Buying Your First Home In Maine? Here's What You Need To Know

Embarking on the journey to buying your first home is an exhilarating decision and a significant milestone that has the potential to elevate your life in many ways. Being a first-time homebuyer, this is a vision you can actualize. However, as the National Association of Realtors (NAR) points out, you may need to navigate a few obstacles that have made the journey more challenging in recent times:

“Since 2011, the share of first-time home buyers has been under the historical norm of 40% as buyers face tight inventory, rising home prices, rising rents and high student debt loads.”

Specifically, in Maine, home prices have increased by 11.5% year-over-year, and the number of homes for sale fell by 28.8% as of April 2023 as reported in Redfin's monthly market data. Despite these challenges, if you're looking to purchase your first home, here are two actionable strategies you can employ to bring your homeownership dreams to fruition.

Save Money with First-Time Homebuyer Programs

As a first-time homebuyer, the initial costs and fees associated with homeownership might seem like a daunting hurdle. This might be getting a loan, assembling a down payment, or preparing money for closing costs. There are myriad expenses that can make buying your first home appear to be a daunting task.

Fortunately, there are an abundance of public and private first-time homebuyer programs that can assist you in securing a loan with minimal to no money upfront. As explained by CNET:

“A first-time homebuyer program can help make homeownership more affordable and accessible by offering lower mortgage rates, down payment assistance and tax incentives.”

Moreover, as Bankrate suggests, many of these programs are provided by state and local governments:

“Many states and local governments have programs that offer down payment or closing cost assistance – either low-interest-rate loans, deferred loans or even forgivable loans (aka grants) – to people looking to buy their first house . . .”

To leverage these programs, consider reaching out to the Maine State Housing Authority.

The Supply of Homes for Sale Is Low, So Explore Every Possibility

We are currently in a sellers’ market, which means that there are fewer homes on the market than there are buyers.

So, how can you ensure that you're doing everything possible to find a home that suits your needs? One way to increase your options is by considering condominiums (condos) and townhomes. U.S. News informs us that these housing types are often less expensive than single-family homes:

“Condos are usually less expensive than standalone houses . . . They are also less expensive to insure.”

One reason they may often be more affordable is because they're typically smaller. But they still provide you the opportunity to step onto the property ladder and commence your journey of owning and building equity. Beyond that, another considerable advantage is that they typically require less maintenance. As stated by U.S. News in the same article:

“The strongest reason for purchasing a condo is that all external maintenance is usually covered by the condo association, such as landscaping, pool maintenance, external painting, paving, plowing and more. This fee also covers some internal maintenance, such as gas, electric, plumbing, HVAC and other mechanical systems.”

Townhomes and condos can be excellent gateways into homeownership. Owning your own home allows you to build equity, increase your net worth, and potentially pave the way for a future move. You may also want to check out my blog post "Consider A Condo In Your Home Search" for more detailed information.

The best strategy to ensure you're set up for success, especially if you're a first-time homebuyer, is to collaborate with a trusted real estate agent. They can enlighten you on the homebuying process, help you understand the local Southern Maine area to find options that are a perfect fit for you, and guide you in making an offer in this competitive market.

Bottom Line

Today’s housing market does present some challenges for first-time homebuyers. But, rest assured, there are still practical ways to achieve your homeownership goals, such as utilizing first-time homebuyer programs and considering all your housing options. Let’s connect so you can benefit from having an expert on your side to help you navigate the process.