Archive for October, 2008
Deal vs Steal: Why Shopping For Only The Lowest Priced Homes in the Annapolis Area Will Make You Crazy
October 28th, 2008 Categories: Buyers, One Minute Realtor
Talk to Annapolis area homebuyers these days and you’ll often hear this: I don’t want just a deal. I want a steal! Realtors expect this sort of brash talk from seasoned investors, but more and more we’re hearing it from young couples, first time homebuyers, grandmothers and other nice people who often trip over the words, like they’re reciting a script that’s at odds with their deeper desires.
This inner conflict is understandable: after all, isn’t the nightly news a regular smorgasbord of home sale nightmare stories? Aren’t there steals now in every town in America?
Maybe - but that’s not the point. Shopping only for steals - and overlooking the otherwise good deals - tends to create inner conflict, distort priorties and become a single-minded exercise in the absurd. I know agents who have shown 40, 50 or more homes to steal shoppers who simply can’t pull the trigger on a home purchase because there might be a better deal hiding around the next bend. Buyers are now getting buyers’ remorse just thinking about buying. It’s driving both the buyers and their agents bonkers.
Better Judgement is Often The First Casualty of Steal Home Shopping
It reminds me of a young man I knew who used to be too frugal for his own good. He bought only the lowest priced shirts off the clearance rack - not because they were stylish, comfortable, fit well or otherwise served his needs, but because they were cheap. Consequently he ended up with a closet full of shirts that were so hideous they embarrased even my young children when I wore one to the dinner table, let alone in public. (The last of them went to Goodwill about 20 years ago - the shirts, not my kids.)
Homebuyers Risk Much When They Leave Better Judgement at the Front Door. A Home Should Be Many Things, and Well-Priced is Just One of Them
A home should be comfortable, pleasing to the eye, and well lit. It should have reliable mechanical systems, be convenient to work and play, if possible, and in an area where the new owner can easily imagine the next chapter of her life. It should have trees and bushes you love, enough lawn for that puppy you’ve wanted, a place to work on your ATVs and other toys, a picket fence or winding flagstone path, a great elevator, coffee shops within striking distance. In short, it should be what you want it to be.
Know what you want in a home and go find it. A good agent will make sure you get a great deal. Be willing to make some tradeoffs; most homebuyers will. But don’t sell your homebuyer’s soul for the sake of a steal: those few bucks you save on your monthly mortgage will be little recompense for your unrealized home dreams.
Trust me: if you’re looking for a great deal in the Annapolis real estate market, we have plenty. Just email me at kenhaedrich@kw.com and tell me what you’re looking for. I’ll send you a list of everything that meets your needs, and we’ll go from there.
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Home Shopping Reality Check: What the Numbers Tell Us About The Annapolis Area Real Estate Market
October 22nd, 2008 Categories: Buyers, Neighborhood Sales & Stats, Sellers
Anne Arundel County Saw 388 Homes Sold Last Month. That’s Down 14% From Last September. But The Sky Isn’t Really Falling Around Us…
I’ve been talking to a lot of you lately. Our entire team has. Each and every day, The Moss Haedrich Team calls 20, 30, 40 or more of you to see how you’re feeling about the real estate market, calm your jittery nerves, and ask how we can help. Here’s what we’re hearing from you…
…nobody is buying anything….nobody can get a mortgage now…homes aren’t selling…sellers are giving homes away…homes are taking forever to sell…and, in short, the sky is falling and we’re all doomed.
Well, we understand the sentiments. The uncertain economy does have everyone on edge and listening to the evening news only amplifies our concerns. But if you look at the statistics you’ll see that the current market - while sluggish - is anything but dead. It’s not all gloom and doom.
Those 388 homes that sold in Anne Arundel County last month? True, that’s less than last September’s figure of 453 - but it’s far from nothing. On average, those sold homes took 22 days longer to sell than they did last September - but 3 weeks is not the eternity you might suspect if you draw your conclusions from the national media reporting.
October sales for Anne Arundel County are looking okay: in the first 21 days of the month, 211 homes have sold.
Who’s Buying Those Homes?
Note that 130 of those 211 homes sold for $350,000 or less. There’s no way to prove this, but those numbers suggest that first time homebuyers and investors are busy shopping, as they should be: the smart money is out there right now finding great deals, bargaining, and doing very well, thank you. They know those great deals won’t be around forever.
Which brings us to the subject of mortgages. Every lender we talk to says the same thing: despite what you’re hearing, there are plenty of loan programs available for anyone with respectable credit. Expect to put some money down. Expect you’ll be required to provide documentation for income and assets - the freewheelin’ days of ”no documentation loans” are a thing of the past.
Just don’t expect the sky to fall anytime soon on the Annapolis real estate market.
If you’re wondering if this is a good time to buy, or sell, just email me at kenhaedrich@kw.com and tell me about your circumstances. I’ll call, or email back, and help you sort out your situation. Please: there’s no reason to step into this market on your own when you can have the benefit of an experienced real estate team on your side.
