Annapolis Maryland Luxury Real Estate

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Making Better Decisions With More Information

Making Better Decisions With More Information

This is an example where having just one additional fact can change the decisions we make.

Believe it or not...this is the transcript of an actual radio conversation between a US naval ship and Canadian authorities off the coast of Newfoundland in October 1995. The Radio conversation was released by the Chief of Naval Operations on Oct. 10, 1995.Curtis Island Lighthouse, Camden, Maine

US Ship: Please divert your course 0.5 degrees to the south to avoid a collision.

CND reply: Recommend you divert your course 15 degrees to the South to avoid a collision.

US Ship: This is the Captain of a US Navy Ship. I say again, divert your course.

CND reply: No. I say again, you divert YOUR course!

US Ship: THIS IS THE AIRCRAFT CARRIER USS CORAL SEA, WE ARE A LARGE WARSHIP OF THE US NAVY. DIVERT YOUR COURSE NOW!!

CND reply: This is a lighthouse. Your call.

SOURCE: NAVY.MIL Official Website of the UNITED STATES NAVY

Someone once asked me "how can you change your mind about that".  I don't remember the exact matter over which I had changed my mind, but, I will not forget my answer, "It's because I have new information".  Do we ever really have all the facts when it comes to deciding something?  Probably not.  But as we learn more, gather more information, we can make better and better decisions.

Someone else asked me "how did you get where you are".  Asked in connection with some success or another that I had achieved, the answer that popped out startled the other person.  I said "though a series of bad decisions".  I really meant that if I had made better decisions, I would have ended up achieving something else, something more.

In this radio transcript the Commander of the USS Coral Sea is negotiating with a Canadian lighthouse operator.  He doesn't know that he's negotiating with an immovable object (just yet).  Initially taking a position that might is right, with new information he's going to change his mind and divert the course of his vessel away from the lighthouse.

In any negotiation, the more we learn about the other parties involved, their goals and objectives ... whether there are movable or immovable objects involved ... the more effective our negotiations will be.  We can chart safe courses around immovable objects and negotiate effectively with the other parties involved.

Like the response from the lighthouse operator in the mythic Navy tale (above), whether we run aground or alter course when we get new information, it's our call!!!

 

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Stephen Howell, Associate Broker, Coldwell Banker Residential Brokerage, Annapolis, MarylandIf you are interested in buying or renting a home in Annapolis, Maryland or the surrounding area and want to tour any property currently on the market, or if you have a home to sell or rent in Annapolis, Maryland and want a professional consultation on current market conditions, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.

 Stephen Howell came to Annapolis to sail the Bay in 1994. What he discovered was a whole new lifestyle. Ever since Stephen Howell has been successfully helping others make the most of Annapolis. You'll find that with the right professional by your side, you can Live the Lifestyle and Live in Annapolis.

Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) live on the Chesapeake Bay near Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.

Connect with Stephen Howell on Google+ Connect with Stephen Howell on ActiveRain Connect with Stephen Howell on Twitter Connect with Stephen Howell on Facebook Connect with Stephen Howell on LinkedIn Connect with Stephen Howell on My Blog
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Value vanished into thin air...

Here is an interesting commentary on the real estate market's vanished values.  Do you think that the market will rebound?  If prices rose 3%, would you consider that a rebound?

Via Norm Werner (Real Estate One):

chart of value lossA recent post by John Mulkey here on ActiveRain made the rather blunt point that the home value lost in this recession is NEVER, EVER coming back (see John's post). John explained that it has vanished into thin air and will never be recovered. He opined that, although prices will eventually start rising again; they are likely to rise at the historic rate of 3% a year, or about the rate of normal inflation. If that is true, then the increased price rise does not represent a true recovery of lost value, since one must adjust for inflation.

Many people commented on that post and most just didn't seem to get it. For many, if the price goes up a bit then the value also went up and that means that lost value was recovered. That just isn't true. Look at it this way. If a stock that I own drops in value 30% (a similar drop to home values in this area), that represents real loss of value. To make the example simple; if the stock was at $1 a share and I own 100 shares, then it was worth $100 just prior to the drop. Had I sold it before the drop, I could have bought goods worth $100 - let's say 20 pounds of coffee at $5/pound. After the drop my holding in that stock is worth $70. With that, I could only buy 14 pounds of coffee.

Now if I hold on to it for 10 years and it finally makes its way slowly back to the price it was at when the drop occurred, my 100 shares would again be worth $100. But what happened to the price of the goods that I could have bought 10 years ago. At an inflation rate of only 3% in the price of coffee over that time coffee would cost $6.62/pound and I could only buy 14.88 pounds, or about what I could buy today for my $70. So the price is back to the pre-bust level, but the value has hardly improved at all. The same thing applies to home values.

