Are you ready for Winter? It's time to bundle up!

Inspect Roof, Gutters & Downspouts

• Replace warn shingles or tiles
• Clean out the gutters, flush out debris
• Check integrity of flashings to prevent water from entering
• Direct all down spout away from the foundation
• Correct and repair areas where water may erode the perimeter foundation
• Consider having leaf guards installed especially during the winter as it may become difficult to clean during slick weather

Openings, Doors & Windows

• Inspect, repair & seal exterior cracks
• Weather strip doors and windows
• Replace cracked windows
• Replace windows with broken seals, if within your budget
• Use shrinkable plastic sheets over windows with broken seals, alternative to replacing windows
• Install storm windows in place of summer screens, not typical in the Northwest
• Use shrinkable plastic sheets over basement windows to minimize heat lose

Prevent liquid freezes

• Remove water from the garden hose
• Drain liquid from air conditioning pipes
• Remove standing water from sprinkler system
• Keep the internal temperature at least 55 degrees when on vacation
• Insulate plumbing pipes
• Know where water shut off valves are in case of emergency

Weather proof service equipments

Drain service equipments, any equipment that uses fuel and left in unheated storages

Equipments to have for this coming winter

1. Snow blower! It will be worth your investment, could even possibly make some money like mowing the summer lawn, except you can plow the snow for the neighborhood(s).
2. Snow shovel, a standard must haves
3. Bags of Ice melt or sand

Be Aware of Furlong Days

What in the world is a furlough (pronounced as "fer-lo") day? Most of you who've been through a real estate transaction know that it is a term referring to courthouse closure.

In a real estate sale, a property isn't considered sold until it gets recorded. This also means that if you are the selling party you will not get your funds until it gets "officially" recorded and as a buyer, you can't get the keys until the funds gets dispersed.

Since the economic down turn, some public sectors (i.e. government) have created created a day off, a measure to work around employment expenses by having a non-paid day off for its employees. What does this have anything to do with us in real estate? It can affect our closing dates and can cause unnecessary stress if not seriously considered when determining closing dates.

From any given perspective having an un-intended closing date falling on or near a furlough day can create momentary havoc and frustration when closing gets deferred especially if there are other events depending on this one closing date, i.e. first time home buyer's tax credit, a contingent sale of another resident, moving trucks due to arrive, rate locks. The potential worst case scenario is that one can either lose a buyer or a house; the buyer can lose their Ernest money deposit and/or loose a rate lock; or a lost opportunity for a one time deal or benefit(s).

So, when you plan for a closing date not only should you include your vacation days but a furlough day or two.

Events to consider when choosing a closing date:

1. Beginning and ending of the months are chaotic for escrow and lending
2. Government holidays
3. Weekends
4. Furlough days
5. Qualified first time home buyers $8,000 tax credit must close by the 30th or on or before the 25th of November
6. Preplanned personal events, i.e. graduation, weddings, etc.
7. Rate lock expiration day; some lenders will not allow for extensions
8. Benefit and incentive expiration dates

Courthouse closures:

• Monday October 12, 2009
• Wednesday November 11, 2009
• Wednesday-Friday November 25-27, 2009
• Thursday December 24-25, 2009

New License Law: Turning Sales Agents into Brokers

2010 JULY 1

RCW 18.85 Real Estate License Law


The new real estate license law will require all existing real estate licensees to upgrade their sales license by taking a Transitional course which may entail legal and duty updates. I believe the primary reason for this new addition is to divert more accountability and responsibility on sales agents and have more newly licensed agents become more competent with real estate practices and real estate law. Every licensed real estate agent is required, yearly, to take 30 clock hour course plus a 3 clock hour core class to renewal their license.

