What does a real estate agent actual do anymore? Before 1995, when the Internet became a major factor in the industry, real estate agents controlled most of the market data. This meant that when someone wanted to buy or sell a home, they almost always needed to work with an agent to get the most out their transaction. Information regarding sold homes, homes for sale, and other components were protected. Consumers had few opportunities for their own research.

Things have changed considerably since then. The Internet has made information more available than ever before. Buyers have access to homes for sale and are doing most of their research on their own; and sellers can now determine a range of value with only a few hours of research. The Internet has had a profound impact on the home buying and selling landscape as it shifts the control of the information out of an agent’s hand and into the consumer’s hand.

So, why do you need an agent? Simply stated, information doesn’t always relate to wisdom.

While some agents are still operating as if things haven’t changed, savvy agents are finding new ways to create value for their clients. They have become more like consultants, rather than just clerks. They realize they are not hired to simply provide a list of homes for sale or homes sold. They now must help their client understand the depth of the process, work with them to find answers, give guidance to help them make wise decisions, and develop a path to complete their dream.

A great agent is someone who takes the time to fully understand their client’s current situation and comprehend their desires, before doing anything else. They are no longer just facilitating a transaction.

When selecting an agent, find someone who cares more about you than themselves. You can tell this type of agent because their primary concern is gaining a full understanding of your goals and values. They know how to ask the right questions without being pushy, and actually listen to your answers. They are able to fully understand who you are and what you want to do; they might even be able to better understand, more so than yourself, why you want to do what you are doing.

The ability to listen and communicate effectively is directly related to an agent’s empathy for you and your situation. Their ability to relate to who you are enables them to better understand and identify what’s best for you in the short and long term. Looking out for your best interest at all times is paramount.

During your decision-making process, take the time to examine an agent’s skill, knowledge, and access to the tools needed to help you make wise decisions and ultimately deliver a better outcome. It’s also important to know what makes a great client; to know it’s a team sport, that it’s incumbent upon you as the client to become knowledgeable of the data, proactive with communication, and work together with the same focus and goal of getting you happily moved, maximizing your dollars, and saving you valuable time.

We invite you to call

Tony Ratchford, Real Estate Broker, CRS,ABR

The month of March is hopefully the last of winter and a welcome first step into spring. It only seems appropriate to be introduced by Easter as both bring a time of renewal and renewed energy.

To me, the seasons of the year are a metaphor for the way we think of the world we live in. Winter can be long and dreary, similar to what the economy and the housing market have been for the past several years. And just when we feel the weight of it all, the sun breaks through and days are filled with new life.

There is much to cheer about this spring. Home values have mostly stopped falling, and are even rising in many sectors and price ranges. Interest rates are still low, and the local economy continues to keep 95% of us employed.

Yes, both buyers and seller have much to be thankful for. Every day there is an opportunity to celebrate the beauty and success this city and surrounding area has to offer, and yet I sit and wonder why some focus so much on the negative.

There has been something on my mind of late, and that is the state of how we commit to our way of life. During my most formidable years I was a Boy Scout, and later, a student at a Catholic military school; this is when I learned the most valuable foundation of life. It’s about the joy we get, and the energy we get, from the accomplishment of value driven goals.

I have been training agents at the new Keller Williams Realty Market Center in Sioux Falls and it drives me to reach for principles of greatness, both for the individual as well our community. The training is about value creation and moving forward with new ideas. It’s how we address agents to be better at what they do, so they can help others have a better outcome. The success of the agent is a direct reflection of their capability in giving value to their client. It’s a win-win situation, and everyone is better off for it.

During this spring and Easter time, I pray we never lose sight of what has made this city, state, and country as great as it is. It’s about principles and values; it’s about doing the right thing all the time.

Concluding my thought for today is an oath professed by many, and embraced by the really great ones.  It’s the mission of the Boy Scouts of America, which is to prepare young people to make ethical and moral choices over their lifetimes by instilling in them the values of the Scout Oath and Law:

‘On my honor I will do my best to do my duty to God and my country and to obey the Scout Law;
To help other people at all times, to keep myself physically strong, mentally awake, and morally straight. To be Trustworthy, Loyal, Helpful, Friendly, Courteous, Kind, Obedient, Cheerful, Thrifty, Brave, Clean, and Reverent.’

May your life be filled with sunshine and joy this spring. And, just for the record, purchasing a new house can be an invigorating experience. We invite you to call.