The "value" that was lost from homes in the real estate bust was a paper loss for most but a very real loss for those who actually bought during the run-up prior to the bust and for the investors who bought the securities (now there's an oxymoron for you to ponder) that were created by pooling mortgages. People who bought prior to 2000 are likely about at break even, that is their homes have a current value that is about the same as when they bought. They haven't made the big appreciation that they hoped for (and once had, on paper); but, they are not under water on their mortgages either (unless, of course, they got greedy and took equity out of the house during the boom). The people who bought mortgage-backed securities that went bad are just out in the cold, just like people who bought stock in "the old GM" before it went bankrupt. They got the shaft from investment people whom they probably trusted and got to see them troop up to Capital HIll to say, "Oops, my bad", before they returned to their mansions in the Hamptons.

And where did all of that value go? A good deal of the actual money that changeman with questionsd hands went to the developers and builders who were cranking out new homes as fast as they could, many of whom subsequently went bankrupt during the bust because they got greedy and overextended themselves to build even more homes. Some of it went into the well lined pockets of the cat-fat bankers and mortgage lenders and wall street operators who were busily packaging and selling off pools of mortgages and who scored outrageous bonuses prior to the meltdown, none of which will ever be recovered. Some went to the investors and layers of administration that are behind the mortgage lending process.

Much of the "value" that was lost was never real to begin with. That value was mainly in the inflated "market prices" of existing home stock and was the figment of some assessor's imagination or the fantasy of some well greased appraiser. Both of those groups ran prices and "values" up as quickly as the market wanted, with little restraint. Asking where all that value went is like asking where your shadow goes at night.

So, what does this all mean? It means that we all need to let go of the past, give up the thoughts, hopes or dreams that we can wait this out and that the lost value will come back and everything will be as it was before the crash. That's not going to happen. Get over it. Live with it. Get on with life..

 

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Stephen Howell, Associate Broker, Coldwell Banker Residential Brokerage, Annapolis, MarylandIf you are interested in buying or renting a home in Annapolis, Maryland or the surrounding area and want to tour any property currently on the market, or if you have a home to sell or rent in Annapolis, Maryland and want a professional consultation on current market conditions, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.

 Stephen Howell came to Annapolis to sail the Bay in 1994. What he discovered was a whole new lifestyle. Ever since Stephen Howell has been successfully helping others make the most of Annapolis. You'll find that with the right professional by your side, you can Live the Lifestyle and Live in Annapolis.

Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) live on the Chesapeake Bay near Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.

Connect with Stephen Howell on Google+ Connect with Stephen Howell on ActiveRain Connect with Stephen Howell on Twitter Connect with Stephen Howell on Facebook Connect with Stephen Howell on LinkedIn Connect with Stephen Howell on My Blog
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The Winter Beach - Beverly Beach on the Chesapeake Bay

The Winter Beach - Beverly Beach on the Chesapeake Bay

It was cold today when I stopped at the beach.  I drove all the way down to the end of what feels like the end of the world.  Starting in Annapolis, then crossing over the South River Bridge into Edgewater.  Turning left onto Central Avenue which turns into Mayo Avenue.  Passing downtown Mayo (careful not to blink and miss it) and on into Beverly Beach.  At the end, of Beverly Avenue you'll find one of several streets named after the body of water they front - Chesapeake Drive.

 Chesapeake Bay at Beverly Beach, Maryland

When I stepped out of the car it was cold.  About 42 degrees today.  But the beach was no less beautiful.  The clouds were coming in from the SW, signaling a change in weather.  There wasn't a sole around today.

The Chesapeake Bay at Beverly Beach, Maryland

There were a five white swans in the water.  Their heads were all tucked under their wing as they floated with great contentment in the cold bay water.

The Chesapeake Bay at Beverly Beach, Maryland

It was very clear today.  You could see all the way across the bay - about seven miles - to the Eastern Shore.  Bloody Point was visible at the tip of Kent Island.

If I had put a little more planning into my drive, I might have taken Rocky with me.  He could have run the beach.  For the most part except on specific beaches, dogs are not allowed off leash.  But today, with no one around, I probably would have let him have a run up and down the beach.

Beverly Beach is located less than 25 minutes from downtown Annapolis, Maryland.  From cottages to upscale contempories, Beverly Beach has properties from $185,000 to $1,100,000.  For a list of active listings in Beverly Beach, click here.

 

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Stephen Howell, Associate Broker, Coldwell Banker Residential Brokerage, Annapolis, MarylandIf you are interested in buying or renting a home in Annapolis, Maryland or the surrounding area and want to tour any property currently on the market, or if you have a home to sell or rent in Annapolis, Maryland and want a professional consultation on current market conditions, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.

 Stephen Howell came to Annapolis to sail the Bay in 1994. What he discovered was a whole new lifestyle. Ever since Stephen Howell has been successfully helping others make the most of Annapolis. You'll find that with the right professional by your side, you can Live the Lifestyle and Live in Annapolis.

Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) live on the Chesapeake Bay near Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.

Connect with Stephen Howell on Google+ Connect with Stephen Howell on ActiveRain Connect with Stephen Howell on Twitter Connect with Stephen Howell on Facebook Connect with Stephen Howell on LinkedIn Connect with Stephen Howell on My Blog
Know your nautical etiquette?
Then click the correct flag to connect with me socially!
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Family Plot - Hollowed Ground, Material Fact, What Else?

