My Daughter Is Living in Tuscany Until June and She Wants Us To Come Visit. This Is Probably As Close As We'll Get As invitations go, this one was a no-brainer: We're opening a new restaurant at the Annapolis Towne Centre - BRIO - and you're invited. This is a private, invitation-only event; the masses will have to wait. All you have to pay for is drinks, and be as understanding as possible if our staff-in-training brings you the wrong order or drops linguine in your lap. Okay, so I made that last part up - but show up we did. Everyone knows that if you invite Realtors to anything, your chances of a turnout are much better if you include food, since most of us are too busy to eat.   See the ladder leaning up against the roof? They really are putting on the finishing touches even as you ... 03/24/2009

Seller Appeasement advertising is a disservice to everyone. That’s an ad that is placed in the newspaper to make the seller feel good but really doesn’t get results. In my last Blog I focused on the challenge that the newspaper industry has in identifying a new delivery system for the daily news. Their revenue is down because advertisers are not getting the results they need from newspaper advertising. The ability to search for products and services on the Internet has made newspaper ads literally yesterday’s news. In today’s economy you cannot spend money on ads that don’t produce results. You also need the information to be current, compelling, available on demand everywhere a potential prospect is looking. In 2002 the consumer placed newspapers as their number 2 source with the Inter... 03/22/2009

The Federal Reserve Announced Wednesday That It Will Inject $1 Trillion Into the Financial System By Purchasing Treasury Bonds and Mortgage Securities Bottom line for Annapolis area home buyers? The best interest rates you're likely to see for a while. I just got off the phone with a lender who told me he's quoting rates of 4.75% on 30-year fixed rate conforming loans and 5% on FHA loans. He also told me this: the appraisers he's been talking to in the last couple of weeks are coming in with appraisals that are above selling price - a good indication that home prices have bottomed out. From the street level, we sense something is happening here. Buyer confidence is on the rise as the stimulus package gains traction. Showings on our listings are up and more buyers are calling to schedule... 03/20/2009

About to Spend Big Bucks on that Annapolis Fixer-Upper?  You Might Want to Call This Guy First and See If You Can Realize Your Homeowner Fantasies Without Busting Your Budget So you've picked out the cutest little Annapolis bungalow you've ever seen and you're thinking about making an offer. But you've got some...concerns.  You're not sure how an expanded kitchen would fit into the overall design. You're wondering if the new master bedroom is going to change the roof line. And you'd really like to see your new home "go green" as much as possible. Where do you turn? To someone like Chris Neumann, design consultant, who deals with these sorts of issues all the time.  Chris is a former owner and manager of one of the DC area's top Design Build Remodeling firms, where he was the design dire... 03/19/2009

From the Desk of Rich Shull........... Market Statistics for Annapolis, MD in February 2009: Number of Homes Sold - 21 Average Sold Price - $588,205 Median Sold Price - $375,000 Average Days on the Market - 171 Average Sale Price as a percentage of Average List Price - 88.58%. Source: Metropolitan Regional Information Systems, Inc (MRIS) I'm not a big fan of Average and Median Sold Price Numbers.  Many variables can skew this data.  A large sale ($1-$2 Million Dollars) can raise the average sold price but not be characteristic of what's going on throughout the entire market.  In February, the bulk of the homes sold in Annapolis, MD (14 homes) fell between the price ranges of $200,000 and $499,999. We know that the market has significantly slowed down but it bares repeating with the help... 03/18/2009

There has been a paradigm shift in the delivery of daily news. Recent articles have been posted on the web regarding the "Demise of the Newspaper" and how that may be the end of investigative journalism;  that four major newspaper companies that include the  Los Angeles Times, Chicago Tribune and The Philadelphia Inquirer have sought Chapter 11 bankruptcy protection in recent months.   News is not dead but the vehicle it is delivered in has changed.  A shelf life of a day isn't long enough.  Dated information isn't good enough.   Newspapers aren't in the news paper  business, they are in the business of reporting the news.    Using the daily newspaper as a marketing vehicle has also changed.  If you want current, timely access to products and pricing would you look in a newspaper or on ... 03/18/2009

