With today’s market for land still weak, landowners who have significant forest or farm land as a part of their primary or second homes may find it difficult to sell their property and recover their investment. Selling development rights on undeveloped forest or farmland through public and/or private conservation groups allows owners to combine that income with the fee sale of the restricted property to reach their financial goals.

Clients’ lands are typically acquired as a part of an inheritance or purchase or assembled over time to ensure privacy and/or protect the views. One effective strategy is to do a baseline feasibility assessment to determine if there are ecological assets of local, regional or more widespread significance on the land, such as unique habitats, part of a targeted effort by conservation organizations to protect water quality, wildlife corridors or unique habitat, prime forest or farm land soils, or recreational trails. Once identified and evaluated for the particular property, LandVest develops the appropriate partnerships with non-profit conservation groups and both public and private sources of funding to purchase either a conservation easement or the fee interest in the property. In this manner, the combination of income and/or significant donation values brought in by these conservation sales can allow the client’s property to be re-priced in the market at a lower price point, making it more attractive – and, indeed, more sellable – to a larger group of potential buyers .

A recent example of this process is Baldwin Hill Farm in Egremont, MA, which has been on the market for nearly 18 months at an asking price of $5.9 million. Baldwin Hill Farm is located at the peak of one of the most spectacular views in the southern Berkshires, and is identified as a conservation priority in the region. With LandVest’s assistance, the third generation owners of the 267 acre farm will sell a permanent Agricultural Preservation Restriction (APR) over 179 acres of prime farmland on the property in the spring of 2012. As a result the price for the 267 acre property, now encumbered by the APR on 179 acres but including the Main house B&B and barns on an unrestricted 11 acre parcel, 81 acres of unrestricted land along Marsh Pond, , and a 3000 sqft contemporary three-bedroom home has been lowered to $2.9 million. Instead of the sellers waiting longer for a single buyer to purchase the property at full price, the development rights have been monetized and the property has been protected in perpetuity. This, in turn, allows the asking price for the entire property to be reduced to a point that makes it much more marketable to a broader pool of buyers. Interest in the property has significantly increased as a result of the price revision with two parties now considering making offers.

LandVest Real Estate Consulting works with landowners, both public and private, assisting in the analysis development of land use plans to support landowners financial as well and their conservation goals. Recent examples of this work can be found on the LandVest website. For more information or to discuss the meeting in greater detail contact David Rosen at drosen@landvest.com or Keith Ross at kross@landvest.com.

Click for more information regarding LandVest’s Conservation and Real Estate Consulting Services.

This entry is brought to you by Terry Sortwell and Shannon Thompson, who assist and advise real estate owners and buyers of fine homes and estates throughout Midcoast Maine.

We at LandVest
have seen increased activity this year,
with a number of encouraging sales. The statistics—and other characteristics of the
market—suggest that values and sales activity
are in a holding pattern at the bottom. Statistics from the Multiple Listing Service (MLS) show that
in the coastal towns from Boothbay to Blue Hill there have been twenty sales of properties priced
over a million so far this year, with one sale pending. Of these, seven are LandVest listings.
Statewide, there have been 119 sales and 12 sales are pending. This is consistent with the number of
sales in 2010 (27 in the midcoast region, 140 statewide.)

Indian Head, Northeast Harbor, Story Litchfield's LandVest listing, was the highest recorded residential sale in the state of Maine

Statewide at the very top of the market, above $3 million, there have
been nine sales statewide, and four sales are pending. Of these thirteen sales, eight were LandVest
listings, and four of the five sales above $4 million were LandVest listings. There were twelve
sales above $3 million in 2010.

A recent white paper by Edward
Chancellor from the global investment management firm GMO examined the stages of the real estate
cycle. Typically the peak is characterized by high valuations, high levels of private sector credit
growth, new forms of lending, high levels of construction, speculative purchasing, and rising
interest rates. A credit crunch and defaults on existing property loans generally signal the turn,
and then the market begins the long, slow slide into “the trough,” where the market tends to linger
due to the lack of liquidity in real estate. We are clearly in this trough, which is characterized
by low valuations, lower leverage, low housing turnover, pent-up demographic demand, and continuing
pessimism toward real estate. Since markets tend to move more slowly on a decline or when moving
laterally, they usually spend several years in the trough.