Tony Ratchford

Real Estate Broker, Member Manager of KWRSF

“He that waits upon fortune is never sure of a dinner”, Winston Churchill

There have been many times in the past when it was a great time to purchase a home, and this might just be the very best financial opportunity in decades, and the best we’ll see for decades to come.

Values dropped steadily over the past five years or so, and are now just beginning to rebound. Interest rates are still at historic levels with rates near 3.375% for a 30 year loan and 2.750% for a 15 year loan.

The key measurement is the buying power ratio to household income. This is referred to by the National Association of Realtors as The Housing Affordability Index. One can get more features and space for their money than any other time. In other words, when someone decides to spend 25% of their gross household income for housing, they will get the most and best features ever.  Just since 2009, a homeowner can either purchase 15% more house or spend 15% less on their house payment.

When one thinks of housing, they ultimately think of how that house will impact or fit into their lifestyle. With lower rates, and low home values, the lifestyle is enhanced when it comes to housing comfort.

On the other hand, sellers today are also in a great position. Since the peak of housing prices in 2006, values have consistently loss ground. That ended about a year ago, and from all indication, prices have begun to rise. Some brackets have just stabilized while others have increased, but this will be short lived. There is now a shortage of homes, and new construction won’t be able to catch up from past demand quickly enough, therefore all price ranges will see an opportunity for price improvement.

So what does all of this mean? Simply stated, buyers are buying at the bottom with historic low rates, and sellers can finally sell without having to take less than they had hoped.

The empty nester can sell and move down; the move up buyer can sell and move up; and those just wanting something different can rest easy knowing they can actually make a plan and count on it happening.

The best part of this scenario is it’s not just my opinion, a simple review of historic cycles will validate the hypothesis.

Some of the best words spoken were by Winston Churchill, “Those that fail to learn from history, are doomed to repeat it”. It’s remarkable what we can learn from history.

One can also decipher from our present market condition,’ those who sleep will miss a great opportunity’. These conditions will not last forever. We don’t know when buyers will begin to lose their buying power, but we know it’s closer today that yesterday.

One last thought, ‘Experience tells you what to do; confidence allows you to do it’. We have the experience and invite you to call.

Tony Ratchford, Real Estate Broker, ABR, CRS, SRES, Operating Partner for KW Realty Sioux Falls

The well know philosopher, Abraham Maslow wrote about the ‘hierarchy of needs’ and the psychology of motivation in his 1943 paper “A Theory of Human Motivation”. Illustrated in the shape of a pyramid with physiological on the bottom; safety, love, and esteem in the three middle layers, and self-actualization on top. The theory is driven by the need to satisfy each level before we move on to the next. The foundation level is basically survival.

Some people are simply motivated to survive while others strive to reach the top. One must ponder the question ‘how does one find the energy and drive to continue beyond the first or second level?’

Dan Sullivan from The Strategic Coach® has stated “We are only as big as our Contribution.” Personally, I find this statement exceptionally profound and perhaps the ultimate motivation for growth and happiness.  The more we give the bigger our own life becomes; the greater the satisfaction we receive as we climb the pyramid.

Contribution has its own meaning for each individual. It may be about giving money, time or energy, and for some it may be education, encouragement, or prayer. It may be simply defined as ‘the giving of something to another for the betterment of the other person’s life.’

It’s interesting, when I see someone giving freely of themselves, it seems they become larger than they were. They transcend to the level of self-actualization or beyond.  When remembering the great ones from history, it’s their legacy of contribution that survived.

When Keller Williams Realty International chose to position itself in Sioux Falls, they asked us to join them. The first question we asked was ‘what can they contribute to the community, to the agents, and to us?’ Any hesitation was short lived as we observed their foundation of education and sharing within every facet of their company; an ideal approach where everyone wins.

A normal day at KW is loaded with teaching and learning opportunities. The underlying goal for every agent is to learn how they can deliver more value to their clients; to ask the question ‘What are we contributing to the transaction?’ When it’s over, did everyone feel like they received value from the experience?

In a world where too many people have their hand out, expecting someone to give them something without return of value, it feels good to know that we had a part in helping others find the right home, or sell a house, or dispose of a burden so they can move forward. A winning attitude and a desire to make the world a little better place to live can be an exciting and fulfilling experience.

We are proud to be affiliated with an organization that is focused on giving; we think you will be too.

We invite you to call.