Market Statistics for Annapolis, MD in January 2009: Number of Homes Sold - 17 Average Sold Price - $454,794 Median Sold Price - $347,500 Average Days on the Market - 146 Average Sale Price as a percentage of Average List Price - 86.85% Source: Metropolitan Regional Information Systems, Inc (MRIS) I'm not a big fan of Average and Median Sold Price Numbers.  Many variables can skew this data.  A large sale ($1-$2 Million Dollars) can raise the average sold price but not be characteristic of what's going on throughout the entire market.  In January, the bulk of the homes sold in Annapolis, MD (12 homes) fell between the price ranges of $150,000 and $449,999. We know that the market has significantly slowed down but it bares repeating with the help of numbers.  As you can see, it took an a... 03/15/2009

As Elsewhere, Buyers Are Calling the Shots in the Annapolis Real Estate Market. Here Are 5 Ways to Really Get Their Goat I was reading Active Rain the other day and came across an article with a very similar title to the one above. It doesn't beat around the bush, and that's a good thing: the market is too competitive right now for bush beating. I've cribbed the 5 "things", but the observations are mine. #1. Odors. If your home has off odors, you're a dead duck. Odors have essentially the same irritating effect on buyers as an alarm that goes if when they enter and never stops until they leave.  You may not even smell the odors anymore, which is why you need an outside opinion. Do whatever it takes to eliminate the offensive odors - replace carpet, clean air ducts, etc - if you expect a... 03/14/2009

In our Annapolis office we have been using this to successfully negotiate a win win solution for our buyers and sellers.  In this example the buyer pays $45,000 more for the house but pays $15.00 less in payment than their lower offer and saves more than $50,000 in interest over the life of the loan.  Don't let the negotiations fail use a buy down to reduce the buyer's rate by 1%.  Consider this example. The buyers like the house and makes an offer that achieves their max monthly P and I payment of $2191.67. The seller won't go that low.  They can't agree on price, but they can still make the transaction happen with a buy down.  Things to consider- 1.  Are the parties motivated to make the transaction work? 2.  Does the buyer sees the value in the property, but is more concerned with th... 03/13/2009

Yes, that's right, a full $8,000 tax credit for purchasing a house between 12/31/08 and 12/1/09. This is a full credit for 1st time home buyers, and doesn't have to be paid back, as long as you live in the house as your primary residence for three years. If you qualify, and it's not that hard, the government will send you a check for $8,000, for buying a home. There are some restrictions but not that many for a government program. For example, the IRS states, "The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers." Another requirement, "They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date." You can read more from the IRS site directly at th... 03/10/2009

Over the last couple of weeks in the $0-500K price bracket it seems like property is starting to move.  Perhaps this is just an early spring market, or there is some demand that hasn't been satisfied, but, now that demand is being fulfilled.  I've been working with a few clients who after looking at a house, thinking about it, finally getting interested in it, only to find that there were now multiple contracts to contend with!!!  Hmmm ... feels like a "tipping point" from buyer's market to seller's market and maybe we're transitioning into a new market.  You see, it's like a recession ... you don't know that you're in one until after it's almost over.  My intuition (gut instincts) suggests that we're certainly transitioning from the winter market to a spring market.  Showings are up, c... 03/10/2009

Multiple contracts are happening more as the Anne Arundel County spring market heats up.  Here are some tips to have your offer viewed favorably.   An offer is more than just sales price, try to consider all the terms of your offer from the seller's vantage point. Settlement date, financing, inclusions, inspections, home warranties, repairs, seller concessions and the earnest money deposit are all part of an offer. When competing I ask the buyer to consider making an offer at terms where they will have no regrets if their offer is unsuccessful. Nothing is worse than the frustration of loosing the house at terms that you would have offered given a second chance. When each party, buyer and seller, feel that it's a fair negotiation a deal is usually struck. Most folks don't accept an offer... 03/07/2009