The Real Estate Cycle in Five Stages, source: GMO

The real estate market is moving through its paces, and there are
reasons for optimism, especially on the coast of Maine. On average, it has taken real estate markets
five years to hit the trough after a bubble, and it’s been five years since housing prices peaked.
And Chancellor believes there are other indications that the worst is over: valuations are
reasonable. Mortgages are available, and at lower rates than we’ve seen in decades. Supply remains
elevated relative to demand, but sales have fallen to an extent that if demand recovers to normal
levels, excess supply would disappear—and in some markets, be replaced by a shortage.

Caldwell Island, a record sale for Muscongus Bay, by Terry Sortwell, regional manager and principal with LandVest in Camden, Maine

Here in Maine, as in elsewhere in the country, buyers are holding back.
The vacation home market has many defining characteristics, and these days perhaps none is more
definitive than the fact that no one has to buy a second- or third- home. So the majority of buyers
are still waiting, and while they wait, demand builds, which bodes well for the future. Chancellor
believes, and we agree wholeheartedly, that the long-term fundamentals of the real estate market are
sound. When the economy recovers and unemployment declines, home prices and construction will both
pick up, and a real estate boom will follow. The new buyer, who is younger (ages 30-50) and more
mobile, is increasingly attracted to Maine,
its quality of life, and the relatively reasonable real estate values to be found here. We’re seeing
more and more buyers from this growing demographic, many with young children, deciding that it’s
time to fulfill their dream of a vacation home here.

Though we’re
in the trough, we’re not without hope, nor without sales activity. We can say with some confidence
that the stalemate between buyers and sellers that we’ve been talking about for the last couple of
years has broken. There have been enough sales of waterfront and other exceptional properties
to allow buyers, sellers, appraisers, and brokers to draw educated conclusions about valuation. With these sales we’re starting to have enough hard data to
begin to gauge real value in the current market. When sales offer more concrete rationale for
pricing, they also generate more confidence among buyers to move forward.

Lilyhaven, Isleboro, sold by Terry Sortwell and William Davisson

While we are beginning to have a better grasp on valuation and pricing,
it’s very difficult to predict what’s going to sell or in what period of time. At the top of the
market, most properties are experiencing slight decreases in value, though the very best among them
are holding value well. The sale (by our Northeast Harbor broker Story Litchfield) of a property on
Somes Sound for $12.25 million was the highest residential sale
ever in the state of Maine. In our own area, our February sale of Caldwell Island in St. George for $4.7 million is another
example of an exceptional property holding its value well, as is the sale of a property on Deep Cove inn Port Clyde for $1.9 million, and the sale of land parcels on
North Haven for $1.7 million. A property on Bremen Long Island that sold in early October for
$635,000 was one of several that attracted multiple offers.

Another peculiarity of this market has been dramatic bursts of activity in
very small markets. Islesboro, for instance, only had one sale over a million in 2006 and 2007. Then
in the three years between 2008 and 2011, sales activity jumped, with eight sales in this range.
There have been two sales this year. Similarly, the market on North Haven was dead quiet for years,
with only three sales above a million in the five years leading up to 2011. This summer and fall
there were six sales.

It remains to be seen whether these flurries
are isolated bubbles of activity or something of greater significance—pointing, perhaps, to renewed
confidence in Maine real estate. We certainly hope it’s the latter and
have many reasons to believe so.

Indian Head, Northeast Harbor, ME Listed At: $15,500,000 was the highest recorded residential sale in the state of Maine. Broker: Story Litchfield

Despite global economic and stock market concerns, the high-end coastal Maine real estate market is seeing a positive increase in activity.  Terry Sortwell of LandVest in Camden, Maine reports on the coastal Maine real estate market.  “In the last six weeks we have had an unexpected surge in the number of productive showings in midcoast Maine. Despite market conditions, the buyers that we have spoken to lately do not appear to be concerned with making a real estate investment.  On the contrary, they feel they are getting a good deal and feel a sense of urgency: if they don’t buy, someone else will.”  That sense of urgency is not without merit.  “Several of our recent sales have had more than one person on the waiting list,” says Ruth Kennedy Sudduth, director of the Residential Brokerage Division. “an occurance that we have not seen happen in quite some time.”  In addition, the recent activity has a wide spread in terms of price points.  Story Litchfield of LandVest’s Northeast Harbor office recently brokered the sale of Indian Point which was the highest residential sale in the state of Maine.

John Saint-Amour from LandVest’s Portland office reports similar increased activity in southern coastal Maine and into the western lakes region. With buyers looking for value, sellers are working with realistic offers and properties are selling. For the entire state of Maine since 1/1/2011,  John reports that there have been 15 sales at $2,000,000 and over. LandVest did 7 of these 15 sales. Of the 11 “pending” transactions in the $2,000,000 and over, LandVest is responsible for four of these properties.

