Ken Haedrich

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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At Keller Williams, We Are Encouraged to Think About Our Mission and Purpose in Life. It's Called Our Big Why, and Here's Why I Think It Matters

Several years back, on my first day in real estate, I sat down with the team leader of the Keller Williams office here in Annapolis. I signed some papers, had a stack of books and a training schedule handed to me, and then this:

So Ken - tell me about your Big Why.

Sorry? It sounded like she thought I owned a ranch in Montana, The Big Y.

Your Big Why. Why are you here? What's the one thing that gives meaning and purpose to your life more than any other?

Well, I hadn't really considered it. And truth be told, I thought the question was a bit lofty for someone who hadn't even learned to use the office copier yet, let alone sell a single house. But I was new, eager to make my mark, and vaguely recall mumbling something about the opportunity to help people and make a decent living in the process.

Read pages 72 and 73 in there, she said, pointing at one of the books she had just handed me. That will help you figure it out.

Gary Keller, on The Focusing Power of a Big Why

The book in question is one we at Keller Williams refer to as "the red book" - The Millionaire Real Estate Agent, written by our company's co-founder, Gary Keller.

Sure enough, right there on page 72 was this: "...we've discovered that the one thing that all high achievers have in common is they are working for a Big Why. The Big Why is about having a purpose, a mission, or a need, that in turn gives you focus. High achievers always have a Big Why powering their actions."

I was intrigued, and followed the exercise Gary outlined, writing down everything that motivated me. I was underwhelmed: to my eye, what I had written looked like a ragtag group of Little and Medium Whys. There wasn't a Big Why in sight. A life of insignificance loomed before me. I had better get digging for a Big Why, and fast, if I wanted to be a high achiever too.

The Power Behind Being the Best You Can Be

I didn't realize it at the time, but - as Gary went on to explain - there is nothing wrong with a collection of lesser whys: we all have to pay our mortgage or rent, fund retirement accounts, help put our kids through college.

But those - and all of our smaller whys, says Gary - will fall into place naturally if we simply put this one Big Why at the forefront of all others: to be the best we can possibly be. A powerful Big Why like this, he points out, gives foundational support to all of your other whys. It's like geese flying in formation: the lead goose expends all the energy, while the others draft behind with much less effort.

"Being your best" he goes on to say, "is actually a goal-less pursuit. You can never really reach a point where you can truthfully say, ‘I just can't grow anymore.' And what is so exciting about that is this kind of Big Why can create a life that literally explodes with limitless possibility and unlimited growth."

All Those Big Whys Help Build Stronger Communities

One of the things I love about Keller Williams is the large number of individuals we attract who have a Be the Best You Can Be mentality. That's not really surprising, given the fact that KW agents have - at their disposal - all of the tools and training necessary for achieving greatness.

All around us in this company we see agents harnessing the power of their Big Whys to strengthen their communities and do good.

Gary Keller himself recently donated $5,000,000 to Baylor University to fund a research center to study the agent/client relationship.

We have agents who have organized drives to provide shoes for needy children in poor countries; agents who've purchased and planted trees to re-green urban areas; others who've paid surgery bills to help families in their community; and some who have given thousands of dollars to support low-income housing projects. We - The Moss Haedrich Team - support the Fisher House with a $100 donation after every settlement.

How a Big Why Creates Value for Our Clients

We believe that on a daily basis, being the best we can be is the only way to run a successful and competitive real estate business.

It's the fuel that drives you to deliver the best possible customer service for your clients; to constantly improve your internal systems and marketing skills; to maintain regular and effective communication with your clients and constituency; and to build strong relationships with fellow agents and colleagues in the industry.

When you do these things, we believe you create real value for your clients. And they in turn create value for you, by telling others.

As for myself, I'm still tweaking my Whys, and like those geese, lining them up in proper formation. Unless and until I can come up with something that makes more sense, my Big Why - like Gary's - will be about being the best I can be: it's a good fit, even if the downside is that there are always days when you feel as if you might have done better.

