Pat Savani

Graph shows rates from 1972 through February 2009

The real estate market in Anne Arundel County is experiencing a renewed buyer interest as a result of a convergence of changes in the market place that have created 5 compelling reasons for the consumer to buy and motivated sellers to sell.

1. Inventory is down 25.5% when comparing January 2008 vs. 2009
2. For the year 2008 vs. 2009 inventory is down 14.6%
3. The affordability index has climbed to 152% - The affordability index measures housing affordability for the MRIS (regional multiple list) region, the higher the number the more affordable housing is.
4. Last February the affordability index was 119%
5. Rates are at historic lows

The news media will start to report the market upswing eventually, but since they report settlements ( from sales that happened 2 months ago) and not the new sales written it will be a couple of months before they catch up.

Look at the Bright Side

94.2% of Marylander's are employed according to recent unemployment figures release by the Baltimore Business Journal

#1 - Maryland, the Richest state in the nation -for the past 2 years

There are 3142 counties in the USA

According to Wiki

4 of Top 100 in income per capita are in Maryland

#15 Montgomery

#29 Howard

#70 Talbot

#82 Anne Arundel

9 Counties in the Top 100 Median Income per Capita are in Maryland

#10 Howard #13 Montgomery

#32 Calvert #57 Charles

#62 Anne Arundel #73 Frederick

#98 Harford #99 Queen Anne

The economy is not perfect but in Maryland things are pretty good.

Multiple Offers are on the Rise!

As the market in Annapolis and Anne Arundel County heats up on well priced properties the probability of multiple offers is on rise. Multiple offers in some situations may increase the net to the seller or result in an earlier settlement date. However, if they are not handled right they can also turn off a buyer from submitting an offer or lead to concerns questioning the fairness and full disclosure of the offer and counter offer.

Here are some tips to a successful negotiation.

•1. In our state we are required to have the seller's preference in the listing agreement whether to disclose the existence of multiple offers or not.

•2. If the seller says no to disclosure then the listing agents does not disclose to anyone; if the seller says it's okay to disclose, then everyone is to be given the same information regarding the existence of other offer.

•3. As agents we are not allowed to disclose confidential information, so the terms of competing offers are not discussed with anyone just the existence and status of a competing offer. Having everyone understand the process sets reasonable expectations and can avoid misunderstanding and hurt feelings.

•4. If you are competing it's usually best to make your first offer your best offer that way if you don't get the property you have no regrets.

•5. As a seller in a multiple offer situation, remember that buyers can become disillusioned if they don't feel that they are competing on a level playing field. Multiple offers can disappear and or the negotiation become visceral if the buyers don't feel that they have been treated fairly.

•6. Multiple offers occur in a declining market when the floor has been identified. In some segments of our market the floor has be found.

It is probably too soon to be certain, but the bottom is certainly coming into view.

MRIS ( Metropolitan Regional Information System) the large regional multiple list system serving, Washington, Maryland, Northern Virginia, Southern Pennsylvania and the West Virginia pan handle in the Weekly Market Report published February 2, 2009 was full of great news for buyers, sellers and agents.

• The number of active listings for sale was down year over year with the last 3 months average down around 10,000 units.
• The report also showed that the last 3 month average of new pending sales was up 14.6%. The bottom is a hard thing to see but in our region the bottom is becoming clearer and if current trends continue it could be behind us.
• The housing affordability index in the MRIS service area was over 145% as a result of lower interest rates and prices. The affordability index is the amount of income necessary to qualify for the median price home with current interest rates. It is probably too soon to be certain, but the bottom is certainly coming into view.

Staging is an important part of preparing a property for sale. It can make the difference between languishing on the market and having a competitive advantage over similarly priced properties. Staging does not take the place of pricing the property correctly but in a competitive environment it may tip the scales to your advantage. Most of staging is focusing on lots of little things that collectively make a big difference.

1. Immaculate kitchens and baths are a must with fresh towels and empty counter tops.
2. Odors are a real turn off to buyers, so litter boxes and other types of pet odors and strong food smells must be addressed.
3. Lights are important, keep them on, have light switches in bedrooms associate to lamps that are prepared to light up. Keep lights on so the house always looks bright and cheery, it is a small expense that gives large returns.
4. Front doors need to be clean, freshly painted and no cob webs or debris.
5. Clean out corners that accumulate extra pieces of furniture and knick knacks.
6. Clutter is the enemy when selling a house. Pack, toss or sell extra stuff, it will make every room more spacious.
7. Clean around your furnace and change the filter. A dirty filter makes a buyer wonder whether routine maintenance has been performed on the property.
8. Lastly, eliminate strong statements of personal taste. When a room is too personalized it makes it difficult for the buyer to imagine moving their things in.

The reason for staging is too help the prospective buyer mentally move in; when you stage you give the buyer the space, and neutral palette to do that.