William Davisson, also of the LandVest Portland office, reports dramatic increased activity from buyers having interest in properties in Southern Maine. Oceanfront positions, proximity to amenities, accessibility to transportation, and relative turn-key quality define search parameters for these buyers. The recent financial market turmoil has not deterred prospect property visits with most buyers. It is generally acknowledged that value in Maine Coast real estate is present. York and Cumberland Counties currently have three properties pending, and one sold, listed above $3MM. LandVest represented the Sellers for the $4.2MM sale, and is managing two of the pending transactions.

John Scribner, also from the LandVest Portland office, reports there seems to be a sense that the bottom has been realized and that the market is beginning to turn.  This phenomenon requires a unique property with realistic pricing (there has to be the appearance of a good deal for all parties) but it is an emotion we are sensing in the market place we have not seen in a long time.  The coast of Maine has been a dream of many for many years, but sellers over confidence (over pricing) and market conditions (recessionary times) have limited opportunities for intelligent buyers.  The barriers to entry seem to have lifted a bit.

Below is an illustrative collection of LandVest – Maine  listings that have gone under agreement or sold  in the last few weeks.

Pine Knot, Kennebunk, ME, $3,850,000 -Broker: John Scribner

Seabury Farm, York Harbor, ME $3,495,000 Broker John Saint-Amour

Long Reach, Harpswell, ME $1,745,000 Broker: John Saint-Amour

Eastern Bay Farm, North Haven, Maine, $1,875,000 Broker: Terry Sortwell

Harbor House, St. George, ME $975,000 Broker: Terry Sortwell/John Saint-Amour representing the buyer

Deep Cove, St. George, ME, $2,175,000 Broker: Terry Sortwell

Isleview, Seal Harbor, Mount Desert, ME, $950,000 Broker: Story Litchfield

Pratt's Island Cottage Southport, ME, $1,250,000 Broker: John Scribner

Lilyhaven, Islesboro, ME, $3,495,000 Broker: William Davisson

For more information about buying or selling distinctive real estate in Coastal Maine or information about any of the properties that have sold or are under agreement in Bar Harbor, Northeast Harbor and the Down East area, Camden/Rockport and the mid-coast Maine region, York County, Greater Portland and Boothbay Harbor regions, contact one of our Maine Real Estate Brokers.

Camden, Maine Area Real Estate Broker

Portland, Maine  Area Real Estate Broker

Northeast Harbor, Area Real Estate Broker

For more information, click on photos, call the LandVest – Portland Maine  (207) 774-8518 or contact the Portland broker listed with each Maine property.

Coveside

1.80 Acres

393 High Head Road, Harpswell, ME

$1,625,000

For more information, contact William Davisson
————————————————

Morey-Pierce House

2.60 Acres

67 Perkins Street, Castine, ME

$4,250,000

For more information, contact John Saint-Amour or Terry Sortwell

————————————————

Pine Knot

3.19 Acres

48 Parsons Beach Road, Kennebunk, ME

$3,850,000

For more information, contact John Scribner

————————————————

The Moxie Farm is a 36± acre saltwater farm (with 3,425± feet of deepwater shorefront) located on the northern point of Friendship Long Island, in Maine

In coastal Maine, saltwater farms and farms near the coast are in increasingly high demand. We are seeing new, serious interest in farms among buyers of high-end real estate. Most are interested in land conservation and small-scale farming activities. Popular as vacation properties as well as private residences, farms on the Maine coast offer historic properties with beautiful, private settings at exceptional value. Some, like the Moxie Farm, are true saltwater farms. Located on Friendship Long Island, in Friendship, Maine, the Moxie Farm includes open fields and pristine woods together with a historic farmhouse, barn, and over 3400 feet of shorefront. Its two deepwater wharves and proximity to Friendship village offer easy access as well as privacy.

Eastern Bay Farm in North Haven, Maine encompasses 90± acres and 580± feet of waterfront with a wide pebble beach

Another waterfront property and saltwater farm is Eastern Bay Farm, located on the island of North Haven, easily accessed by public ferry or small plane. The historic property includes some 95 acres with 580± feet of shorefront, including a spectacular beach. The views of surrounding islands and Penobscot Bay are wonderful. The house is a classic historic Cape overlooking rolling fields.

With 133± acres, Two Century Farm in Bristol, ME is an idyllic sanctuary rich in historical interest, architectural appeal, and scenic beauty.

