About Olmsted County, MN

Yes I live in the state (MN) that's #2 in home ownership. Yes, I live in Stewartville, MN...near Rochester...home of one of the most stable real estate markets in the country. (A big thanks to Mayo Clinic and IBM!) Yet even though I've been personally blessed in real estate because of where I live, that doesn't mean we haven't felt the crunch too.

Here's what I know:

• Inventory in our area has been steadily decreasing for 9 months
• Interest Rates have done some positive things: April 15 5.875.....May 13 6.0.....June 11 6.375....July 22 6.75.....Sept 15 5.875
• 80% of home buyers today are going to purchase something of equal or greater value
• We are in one of the greatest buying opportunities in the last 40 years!

(Thanks to Coldwell Banker Burnet's Al Iverson for those stats.)

My point is, we can make the numbers say we're in a bad market or a good market--it all depends on your perspective. A couple years ago, was the market good for buyers? No way! Home selection was low, people were in multiple offer situations, etc. So why all the sudden are we looking at this market as horrific? There's money to be made--it all depends on how we approach it. So when someone asks you what you think of the real estate market, what do you say?

So the Dow drops 500 points today upon news of buyouts and bankruptcies. Pundits blame it on bad investments in the real estate market. I agree.

To an extent, every loan is a risky loan. The question is how much risk one should assume. A few years back when my wife and I purchased, we worked off of a stated loan product. Basically, we were told there really wasn't a loan limit for us--sky's the limit. Even though I questioned that approach in my personal situation, it's clear others didn't. Lenders saw the steady increase in house values, and felt like they were making moves in keeping with the rise. Hindsight, as they say, is 20/20.

So where do we go from here? There's still some cleansing to be done from our "eager anticipation." I find it ironic that Realtors are never mentioned as culpable in the downward economic turn, when our industry honestly didn't always act in the best interest of the client. But, in our defense, we are bound to obedience by law when a client tells us they want to purchase a house at a given price. I just wish there would have been more sound economic counsel to help people purchase in smaller increments instead of watching foreclosures flood our markets, damaging good credit people worked so hard to build over time.

Real Estate will always be a critical element to American life. From an economic standpoint, it has brought much of what enjoy to pass, but also caused extreme panic and concern over the years (see Great Depression, high interest rates in the 1980s). Like it or not though, real estate is engrained into the American dream--white picket fence, etc. And as a Jones, I wish others would worry less about keeping up with us, and more about the benefit of sound decisions for a profitable future.

Yes I know, the National Association of Realtors came out with a stat about a year and a half ago that 1 in every 400 people will come through an open house and say, "Let's write an offer." I would even guess those statistics have worsened with home selection increasing. But does that mean opens don't work? Not so fast, my friend.

Everything in real estate seems to be going to a virtual world. But nothing can compare to allowing the senses to take in a property in ways a virtual or video tour never could. The pleasure of shaking someone's hand, asking them their needs, their comments, discussing their goals and dreams and how all of those factors mesch with their daily life is without measure. We may not realize it, but real estate is more about people than it is about homes. The question is whether a given house fits into a person's lifestyle and their perspective on life. Rarely can you get that from a web site (no offense to my host), or an email asking for more info.

Open houses work because they are still at the heart of what this business has always been--matching buyers and sellers in such a way that prompts a transaction. Much of that is sensory. Much of it is emotional. Granted, not always, but a significant majority of the time. A feature sheet doesn't give you the complete story. A disclosure will only provide material facts the sellers are aware of. But an open? It puts all of those things together to offer an experience that's unique and inviting. Beware of the agent that says, "I never do opens." They're only giving you half of the picture.

Alan Jackson asks us, "Where were you when the world stopped turning?" I was stepping out of the shower, ready to head to work when the sky erupted in madness. Like others, I stood vigilant, prayerful, even offering spiritual support to the community where I lived. It was truly a day unlike any other.

The aftermath of 9/11 caused me to think differently. The valiant efforts of Todd Beamer and company on Flight 93. The policemen and firemen attempting to organize chaos while they went about their business saving lives. A nation that stood hand in hand with their President, with citizens from all walks uniting as one. Even in America, safety is not always possible. Awareness can rise, we can arm ourselves to the teeth, but unless there's a sense of something more, I'm not sure all that matters.

I sell real estate in a broken world. The experiences are not always pleasant, because of the baggage we carry. But I believe even in the middle of our imperfection and preferences, there's common ground to be discovered. The dignity of humanity, the hope of freedom, the joy of expression, the pleasure of another's company cannot be denied.

I became a volunteer firefighter after 9/11. In my own small way I want to give back not just to my country, but to the people endowed with God's image. I do so as a sacrifice of myself to be there when the world stops turning for someone else. Someday, that might be me. I hope you'll take some time today to stop and think...not just about buildings falling or planes engulfed in flame or terrorist plots...but about the privilege of being a part of the human experience and the blessings that come from one person's desire to help another.

We all think our homes are worth more. Why wouldn't we? You live there! But even if you are in People Magazine's Top 100 for fame and fortune, your presence alone probably isn't going to raise the market on your house, especially now.

Remember taking medicine as a kid? It wasn't good at the time, but it did restore you to health in the long run. Price reductions are kind of like that. The sooner you get it over with, the better off you'll be down the road. Stats show that the longer it takes you to get to market value, the lower the sales price will be. Lowering the price with strategy keeps people that are casually watching your home engaged, and potentially turns them into actual...buyers!

When I purchased my present home, my wife and I did this. We watched the house online. We saw a price reduction. We went and saw the house. We considered placing a contingent offer on our home selling. Then a significant price reduction occurred on the house we liked. We knew it was a good deal, so we placed a non contingent offer, got the house, and ended up renting out our other one. What prompted our sudden move to purchase? That big reduction.

It's not easy considering the bottom line and thinking your equity has been stripped away. But there are worse things--like not selling, or selling at an even lower price. And chances are, if you are buying another house when you sell, and it's bigger, you'll actually make money in the long run. There you have it--a happy ending can be in the works either way. The question is, how long are you going to let pride stand in the way of getting you to the place you want to be--both physically and financially?