But like Gary says, that's the whole idea.

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Do the Numbers Reveal an Upturn in the Annapolis Real Estate Market? Plus...Here's What the NAR (National Assn of Realtors) is Forecasting for the Second Half of 2008

Around the 10th of every month, the local MLS - ours is known as the Metropolitan Regional Information System - publishes real estate market sales statistics for the previous month. Here are some notable statistics for April 2008 for Anne Arundel County:

Average Sold Price: $398,231 - a slight decrease from the April 2007 figure of $398,754.

Median Sold Price: $320,000 - a 7.25% decrease from the April 2007 figure of $345,000.

Total Units Sold: 420 homes, a 30% decrease over the April 2007 figure of 600.

Average Days on Market: 137, an increase of 28.04% over the April 2007 figure of 107 days.

Those numbers may not seem too encouraging, the total units sold does represent an increase over the 331 sold in February 2008 and the 418 sold in March 2008.

Annapolis Real Estate, By The Numbers

Let's take a closer look at what's happening in the Annapolis market, and break it down by price range, active listings, under contract, and sold in the last 30 days.

$250,000-$350,000 - Active: 184 - Contract: 35 - Sold last 30: 21

$350,000-$500,000 -Active: 227 - Contract: 48 - Sold last 30: 15

$500,000-$750,000 - Active: 209 - Contract: 33 - Sold last 30: 16

$750,000 - $1,000,000 - Active: 133 - Contract: 9 - Sold last 30: 5

$1,000,000 and up - Active: 167 - Contract: 16 - Sold last 30: 6

What Does it all Mean?

It depends on who you ask. Some would argue that the modest increase in total units sold in our county in April represents a typical seasonal uptick - nothing more. On the other hand, it could be part of what Lawrence Yun, chief economist for the National Association of Realtors, sees this as the start of an improving housing market in the second half of 2008.

Yun says that the more evenly performing markets of the past few years - like Cincinnati, Milwaukee and Kansas City, MO - are likely to experience home price gains in the 20% to 30% range over the next five years. While Miami, Las Vegas and Phoenix could see prices go up as much as 50% in that period.

Truth be told, the NAR's glass is frequently at least half full, but word on the street - what we're seeing and hearing from our colleagues - is that the Annapolis area market is coming to life. Yes, lenders are being very cautious - and we're seeing more and more second appraisals being ordered.

But homes ARE selling - we've sold 4 in the last 8 weeks - and buyer interest is higher than it has been in quite some time. Part of this is pent up demand - buyers are getting tired of waiting and they're feeling that the bulk of any actual or anticipated price correction may have already occured. And sellers are getting real about list price and not acting like it's 2005 anymore. This combination of factors seems to be stirring the market.

(Shameless plug: Finally, remember this: it's not the luck of the draw that makes a home sell in this market. It takes preparation, market knowledge, a well-executed plan, and powerful marketing tools. That's where we can help, so do give us a call if you're thinking about selling your home. No pressure, no slick sales talk - just straight talk.)

When It Rains in Annapolis, It Pours. And When It Pours, The Moss Haedrich Team of Keller Williams Puts on our Slickers

The rains came to Annapolis this week, biblical rains. Like oil and water, any experienced Realtor will tell you that biblical rains and pending settlements don't mix well. The combination puts us on high alert.

Which is how I find myself standing barefoot in 4″ of water on a client's patio, coaxing a sluggish drain. It is 6:00AM and the client - soaking up the sun at her new Arizona condo - is blissfully unaware of my unscheduled visit, long since gone from here in both body and spirit.

They say that a lot of people think agents just drive around in fancy cars and collect big settlement checks. I wish those people could see me now, standing here in drenched jeans, my cup of Dunkin' Donuts coffee tasting more and more diluted with every passing minute.

Doing What's Required? Or Doing What Needs to be Done?

We - The Moss Haedrich Team - look great on paper. We have a sheet that describes our Platinum Listing Services in detail, several more that list the 186 transactional items we will take care of for you. But nowhere on any of it will you see "Stand barefoot on patio in rain and clean clogged drain."