Two Century Farm in Bristol  is another bucolic property. Steeped in colonial history and rich with character, the 133± acre farm property is located close to Maine waterfront towns on the Pemaquid peninsula but is a completely secluded, hidden sanctuary. With stone walls bordering meadows and an exquisite late 1700s Cape, the farm is a wonderful example of farmland preservation.

30 Davis Point Road, in Cushing, ME is a meticulously crafted extended Cape and barn are perfectly sited on a hilltop overlooking this property's 45± acres

Our final Maine coast farm offering is 30 Davis Point Road with an impeccable traditional extended Cape, perfectly sited on a hilltop, overlooking meadows and a pond. The property is located on the desirable Davis Point peninsula in Cushing, Maine, and includes a small amount of tidal frontage on Davis Cove. We love the combination of the ocean and the beautiful rural character of Midcoast Maine. The bucolic character and feeling of being away from it all makes Robert Shiller’s article on the compelling case for farmland investment even more appealing.

Click to view Coastal Maine Real Estate For Sale and Midcoast Maine Farms for sale (For more information about living in Midcoast Maine, contact Terry Sortwell(tsortwell@landvest.com) or Shannon Thompson (sthompson@landvest.com)

 This entry is brought to you by Terry Sortwell and Shannon Thompson of LandVest – Camden, Maine who assist and advise real estate owners and buyers of fine homes and estates throughout Midcoast Maine.

 

Image credit: Jake Wyman/Getty Images

We were pleased to discover this great little piece by acclaimed travel and fiction writer Paul Theroux on the charms of the Maine coast in the cooler months. Mr. Theroux writes about the St. George peninsula, right in our backyard, and home to some of the best values around for mid-coast Maine waterfront properties, including the lovely Harbor House. 

Click to read the article in the Atlantic: The Wicked Coast 

Click to view Coastal Maine Real Estate For Sale

For more information about living in Midcoast Maine, contact Terry Sortwell (tsortwell@landvest.com) or Shannon Thompson (sthompson@landvest.com)

Terry Sortwell is a principal and regional manager at LandVest’s Camden office. The firm deals in high-end properties, generally more than $1 million. He suggested that the current market conditions have shown, once again, that real estate is not a liquid investment.

“If there’s not a lot of demand for the property you own, you can reduce the price way down below what one would think it’s worth and still not sell it,” said Sortwell. “You can’t make a market for it — that’s part of the frustration many sellers are going through.”

The market he deals in got very quiet about three years ago, reviving a bit last year, said Sortwell.

“Basically, buyers have been …”  Read the full article

The Grace Estate in Islesboro, Maine is a historic Penobscot Bay landmark and is currently for sale. Islesboro is one of several pocket markets in Maine that can boast improved activity and sales of million plus homes.

We are more optimistic about the upper end of the real estate market than we have been in several years, despite recent news about a double-dip decline in home values nationally. (A recent issue of the Economist noted that February’s numbers for existing- and new-home sales were “unremittingly gloomy,” falling sharply after increasing for three months.)

There are encouraging signs pointing toward market recovery in Maine. The Multiple Listing Service shows that in 2009 there were 32 sales above $2,000,000; sales went down to 25 in 2010, but so far this year there have been 6 sales of properties priced above $2,000,000, and there are 10 sales pending. This is certainly an encouraging start. Year-to-date sales over $1,000,000 are on pace with last year at this time, or slightly ahead. It’s really too early in the year to judge with certainty, since our winter market is limited; but looking across the region, this solid start seems to be occurring across New England, with first quarter numbers boding moderately well for the year. There are also reasons for optimism right in our local market. For example, there is strong activity on Islesboro, which has had have seven sales during the last 24 months at over $975,000. There were just three sales in this range in the two year period before that.

While we’ve had a slightly better start than last year, we’re definitely still in the midst of a major correction, with widespread and deep price reductions, and sales occurring at prices as low as 50% off original list price. (Residential sale prices since January 2010 average about 75% of original listing price.). There are encouraging signs of recovery in specific markets, as in the example of Islesboro above, but other similar and neighboring markets—such as North Haven and Vinalhaven—are still suffering. This is a pattern that seems to be occurring across New England.

Still, things seem to be heading up and we are more optimistic about the near future. Fortune magazine declares that “it’s time to buy again” in its April cover story, “The Return of Real Estate.” The severe decline in prices, together with increasing supply of renters, a likely shortage of new homes once the market recovers slightly, investors jumping into the foreclosure market, and signs of improvement in the general economy all point to improvement in the real estate market, the article says. The economy and consumer confidence need to show continued improvement before this happens, but Fortune believes that these market fundamentals are going to fuel a housing recovery sooner rather than later.