Tony Ratchford, Real Estate Broker, CRS, ABR, SRES. Operating Partner KW Realty Sioux Falls

The beginning of a new year is always exciting. We get to start over with fresh ideas, new commitments and readjustments. A question that comes to my mind is ‘am I on track to reach my ultimate goal?’

You may have heard the statement ‘begin with the end in mind’. This simply means to set your eye on the end result and work backwards. It also starts our brain thinking of what we must do to get there.

Dan Sullivan from The Strategic Coach program suggests we begin this thought with a lifetime goal; your legacy or the most important thing for us to accomplish. The point is, we move in the direction of our most dominant thought, and providing we have one, all of our actions ultimately lead us there.

Recently, I attended a funeral and the general comment from those who were there was ‘I don’t recall an unpleasant time when he was around’. Others spoke of him as a great friend, funny guy, always upbeat. What will they say about you?

Starting with the end in mind allows us to then move backwards. Where do we need to be in 25 years, 10 years, 5 years, 1 year, one month, one week, and today? ‘What do I need to do today if I am to reach my ultimate purpose in life?’

Purpose is driven by our values. What is it that gives us energy and drive; a reason to get up each morning and get us through the hard times? Unfortunately, there are too many people who ignore this thought. They move through life each day not fully understanding where they are going and how they are going to get there. When centenarians are asked how they have lived so long, each one has an answer. It may be simple, or complicated, but they all have a strong sense of what kept them alive.

So, what keeps you alive? What is it that motivates you to keep going? Where do you find your happiness? Can you see yourself in 5 years or 25 years?

This is the beginning of my 35^th year in real estate, and I’m just figuring it out. It’s strange to say, but it’s taken me a while to find it. Thankfully the vision becomes clearer each year. The hope is to simply make my little piece of the world a little more pleasant than it would be without my help. It might be helping someone clean up an ugly financial situation by getting their home sold; or helping a divorcing couple heal faster by selling their home quickly; or helping bring more joy with my assistance in getting someone their ideal home. The goal is to provide value in what I deliver; that my clients feel the money they gave me was worth it. I’ve discovered this also applies to my friends, Realtor associates, and family as well.

My wish for you is that you find clarity about your purpose in life and that when it’s all over, it not only benefits you, but everyone you encounter.

Of course, it would be remiss of me not to mention that owning a new home, or selling an old one, may be part of that joy in your life. 2013 will be a perfect year to do both.

As always, we invite you to call.

Tony Ratchford, Real Estate Broker. CRS, ABR, SRES

It’s interesting; some people think it’s inappropriate to wish someone a Merry Christmas, not politically correct perhaps. One could argue its Christmas, regardless of your belief or religious practice, and not much different than wishing someone a happy New Year or Thanksgiving.

The meaning of Christmas may differ with age, country, or belief. Young children may think of gifts, others see it as a time to celebrate the birth of Christ, and others just a time for fun. Whatever your reason, we hope you will enjoy this season as a time of joy with family and friends.

Our gift to you this year is a promise to be even better real estate agents; to be diligent in our actions and forthright with advice, to do our best with research and share the information without bias, to deliver what we say we will, and to finish what we start.

We will remember to be grateful for the gifts of appreciation we receive from our past and future clients, friends, and acquaintances when they say ‘well done’ and ‘thanks for the help’, and ‘can you help my friend too?’

We hope all will remember to stop for a moment and breathe in the goodness around us. To think about the innocence of life; perhaps a past Christmas spent in a small town with no television, no smart phones, no emails, no internet, and all retail stores were closed. A day spent with neighbors and home baked cookies on a plate, family members, a gift or two, and a real Christmas tree from the local Jaycee’s. Later, maybe build a Snowman, go sledding, have a snowball fight, or even some Caroling.

That was yesterday, and some would say a little boring. I would agree, yet sometimes it feels good to slip back in time for a day, or even if only for a few minutes just to remind of us when life was more focused on the simple things.

May you have the best of all Christmas seasons, and of course, Happy Holidays to all.

Tony Ratchford

The Ratchford Group

Keller Williams Realty Sioux Falls

The Election is over and the American people have spoken—the majority are still hoping present economic policies will take hold.

2012 was a recovery year for real estate. Some say it’s because of the improving economy, but the truth is that it’s more about a response to economic cycles. So, what to think about the next 12 months?

It’s a fact: economic patterns are a natural progression and regression of supply and demand. What goes up eventually will come down, and what comes down will eventually go up. The government can intervene and try to affect markets, but it is usually short-lived and filled with unintended consequences.

