Housing
This section of the BDN aims to help readers understand Maine’s housing crisis, the volatile real estate market and the public policy behind them. Read more Housing coverage here.
There’s no timeline Maine homebuyers can expect to follow between launching their housing search to closing on a property, but a few factors can lengthen the hunt by months.
Buyers typically take about four months from starting their home search to closing day, according to the National Association of Realtors. But several Maine realtors agreed buyers can search for a few months to a few years before closing on a property.
Aside from a person’s budget and what’s on the market, other factors such as a buyer’s location flexibility, willingness to compete against other buyers and aesthetic preferences can drastically change how long it takes to find the right fit, Kyle Dennis, an associate broker at Augusta-based Pouliot Real Estate, said.
“The more particular a buyer is in what they’re looking for, the longer they should expect the process could take,” Dennis said. “If a timeline needs to be quicker, it can be done, but it does usually require flexibility.”
While timelines vary widely depending on a buyer’s circumstances, real estate agents are typically seeing homes stay on the market for longer than they did during the pandemic. At that time, demand for Maine homes rose to a frenzy and properties often lasted less than a week before buyers scooped them up, often paying above asking.
“Now we’re seeing a bit more [inventory] across all towns and it’s taking about 30 days to get an offer versus seven days a year or two ago,” said Renee Hudgens, a Bangor-based broker with Realty of Maine.
Buyers who are flexible on location and open minded about fixer-uppers can move from first contact to closing in a matter of weeks, according to Dennis.
“Buyers who are very specific about location can spend many months waiting simply because so few suitable properties come to market, even if they’re otherwise financially ready to buy,” Dennis said. “I’ve seen this take more than a year.”
A family of four that began looking in Bangor in early February and toured fewer than five homes that month before settling on a three-bedroom, one-bath house on several acres, Hudgens said. The family was able to secure it for $315,000 after it was listed for nearly $345,000 and closed before the end of April, she said.
Another first time buyer launched their search for something in Hampden in March, Hudgens said. They also looked at only three or four homes before submitting a full-price offer of nearly $390,000 on a three-bedroom, two-bathroom property in early April and closed in May.
Not all searches go that smoothly. Hudgens is working with a buyer willing to go anywhere from Old Town to Carmel, but has a budget maximum of $219,000. They began looking in March and have submitted dozens of offers but has always been one of several parties interested in the property, she said.
“This is a hard price point for a government loan as the home has a few more requirements and the homes tend to need more work,” Hudgens said.
Homes priced under $250,000 usually have the most competition now, especially condominiums with asking prices below $300,000. Meanwhile, homes listed for more than $500,000 are staying on the market longer and often have to drop the price a bit to generate offers, Hudgens said.
Additionally, a buyer can find the right property quickly but the process can still be slowed down by other complications, such as an issue found during an inspection that must be addressed before the new owners move in, Dennis said.
“Not to mention, having a transaction fall apart after inspections and having to start over from the beginning,” Dennis said.
Regardless of a buyer’s preferences, low inventory means the market favors sellers, said Julie Willliams, owner and CEO of ERA Dawson Bradford Co. Realtors in Bangor.
But prices have largely remained stable, which gives buyers more room to negotiate pricing and undergo a diligent inspection process before closing, Williams said. Those factors benefit buyers but can further delay move-in day.