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“Who needs representation when buying a house? I can find one on my own.”

This is not an uncommon statement and might be spoken from someone who had a bad experience with an agent, from someone who hasn’t purchased a house before, or from someone who hasn’t done their research.

A good real estate agent helps their client maximize their dollars, saves valuable time, and delivers greater peace of mind knowing they are doing the right thing at the right time.

The agent should be well trained or highly experienced in every aspect of construction, financing, city development, economy, neighborhood values, and the actual process of writing agreements and negotiations.

The average person in the United States buys five homes in their adult life. The average agent sells nine homes per year. Who do you think has a better outcome - the represented person, or the unrepresented person? The same can be said of sellers, but that is for another day.

A real estate agent should help you clarify your desires, organize the features needed to support those desires, and ultimately understand why it’s important to you. A mother with two small children may want three bedrooms on one level, but what she really wants is to have the children next to her at night so she knows they are safe and secure. A good agent understands the reasons why you want what you want, so you actually get those things. They will keep you on the right path.

Great agents build relationships and they always look out for their client’s best interest. They are never pushy or interject their agenda on their clients. They lead their clients to the right conclusion, covering the pros and cons as they go; reminding them of the purpose for the move and keeping them from getting caught up in too much excitement. They bring common sense to the table, and care more about you than the commission.

This is what smart agents do. This is what smart clients should expect.

Tony Ratchford, licensed Broker, Author, Coach, Manager, and Sales Consultant
Keller Williams Realty Sioux Falls

When your home fits you, it becomes a dream home. It is where your lifestyle is empowered. It is a reflection of who you are, where you are going, and what’s most important to you. It enables you to live your dreams with comfort, freedom, and security.

Finding a dream home is an emotional experience involving a complex mix of real estate knowledge, financial savvy, business sense, negotiation skills, and human psychology. The ability to interpret data and create a happy experience requires extensive thought and planning.      

To accomplish an ideal outcome one must truly understand the reason behind their desired features. Why is it important to have a master bath or an extra garage stall? Look for the benefit of a particular feature and try to discover a value that triggers your emotion.  

A young parent wants 3 bedrooms on one level so both children will be close at nigh - the importance, or value, is security. A master bathroom delivers privacy. An extra garage stall where cars and big toys are safe, or a workshop for protected serenity.

Every home purchase is driven by a motivating trigger from at least one core value. Others to consider include family, safety, financial, prestige, comfort, convenience, love, adventure, contribution, fun, friendship, wellness, or entertainment. There are many more to choose from.

It’s good to test one’s choice. Ask yourself “what is the payoff, or who benefits and why, if I get what I want?” The more depth to the research the better the outcome will be for you.

To help our clients gain confidence with their process, we developed a system where they could be assured to maximize their dollars and save them valuable time. Creating a comprehensive plan delivers peace of mind knowing they are on the right path. The steps include discovery, assessment, planning, implementation, and satisfaction.

The idea is to slow down the process in the beginning, putting all the pieces together before one gets too far along. It works. We invite you to give it a try.

Tony Ratchford, licensed Broker, Author, Coach, Manager, and Sales Consultant
Keller Williams Realty Sioux Falls

Doing The Right Thing

Relationship building begins with doing what you say you will. It creates trust. Very few people are tolerant of those who make promises and don’t keep them. Going even further, one might think a person showing up late or not finishing what they start, and thinking nothing of it, is actually disrespectful.  

One has to wonder why it’s becoming commonplace to accept this as normal. Have we decided to eradicate our foundational principle of keeping our word? It happens when one decides it’s not important to keep a commitment. Worse yet, they decide the laws of order no longer apply.

Understanding the rules of a game is vital if one hopes to win. That means everyone plays by the same rules, or in other words, ‘there must be a commitment to each other.’

When an agent tells their homeowner/client what they can expect, it is not only appropriate for the homeowner to expect the agent to perform accordingly, but it is incumbent for the agent to perform. The same goes for the homeowner to the agent.  

I’ll go further. As an agent, it is not only a requirement to educate a homeowner, or future homeowner, of what services they can expect, but we ought to go beyond promises and deliver even more.

Yesterday, I was reading another article about how homeowners are paying too much in brokerage fees. The words ‘too much’ are arbitrary and they depend on what a homeowner receives for the fee. If there is an unbalanced exchange of trade, then those words apply. An agent must provide more to the client than the client can do for themselves, and if the outcome is greater with an agent than without, then the words ‘too much’ disappear.  

Often, homeowners don’t know what an agent does or should do. It begins by establishing a desired outcome for the client with an ideal time frame and predetermined process. The path should be laced with proper manners, respect, communication, attention to detail, and leadership toward accomplishing the goal. Showing up on time, doing what they say they will, finishing what they start, and saying please and thank you is a great start.

