Growing Again! Places in Maine Welcomes Paul Davis

We are so excited to announce that Paul Davis, father of Team Lead, Chris Davis, has officially joined the team. Paul moves on from a successful career of 34 years in the office machine business, where he bought a small company in the early 90's that led to multiple successful mergers, and he has formally retired from Canon to join the team.   Paul Davis It's a magical moment for the team, especially for Chris, to have his Dad excited to come aboard. Paul has decades of proven sales success that will undoubtedly elevate the experience our team provides. He is also really good at making pies, watching his grand children, running, volunteering at church and alongside his wife Sarah, (shout out to my amazing mom!) supporting their family with endless love and support. Welcome aboard Paul! Your timing couldn't be anymore perfect.   And with the addition of Paul, the team is now a mighty group of four, with Chris and Paul Davis plus Alex Hoyt and Kirk Duke.    Alex Hoyt, Kirk Duke, Chris Davis, and Paul Davis  

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How to Buy a House in Maine: Are You a Customer or a Client?

Are You a Customer or a Client?   This is one of a series of high level overviews of the basics of buying real estate in Maine. It is not meant to be advice for any specific situation. We highly recommend that you consult a real estate professional or attorney when engaging in a real estate transaction.  The Importance of the Buyer Representation Agreement In Maine, we make a big distinction between a real estate customer and a real estate client. So much so that the State of Maine Real Estate Commission requires us to go over this with you and present the state's definitiions via the Maine Real Estate Brokerage Relationships form.   In short, if you haven't entered into a written agreement, you are a customer. As a customer you can expect the real estate licensee: To disclose all material defects pertaining to the physical condition of the real estate that are known by the licensee;  To treat both the buyer and seller honestly and not knowingly give false information; To account for all money and property received from or on behalf of the buyer or seller; and  To comply with all state and federal laws related to real estate brokerage activity. So what's missing in that? A couple very important things. First, as a customer you should not expect confidentiality! You also should not expect professional advice (How much should I offer?). And you should not expect the licensee to promote your best interest. (Note: The same is true for a seller and a listing agreement, we're just focusing on buyers in this post.) However, once you have entered into a written client relationship agreement, you can expect all those things and more.  The OLD CARD—An Agent's Duty to a Client In real estate, we use "OLD CARD" as shorthand for our duties to our clients (often called our "fiduciary duties"). So now you HAVE entered into a client relationship via a written agreement. What does that get you? What is your REALTOR obligated to provide you? O – Obedience: A licensee must obey the client’s lawful instructions. L – Loyalty: The duty of loyalty is the legal expectation that the licensee will put the client’s interest ahead of everyone else, including the licensee’s own personal interests. D – Disclosure: The licensee must disclose all material facts or information that, if known, would change the decision of the client. Material defects must also be disclosed. C – Confidentiality: This is the only fiduciary duty that extends beyond closing. The licensee cannot disclose information that would adversely impact the negotiating position of the client in the transaction or any other information that the client directs to be kept confidential. A – Accounting: The licensee is accountable for the money and property of others that comes into his or her possession. R – Reasonable Care: The licensee has a duty to be reasonably careful in the conduct of the business of the client. This means keeping abreast of industry changes, making sure all of the proper forms are used, preparing offers in the proper manner, etc. D – Diligence: The fiduciary duty of diligence requires the licensee to be attentive to the interests of his client. So remember, until you have entered into a written agreement for representation, a licensee owes you NONE of the OLD CARD duties!     

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How to Buy a House in Maine: Listing Agents vs Buyer Agents

Listing Agents vs Buyer Agents   This is one of a series of high level overviews of the basics of buying real estate in Maine. It is not meant to be advice for any specific situation. We highly recommend that you consult a real estate professional or attorney when engaging in a real estate transaction.  Who Represents Whom? Listing Agents vs Buyer Agents This is not unique to Maine, but it is probably the thing most people don't realize, or at least don't have top of mind when they start the process. The vast majority of REALTORs do represent both sellers and buyers. But it is rare for them to do so on the same transaction (it's legal in Maine if all parties are aware, but that's another topic). The Listing Agent A home owner who is selling will work with a listing agent. That agent's job is to set pricing strategy, develop marketing, and get the most net value on behalf of the seller (or get the most of whatever the seller's priority is—they may value how quickly it sells over net dollars, for example). In other words, the listing agent is working for the seller, and has no loyalty or responsibilty (other than honesty and disclosure of material defects) to the buyer.   The Buyer Agent A buyer agent, on the other hand, is working for the buyer. In other words, the buyer agent has no loyalty or responsibility (other than honesty) to the seller. The buyer agent's job is to find properties their buyer may be interested in, show the property, research the property, advise on offer strategy, and negotiate the best deal possible for the buyer.   Ok, so that makes sense, right? You have two parties that might engage in a transaction, and they each have a representative working on their respective behalves. One Buyer Agent for All Listings So here's the part that most buyers don't realize when they are starting out. As long as they are properly licensed and a member of the Multiple Listing Service (MLS), your buyer agent can show you any home on the market.   You do not need to (and actually shouldn't because they don't represent you) contact the listing agent to see a home. Just work with a buyer agent you like and trust, and they can take you to see anyting listed in the MLS.   In Maine, we have one MLS, and it covers the entire state. A buyer agent may well set their own geographic boundary. But technically they can show you any listed property in Maine.  Ok, So Now What? Select a Buyer Agent Well, if you are ready to wade into the process of buying a home in Maine, the first step is to pick a buyer agent to work with. You're going to be working closely with them for a couple of months. So meet with them by phone, video call, or better yet in person to make sure they are a good fit for you!

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