That's because Realtors, if they're truly serving-based - and we like to think we are - do a lot of stuff we can't anticipate needing done. We've learned to take these things in stride. Frankly, going above and beyond is good for business. People don't forget the fact that you've gone the extra mile for them. They reward you with a lifetime of referral business for rolling up your sleeves and doing whatever it takes.

Some Clips from our Above and Beyond Files

-We once spent hours cleaning out an attic with a client just prior to settlement. The client would likely have done it herself, but she never knew she had an attic until the pre-settlement walk-through.

-3:00AM and we get a call from a client. Water is cascading onto the bed of his rented condo from parts unknown. We drive over, discover bathtub in neighbor's condo upstairs is running over. Wake up neighbors in first floor condo and tell them to expect a flood. (Good ending: first floor owners become regular clients.)

-We've presented a contract at midnight, because that's the only time the seller could meet us.

-We've taken phone calls during weddings from frantic clients, mowed lawns, shoveled walks, and babysat one home after a hurricane.

Heck, we've even donned bunny ears to help sell a home. I can't recall exactly why I thought wearing bunny ears would help. But I can tell you that now, several weeks later, the home is under contract.

The rains have subsided and the weather is beautiful. This afternoon we'll go to settlement on the condo with the once-clogged drain. We can't imagine being in any other business. Life is good.

In Annapolis, as Elsewhere, the Real Estate Market Has Scared Some of Us Into a Holding Pattern. Maybe It's Time to Land the Plane

Is it just me, or does it seem like the entire world is on hold lately, waiting. Yesterday I showed a home to a young woman who needs to move soon. Nice house, meets her needs, beautiful neighborhood. Would she be interested in making an offer?

No thanks, I think I'll wait.

Wait for...?

Prices to drop some more.

How can you be sure they will?

Someone on TV said so.

Perhaps you should consider offering less than asking price. Just think of it as accelerated waiting.

No thanks. I'll just wait wait.

And so it goes. Buyers are waiting for sellers to lower their prices. Sellers are waiting for buyers to make offers. And agents are waiting for their phones to ring.

Even My Barber is Waiting

Apparently he's in line somewhere behind the housing waiters. I ask him about business. Not good, he tells me. People are waiting much longer between haircuts.

Really?

Yes, he tells me, especially families. Mom is buying electric clippers and doing it herself. Who'd have imagined that one sign of weak consumer confidence was a nation of kids running around with bad haircuts?

My brother - who manufactures model trains - reports that waiting is alive and well in his industry, too. Track is selling. But people are waiting to buy the expensive stuff like locomotives.

Waiting for what?

Waiting for their disposable income to re-materialize. Right now they're disposing it on things that aren't so disposable, like gas.

I did meet one couple this week who weren't waiting, pulling their new RV into the Shell Station on Riva Road. He hooked his RV up to the pump and the gallons started ticking off. As the counter soared passed the hundred dollar mark without so much as a hiccup, he told me that he and the wife were on their inaugural run down to Virginia Beach. Sold the boat, which got 1 mile to the gallon. The RV gets eight. "We've actually reduced our carbon imprint!" he said with a smile.

The Up Side of Waiting

I'm not one of those agents who wait very well. My anti-waiting strategy is making other people's phones ring. So I'm calling everyone. I may even call you.

Most agents I know would rather have a root canal than pick up the phone and make calls. Call reluctance is rampant in this business, especially now, because deep down agents think the world blames us for the housing slowdown. Nobody wants to risk an earful.

But I've found that's not the case. Nobody is chewing me out. They're glad I called - almost as if they've been waiting for me. More than anything they're curious. How's the market really doing? Is it as bad as we're hearing? They're tired of waiting, anxious for the truth, and wary of the pundit on TV who doesn't live here or know the facts about our local market.

People pour their hearts out to me. It feels like I'm becoming the Dr. Phil of local real estate. I kind of like this job.

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