Getting Back to Normal

Ascending a mountain either by foot or by car can be exhilarating. We take in the incredible view for a while and then we come back down from the peak to a plateau. In other words, back to the normal view of the world.

Such has been the residential real estate market for the last five years. In our area, we reached the top of the peak at the beginning of 2006. And, all the way down from the peak, the media has chronicled every decline worrying sellers and buyers.

The latest Case-Shiller Home Price Index for our area shows that home prices have dropped 31% since the peak over three years ago. That statistic sounds shocking, however, the report shows home prices have simply returned back to the March 2004 levels when homeowners were very happy with the value of their property. We need to remember in just the 18 months from March 2004 to September 2005, there was a sharp 41% increase in prices due to very low inventory. So a drop to 2004 price levels is more like getting back to normal.

Another aspect of housing that is getting back to normal is mortgage-lending qualification. We hear concerns about lower qualification ratios and higher down payments that were ignored previously. We now understand that returning to previous reasonable standards is prudent. With a return to these standards and lenders willing to lend, the historically low interest rates are making today's mortgages even better than normal.

These and other factors are the reasons that a recent Gallup poll found that 71% of Americans think now is a good time to buy a house. If now is the right time for you or anyone you know, please allow me to assist in any way I can.

Feedback From My Most Recent Sale!

Magan was the perfect Realtor to guide me through the whirlwind of first-time home-buying. She was conscientious and timely in pointing me in the right directions along the way and in getting me good professional advice I felt I could trust, when I felt clueless .

When I'd send a panick-ish email, she was there on the phone checking up on me moments later. She outlined the process beforehand and then kept me apprised of every step along the way, even when I wasn't expecting it! She was at my back at every turn, making sure my best interests were being taken care of.

I'm recommending her to everyone in sight who utters "looking" or "selling"! She takes her clients' interests very seriously. I can't wait to show her the place she helped me find.

Sara Anderson

Just Listed in Roland Park/Keswick!

Charming tudor on this adorable street in the Roland Park/Keswick neighhborhood.

Home boasts 3 bedrooms, 1.5 baths, CAC, wood burning fireplace, hardwood floors, brick patio leading to 1car garage, HUGE basement with 8ft+ ceilings and so much more!

Give me a call for your private viewing.

Looking for a home in Roland Park? Give me a call since I have yet another coming soon!

The Perception of Value

Pricing and negotiation in residential real estate is based on perception of value. There are two sides to the perception - how the seller sees the house and how the buyer sees it - and there is usually a gap between them.

The seller has a great deal of emotion invested into the house. They have a price in mind based on how much they paid for the house, how much they have invested in their property during their ownership, previous sales of similar properties and what they need to complete their future plans. And, above all, the emotions they feel towards the home have a significant impact on what they decide is the asking price. Many times the seller wants a higher than market price because they feel the house is worth it.

On the other side, the buyer's perception of value is not based on any of the above. The condition, curb appeal and interior presentation of the house either enhance or decrease the buyer's desire for the house. The price range is determined by the mortgage qualifications and their knowledge of market conditions.

What does this mean to buyers? In former appreciating markets when inventories were low, buyers had to compete for the few houses available and bid prices up. In the current depreciating market with high inventories buyers know they are in control of offering prices. However, when buyers see what they perceive as a very well-priced home that exactly meets their needs; they will be competing with other buyers who also see that good value resulting in higher offering prices.

What does this mean to sellers? To realize the highest price in today's depreciating market, sellers need to see their house as buyers would. They need to analyze market data and also learn what buyers are actually paying today. Sellers need to have the condition and look of the house staged in a way that buyers see the house, not the clutter. They need to offer a home warranty to take away buyer uncertainty about the working components of the home. In short, the price must reflect current market conditions. When first placed on the market, it should be one of the very well-priced homes that attract many buyers who could compete emotionally for the home.

If you or someone you know would like advice as a seller or a buyer in today's market, I am always ready to assist with my real estate expertise.

What My Clients Are Saying!

I just had to share this great email I received this morning! This is from a Realtor in NY who referred his daughter and boyfriend to me just recently. We have been running around Canton, Fells Point to try and find them the perfect place and having a great time doing it.

Hi Magan,

Every conversation I've had with Lindsay and Chris since last Thursday has referenced you in some way. Lindsay and Chris truly appreciate your help. The Dad side of me says thanks for taking care of my kids. The realtor side of me says thanks for being so effective and professional!

Best regards,
Cal

I Have Now Officially Earned My ABR Designation!

I am so proud to announce that I have earned my ABR designation! What is this and what does it mean for my buyers?

The Accredited Buyer’s Representative (ABR®) designation is the benchmark of excellence in buyer representation. This coveted designation is awarded by the Real Estate Buyer’s Agent Council (REBAC), an affiliate of the National Association of REALTORS®, to real estate practitioners who meet the specified educational and practical experience criteria.

The ABR Courses I took in order to gain such a designation were incredibly insiteful and I highly recommend this to my colleagues to obtain their ABR designation. The more you know, the better you can help your buyers throughout their homebuying experience.

My next step will be taking the CRS designation. I look forward to gaining as much knowledge as possible every step of the way!

My Buyer's Response to their Home Buying Experience!

Magan was a delight to work with throughout our first homebuying experience. She was always friendly and accessible, even at odd hours of the day and night. Magan's dedication and sense of humor helped us through the hurdles of paperwork and negotiations with ease.

She was truly invested in helping us get our perfect first home and we are so grateful for all of her hard work! I look forward to working with her again and I would highly recommend her to anyone interested in buying a home.

Thanks!
Lizzie (and Dan)
3840 Elm Avenue