  Pending Sales for the region by week   These graphs are published by MRIS the regional multiple listing service, servicing Maryland, Washington DC, Northern VA and Southern PA The graph shows February sales continuing to out pace sales for the same time period in 2008. As buyers recognize the benefit of lower interest rates and increased affordability.    The Anne Arundel County graph below shows the number of new listings taken is down. The reduction of inventory is balancing  supply and demand and is  positively affecting the increased sales pace. The market continues to be price sensitive and sellers priced at market value are the first to sell.   New Listings for the Month of January for Anne Arundel County               03/06/2009

Thanks to Pat Savani for forwarding this great piece of information from the National Association of Home Builders Frequently Asked Questions About the Home Buyer Tax Credit The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation. Who is eligible to claim the tax credit? What is the definition of a first-time home buyer? How is the amount of the tax credit determined? Are there any income limits for c... 03/05/2009

GREAT NEWS!Fannie Mae just adopted a new rule that prohibits banks from reducing the real estate commission on short sale transactions for their loans. Specifically, the rule reads:No Negotiation of Preforeclosure Sales CommissionServicing Guide, Part VII, Section 504.02: Contacting Selected BorrowersEffective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.Original source from F... 03/04/2009

  17 Homes Active, 2 Under Contract, and 9 Sold in the Last 90 Days Last week I posted market information for homes $750,000 and up in the Eastport, which you can find here. As you may know, Eastport is the peninsular neighborhood of Annapolis more-or-less circumscribed by Spa Creek to its north, back creek to the south, and the Severn River at its tip. It's an eclectic neighborhood, with million dollar homes and modest bungalows often coexisting side-by-side - an arrangement that seems to suit the citizens of Eastport just fine, thank you.  Things are changing, of course. Every year, more and more of the old bungalows are being renovated or torn down and replaced by modern homes. But still, Eastport holds onto its charm and friendly, small town feel. The Eastport Market in a Snapshot O... 03/04/2009

$8000.00 Tax Credit Opportunity for first time buyer in the new tax $8000 credit! Visit http://www.federalhousingtaxcredit.com/ to view all the particulars.  Just a few points of interest: •·          A parent homeowner, buying a home with a first time home buyer child may qualify for the credit. •·          Owning a rental property or vacation home and not a primary residence in that last 3 years may qualify you for receiving the credit. •·          After your purchase you may be able to decrease your withholding because of the tax credit to increase your take home pay to benefit from the tax credit on as more immediate basis for that year. •·          This credit is not a loan it is an actual credit   Visit the website posted for all the details to see if you qualify! 02/28/2009

It Doesn't Take a Genius to Read Between the Lines of the Buyer Feedback We've Been Getting Lately  If you've sold a home recently, you know all about Feedback. Feedback is the stuff buyers and their agents have to say about your property after a showing - the good, the bad, the indifferent. Agents being busy - and this being the electronic age - feedback flies back and forth between agents in e-mail snippets. We're lucky if we get a complete sentence from a showing agent. A paragraph is the equivalent of a novel. Feedback can be useful - if ten would-be buyers complain about pet odors, you know you better do something about it. It's also a barometer of the market at any given moment in time, and a clear reflection of buyer behavior. Here - with very little exaggeration - is a sampling ... 02/27/2009

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. Inventory is down 25.5% when comparing  January 2008 vs. 2009 For the year 2008 vs. 2009 inventory is down 14.6% 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.  Last February  the affordability index was 119% Rates are at historic lows The news media will start to report the market upswing eventually, but since they report settlements ( from sales ... 02/26/2009

Finally a bailout for responsible, hardworking folks who pay their bills. Last week, Congress approved an $8000 tax credit for homebuyers. And it is not just for first-time homebuyers. This applies to anyone who has not owned a home in the last three years. Some of my retired clients are planning to take advantage of this free gift. They sold their home in Ohio at the peak of the market, and have been waiting for the right time to buy in the Annapolis, Maryland area. Who do you know who does not currently own their own home and could use an extra $8,000? Coworkers, kids, grandkids, nieces and nephews, friends, sports buddies? Let's share the wealth with our friends! They may not know how easy it can be to own their own home, and with a little help from friends like you, they can do it t... 02/26/2009