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Don’t Simply GUESS What’s Happening in the Annapolis Real Estate Market When You Can Know For Certain
October 15th, 2008 Categories: Buyers, Neighborhood Sales & Stats, Sellers
Introducing Market Snapshot - A Great Way to Keep Track of Home Sale Activity Where You Live, Or Where You’d Like to Buy
Ever wish there was an easy way to get accurate information about homes for sale in your neighborhood without spending hours looking for it?
How about in areas where you’re thinking of purchasing a home?
Well, there is. It’s called Market Snapshot and you can sign up for it in that pretty box just to the right. Just type in the appropriate information, indicate whether you’re a buyer or seller - you can sign up for more than one report, by the way - and that’s it: a colorful, detailed, customized real estate report will be delivered to your email inbox within minutes, and on a monthly basis thereafter. You can even change the frequency to get your customized report more often.
Included in your customized report is information about homes that are currently listed, under contract, and recently sold…at what price…and how long they’ve been listed. No rumors, neighborhood scuttlebutt, or guessing.
So sign up - it’s fast, easy, and very cool to be the recipient of such high quality information.
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Uniqueness Sells: A Fundamental Truth About Home Prices in the Annapolis Real Estate Market
October 8th, 2008 Categories: Buyers, One Minute Realtor, Sellers
Buyers Are Still Willing to Pay More, and Faster, for Something They Perceive to be Special. A Story…
This past summer we listed a home that was very nice indeed. Price: $1,200,000. It went under contract in 19 days, and sold a few weeks later for a price that the owners found quite acceptable.
Aside from our usual aggressive marketing, how can we account for such a good offer and fast sale? After all, the home did have a few quirks…some dated features…and wallpaper I wasn’t crazy about.
But sell it did, and here’s why: the home’s uniqueness - its overriding special features. In addition to a very private and nicely landscaped yard, the property had its own tennis court, large in-ground pool, and deep water dock just 5 minutes by boat to the Severn River.
There were other highlights, but the point is this: because the home was a unique package, it could compete in the market on its unique features - features that the buyers knew, or rightly assumed, they’d have difficulty finding in another property. Whether you’re selling real estate, art, or antique cast iron mechanical banks, uniqueness motivates buyers to act more quickly for fear of potential loss.
Contrast That With a Home Located in an Annapolis Subdivision…
…say 50 or 100 homes, perhaps 4 or 5 models to choose from, your usual upgrades. Ten or 12 percent of the subdivision is for sale. How will those homes compete with one another? On price. Absent starkly contrasting features or amenities, similar homes - in a market like the one we’re in - will almost always compete on price. Fear of potential loss diminishes when buyers perceive that supply is more predictable.
Buyers for such homes are being very patient in this market, watching competing homes leapfrog one another into the best price position before snapping them up. (Word of caution to buyers: if you do fall in love, don’t wait to make your play. There’s a good chance someone else has fallen in love with it too.)
And if you’re a subdivision seller? Your best hedge is to do everything you can to make your property stand out as unique among equals: be the cleanest, most freshly painted, best landscaped, least cluttered, and most inviting. And If you want to hear how we make all of our listings stand out as unique, email me at kenhaedrich@hotmail.com and I’ll email back.
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Homebuyers: Confused About What Move to Make in the Annapolis Real Estate Market? Then Put Together a Team
October 2nd, 2008 Categories: Buyers, Keller Williams Culture
Here’s The Street Sign Annapolis Area Homebuyers Are Seeing Most Frequently Nowadays. Here’s How to Deal With It
I read a blog post today that said Internet searches for the phrase “houses for sale” were at their highest point in 2 years. The author thought this an encouraging sign: investors, he speculated, are poised to step in at what looks like the bottom of the market, soon to be followed by everyone else who has been waiting for a signal that it’s the right time to buy.
Is he right? Are we bottomed out and about to experience a pent up homebuying rush?
I’m not sure, and I’m not sure anyone else is sure. But since we are out here in the trenches with actual homebuyers, we ARE sure of this: homebuyers are confused, overwhelmed by the negative news of the housing market and Wall Street bailouts. More than anything, buyers need to turn off the TV and seek the counsel of local, experienced professionals who can move them from fear and confusion to a sound, fact-based strategy for purchasing a home.
Putting Together a Team is a Homebuyer’s First Order of Business
If you’re considering purchasing - or selling - a home, do not wing it. To fully understand the ramifications of a real estate transaction, and to afford yourself all due protections, you need a team. First, seek the advice of a financial planner, preferably one with a strong real estate background. (We can arrange for a free consultation if you don’t have one.)
Second, establish a relationship with an experienced Realtor who will work his or her tail off for you and give you 5-star representation. (That would be us, or another Realtor who has earned your loyalty.) Your Realtor can be a key person in helping you put together your team.
Lastly, only work with an experienced, professional lender who comes highly recommended from a trusted source. Realtors know better than anyone which lenders are the real pros.
That’s the core of your team: Realtor, financial planner, lender. If putting together a team sounds like work, well, it is. But especially in this market, you can’t afford not to. We have a saying at Keller Williams: Nobody succeeds alone. Those cowboy days are long gone, pardner.
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