†Parties interested in obtaining their first time real estate license will be required to:
1. Be 18 years or older
2. Have a high school diploma or an equivalent
3. Take a 60 clock hour Fundamentals Course*
4. 30 clock hour Washington Real Estate Practices Course*
5. Pass the course exam and the State Broker's exam
6. Submit application and pay for license fee
7. Complete fingerprint & background check

†Real estate agents who are renewing their license for the first time will be required to:
1. Take a 30 clock hour Advance Washington Real Estate Practice (WREP) Course**
2. 30 clock hour Real Estate Law Course
3. 3 clock hour Course class
4. 3 clock hour Transition Course

†Real estate agents who are completing their consecutive renewal will be required to:
1. Take a 30 clock hour continuing education course
2. 3 clock hour Transition Course
3. 3 clock hour Core class.

Associate Brokers, Branch Managers or Designated Brokers will need to take a Transition Course before renewing their licenses after July 1, 2010.

Pre-licensing Managing Brokers are required to:
Current requirements of 120 clock hours are required with proof of 2 years of active licensure will be replaced with:
1. 90 clock hours after July 1, 2010
2. The following 3(three) classes are required:
a. brokerage management
b. business management
c. advanced real estate law
3. proof of 3 (three) years of active licensure

Everyone will be required to complete fingerprint & background check to renew their license every 6 (six) years. If their background checks don't come clean they may be subject to Real Estate Department of Licensing board for review to decide the fate of their license.

However, if a licensed individual is delinquent in child support or default in their education loan, their license can be revoked or inactivated.


*Real Estate Fundamentals and Real Estate Practice courses must be completed within two years of taking the exam.

** Those that have completed the standard WREP course may be able to apply some/all of the hours towards their continuing education credits. Check with your real estate company to confirm.

†The salesperson's license will automatically become a Broker's license after course completion & renewal of license after the law takes effect.

Links:

• WA State of Licensing: Real estate
• Washington State Department of Licensing: Salesperson requirements, Broker requirements, Broker renewal
• Interested in getting a real estate license? Rockwell Institute
  
  

Smart Market Report (SMR) October 2009

(Double click picture to enlarge report.)

Smart Market Report courtesy of Ron Sparks, designated broker of Coldwell Banker Bain of Bellevue.

Ron refers to the report as a market demand report. He came up with a formula years ago while selling his property, nearing the beginning in the upturn of the market when people didn't know how high to price their property to make the most profit. In today's market it's a matter of determining the optimal low of the market without pricing it so low as to give it away.

The strategy is to determine if it is a buyer's market or a seller's market. Once you can decipher which it is and at what range, price the property accordingly. If neutral is at 4.5 and 1 and 9 are the extremities then numbers nearing or surpassing these extremities requires aggressive pricing; whether that aggressive pricing requires an increase or a decrease, it must exceed more than a few thousand, it may require several thousand, or tens of thousands.

Shred It Event, Saturday November 14th

Saturday, November 14th
12:00 Noon to 2:00pm

Shredding is a simple, effective way to protect yourself from identity fraud.
ID theft costs Washington State residents nearly two billion a year.

To help protect this from happening to you, bring up to three grocery bags per individual of your old documents to a FREE Shred Event to be hosted by the Coldwell Banker Bain Redmond Office.

This is a secure, green and convenient event just for you!

Location:

Bella Bottega Shopping Center Parking Lot
8862 161st Ave NE, Suite 103
Redmond, WA 98052

Blog or Not to Blog

"Sticks and stones may break my bones but words can never hurt me." Houses are made of sticks and some with stones but can words really hurt them? Can the opinions of others matter, and can blogging hurt or help your property's image?

From the buyer's perspective, it is always helpful to get feedback on products we've never used or seen. When I buy online, I like to read through the negative feedbacks as well as some positive feedbacks. Some of the feedbacks are just useless, either too vague, or vindictive but there are those who give great honest and detail feedbacks that are invaluable. You will always run into the bad with the good. Intelligent consumers are quick to perceive the difference and are able deduce the best choices to make.

