can get lazy and make a mistake.
If you’re planning to sell your home, there are many online tips to get it sold quickly and for the most money. What follows here are the best of those suggestions, and some of my own.
If you want to brave the “for sale by owner” maze, Dirty Harry might say “you’ve got to ask yourself one question: ‘Do I feel lucky?’” If you do, also ask:
As much as real estate pros try to get it right, the act of assessing the value of a property is very much a subjective process. Licensed appraisers learn all there is to learn about the subject and still don’t get it right sometimes. The same is true for real estate agents. No matter how much minutia is in the mix, you can only get so close to the real value. That is because the real value is only what someone will pay. Sometimes that’s higher or lower than an appraisal. A rogue sale (a buyer who grossly overpays) will add another dimension as an owner can latch onto it to justify their price. I have often used appraisers to bring in reality with an impartial opinion of value. Sometimes this backfires too with a radically low appraisal. Still, it works more often than not and helps homeowners “get real” about what to expect for offers.