Fortune notes that Robert Schiller and Karl Case, co-founders of S&P Case Schiller Home Price Indices, don’t agree, but Case sees a pending recovery. “Maybe I’m optimistic, but housing is looking like the little engine that could. So let’s state it forcefully and optimistically: Housing is back,” he said.

The article’s conclusion is that both markets that have had high rates of foreclosure, as well as those that are considered “non-distressed,” are well-positioned to see a turnaround in the near future. Maine coast properties surely qualify for the latter. Because we haven’t seen rampant speculation, our markets spiked far less than those truly caught in the bubble and have held up fairly well. Inventory is not exceedingly high, so when the market begins to recover we can expect strong gains.
This affirms our sense that the long-term picture for Maine is bright—and that perhaps a recovery is going to come a little sooner that we thought. However, today it’s very important to remember that it’s still a buyers’ market. Buyers are more savvy and informed than ever. They’re arriving armed with knowledge about the market and a belief that they’re in the driver’s seat. Most of the properties that are selling are closing for prices well below their original asking prices. These buyers are demanding bargains.
We’re also seeing a generational shift. In the 2004-2006 market highs, retiring baby boomers  characterized the vast majority of buyers, coming to Maine in droves to purchase homes here. It seems that they are now holding back, and a younger demographic is stepping into the market. Young couples, some with children, are now looking for second homes on the Maine coast. (An interesting subsector of this market is composed of young families who are purchasing high-end properties in Maine with the intention of living here year-round and establishing small farming operations.) Their preferences are different than those of the generation ahead of them. They want open living areas to accommodate gatherings, ample bedrooms and family rooms for young children as well as summer guests, accessible shorefront (or, if inland, varied and top-quality land for farming as well as recreation) and either exceptional privacy or a location with village amenities within walking distance. By and large, they’re seeking properties that are already “done”—year-round, in good condition, with quality amenities. The exceptions to this last point are properties with significant historical and architectural charm.

Gray Rocks, Camden, Maine has features that fall in line with what todays buyers are asking for, an open floor plan and two carriage houses offering plenty of room for friends and family.

More than ever, properties need to be priced appropriately for the current market and given broad marketing exposure. With our continued exclusive focus on the top of the market, and our 30 years experience throughout New England, we’re able to provide superior visibility. We have a well-recognized brand and a strong presence in print media such as the Wall Street Journal. Our targeted mailing lists and personal networks of influential, connected individuals are unparalleled, and our web presence is superb.
A pioneer in web marketing in the 1990s, LandVest continues to lead the way in Internet marketing for high-end properties. Marketing distinctive properties requires a three-fold approach: exceptional presentation; a targeted effort to reach luxury buyers; and broad distribution to capture qualified buyers from every corner of the market. LandVest is excelling in all three arenas. Properties are beautifully and intelligently presented on our website with professional photography, quality copywriting, and extensive information. Our listings appear on the top domestic and global luxury real estate sites, including Christie’s International Real Estate, the New York Times, the International Herald Tribune, the Wall Street Journal, Country Life, and Luxist. Finally, the breadth of our marketing efforts means that our listings are easy to find, whether on the MLS, through other brokers, on Zillow, on Trulia, or on one of the many other real estate websites with whom we are affiliated. We have some 10,000 subscribers to our own website, and we frequently receive inquiries from prospective buyers who quietly follow the market, watch our site for new activity, and investigate properties that pique their interest.
Our belief now is that, slowly but surely, these buyers are going to start stepping back into the market in greater numbers with a renewed readiness to purchase Maine coastal property.

Click to view Camden, Maine area real estate for sale

One of the great pleasures of directing the LandVest Residential Real Estate Group is seeing the truly remarkable properties we have for sale, and understanding their appeal through the eyes of our team of experts in each regional market. LandVest has offices and experts in the markets where the most special properties exist. The best real estate tends to be in locations where beauty and sense of place have been recognized for generations, making for truly remarkable combinations of site and houses. This series of blog entries explores some of these special places and some of the remarkable private properties hidden within them.

On up the coast to Camden and Rockport to meet with Terry Sortwell and Shannon Thompson. Camden’s streets tip and wrap along the rocky shoreline of the harbor, with gaps between the buildings opening to glimpses of lobster boats and moored cruising schooners.

Camden Harbor Waterfront is a rare investment opportunity with a variety of possibilities, and the best of Camden’s waterfront vistas.