Developing a comprehensive plan is the ideal method to help current or future homeowners maximize their dollars, save valuable time, and ultimately deliver greater peace of mind.  

The foundation of life remains the same as it has been forever. All relationships survive when each person gives something of value in return of an equally perceived something of value. It is simply a focused contribution and acceptance of value from one person to another. For Real Estate Agents and Clients, it’s a fair exchange of services for compensation given.

We invite you to call or text 605.359.4100

Tony Ratchford

Everyone loves to talk about real estate, at least those I know. They read or hear the news about how hot the market is and assume it’s a wonderful thing, but like most things, it’s in the eye of the beholder.

Sellers are doing quite well this year. Homes are selling faster. An average of 76 days on the market in the metro area. That’s down 12% from last year. The average sale price is up to $293,826 or 15.7% year over year. Demand for homes is sky high.

Buyers aren’t having as much fun as sellers. Lower inventory levels limit their choices and are driving prices up. So far, buyers have good purchasing power, thanks to low mortgage rates; presently below 3% for a 30 year loan, but when values go up so do payments. Buyers will start to lose interest when the percentage of their income for housing goes too high. Demand will diminish and home values will retreat.

There are some frustrated sellers too; those who want to move up but have nowhere to go at the moment. This can either stop them from selling or force them to make two moves or potentially owning more than one house.

The reason for the current market condition is plentiful. The dip in inventory is deeper than most cycles. Complications from Covid-19 lockdown has disrupted the natural market, and the government ‘fixes’ have made the situation worse. What we do know is real estate ownership in the Sioux Empire looks to be solid for a long time. Favorable economic and political environments are creating exceptional momentum for growth. Employment demand is up, wages are rising, and consumer confidence remains high. In addition, mortgage rates are expected to remain near the present level. Unfortunately, inflation is about to rear its ugly head. One of the best ways to protect one’s wealth is to be invested in hard assets such as real estate. Get in early and stay in.

Many people think real estate transactions are easy, but 95% of the time they are not. There are many moving parts plus high levels of emotions, requiring constant monitoring and finesse. Problem solving is a regular daily exercise. The Dream Home Process™ helps our clients maximize their dollars, save them valuable time, and deliver greater peace of mind as they maneuver through the maze.

We invite you to call or text 605.359.4100

Tony Ratchford, licensed Broker, Author, Coach, Manager, and Sales Consultant

Have you noticed how some people seem to have a charmed life while others struggle? Why is it one person always wins while another loses? Is it possible they each bring a different intangible factor to the table? Could it be their mind set?

Tom Hopkins, a famous sales trainer, is noted for stating “10% of our success is knowledge and 90% is attitude.” In other words, we may be able to influence our fate by how we approach life.  

One might begin by defining what success means. The answer could be as simple as ‘getting what you want.’  Many years ago I began to ask “what exactly has to happen for me to be happy about being a spouse, father, family member, and friend? What about my business career, finances, and my contribution to others? And what do I need for my physical, mental, emotional, and spiritual well-being?” The answers must be specific with priority for importance of category.  

The biggest question for many of us is “Does success make us happy or does happiness make success?”

Right or wrong, I believe all success starts with a positive attitude. We can either approach a task with a winning attitude or as a defeatist. It’s interesting to note how often we get what we expect.  Winners believe they will win and they do everything they can to make it happen, while losers usually let life just happen without focus and then blame the outcome on some thing or someone else for their loss.  

I see this often when someone is either buying or selling a home. Those who are most proactive, attentive, and create a vision for success usually celebrate a better outcome than those who are unprepared or lack focus.

My good friend Marian York, writer and motivational speaker, taught we must have precise clarity for our lives. “What is it you want?” she would ask me. “What can be done to get what you want, and then what are you willing to do to get what you want?” The final answer to whether you will or won’t depends on your level of desire.

So, what is getting most of your attention today? Is there something or someone creating a distraction? Are you allowing outside influences to take you off track? Do you listen to the news or social media and is it filling your head with nonsense? Maybe it’s time for you to start analyzing exactly what you want and how you can get it. Is it time to believe everything will work out as it should and hopefully what you want you’ll get? There is incredible power in believing…it can be negative or positive. It is a choice!

I would be remiss with my position if I didn’t mention owning a home, one that fits your ideal lifestyle, ought to be a priority. It covers a lot of life’s bases...and of course, it can bring a little more happiness.

We invite you to call or text…605.359.4100

Tony Ratchford, The Ratchford Group

He was 14 when his father died. Living at home with his mother and sister and a shortage of income, he quit school and looked for a job. The Prendergast Family ran Kansas City underground…his job was running gambling numbers on the streets. An impressionable young boy learned his lessons quickly and recorded both the good and the bad with one line quotes. This became his code. Determined to have a better life, he joined the Army, married, and after WWII they made their way to South Dakota.