Just recently, the NWMLS data entry sheets have included two new fields option for sellers to choose from: Automated Valuation Models (AVM) and Prohibit Blogging. Checking AVM box will allow a price valuation (or estimate) of the property, a "zestimate". And by checking the Prohibit Blogging box, the seller chooses not to have other agents, apart from their representing agent, post blogs publicly about their property. The primary concerns for allowing other agents to post their opinions can create negative press for the property, induce low-ball offers and may negate negotiation efforts. However, there are no restrictions for consumers who may wish to personally blog about them.

Glaring Flaws

In the past, consumers rode the wings of their soaring home equity line of credit. Small ticket repair items seemed unimportant, doable. While big ticket items, such as a roof or siding repairs, stung temporarily, most gambled on their golden ticket of inflated home values to buffer or augment these glaring flaws or more plainly to justify their vanity.

Today, it would seem suicidal to take such a risk. Consumers are looking to have better energy efficient homes, i.e. newer double pane windows, gas stoves and not Barbie fireplaces. They are looking to have minimal repairs. Big ticket repair items will become glaring flaws and the small ticket items the final tipping point. Only to leave the seller minimal protection to shield their profit from the onslaught lists of imperfections. Sellers who once thrived as kings of the hill have become subservient to tight wad buyers or become victims to opportunistic peronas.

What are today's buyers looking for in a house?

• A Clean house, a home well cared for
• Newer Roof, less than 10 years
• No problematic sidings, i.e. Land Pacific (LP) siding (composed of wood scraps and resins & glue)
• Well serviced heaters and furnace
• Newer furnace
• Newer windows, less than 7 years
• New paint
• Newer appliances
• Wood floors, good hypoallergenic environment selling point
• Great lighting, better when it is natural lighting, especially in the Pacific Northwest
• Better insulation, not always thought of but highly recommended
• No moisture damage = no mold problems
• Remodeled, open & spacious kitchen
• Contemporary, classical floor plans with good flow and/or a great room style
• Consistency in the remodels
• Fresh scent, no harsh odors

What should sellers do before marketing their house? Increase the preceived values.

• Manage the Clutter
• Clean the house from top to bottom
• Get a thorough home inspection
• Prioritize the list of repairs
• Work on one room or one area at a time
• Follow the list of repairs that will give the house a face lift, repairs that communicates to buyers the house was well cared for and loved, i.e. new paint, fix leaky faucet, freshen up old dingy grout
• Keep within your budget
• Be consistent in the remodel theme, i.e. avoid mix eras
• Avoid over remodeling, i.e. a Waterford chandelier versus a good quality chandelier
• Keep paperwork & receipts on large ticket repair items, especially when they carry a warranty or guarantee
• Tidy the yard and garden space
• Get rid of house odors, invite an independent and outside nose to take a whiff
• Don't know what else to do? Try visiting open houses for inspirations, see your house from a buyer's perspective and get off the "My house is better than" attitude.

JD Powers Award 2009 Highest Customer Service

Link: JD Power Ranking of Real Estate Firms

Can you use a short sale addendum to get out of a deal?

A question was posed to the Washington Association of Realtors to whether or not a seller and seller's lender can use Northwest Multiple Listing Service (NWMLS) form 22SS (Short Sale) Addendum to terminate a previously mutually accepted offer, an offer that was signed off and agreed to by all parties involved.

22 SS Addendum Objective: Notifies buyer that seller will continue to accept (review or look into) other incoming offers subject to lender approval.

Question: Can the Seller use the 22SS to get out of an offer they had previous mutually accepted for a better or higher offer?

WA of Realtors said No. Form 22SS does not give the seller the "unilateral right" to terminate. It is a contingency which benefits the seller "in the event seller's lender does not approve buyer's offer." "In this case, seller's lender did approve buyer's offer and seller acknowledged agreement to lender's terms by advising buyer of lender's approval. In other words, the seller contingency set forth in form 22SS was satisfied [or was met]". "The seller misused form 22SS and buyer should be advised to seek legal counsel."

Something to Tink about, $8,000 Tax Credit Extension

Finding yourself scrambling to hit last minute deadlines? It is that time for the $8,000 buyer tax credit to be gone. The elusive tax credit extension have lead some buyers to oscillate and waylay their housing purchases in hopes that Uncle Sam will bring them what they need, time and money. Should Uncle Sam extend the tax credit?

