Why this house in Maine sold for $12M
The Maine home commanded a very high price because of its prime location and unique features. Located in Kennebunkport, a video from Legacy Properties Sothebys International Realty's Youtube shows that the property sits about 20 feet above the ocean and features 200 feet of private coastline, which includes a direct view of the Walker's Point compound owned by the Bush family.
According to Zillow, the 5,064 square-foot home features five bedrooms and four bathrooms. Built in 1969 on 1.1 acres of land, the house was renovated in 2016 to give it a more modern feel.
“It’s kind of a surprise, it’s a tease, it’s a sleeper,” Bill Gaynor, a broker for Legacy Properties Sotheby’s International Realty, shared with the New York Post. “Because it looks like granny’s little Cape Cod, and then you walk in and — kaboom.”
The house is reportedly so gorgeous that the new owner signed on the dotted line without even setting foot inside. “This buyer knew that if he didn’t get it, someone else will,” said Gaynor.
And while the property sure is beautiful, there’s one factor that can explain why the value of luxury properties such as this continues to stay strong throughout the country.
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Learn MoreThe advantage of paying in cash
While the once red-hot housing market during the pandemic has begun to cool in many parts of the country, luxury homes are still fetching high prices.
In fact, Redfin reported in mid-2024 that luxury home prices rose 8.8% year over year, which is more than twice as fast as non-luxury properties. There was also 0.2% growth in luxury home sales even as the sales of non-luxury homes dipped by 3.4%.
One big reason why prices remain high in the luxury housing market is because many buyers are paying with cash. A substantial number of luxury properties in America (around 43.7%) are purchased using cash, and these affluent buyers are not deterred by the mortgages and high-interest rates that may scare off some other buyers. This trend is helping to push the growth in luxury home sale prices at a faster rate than less expensive houses.
For the last two and a half years, the 30-year fixed-rate mortgage has hovered between 6% and 7%, according to Sam Khater, Freddie Mac’s chief economist. High mortgage rates are driving down demand for America’s average homebuyers, but mortgage rates are not a concern for affluent buyers paying in cash. And for sellers, cash offers streamline the process of selling a house, and there's less concern of the financing falling through. That's why sellers tend to favor cash offers when they are presented.
“People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” David Palmer, a premier agent with Redfin, shared with Kiplinger. “They’re ready to buy with more optimism and less apprehension.”
All of this is great news for the sellers of the luxury Maine home, who were able to find a buyer that made such a competitive offer in just 90 minutes. Still, inventory is increasing even in this market, so the sellers of this Maine property should be pretty happy they were able to get the price that they did — although they may end up missing that gorgeous ocean view once they move out.
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