Though the population bulges in the summer, the year-round community is vital enough to support a thriving village life, with most shops and top-notch restaurants staying open through the seasons, and several noteworthy conferences and recreational and cultural events happening through fall, winter and spring. Including internationally known Pop!Tech, the highly regarded foreign affairs symposium Camden Conference , the Camden Snow Bowl  hosting the National Toboggan Championships, and the renovated historic Strand Cinema in Rockland, bringing first run movies, nationally recognized music acts, and the Met Opera live in HD.

My favorite place may not be the most glamorous, but the Boynton McKay coffee shop, located in an old pharmacy, serves up amazing sticky buns and thick, homemade French toast. At the other end of the spectrum, Francine Bistro just down the street resonates to a cooler downtown vibe, with excellent seasonal menus well-presented.  Life in the Camden/Rockport region is civilized, with amenities ranging from the excellent Bay Chamber concert series to a great pool at the Penobscot Bay YMCA  for lap swimming.  Road biking is fantastic along the back roads that fan out from town, with harbor vistas shifting to quiet lakes and open farmland. The hills above Camden have wonderful hiking, with the reward of big views of Penobscot Bay when you get to the top.

The LandVest office in Camden  is in a beautiful harbor location, tucked up in an old sail loft down near the waterfront.  Above the harbor, climbing creaking stairs, it feels a world away from the generic American strip. Camden is a base for exploring Penobscot Bay, a huge protected bay dotted with islands, perfect for leisurely exploration by sail, motor, or paddle. The landscape is varied, with each change of aspect yielding another beautiful view. Because Maine coast real estate is all about the water and the views, exploring real estate for sale by boat, including private islands for sale, is the way to go.

Terry’s deceptively simple work boat is big and safe, though elegant and comfortable, and it makes for the best possible views of the great properties which would otherwise be hidden from view at the end of long driveways. Island living is one of coastal Maine’s great pleasures, and LandVest has listed and sold many remarkable properties. Island properties are the Camden office’s specialty, and Terry is arguably the region’s most experienced, knowledgeable and qualified broker for island real estate. The recent sale of Caldwell Island near Port Clyde—another record-setting island sale—is a fine example. Current listing Davis Island, also in Muscongus Bay, offers an exceptional opportunity of the highest quality for a buyer seeking a turn-key private island. The Grace Estate   is an island property of equally exceptional quality offering a very different experience. A historic early 20thc. “cottage” on Islesboro, the property encompasses 8.8± acres at the end of a private peninsula with spectacular views of the Camden Hills and down Penobscot Bay to open ocean. In addition to the 8-bedroom year-round residence, the estate also includes a guest house, boat house, deepwater dock, professional putting green, and saltwater swimming pool.

With waterfront properties ranging from understated oceanfront cottages to impeccably appointed private estates, Maine island properties offer a summer experience like no other.

Click below to view more Camden, Maine Real Estate for Sale

Central Coast Maine real estate for sale

Blue Hill real estate for sale

Pemaquid Peninsula properties for sale

Maine Island properties for sale

To view properties throughout maine:  Distinctive Maine Real Estate

  This entry is brought to you by Terry Sortwell  and Shannon Thompson, who assist and advise real estate buyers and sellers of fine homes and estates and farms throughout mid-coast Maine.

We are welcoming 2011 with renewed optimism for the upper end of the coastal Maine real estate market.

The last three years have been some of the most difficult in memory for this market. Perhaps the most salient point—one that’s driven home time and again—is that residential real estate is not a liquid investment in times like these, when buyer demand is at an all-time low. All the “fair value” numbers and appraiser comps don’t mean much if there is not sufficient demand to absorb inventory. Fortunately, here in midcoast Maine, we have not seen overbuilding or extreme price appreciation, the aftereffects of which have buried real estate markets in other parts of the country. These markets will take years to stabilize, whereas coastal Maine should recover much more quickly.  

At the beginning of 2010, we predicted a year of gradual transition as the impasse between buyer and seller perceptions of value started to break. Indeed, as the year went on we started to see the slow and steady shift into a stronger market that we anticipated, and we believe that the market is finally beginning to lift off the bottom. Data from the Multiple Listing Service shows that the number of sales of properties priced over $1,000,000 in the midcoast region (coastal towns and islands from Boothbay to the Blue Hill Peninsula) showed moderate gains in 2010, as did sales statewide. See the chart below for an illustration of sales during the last decade.  

This is the first modest gain we’ve seen since the market fell in 2008. (Looking back at the number of sales in this region of properties priced $1,000,000 and up, 2008 sales were down 36% from market highs in 2007, and they dropped another 20% in 2009.) It’s still too early to fully understand where values will settle, because we’ve seen considerable disparity among sales based on individual circumstances. One sure characteristic of this market is that it’s volatile. Asking prices and selling prices are inconsistent with historic norms and with their expected or logical values. It appears that values are beginning to settle out to where they were before the spike in the market in 2006 and 2007.