Always self-employed…the journey of raising five children wasn’t easy. Many days and nights were spent trying to ‘crack the nut,’ his idea of making sure he made enough money every day to provide for the family...which was his endless driving force.

“If you want to be an eagle, you need to fly with the eagles” were his words. “You don’t need to experience everything to learn a lesson…successful people and history are great teachers.” Be a good student, pay attention, and ask questions…knowledge builds confidence.

Catholic school, street experience, and Army training defined a set of solid core principles. He judged people quickly by what they did and not by what they said. He seldom gave a second chance. His word was golden and expected everyone else to be the same. There was little tolerance for not telling the truth. Respect was top of the list followed closely by a commitment to do the right thing.

He trusted in God and lived the Serenity Prayer. He believed we innately know what is right and what is wrong. Rules are good guidelines but not necessarily needed for those with a good heart. Life is better for everyone when we do the right thing and not when we don’t…one shouldn’t need to be reminded, but when it was needed, it should be quick and significant.

There was no substitute for hard work and good money management. “Cash is King” was his motto. Make money, save, and live on what’s left. Minimize debt. Keep good reserves. Invest wisely. Don’t rely on anyone but yourself. Be self-sufficient. Take care of those you love and be generous with your time and money.

He was proud of his accomplishments and humbled by the success. He was my father and if alive today, I’m fairly certain he’d wonder what we did with our founding principles? Common Sense always prevailed for him…he’d wonder where that went too.

When it’s time to consider making a move from where you live now…The Tony Ratchford group has a practical and proven process to help you maximize the outcome.  
 
Tony Ratchford, The Tony Ratchford Group

It was midmorning when I stopped by the coffee shop for a pastry and a cappuccino. The storeowner asked me “how is real estate doing; I heard there is a shortage of homes for sale?”

I replied “the inventory levels are low and it’s causing a bit of a problem.”

The owner began to tell a story about a friend who was trying to purchase a home but lost out to a higher bidder, and asked “have you ever seen a market like this?”

I said to him, “yes, I’ve heard this story many times lately, and it won’t be over soon.”

I thought to myself, the market ebbs and flows but these condition seem different than most. A recent example of fast rising prices was in the early 2000’s when a high demand for housing resulted from a change in governmental policy requiring no documentation to obtain a loan. The result was artificial demand and lack of supply. Prices moved up quickly, and once the pyramid stopped, prices fell drastically.

Again in the 1970’s and early 1980’s poor economic policies gave us run-away inflation and minimal productivity growth, also known as ‘stagflation.’ It ultimately delivered erratic prices and the lowest level of homes for sale, and sold, in decades.

A review of history will show housing markets are mostly driven by economic policy, but it’s not the only factor today causing high demand. The self-induced Covid-19 shut-down changed how people live in their homes and they now look for alternative housing. First-time buyers still want to own rather than rent. And we are seeing a higher number of people moving into the Sioux Empire. Add to this, historically low mortgage rates and a huge supply of money available for banks to lend and consumers to spend.   

On the other hand, the supply of homes for sale is down, and for several reasons. Empty-nesters are staying in their homes longer, construction of new homes has been disrupted by the effect of Covid-19 shut-down on the supply-chain, and many people are reluctant to place their home on the market for fear of not finding another.   

To continue our conversation, the storeowner asked “can we expect the housing market to crash like before, and if so, when will it happen?”

“I’ll be surprised” was my answer. “It can be quantified with historical data. As long as the economy holds up, we will be alright. This is a true bullish market based on growth and policies from the past few years. Nonetheless, there will come a time when prices will level off due to one or more factors of higher interest rates, higher taxes, a slower economy, and the natural movement of supply and demand through pricing.”

“Such as, the supply of homes will increase because prices rise so much that sellers jump into a hot market, trying to take advantage of higher prices. All the while, demand slows as buyers put their plans on hold until prices soften.”

The storeowner looked pensive and did not reply. One might think it’s complicated, but perhaps not if one is to study basic economics and historic patterns.

Locally, the future of real estate looks bright, at least for now. In the meantime, one might do well getting settled in while the getting is good. Buy as much house as you can for as long as you can with the least amount of money down. Make sure you get the right house that fits your lifestyle the best for today as well as tomorrow.

One last thought…financial basics can instill confidence and security…keep a good level of cash reserves, minimize debt, and keep good balance in your life.

The Ratchford Group has a proven process to help you maximize your dollars and give you peace of mind knowing you are doing the right thing at the right time.

We invite you call or text anytime…605.359.4100

Tony Ratchford, The Ratchford Group

A romantic person’s view of February is to celebrate Valentine’s Day. It’s a time to embrace those who are the closest to you, and perhaps, a time to shift your thought from the daily reminders of hysteria to intimate moments of love.