Are there any downsides to this tax extension? The upside is touted by the National Association of Realtors (NAR). They have pushed a call to action to ask our government leaders to save the tax credit extended. Why are we extending it? Is it our intention to make the real estate world go round? Is it to help the home buyers achieve the American dream of homeownership? How about stimulating our economy? Seriously. Why do we have deadlines? Is there a downside to a tax extension? The money is coming from someone somewhere and it isn't from Uncle Sam. Tax payers?

Links:

· Buyer Tax Credit FAQs
· How to get the First-Time Home Buyer tax credit

Changes in consumer protection act to impact closing dates

How will the ammended Truth and Lending Act affect loan timeline?

1. If the buyer needs financing to purchase a property, the new Regulation Z (or REG Z, 226.31 & 226.32) can impact and can dictate the closing date, i.e. delayed delivery of a good faith estimate, rates have not been locked.

Mortgage Disclosure Improvement Act (MDIA’s) requirements:

• "Creditors wait seven [7] business days after they provide the early disclosures before closing the loan; and
• "Creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance [ i.e. 0.125%]." (Federal Reserve press release)

2. An increase of .125% of the APR from the initial good faith estimate or Truth and Lending (TIL) disclosure requires the lending part to revise and re-issue a new TIL to the consumer. Consumer must receive the newly revised TIL within three days before closing. However, if the lender chooses to mail the TIL disclosure, closing may occur on or after seven (7) business days after mailing.

• "Consistent with the MDIA, the final rule amending Regulation Z requires creditors to make good faith estimates of the required mortgage disclosures, and deliver or place them in the mail, no later than three business days after receiving a consumer's application for a dwelling-secured closed-end loan. Consummation [or closing] may occur on or after the seventh [7] business day after the delivery or mailing of these disclosures.
• "If the annual percentage rate provided in the good faith estimates changes beyond a specified tolerance for accuracy, creditors must provide corrected disclosures, which the consumer must receive on or before the third [3^rd] business day before consummation [or closing] of the transaction." (REG Z Docket)

As there are changes which may occur during the purchasing process, it is important to ensure that the estimated fees are accurate as possible. If the APR deviates more than .125% from the buyer’s initial TIL received, lenders must provide updated TIL and if they cannot provide it within three days prior to closing, then the closing date must be extended.

However, under personal hardship, the buyer may be permitted "to expedite the closing to address a "bona fide personal financial emergency", such as a foreclosure. (REG Z Docket).

*** Important to Note***

Lending Double Jeopardy

Some lenders may choose to add “padded” fees due to this new REG Z. The speculation is that these lenders maybe trying to:

· avoid possible delays in closing

· consider this requirement an inconvenience, which can be cumbersome when processing multiplicities of loans

· and/or avoid possible bad rating if their ability to perform is inconsistent, i.e. not able to provide good faith estimates in a timely manner.

It is assumed that they will remove the “padded” fees at closing but who is to say that they will remain honest and follow through with their good intent.

It is important that you review your HUD statement with your real estate professional or discuss it with your closing agent, i.e. escrow officer, to determine what standard fees are normally like (i.e. a general idea), what they should include, fees out of the norm, what are in the junk fees or fees disguised as something else, hidden fees.

3. A copy of the property appraisal must be provided to the consumer three days prior to closing. However, the buyer may waive this review period requirement for whatever reason.

Other changes that can influence closing timeline:

A. Changes in purchasing process can affect the APR and therefore affect the closing date.

• mortgage product (i.e. changing loan programs or types)
• closing/signing date
• loan amount
• unlocked rate
• fees by third parties, i.e. escrow or settlement agent.

B. Interest rates impact the APR. In order to get an exact APR, the buyer has to lock in their rate.

Choices to make before locking in a rate:

· determine loan program

· interest rate

· points &

· lock in length