Inventory is high in Rock Hall right now -- prices are all over the place.  Some houses have just gone up for sale, and we have some that have been sitting on the market for two years or more. 

In today's tough market, you need to start with the end in mind.  You need to face the reality that home prices have dropped a full 25-30% within the past two years.    And as a seller, probably the toughest fact to face is that the new pricing applies to your house,  too.  However exceptional  you believe your house to be, if you want to sell it, you really have to look at your property without emotion  - just as most buyers will.  You can, and must, find out what the current pricing is on the market now, and price below.   Your Realtor will give you the information you need to make the right decision about the price.  Then, you need to undercut the competition - price it below what you really think it's worth - just to get showings.  Your goal is to find the proverbial needle in the haystack - a buyer.

A lot of sellers think  that putting a higher price on it will inspire the Realtor to work even harder, because higher price equals bigger commission.   Every Realtor knows, however, that six percent of nothing equals...nothing.  Commissions don't get paid at the time of the listing - they get paid at closing.  No matter how hard your Realtor markets your house, the wrong price on the house means no closing. 

The 2009 State of the Nation Housing Report from the Joint Center for Housing Studies of Harvard concludes that, although current conditions are present that would normally support a housing recovery, the current job losses and tight lending standards are for now delaying benefits to be gained from low interest rates, lower prices, and incentives such as the first-time buyer tax credit. 

Although the lower interest rates and incentives have lately helped to stabilize sales, there's still pressure being put on prices.  And for now, only the most motivated sellers can compete in this market. 

Meanwhile, would-be buyers who are sitting on the sidelines, waiting for prices to drop more, may cancel out savings as interest rates creep up.  

Thankfully, looks like the rain is ending, and weather clearing up just in time for the 72nd Downriver Race tomorrow, Friday, June 19, starting from the Chester River Country Club, and ending at the Rock Hall Yacht Club.  Be sure you check out the link to Rock Hall Yacht Club and see all the sailing events for this great weekend.  Yet another reason to invest in the Rock Hall area!

Here's a suggestion - come spend an evening with Duduka da Fonseca, Maucha Adnet and Chuck Redd, taking in Bossa nova, samba, and the beautiful rhythms of Brazil at the Mainstay this Saturday night, on Main Street in Rock Hall.  Fonseca is one of the best known and most widely admired of all Brazilian drummers.  His music is described as "jazz with Brazilian roots."  Maucha Adnet is a vocalist who has performed and recorded with legendary composer Antonio Carlos Jobim, and she was the guest vocalist on Randy Brecker's Grammy-winning CD "Into the Sun."  Chuck Redd is well known to Mainstay audiences; he's an outstanding vibraphonist, and was long a member of the Charlie Byrd Trio, as well as Great Guitars, the Mel Torme All-star Jazz Quintet, the Smithsonian Jazz Masterworks Orchestra, and others.  Also included in this excellent group on Saturday is Robert Redd on piano and Leonardo Cioglia on bass.  Call the Mainstay to reserve tickets: 410-639-9133.

Before the concert, come over to the Rock Hall Yacht Club and have a bite to eat from the Log Canoe Menu.  If you haven't already joined the club, you'll see it's one of the most beautiful spots on the water in Kent County. Be sure to pick up a membership application while you're there for dinner.  Then head over to the Mainstay - the concert begins at 8:00.  See you there!

The next time you think your house needs more print advertising in order to sell, please refer to this graph.  In Kent County, and in Rock Hall in particular, most buyers and/or "Lookers" have already viewed your property on the internet before they get to town. 

No, this is not a call to meditation!  It's an invitation to an open house - today - in Rock Hall on fabulous Lawton Avenue!  This is the part of Rock Hall known as Gratitude, at one time a separate town itself.  And here in Gratitude is this lovely 6 bedroom house, currently used very successfully as an income producing vacation rental.  Turn-key, ready and set to go, with a full view of the Bay.  Stop by and say hi!  I'll be there from noon til 3:00 p.m.  Look for the Yellow and Blue balloons!

Some sellers in the Rock Hall and Chestertown areas have resorted to renting out their homes while trying to sell it.  If that's you, take comfort (small) in the fact that Tim Geithner is there, too.  The Treasury Secretary puts his NY state home up for sale, it doesn't sell, he reduces the price, it still doesn't sell, finally he resorts to renting it out. Same story, different numbers (rent is $7,000, which doesn't cover his mortgage payment.  Maybe he should have hung in a little longer; existing home sales, especially in the North East, have been increasing since April.

If you're considering doing the same, make sure you realize that, as the Chestertown and Rock Hall real estate market  improves, it will be harder to sell your home while it is occupied with a tenant.  The homes that stay on the market for the least amount of time are not only priced well, but they show well.  They stand out from the pack.  They're free of occupants, free of clutter, staged to show.  And, perhaps just as important as the price and the staging, the property is available to show at any time, without having to deal with a renter (who really doesn't want you to sell it anytime too soon).

As many of you already know, Rock Hall's  beloved Bay Leaf Gourmet closed a few months ago. 

Chris and Morris ran a wonderful little business - we will miss their delicious coffee, the omelets that Morris whipped up, and everything that Chris cooked - her quiches, soups - all of it!  Affectionately known as "the Cafe", it had a pretty solid following of year-round locals, weekenders and boaters, it's reputation expanding beyond Rock Hall and the surrounding communities.  It was a sweet spot to meet and greet friends and neighbors.

The building is being sold fully equipped with a commercial kitchen, all utensils and cookware, tableware, elevator in back (for handicapped access), retractable awning to provide coverage for additional seating outside, the works.  It is a complete turn-key opportunity.  When Morris bought the building about seven years ago, he had it gutted, down to the brick walls.  New electric, new plumbing, everything was rebuilt from the inside out, plus it was expanded about 1/3 in the back.  It's now being offered at $310,000. 

Chris and Morris will be a tough act to follow, but a new restaurant in the little "bank building" will certainly be warmly welcomed by the rest of  Rock Hall.  Get the word out, and contact me if you're interested!

Check out this cute little bungalow on Hawthorne Ave, offered for $199,000.  Just a few steps from the Bay, from restaurants, from all the fun that Rock Hall has to offer!  Enjoy the screened front porch, the nice deep yard; full attic with a fixed staircase makes for easy expansion!  By the way, rates are still low; inventory is high; this is the time to buy!  Check my website for more information, and call me!

Prospective buyers are looking at properties right now in Rock Hall.  Interest rates are great and getting even better, and nobody wants to invest in stocks.

However, home prices, in general, are still on a downward trend, and probably will be for a while.  Naturally, no buyer wants to catch a falling knife.  What sellers need to do for now (if they are truly sellers) is swallow a bitter pill, so to speak -- or try again in a few years.  Price ahead of the trend (which means price it lower than the market comps) or possibly sell it for even less in the spring or summer.

The process to sell is three-fold; be accurately bold about the low price; clear out and clean up; and market it.  The broker can handle the third step; but the first two steps are entirely up to the seller, and no amount of marketing by the broker will compensate for a lack of motivation to sell by the owner of the property.