The government’s ‘fix’ to the housing collapse over the past four years hasn’t moved the needle one degree to the positive; on the contrary, some of us would argue it has had a severe negative impact. It was government intervention in 1976 and an enhancement in 1995 with the Community Reinvestment Act that not only created an artificial market, but also demanded that lending institutions make high-risk loans to low-income and minority groups. It was HUD’s responsibility to enforce the desired results. The best vehicle to ensure ‘balance’ with proper ratios of low-risk and high-risk loans came under the guidance of Fannie Mae and Freddie Mac.

Most of us know the rest of the story; Fannie Mae led the ‘bubble’ with assistance from Congress. Eventually, new policies were put into play, not only for low-income earners or minorities, but for most everyone. Loans with no money down, interest only, and no documentation needed for stated income or assets became common. Many mortgages were made that shouldn’t have been. When it was time for repayment, too many couldn’t. That is when the collapse began and the ‘house of cards’ crumbled.

Hoping to make a soft landing, the government intervened and postponed the inevitable full market crash. We know now it was more painful to extend a market drop than to allow a quick drop. A fast crash would have hurt many people (mostly those who should not have had loans) but not as many as it has. Studies indicate 18 months of distressed financial condition is about as much as any household can endure. By dragging out the recovery, more people were pulled into the housing depression through job loss, transfers, divorce, or just plain financial troubles. We still have a backlog of homes in foreclosure or with less value than what is owed.

The saving grace, locally, is that a low number of newly constructed homes were built over the past 5 years—fewer than the number required to keep up with population growth. So now we have a slight housing shortage. Builders are back, and home values are beginning to increase.

As long as population growth continues, 2013 will be a good year for homeowners and home buyers (thanks to low interest rates). We still need economic recovery to put people back to work; unfortunately, there are government policies still looming overhead that can get in the way. Only time will tell what lies ahead. In the meantime, expect more of the same from the Federal Reserve with low interest rates and dollar devaluation. We believe it’s important to protect against stagflation or inflation; one very good method is to be invested in hard assets…we believe homeownership is your best start.

As always, we invite you to call. We wish you a very Happy Thanksgiving.

Tony Ratchford. Real Estate Broker, CRS, ABR, SRES

Operating Partner and Responsible Broker for KWRSF

It’s been an interesting year. And as I reflect on the people I’ve meet lately, one thing stands out as significant—there are really only two types of people: forward thinkers and backward thinkers. I must admit, it’s a little hard for me to fully understand backward thinking; my life rarely goes there, even though I know “those who ignore history are doomed to repeat it.”

Granted, we should look in the rearview mirror on occasion to see what went on behind us; it could give us perspective to realign our direction. But we ought not to watch for too long or we may end up in the ditch. A quick glance, and then forward, keeping our focus on the road ahead.

This year may give us pause. As we look backward, there is too much collateral damage and it’s hard to take our eyes off of it. Too many people have been hurt financially, emotionally, and physically. We want to keep our focus on the goodness of our world, but it appears to be going the wrong way. Did we take a wrong turn? Get bad directions? Or, has the tour guide taken us down the wrong path? Certainly the scenery isn’t as pretty as it was ten years ago. Let’s trust that we get back on track soon as it’s been too long finding a smooth road and clear skies.

At least there is good news from the real estate world, and we have the perfect bus to take us forward. Keller Williams Realty is a progressive and innovative real estate company. The business structure is agent centric where we experience real time changes from the streets. 24 Hours, 7 days a week, we see videos cross our monitor screens from around the country; informing us about new and better ways to provide value and increased results.

It wasn’t a quick glance for us at Keller Williams Realty, but a long look in the past to see how far behind we were. The real estate profession, like every other business since the commercialization of the Internet, has changed so much. We were comfortable collecting our paychecks, doing the same thing for years, hoping the Internet wouldn’t affect us. We wanted to march out our years and be thankful for not having to master the use of a smart phone; sometimes backwards thinking feels good. Unfortunately, it wasn’t beneficial for you.

The fact is, the world has changed and KWR has done its best to wake up the community. So far so good—now that the fog has lifted and the direction is clear, we can focus purely on moving forward.

The economy in the Sioux Empire has weathered the storm well and real estate values are rebounding nicely. Hopefully a visionary tour guide can put us on a sustained path of easy driving. We can only hope? Or, maybe we can change ‘hope’ from destructive to constructive activity.

