The Aegis Auction

While Realtors, appraisers and auctioneers can argue whether it’s a “seller’s market,” there’s little doubt the cost of many homes in Harford County has doubled in the last few years.

Harford County’s residential market is hot, but not easy on buyers’ wallets, and very few people in the real estate business see a change on the way. “People want their money doubled in two years,” said Kay Deitz of Bel Air-based Kay Deitz Real Estate. “The sellers are going to get as much as they can,” said Walt Pratt of Walt Pratt Realtors in Forest Hill. Pratt said up the street from him, homes are selling for $500,000. “If you want a roof, it’s extra,” he said with mock seriousness. “The tragedy is our prices just continue to climb.” What’s the reason beyond the sky rocketing prices? Pratt and others claim it has a lot to do with it being a “seller’s market” in the county. A seller’s market is when there isn’t enough inventory in the buyer’s price range, but interest rates are low and buyers are jumping at whatever they can get. “It’s driving prices up,” said Dominic Corson of Corson Residential Appraisers in Bel Air. “They’ve gone up 15 to 20 percent in the last few years.” But while prices are getting ridiculous for many buyers, homes are still selling briskly.

“It’s not uncommon to put a house on the market and the next day you have three offers on it,” said Robert McArtor, owner of Advantage Real Estate Auction Sales in Fallston. “More people want to live here than there are houses. Houses may be selling for more than $300,000, but it’s more appealing to people who want to raise their kids in a better environment.”

McArtor said it’s been a great year for the auction business so far. Since January, his company has done more than $3 Million in sales, doubling last year’s profit. “That tells me sellers are smart enough to know it’s a good time to sell and two, it tells me they’re able to generate more money for their houses.” In some cases, people are paying more than what homes are worth, just to outbid the next buyer. In the auction world, homeowners who are selling are reaching or exceeding their reserved price, McArtor said.

Deitz, a Realtor, sees it differently. She said sometimes it’s a seller’s market and sometimes it’s a buyer’s market. “Buyer’s still have new homes to choose from,” she said. “I get calls every day from people asking ‘why hasn’t my house sold?’ They think 60 days is long. They expect to sell in four days.” Deitz as seen the market slow down, but she wouldn’t argue about the continued running up in prices. “It’s a huge challenge to find a townhouse under $150,000,” she said. “A lot of times I have to tell buyers they either need to change their price range or change the area they want to buy a home in.” Deitz said people look at real estate as an investment these days. They buy a house and plan to sell in two years at a big profit, but there are some disadvantages in such rapid turnover, such as capital gains and the very same competitive market the seller faces in then becoming a buyer.

“Let’s say you make a good profit when you sell your house,” Corson said. “But the house you buy after that is just as much. So, you can’t get ahead if you stay in Harford County.”

“People are asking just too darn much for their houses, and they’re expecting to get it,” Deitz said.
“That’s a scare for me,” Pratt said. “Customers on the rental side who want to buy are having a hard time going from rent to buy.” Pratt was also able to speak on a personal level for those buyers who are young and just getting started on their own. His son recently purchased a home, but he couldn’t do it without some help from his parents and in-laws. “It’s sad for the young buyer’s,” Pratt said. “It’s like going to the poker table with $10 and you need $20 to get in on the game. Even on two salaries, it’s hard.”

“A lot of people are eligible, they’re ready to settle in 30 days but they’re unable to find the house of their dreams,” McArtor said.

Pratt said Cecil County is getting a lot of would-be Harford customers because homes there don’t cost as much. People who are willing to travel a little farther to work but want more affordable homes are looking at bordering counties, he explained. The competitive market is also making it hard for “rookie” real estate agents to get a good start, Pratt added.

The popular time to sell and buy homes is in the spring and summer, while children are on school break and families have vacation time. McArtor said auctions lose half their buyers when children go back to school and Pratt, a Realtor, said it is the biggest time for listings. Deitz, also a Realtor said, however, that the market is always strong, year round. Especially around Harford County the past few years.