Thursday, May 25, 2006

Home, American Idol, and Memorial Day

Last night as my seven year old daughter Ellie and I were watching the final of this years American Idol, she asked me; Dad, what's Memorial Day? Is that when we remember people who fought in a war? This question came only a couple of hours following a phone interview conducted by my nephew Matthew, who was assigned the task to interview a Viet Nam veteran as part of his final paper for his high school history class.

My answer to Ellie was that Memorial Day is a holiday, not only to remember all those who have served and died , but also to remember those who have played a role in our lives who no longer are with us. She asked; like who?

The following is the answer to Ellie.

Like my grandfather, your great grandfather, the Reverend H. E. Pfister. Grandpa Pfister was ordained in 1910 preaching in San Angelo Texas, Hudson Kansas, Evansville Indiana, Kenton Ohio, and Troy Ohio where he retired in 1960. Grandpa bought the home next door and your dad spent a lot of time with Grandpa, and Grandma Pfister. Dad went to a lot of church functions with Grandpa. Grandma was from Will county in Illinois and was from the Knoppe and Stelling families. Her first name was Bertha, and she taught your dad the meaning of work. From cleaning inside to working in the yard outside Grandma worked dad pretty hard.

Bertha had a brother-in-law named Les. I remember he was pretty old, but full of energy, and would ride a bicycle backwards, sitting on the handle bars, whenever he visited home. Uncle Les lived in Colorado. Grandma told us Uncle Les lived in Colorado because the air was thinner there, and he could breathe easier there. For you see Uncle Les had his lungs burned from mustard gas in World War One.

Grandpa and Grandma had four children. The youngest is your Grandfather. The first child, Aunt Chloe Rehfield, a Registered Nurse, continues to live in the house she and her husband, Dr. Alfred Rehfield built in Michigan after Uncle Al came home from World War Two. Uncle Al was a tall strapping man, very strict and disciplined, who was an orthodontist. Uncle Al spent four years in the Army serving everywhere from Africa, Sicily, Italy, and France helping repair the faces of the wounded. I remember visiting their home and Uncle Al taking us to see the Detroit Tigers. Al Kaline was my favorite Tiger. Aunt Chloe would take us to Boblo Island, and to the Ford Museum. Uncle Al went to heaven in 1983.

Then there was Uncle Jerry Pfister. Jerry graduated from the University of Michigan with an MBA in business. Jerry joined the Navy as an officer and served in the South Pacific. I remember Jerry as always friendly, and to me; very rich. Every time Uncle Jerry visited home, he would have a dollar bill hidden in his hand when he greeted us kids! Uncle Jerry invited me to his home in New Jersey two summers when I was 9 and 10. Uncle Al would give me a ride to the airport in Columbus, put a sign around my neck with my name on it so Aunt Virginia could pick me up at the Philadelphia airport. Uncle Jerry was very smart and had worked his way up the corporate ladder and was Executive Vice President of The RCA Corporation. I remember Jerry taking cousin Cindy and me for a ride in a new style of car called a Stingray. We were all saddened when Uncle Jerry died of a heart attack at age 50 in 1964. Grandpa said it was due to the yellow fever he suffered in the South Pacific, which weakened his heart.

Then there was Uncle Herb who would send us kids letters from all over the world, and we collected the stamps from all the different countries. Herb was the youngest Captain of a ship on the Pacific during World War Two. He was a Captain in the Merchant Marines. I remember Herb liked to drink a lot when he would come home to visit. When I asked my Grandpa why Uncle Herb would wake up screaming in the night, Grandpa told me the story about how Uncle Herb braved submarine, and airplane attacks while shipping fuel to the front for our airplanes and vehicles, and that he saw many men perish, and many in his arms after pulling them from the burning seas.

Your Grandpa, my Dad now 84, when we go on vacation every summer at Indian Lake we talk and visit a lot about old family times and those we knew, not only family, but friends too. Like my best friend growing up, Jack Conley. Your Dad and Jack played football, and baseball on the same teams, and Jack's Dad Lawrence taught us how to fish, and was one of your Dad's best fishing buddies. Jack died in a car accident while your Dad was in basic training. When Dad came home from the service Lawrence and Dad spent a lot of time together. Lawrence served four years in the Navy in World War Two in the South Pacific. Lawrence went to heaven last year.