We are here to prove there is a better way, and invite you to call.

It’s interesting to hear or read how someone perceives his or her definition of leadership. The dictionary describes it as the position or function of a leader, a person who guides or directs a group; or, a critical management skill, the ability to motivate a group of people toward a common goal.

My personal opinion is it’s the ability of a person to guide someone else toward the clarity of his or her desire. In other words, a leader helps another person to help themselves—to discover what motivates them to action. This, of course, requires the ‘follower’ to have thinking ability.

There are those who prefer not to think: “just tell me what to do, and I’ll do it.” I suspect this could be a form of leadership too, but that is a discussion for a different day.

The best skill a leader has to offer is the ability to ask great questions. The better the question, the better the answer and outcome.

Great leaders have the extraordinary ability to see a vision no one else can see immediately. Then, it is through a process of discovery and guidance that the leader is able to share and influence others to see the same vision. However, this vision must be congruent with their values if it is to be accepted and acted upon.

How this works for leaders in the real estate world, when working with clients, is to ask relative questions about their clients’ lifestyle values and beliefs and how they want to enjoy where they live. This is the primary focus of The Dream Home Process. To help people understand their desire for a certain feature in their home is driven from a benefit that is tied directly to their value system.

Too often, there is little clarity of why people want what they want. A good leader knows how to ask the right questions and dig for answers of great clarity. As leaders in real estate, the Ratchford Group leads clients to their own discovery of ‘what’s truly important to them.’

In the absence of a leader, there is little direction. We walk around aimlessly looking for answers. Eventually we could get where we want to go, but it may take longer to get there. We may not get as good a result as we hoped for, and we may be anxious the entire time from not really knowing if we can achieve our desired outcome.

It is the true leader who can help people to help themselves. One must remember there is a difference between leaders. There are those who want the best for you and those who want the best for themselves. It’s always driven by integrity; one is a great leader and the other is a ‘con’ artist. One must be cognizant of their history and their actions. A wise man once told me “to listen to half of what someone says and all of what they do”, and “to show me who their friends are and I’ll show you the true meaning of that person.” It has served me well.

The Ratchford Group has been around many years and has been involved in thousands of transactions. We pride ourselves on being good leaders. We ask good questions and follow your answers; together we find the right path and right outcome. We invite you to call.

Tony Ratchford,

Real Estate Broker, The Ratchford Group

Operating Principal, KWRSF

It is now just three months since Keller Williams Realty came to town. Nearly every day someone asks me why we would invest in such a large project (perhaps at my age) when things at The Ratchford Group were going so well.

I heard in the news recently that some people believe companies and people don’t actually build their businesses—that they aren’t responsible for the success. This gave me pause, and I actually spent some time thinking about how companies become successful. My conclusion is that they must create and deliver value to the customer/ consumer or the customer will not participate with the company. It’s that simple. It is the definition of Free Enterprise and Capitalism. Trading things of value, for something of value—this is what we all do every day, in some form or another.

In the case of hiring a real estate agent, a seller gives up a rather sizable sum of money for an agent’s assistance at getting their home sold. When all parties walk away from the closing table, one has to wonder if the benefit exceeded the cost? If the answer is yes, the seller justifies the services of the agent. On the other hand, if the answer is no and the benefit doesn’t exceed the cost, then it wasn’t a win-win transaction for everyone. It’s not truly a happy ending.

We have a tag line at Keller Williams Realty Sioux Falls, ‘no one truly succeeds alone’, which takes me back to the belief of some people ‘that success comes from someone other than the person responsible’. I disagree, we all need help and assistance, but I believe with all my heart that success happens because the responsible person cares more about delivery of service and results than the fee they receive. The more value a person can deliver, the better the outcome, and the greater acceptance for future business. Everyone wins: the consumer, because they received a fair value for services rendered, and the agent for the fee.

Keller Williams Realty is the fastest growing real estate franchise in the world, and close to the largest. This didn’t just happen; it was a 25-year progress of discovering what consumers want for their money. We are proud to be part of a company that is committed to delivering better and more ways of providing service with even greater value.

The Cornerstones of Value at KWRSF are cutting-edge Technology and our presence on more than 350 websites, commitment to a high level of Education with daily on-site training, an attitude of Win-Win for everyone, and a culture of Caring and Sharing. We believe it’s a new experience, and we invite you to call.

Tony Ratchford,

Real Estate Broker, The Ratchford Group

Operating Principal, KWRSF