Family Plot - Hollowed Ground, Material Fact, What Else?

Is hallowed ground a material fact needing disclosure in the sale of real estate?  Today while out photographing a property for a colleague I came across the family burial plot on the lot upon which the house sat.  In the pictures you can just see the nearby homes.  If it hadn't been early winter, I might have missed this sacred spot in the woods where many family members and relatives now rest.

The Family Plot 

As I carefully tread around the outside of the family burial site, I realized there where both marked and unmarked graves.  Many of those that had headstones dated back to the turn of century (around the 1900's) while a few were more recent.

The Family Plot

This family burial site may now be long forgotten, but, what happens when a buyer considers purchasing the land?  The house is a "tear down" and now longer habitable.  Any buyer considering a purchase is going to build a new home on the site which could encroach on the burial site.

Will the family plot stigmatize the sale of this property?  Should this matter be disclosed to potential buyers?  To answer those questions, I found a field guide at Realtor.com offering "some creative marketing tools and advice for selling properties with an unsavory past".  While a family burial site isn't "unsavory" (like a haunted house or a home where a murder/suicide occurred), some buyers could shy away upon discovering the site.

So that got me to thinking.  What obligations does a new owner have with respect to maintaning a private cemetery?  Can a family burial site be relocated?  Blogger Jonathan wrote an excellent post that outlines the basics.

The laws governing cemetery relocation vary by state, county, and even city so it's impossible to give a full overview ... Generally state laws govern cemetery relocation and protection, but there may be local county or city level ordinances as well.

In Anne Arundel County, Maryland, local code specificies what needs to be done when development occures nearby such sites as a family burial site. Article 17: Subdivision and Development Regulation, Title 6: General Development Provisions, Subtitle 5 - Historic Resources, Archaeological Resources, Cemeteries and Scenic and Historic Roadsof the Anne Arundel County Codes outlines identification and preservation requirements in "§ 17-6-503. Cemeteries".

According to Anne Arundel County's Cultural Resources Planner:

Development must be planned accordingly and we require a preservation easement on cemeteries when permitting or development plans are put forward. Few real estate professionals are aware of this requirement, so I thought this would be a good opportunity to share this regulation with those of you on "the frontline."

The other challenge we have is the presence of unmarked or unplatted cemeteries. That can often be a surpirse for owners when the cemetery has been lost to time and only grave depressions survive without markers.

In 1991 The Coalition To Protect Maryland Burial Sites was formed as a non-profit organization that (according to their website):

... is committed to the protection of human burial sites from unauthorized and unwarranted disturbance, by man or nature. The membership includes historians, genealogists, archaeologists, cultural preservationists, Native Americans, legislative members, and residents and nonresidents of Maryland who care about their heritage and ancestors.

Coalition members appreciate the importance of human burial sites as sacred grounds, as irreplaceable cultural resources, and as sources of valuable genealogical data, often found nowhere else.  The Coalition recognizes that many human burial sites are established through the purchased right of sepulture, protected by the laws of Maryland, which passes on to the relative of the deceased, and which cannot lawfully be abridged by others at will.

Most of us imagine human burial as a respectful and dignified laying to rest of a person who touched our lives and contributed to our culture.  In time, however, human burial sites, left unprotected, can fall victim to expediency and the impulsive exploitation by others who are seeking a short-term economic or personal goal.  The Coalition believes that the willful desecration or destruction of human burial sites is unacceptable in a civilized society.

For more information on the Coalition and how you can help in guarding against the desecration of burial sites in Maryland, please visit The Coalition To Protect Maryland Burial Sites website.

In conclusion county and possibly state regulations will governed the preservation, protection and maintenance of family grave sites.  While it seems possible to move a private cemetery, there will archaeological and culture requirements, mapping and surveying needed to document the site, and relocation services as well.

 

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Stephen Howell, Associate Broker, Coldwell Banker Residential Brokerage, Annapolis, MarylandIf you are interested in buying or renting a home in Annapolis, Maryland or the surrounding area and want to tour any property currently on the market, or if you have a home to sell or rent in Annapolis, Maryland and want a professional consultation on current market conditions, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.

 Stephen Howell came to Annapolis to sail the Bay in 1994. What he discovered was a whole new lifestyle. Ever since Stephen Howell has been successfully helping others make the most of Annapolis. You'll find that with the right professional by your side, you can Live the Lifestyle and Live in Annapolis.

Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) live on the Chesapeake Bay near Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.

Connect with Stephen Howell on Google+ Connect with Stephen Howell on ActiveRain Connect with Stephen Howell on Twitter Connect with Stephen Howell on Facebook Connect with Stephen Howell on LinkedIn Connect with Stephen Howell on My Blog
Know your nautical etiquette?
Then click the correct flag to connect with me socially!
(Hint: L-to-R ... Golf=Google+, Alpha=Activerain, Tango=Twitter, Foxtrot=Facebook, Lima=LinkedIn, Romeo=RSS)