Time may stop for a short moment or last forever. It could be a couple getting engaged, planning a wedding, or researching for a new home. It might be the beginning of a new chapter in life or a celebration of something already great.

Creating a good life is an inherent drive. The American Dream for many years was to get married, have a good job, and own a home. Herbert Hoover may be credited for saying prosperity was “a chicken in every pot, and a car in every backyard.” For many, life has been a struggle and the American Dream is just a dream.  

The romantic side of me believes the Dream is still alive. Everyone ought to have a chance of having a good job and owning a home. Thankfully, those of us who live in the Sioux Empire have an excellent chance of getting both.

The changing of the guard in Washington, DC this last January has some people wondering what the future will bring. They ask if this is a good time to buy, move up, move down, or put their life on hold and wait to see what develops. Will the economy stay on a steady path, and will home values increase?

Home values have been increasing for some time, and it appears they will continue to do so over the next few years. Mortgage rates are still low: about 2% for a 15 year loan and 2.5% for a 30 year loan. A shortage of homes for sale, strong local economy, growing population and job growth will continue creating demand for more houses.

One thing we know from history is real estate ownership has been a healthy long term investment. We also think living in a house that matches the way you live, ultimately gives you a greater chance for happy days filled with love. 

One last thought. Inflation is inevitable. Home values will go up. One good way to protect your money against inflation is to be invested in hard assets. 

There it is. Love your partner. Love the House. Be happy!

Tony Ratchford, The Tony Ratchford Group. KW Realty Sioux Falls.

I once heard a speaker say “we are either going in or coming out of a crisis at all times.” In other words, there is always some form of crisis at hand and since we can’t avoid them…we need to learn how to handle them. 2020 gave us much to think about. Without diminishing the loss of a loved one, it has been confounding to hear the extraordinary amount of complaining. This certainly has been a year where things could have gone better, but regardless of how ugly things can be there is always more good going on than bad. In our world of exceptional abundance, why do we find so many people with negative thoughts? They talk and act like a victim? They scream the sky is about to fall? And, regardless of how well things are working they find something to complain about. During my childhood, a picture frame hung on my parent’s bedroom wall. ‘God give me the Serenity to accept the things I cannot change, the Courage to change the things I can, and the Wisdom to know the difference.’ I don’t know of a more powerful set of words. Dr. Norman Vincent Peale preached the concept of Positive Thinking. Dr. Robert Schuller and Napoleon Hill suggested outcomes are manifested with our belief, our thought, and the way we speak. Those who believe good things will happen are usually the ones who have a good life. Personally, I’d rather hang-out with people who are excited about life, speak with gratitude for what they have, and believe the future will be even better, rather than listening to some grumpy victim who blames everyone else for their lost position in life. With that said, I fully acknowledge my complaining about those who complain is doing the same thing they are doing and I’m not any better than the complainer. So, I’ll stop now. The good news…real estate ownership in the Sioux Empire has out-performed any year we’ve had in several decades and our economy today is one of the best in the Union. The future is bright and South Dakota continues to be a great place to live. We are free, friendly, and happy people. And when it doesn’t snow or rain we usually see the sunshine. Living in your house should fit your lifestyle as well as it can. When we change, the way we live changes, and so should your house. Discovering how to maximize your happiness in your home is our ultimate goal. We invite you to call or text…605.359.4100 Tony Ratchford, The Tony Ratchford Group

The holiday season in my world starts on Thanksgiving and ends on New Year’s Day. It’s a time of celebration for many special days. This year Thanksgiving was a little different for our family, as it was for many people due to Covid-19 concerns. Usually, everyone is at the dinner table, but not all of us made it this time. Thankfully, we all shared the same food and were together in spirit.

In between food preparation, children playing, and football games, there was one conversation about a video from social media. The person making the video was engaged in a highly emotional rant about another person’s behavior. I was surprised to hear such ugly talk of degradation and demand by the ranting person that the other person should do as the ranting person wanted.

Thanksgiving for many people in America is based on the Founding Fathers showing their appreciation for abundance and their praise for God. This video did not exemplify the spirit of the day or the season.

This made me think of how far we have journeyed from the beginning days when we respected freedom, self-reliance, and acceptance as standard principles. When we can’t see past ourselves, how do we discover humiliation, and how does gratitude settle in our soul without it?

We think of Christmas as giving presents. I’m wondering what our lives would look like if our present to others was a projection of gratitude, courtesy, respect, and love?

So, you may be asking, ‘what does all of this have to do with housing?’ It doesn’t. It’s just my prayer for the world. But, if you are looking for a really great gift, a new house is the one gift that keeps on giving every day of the year. Low mortgage rates and a strong economy easily opens the door for upgrading or downsizing. When you match your lifestyle with the ideal home, you will experience more happiness over the years and it’ll be a good investment too.

May you have fabulous holiday celebrations and a Merry Christmas!

Tony Ratchford