Floods
The new flood maps taking place this year are causing some ripples in the real estate market. Some sellers, perhaps concerned about resale implications, may be motivated to place their properties, on or near the water, on the market. The below image shows Higgins Beach, which was very hard hit in recent floods.
Those familiar with the area may have expected the houses to the east of Bayview to be in a flood zone, but the flood zone snakes inland to meet up with the flood area from the marsh. The January storms created floods both inland and on the beach fronts as the marsh areas swelled with water. Another area of Scarborough, Pine Point, was also flooded from both sides and effectively marooned.
Here is a link to the flood maps tool you can use to evaluate your risk or the impact on your favorite coastal area: Maine Flood Hazard Risk Map
March Newsletter 2024
There are proposals in the Maine legislature to amend Seller Disclosures which currently only indicate if a homeowner has flood insurance. While lenders require it, flood insurance is optional for those without loans. And the current question can be misleading – proactive homeowners, not in flood zones, may have flood insurance and that could deter buyers. While unsuspecting buyers could make cash offers on properties in flood zones, without flood insurance, to then be surprised at the cost of insurance right before purchase.
And water can cause a great deal of damage. Here is snapshot showing the potential damage from 1 inch of flood water. You can click on the image for a link to change the parameters.
It is worth it for everyone to revisit their insurance coverage to make sure they have coverage for water damage - whether from a flood zone, a water filled basement, or backed up sewer line.
Click on the image below to learn more about potential flood damage.
Roofs
Spring is the season for rain awareness and for homeowners to make plans to replace their roofs after snow season ends. Much more often than flood issues, the water damage from a faulty roof can lead to both rot and mold and take longer to discover.
In a recent edition of the Portland Press there was a disturbing article about a roofing contractor in Saco, who was found not guilty of manslaughter for one of his workers falling to his death in 2018. This same contractor, who already had fines of over $1.6 million levied against him for OSHA violations, has just come back before a judge facing claims that he did not carry required Worker Compensation Insurance.
Coincidentally this week, one of our clients let us know a roofing contractor failed to provide him with any proof of insurance when asked. In Maine, we like to be more trusting, but as property owners we need to make sure we are protected. If someone is injured working on your roof, and the head contractor does not have proper coverage, the injured party may make a claim on homeowners
When evaluating a roofing company here are some things to ask:
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Years in Business
Types of Roofs Installed - there are 40 yr shingles available and the extra cost is worth it!
Referrals from other clients and real estate agents
And importantly –Insurance! Ask for TWO kinds!
Real Estate Industry in the News
There are a lot of changes swirling in the news these days about a proposal from the National Association of Realtors to change the way both buyer and listing agents are compensated for their work. Currently sellers and their listing agents set a total commission amount to sell a house and then this total is shared by the list agent with the buyer’s agent.
In the future, the way compensation is handled will likely change and it may come in different forms such as seller concessions, buyer costs at closing, or a combination of the two.
It is important to know that these are only proposals and the earliest they may go into effect here in Maine might be mid-summer. Our company has already made some changes in advance and sellers can even offer to not pay a buyer agent any commission.
Much of the news on this proposed national settlement is misleading and simply “click bait.” The reality is, commissions have always been negotiable. This settlement is not finalized but if it gets approved, it will primarily change internal systems surrounding our contracts and MLS listings. Buyer agency and buyer agent commissions will still continue of course (buyers agents are a necessary part of any transaction!). But instead of sellers advertising a buyer agent commission publicly, buyer agent commissions will become a private conversation on each sale between buyer, seller and both agents. The industry will adapt and we are confident it’ll be a smooth transition where the agents who excel in their craft and show their value will thrive.