The biggest problem facing this market today is a continued lack of demand. Seller valuation expectations are rising in conjunction with stock market optimism, but real estate values are lagging behind. Buyers who are making offers are making low offers, because they’re still not convinced that the market has reached bottom and that spring won’t bring more price reductions.

However, there’s most definitely a bright side. Buyers are starting to gain confidence, and they are stepping back into the market in small but noticeable numbers. We anticipate continued slow and steady improvement as we move through 2011.

Click to view more Camden, Maine (and surrounding area) real estate for sale.

Click for more information on  real estate properties in the Camden, Maine area.

We’re delighted to learn that Kelmscott Farm in Lincolnville, Maine, which LandVest sold in July 2010, is once again a fully operational farm after a few years as a private home. This beautiful property is composed of over 150 acres near the Maine coast and includes pristine woods, open fields, a renovated farmhouse and barns, an heirloom apple orchard, herb garden, and ponds. The property was most recently a private residence, but before that it was home to a not-for-profit rare breeds foundation, which offered conservation and educational programs on site.

Kelmscott Farm was purchased in July 2010 by a family from New York intent on helping it achieve its rich agricultural potential once again. Jed Beach and Emilia Carbone—both skilled and knowledgeable environmentalists, farmers and educators—were involved with the farm prior to its sale and are now managing it full-time. Check out their blog about their experience: The Farming Adventures of Jed and Emilia

Now, the newly christened Ararat Farms will offer seasonal vegetables, eggs, dairy, and pasture-raised meats through its Community Supported Agriculture (CSA) program. The farm’s stated mission is “to grow a range of products that comprise a holistic, plant-based diet for our customers; to grow high-quality crops with measurably superior flavor, nutrient density, and shelf life than standard grocery store offerings; and to use methods that are all natural, and that conserve and enhance our soil.”

We couldn’t be happier to welcome this new addition to our community.

See these other farm properties among our Maine waterfront real estate listings:
Eastern Bay Farm, a saltwater farm and island property for sale on North Haven, Maine
Coverly Farm, a waterfront property and saltwater farm for sale in Castine, Maine

LandVest Senior Advisor Keith Ross is a leader in the effort towards collaborative land conservation.  In a recent article that appears in the fall edition of Northern Woodlands magazine, Conserve More Land Today through Parcel Aggregation, he promotes this concept of collaborative “aggregation” of woodlands; combining or “bundling” preserved land from separate owners into one larger project.  This process conserves large landscapes and attracts interest from motivated landowners and investors alike. 

The strategy may seem like a difficult feat, but recent examples in New England prove this is feasible and beneficial.  In Western Massachusetts, seven land trusts are working together to obtain funding to buy conservation easements for more than 10,000 acres of timberland owned by 71 landowners, and have raised over seven million dollars to-date.  Several other areas throughout New England have been replicating this land aggregation concept and have been successful lowering costs related to conservation easement monitoring, and appraisals.

Why is land aggregation beneficial for land owners? 

Not all forest conservation projects are significant enough to be completed as stand-alone individual projects.  Most are smaller acreages that have significant ecological values to maintain large forest blocks or protect lakes, ponds, streams, wildlife habitat, etc.  By grouping these projects together they can attract funders that don’t normally focus on small individual projects and the costs of the transactions can be reduced by grouping together the appraisals, negotiations, baseline documentation, etc.

 Why is land aggregation beneficial for the land? 

Most forest land conservation projects are not the highly visible road frontage pieces people drive by every day, nor are they the large mega acreage tracts that are conserved up north.  Most are much smaller tracts that are important to knit together to ensure we have large blocks of forest necessary to ensure the production of clean air and clean water that support all of us.

For more information on Collaborative Land Conservation Contact Keith Ross

Located just an hour drive from Portland, Maine, Skye Farm is an absolute treasure for a potential owner.  Recently selected as an “Editors Pick” in Architectural Digest, and chosen as one of the “Best Properties in America” by The Week, the farm has been recognized for its remarkable attributes and opportunities.

Built in the late 1800s, this Waterford property represents one of the finest Gentleman's Farms in Maine.