Then there was my brother David, Matthews father, and your Uncle. When Dad came home after serving overseas in Thailand, during the Viet Nam War , your Uncle David gave your Dad his car for a whole week so I could go visit with friends. Uncle David and your Dad went to college together and were the best fishing buddies in the world. Remember how sad we were when Uncle David died unexpectedly two years ago at the age of 50? Well that's how we felt when Grandma, Grandpa, Al, Jerry, and Herb, when they went to heaven. It's a shame you didn't get to meet them too.

So my answer to Ellie is that Memorial Day is not just about people we honor the memory of who have served our country, it's also about all the loved ones that have impacted our lives who no longer are with us, that we remember this Memorial holiday.

One of the questions Matthew asked me was; what was it like growing up back then?
Growing up was about fun, friends, family, faith, work, service, and coming home. This is what Memorial Day is about to me, remembering home, family, friends, and of course service buddies. I shared with my daughter, you just saw a singer win what they call American Idol. To Dad, all the people we just talked about, they are the true American Idols.

Wednesday, May 03, 2006

Changing Importance of Realtors

Remember the stock market of the 1990's? The exuberance Greenspan stated over and over again that could not be sustained? He was right as we watched trillions of dollars evaporate when tech stocks returned to reality, exuberance gone.

Welcome to the 2000's when the exuberance switched to real estate. From about 2002 through 2005 prices climbed on record low interest rates, and record demand. After all, just about everyone could afford to buy a home, and the rate of home ownership climbed to an all time high.

Welcome to 2006 with interest rates at 4 year highs, an over supply of homes for sale, new and existing, and you see the exuberance evaporating. This in spite of record sales being reported with new home sales up 13%, however at lower prices.

Are we in a bad real estate market? Absolutely not. We are in the most competitive market since the double digit interest rate era of the 1980's. We have returned to a normal demand situation, while the inventory of homes for sale are at record levels. In other words we are still selling record numbers of homes, however at a rate that will only absorb half the available properties for sale. Some will win, some will lose. We call this capitalism.

An independent study commissioned by RE/MAX International had some interesting results: in 2003 24% of homes sold were by owner; in 2004 18%; and in 2005 12%. Makes sense when you look at market conditions by year, with demand outpacing the supply. There were simply more buyers than sellers in the market making selling a relatively easy proposition. Not anymore.

Thus the renewed appreciation for Realtors, and the service Realtors provide in matching the remaining buyers in the market to the best home listings. The home seller of 2006 should be aware that back in the glory days of 2002 through 2005 it was also easier for Realtors to sell homes than today. The point is you need to be careful on selecting an agent and company in tougher, more competitive markets. The cream always rises to the top during tough markets, many companies that have success in hot markets, don't realize the same success in tough markets.

In the Springfield Illinois market homes continue to sell at a record pace while experiencing the largest number of home listings for sale in history. In this mid sized market the local MLS has 1525 homes listed for sale, in 2005 there were 1337 listed, and in 2004 only 1106; that's an increase of 419 or 38% in just two years. For the first time in six years the pace of home listings being sold pending have fallen behind the previous year's for 3 consecutive weeks. One in 3.75 listings have sold and closed through the first four months of 2006, and for every home closing two new listings are added to the inventory.

If you will be selling in 2006 interview two to three agents from different companies. Look very closely at the success they have had in 2006, that will tell you a lot about their services, and how effective those services are in tough markets for sellers.

An example of the cream rising to the top in the Springfield market is RE/MAX Professionals. Residential sales for RE/MAX are up YTD by 16% in transactions, and 23% in dollar volume closed with an astounding 29.65% market share. In Springfield there are the Big Three and the rest. Both numbers 2 & 3 have seen their sales slip from last year with number 2 posting a 10.92% market share, and number 3 an 8.4% market share. The fact is the local RE/MAX franchise has outsold the next five top producing companies combined. Information that should be important if you are needing to sell in this changed market.

Now in my 20th year of service as a Realtor, my advice is that wherever you live, don't fall for the myth that agents and companies are interchangeable. They are not. One of the biggest mistakes consumers make is believing agents all provide the same service, produce the same results, and all operate with the same ethics. Wrong on all counts.

About half the home listings in the Springfield market are projected to sell this year. Some will win, some will lose. Who do you think has the better chance of winning? The family that realizes agents are not interchangeable, or the family that doesn't even think about it? If you are going to sell this year, best wishes on selecting the best agent and company, because that will determine the outcome for you.