The farm was originally owned by Frank Morse and run as an apple orchard for a number of generations of the Morse Family.  The farm was then converted to more of a Gentleman’s Farm in the early-mid 1990s, and a number of different activities have gone on at the farm in the past 20 years.  The current owners of Skye Farm  have raised Highland Cattle and Ringneck Pheasant; they have maintained the orchard, and have added more opportunities for family activities such as a tennis court, a regulation croquet lawn, a man-made 1.5± acre pond for swimming, and converted a barn into a wonderful entertainment area.

The seven bedroom farmhouse with 180± acres of land was originally built in the mid-1800s and boasts seven bedrooms with five bathrooms, sauna, whirlpool, media room, and full workshop, as well as many components and equipment to complement the orchards and farming aspects of the property.  An added asset is the 1,550± feet of frontage on McWain Pond with a cottage at the waters edge and a dock system with moorings.   

Sited in Waterford, Maine , in the foothills of the New England White Mountains of Western Maine, Skye Farm  is a short drive to some of the best skiing and hiking in the Northeast, including Shawnee Peak, Sunday River, Mt. Abrams, and Sugarloaf.  It is also just an hour from North Conway, NH and the outdoor adventure activities of the Presidential Range and the Appalachian Mountain Club. 

Whether you choose Skye Farm  to be a private residence growing into a generational four-season family property, or maybe a Gentleman’s Farm with raising of livestock, or even a superb equestrian facility, and just maybe a relaxing country bed and breakfast, Skye Farm  offers tremendous value for any buyer. 

For more information or to arrange for a visit to Skye Farm , please contact John Scribner at 207-874-2057 or jscribner@landvest.com.

LandVest offers other Gentleman’s Farms and equestrian opportunities throughout New England.

 Click to view additional extraordinary Maine properties for sale

$2.475 million buys Norumbega Castle -Portland Magazine’s House of the Month.

Located within walking distance of Camden's village center, Norumbega Castle is a Maine coastal landmark.

Anyone who has ever visited Norumbega Castle will understand why Portland Magazine chose it for their December House of the Month.  In this article, Colin W. Sargent extols the many reasons why this property earned its winning title.  “Built by Joseph Stearns in 1886, Norumbega Castle in Camden, Maine was originally used as a summer vacation house. Designed by architect Arthur Bates Jennings, the castle has become famous in recent years as a popular inn where both movie stars and politicians alike have resided. Among such public figures associated with the inn include House Speaker Newt Gingrich as well as Dustin Hoffman, who was actually denied a room because they were all booked and he did not have a reservation. This holiday season, Norumbega is being sold by LandVest as a single family home, “which it was until the 1980s,” says listing agent Terry Sortwell. Though the castle is still well suited for continued operation as a luxury lodging facility, it also has the capability to be restored to use as a private residence. Surrounded by 3.95 acres of landscaped grounds, the building features 13 en suite guest rooms as well as elegant common areas featuring exquisite architectural detail including ornate wood paneling, exposed beams, parquet floors and elaborately handcrafted fireplaces.”   We agree with Colin!

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Click to read the Portland Magazine article in the LandVest News

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The Boston Globe recently carried a great article about our neighbor, Salt Water Farm, an innovative Maine coast center for gourmet cooking classes, farm workshops, and feasts.

In the last few years we’ve seen increased interest in fine farms from buyers of coastal Maine real estate, many of whom are relocating to the Maine coast from other parts of the country. These properties include saltwater farms, inland gentleman’s farms, and Maine coast properties with the potential for small-scale farming. Examples of this trend are the sales of the Welliver Farm and Kelmscott Farm, both in Lincolnville; Captain Davis House, a beautiful and classic saltwater farm in Cushing; the Berry Farm, a inland farm in Montville; and Longmeadow Farm, a saltwater farm on Islesboro.

Currently for sale in Castine, Maine, Coverly Farm is a saltwater farm located near the town's historic village district.

Buyers seeking distinctive farm properties on the Maine coast have a number of appealing options. Eastern Bay Farm on North Haven offers a historic cape farmhouse overlooking open fields. The property includes approximately 90 acres with 580 feet of frontage and a spectacular beach. Coverly Farm encompasses some 40 acres in Castine, with sweeping meadows bordered by old stone walls and 1,100± feet of beautiful shorefront on the Bagaduce, a tidal estuary in East Penobscot Bay. Watch for more exceptional farm properties in the coming weeks—we’ve got a couple of wonderful new listings coming up.

Eastern Bay Farm is a saltwater farm currently for sale on the coast of Maine in North Haven.

Click to view more Camden, Maine (and surrounding area) real estate for sale.

Click for more information on Terry Sortwell or Shannon Thompson who specialize in assisting both buyers and sellers of extraordinary real estate properties in the Camden, Maine area.